OTTAWA REAL ESTATE
Do Buyers Pay Real Estate Commission in Ontario?
In most Ontario transactions, buyers do not pay real estate commission directly. The seller typically pays the total commission out of the sale proceeds, and that amount is shared with the buyer’s brokerage, so the buyer usually receives professional representation at no direct cost.
There are exceptions, and a written buyer representation agreement now discloses them upfront, so buyers know exactly where they stand before making an offer. Understanding how commission works removes a common source of confusion.
Jason Polonski is a full-time Ottawa and Kanata REALTOR® with Right at Home Realty who explains commission clearly and transparently. Buyers can reach him by phone at (613) 601-9333 or by email at polonskiottawa@gmail.com.
How Real Estate Commission Works in Ontario
Real estate commission is a fee, calculated as a percentage of the sale price, that a seller agrees to pay their brokerage when listing a home. That total is then typically split between the listing brokerage and the brokerage representing the buyer.
Because the seller pays from the sale proceeds, the buyer usually pays nothing directly. Commission is not fixed by any authority and is fully negotiable between a seller and their brokerage.
This cooperative structure is what allows most buyers to work with an agent at no out-of-pocket cost, which is central to the value described in Jason’s guide to what a REALTOR® does for a buyer.
Do Buyers Actually Pay Commission in Ottawa?
For the large majority of Ottawa purchases, the answer is no. The seller’s brokerage offers a share of the commission to the buyer’s brokerage, and the buyer pays nothing directly toward it.
This is the standard arrangement on most listings on Realtor.ca, which is why buyer representation is accessible to nearly everyone. The commission is effectively built into the transaction rather than billed to the buyer.
That said, buyers should still understand the exceptions, since a written agreement will spell out any situation where a cost could fall to them.
When a Buyer Might Pay Commission
A few situations can leave a buyer responsible for some or all of their agent’s commission. Knowing them in advance prevents any surprise.
| Situation | Why a buyer might pay |
|---|---|
| For-sale-by-owner | No listing brokerage offering a share to the buyer’s side |
| New construction | Some builders do not offer a cooperating commission |
| Seller offers less | The seller’s offered amount is below the agreed rate |
In each case, the shortfall, if any, is set out in the buyer representation agreement before the buyer commits. A transparent agent discusses this openly at the outset rather than at closing.
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The Buyer Representation Agreement and Commission
The written buyer representation agreement is where the commission is spelled out. It states the commission the buyer’s brokerage will earn and clarifies whether the buyer is responsible for any difference if the seller’s side offers less.
This transparency protects the buyer. Real estate in Ontario is governed by the Trust in Real Estate Services Act and regulated by the Real Estate Council of Ontario, and before providing services, a brokerage must give the buyer the RECO Information Guide.
Reviewing the agreement carefully and asking questions ensures a buyer understands the commission arrangement before signing anything.
HST on Real Estate Commission
Real estate commission in Ontario is subject to 13% Harmonized Sales Tax. The tax applies to the commission itself, not to the purchase price of the home.
Because the seller usually pays the commission, the seller typically absorbs the HST as well. A buyer would only face HST on commission in the rare case where they are directly responsible for paying their agent.
The Canada Revenue Agency administers the HST, and a buyer’s lawyer confirms how any applicable taxes are handled at closing.
Get Cash Back When You Buy a Home in Ottawa
Can you get cash back when buying a home in Ottawa? Yes. Jason Polonski, a Chairman's Club REALTOR® serving Ottawa and Kanata, shares part of his commission with buyers — up to $3,000 cash back at closing.* You still get full-service, award-winning representation: expert pricing, sharp negotiation, and hands-on guidance from first showing to keys in hand. No cut corners and no rebate-only shortcuts — just real money back in your pocket when you buy your Ottawa or Kanata home.
Other Buyer Costs to Budget For
Commission is rarely a buyer’s cost, but other closing costs are. Buyers should budget roughly 1.5% to 4% of the price for expenses beyond the purchase itself.
These include the Ontario land transfer tax, with a refund of up to $4,000 for first-time buyers through the Government of Ontario, plus legal fees, title insurance, the home inspection and, for a down payment under 20%, mortgage default insurance from the Canada Mortgage and Housing Corporation. Jason’s guide on how much is needed for a down payment breaks down the full upfront cost.
Neutral guidance on these expenses is available from the Financial Consumer Agency of Canada.
Commission on New Construction Homes
New construction works differently. Many Ottawa builders offer a cooperating commission to a buyer’s agent, but some do not, so confirming the arrangement early matters.
One practical point catches buyers off guard: to have an agent represent them on a new build, the agent usually must register the buyer with the builder on the first visit to the sales centre. Visiting the model home alone first can forfeit that representation.
Jason registers his buyers properly and reviews builder contracts, which are written to favour the builder, so buyers have an advocate on a new-build purchase.
How to Protect Yourself as a Buyer
The best protection is a simple conversation. Buyers should ask a prospective agent how commission works, how it is usually covered, and whether they could ever be responsible for a shortfall.
A transparent agent answers these questions clearly and puts the terms in writing. Jason’s guide to choosing a buyer’s agent explains what else to look for, and members of the Ontario Real Estate Association and the Canadian Real Estate Association follow a code of ethics requiring transparency about compensation.
Understanding commission upfront means there are no surprises later, only a clear agreement both sides understand.
How Jason Polonski Works With Buyers
Jason approaches commission the way he approaches everything: with transparency and no pressure. He explains exactly how his brokerage is compensated, confirms that most buyers pay nothing directly, and flags any exception before it matters.
His hands-on background in construction and the electrical trades and a Bachelor of Commerce in Marketing and Finance mean buyers get both an expert advocate and a clear explanation of every cost. He treats his role as a move coordinator first, leading with honesty.
He has been recognized as Best in Ottawa Top REALTOR® for 2026, seven years running, along with Top Choice REALTOR® honours for Kanata and Stittsville. More is on the About Jason Polonski page, and current reviews are on his Google Business Profile.
Ready to Work With a Buyer’s Agent in Ottawa?
For most buyers, professional representation costs nothing directly, which makes the real question which agent to choose. Jason Polonski offers honest, transparent guidance from the first conversation.
A short, no-obligation conversation about goals, budget and timeline is the best place to begin. Buyers can reach Jason directly by phone at (613) 601-9333 or by email at polonskiottawa@gmail.com, or return to the full buying a house in Ottawa guide for more.
Do Buyers Pay Real Estate Commission (FAQs)
Answer
In most transactions, no. The seller typically pays the total commission from the sale proceeds, and it is shared with the buyer’s brokerage, so the buyer usually pays nothing directly. Any exception is disclosed in the buyer representation agreement.
A buyer might be responsible when buying a for-sale-by-owner property with no listing brokerage, a new build where the builder offers no cooperating commission, or when the seller offers less than the agreed rate. These are set out in the agreement upfront.
Yes, 13% HST applies to the commission itself, not to the home’s purchase price. Because the seller usually pays the commission, the seller typically absorbs the HST as well.
No. Commission is not set by any authority and is fully negotiable between a seller and their brokerage. It is calculated as a percentage of the sale price.
Arrangements vary by builder. Some offer a cooperating commission to a buyer’s agent, while others do not, so buyers should confirm the structure before proceeding with a new-build purchase.
Buyers reach out by phone at (613) 601-9333 or email at polonskiottawa@gmail.com. Jason begins with a no-obligation conversation and explains how commission works before anything is signed.
