Commission & Net Proceeds

In British Columbia, real estate commission is 100% negotiable. There is no government rate, no board-mandated rate, and no legally "standard" rate. BCFSA — the BC Financial Services Authority, the provincial regulator — and the federal Competition Act both make clear that any professional who presents a rate as fixed or standard is misrepresenting the market. You negotiate the total commission, and how it is shared with a buyer's brokerage, directly in your listing agreement.

What you will see across Greater Vancouver is a commonly used graduated structure: about 7% on the first $100,000 of the sale price and 2.5% on the remaining balance. This total is customarily split between the listing brokerage and the cooperating (buyer's) brokerage. Treat the 7% / 2.5% figure as a typical starting point for estimation, not a quote.

Yes. The Canada Revenue Agency treats a realtor's commission as a taxable service, so 5% GST is added on top of the commission. Importantly, this is true even when the property sale itself is GST-exempt — the resale of a used home is exempt from GST, but the commission on that sale is still taxable. The GST does not go to the agent; the brokerage collects it and remits it to CRA. In your net-proceeds math, always add 5% to the commission line.

Net proceeds is simply your sale price minus everything that must be paid at completion:

The "other adjustments" line typically includes:

• Mortgage discharge fee (~$200–$400) and any prepayment penalty for breaking a closed mortgage early
• Legal / notary conveyancing fees (commonly ~$1,000–$1,800 + disbursements + GST)
• Property tax and utility adjustments — if you prepaid property tax, the buyer reimburses your portion; if not, you may owe a credit to the buyer
• Strata move-out fees, outstanding strata levies, or holdbacks

Assume a Burnaby home sells for $1,200,000 with a remaining mortgage balance of $600,000 and the commonly seen 7% / 2.5% commission.

If the mortgage carries an IRD prepayment penalty, that could subtract several thousand dollars more — which is exactly why net-proceeds planning should happen before you list. Mortgage balance, penalty, and adjustment figures here are illustrative; your actual numbers come from your lender and conveyancer.

When you sell, your existing mortgage is paid off ("discharged") from the sale proceeds. If you are breaking a closed mortgage before the term ends, expect:

• A prepayment penalty, calculated as either three months' interest (common on variable-rate mortgages) or the Interest Rate Differential (IRD) (common on closed fixed-rate mortgages). For fixed rates, lenders generally charge the greater of the two. IRD penalties spike when current rates are lower than your contract rate.
• A discharge / administration fee, typically $200–$400.
• A borrower protection worth knowing: under the federal Interest Act, for a mortgage with a term over 5 years that you have held at least 5 years, the penalty is capped at three months' interest.

Get an exact payout statement from your lender before listing — the penalty can be the single largest surprise in a seller's closing costs.

In the large majority of BC transactions, the seller pays the entire commission from the sale proceeds at completion, and the listing brokerage then shares the agreed portion with the buyer's brokerage. BCFSA requires your agent to disclose, in writing, the remuneration their brokerage expects to receive on any offer you are considering — including how it is split with a cooperating brokerage — so you always know what you are paying and to whom before you accept.

Largely no. In 2024 the US National Association of Realtors settled antitrust claims for US$418 million and changed US MLS practices — buyers' agents there now need written agreements before showings, and compensation offers were removed from US MLSs. Those rule changes apply to the United States, not BC.

In British Columbia, commissions were already legally negotiable, buyer-agency agreements remain optional, and the only mandatory pre-service document is the Disclosure of Representation in Trading Services (a disclosure form, not a representation contract). A related Canadian class action against CREA's buyer-commission rules exists but, as of early 2026, has not been certified and has no trial date. Net effect for BC sellers today: no change to your obligations.