1
  • Lets say a person owns 2 houses and wants to get rid of one.
  • Lets say usually its 5% listing (60/40) seller/buyer agent

In this case theres no buyer agent because seller is just looking to sell the home. Would the listing agent get a full 5%? or negotiable, lets say 3%? Also after that he'd pay his brokerage a split assume 10%, and does he also pay a tax on his commission? Lets say Ontario, Tax @ 13%. Would he also pay 13% of his commission for tax?

Thank you

Improve this question
4
  • 1
    Selling and buying are two separate transactions. A commission is due on each at the time it takes place. Size of the commission may be negotiable, or may vary from the traditional 5%. – keshlam Apr 25 '16 at 5:36
  • I paid 1.65% to my real estate agent when I sold a place last year here in Australia. The norm here is between 1% to 2.5%, and we usually don't have buyers agents (in the limited cases when a buyer does use a buyer's agent the buyer pays a fee to them, it has nothing to do with the seller). – Victor Apr 25 '16 at 7:34
  • 1
    @Victor - the more of your posts I read, the more I'd like to move down under. – JTP - Apologise to Monica♦ Apr 25 '16 at 21:43
  • 1
    @JoeTaxpayer - the more I hear about the new Canadian PM the more I want to kidnap him and bring him to Australia to lead our country, we have had some problems in that area over the last few years, but apart from that most things are pretty good here. – Victor Apr 26 '16 at 1:42
1

Commissions are always negotiable. When there is only one agent involved, yes, that agent gets the full commission. Because of that, you can usually negotiate a lower commission for that agent (though typically, when there is only one agent, it is the seller's agent). If the agent works for a brokerage, yes they will take a part of her or his commission and yes, the commissions are taxable as ordinary income for the agent.

Improve this answer

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.