The average real estate agent commission in Prince Edward Island is5%, but it can range from 5% to 6%. This commission is paid by the seller of the home. If you are purchasing a home and you are not a resident of PEI, there are restrictions on the amount of land that you can own under the Prince Edward Island Lands Protection Act. Non-residents can only own five acres of land or less, and can only have shore frontage of less than 165 feet.
If you wish to purchase more than these allowed amounts, then you will need to obtain approval from the Island Regulatory and Appeals Commission (IRAC). An application to IRAC costs $550 or 1% of the property's purchase price, whichever is greater. Exceptions may apply for the purchase of personal property.
Prince Edward Island uses GeoLinc Plus for property and tax information. To get access, you will need to be registered with PEI's Taxation and Property Records Divisions. GeoLinc Plus allows you to retrieve information such as the property owner's name, property charges, property assessments, aerial photos, and lease codes. In order to apply for a non-resident exemption with the IRAC, you will need to submit aerial photos from GeoLinc Plus.
If you are building a new home, you may also be required to conduct a percolation test. A perc test is required in PEI to check for soil type when building a septic tank.
The above chart demonstrates the following: 5% commission on the selling price and a 15% tax that is applied to the total commission. The remaing values is what you receive.
|Province||Typical Real Estate Commmission Rate||Average Sold Prices of Homes in September 2020||Average Total commission Paid to Both Agents|
|Alberta||7% for 1st $100K and 3% for the remaining balance||$403,163||$16,095|
|Ontario||5% of total price||$741,395||$37,070|
|B.C. (Greater Vancouver Area)||7% for 1st $100K and 2.5% for the remaining balance||$801,039||$24,526|
|Saskatchewan||6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance||$403,163||$16,095|
|Manitoba||5% of the total price||$308,689||$15,434|
|Quebec||5% of the total price||$477,609||$23,880|
|Nova Scotia||$1,500 flat fee for properties under $25,000, and 5% of the total price for other properties||$319,726||$15,986|
|New Brunswick||5% of the total price||$203,907||$10,195|
|Prince Edward Island||5% of the total price||$300,538||$15,778|
|Newfoundland and Labrador||5% of the total price||$249,368||$13,091|
Ontario and British Columbia have some of the highest housing prices, which results in higher average total real estate commissions. Although British Columbia’s real estate commission rates are one of the lowest in the country, homeowners ultimately end up paying a comparatively higher real estate commission due to the higher average selling price of homes.