Quebec Real Estate Commission Calculator 2024
What Are Real Estate Commissions?
Real estate agents will help you with selling or buying a home in Quebec. Their commission rate in Quebec is typically 5% but it could range between 3-6%. You can negotiate the real estate commission with your agent, and most agents in Quebec will accept a rate between 4-5%. The real estate commissions rates in Quebec have decreased over time due to a large portion of homeowners choosing to self-list their home and forgo the services of a selling agent.
The commission rate is based on what you and your agent agree upon and can be found in the contract you sign with your agent. Find a local real estate agent and ask them about their commission rates.
Quebec Real Estate Commission
For Sale by Owner (FSBO)
When a home is listed as “for sale by owner” or “FSBO”, it means that the seller of the property has listed the property themselves and is not represented by a selling agent. It is estimated that approximately 20-30% of homeowners in the province of Quebec self-list their homes. Choosing the “for sale by owner” route allows homeowners to save money on real estate commission, but we recommend that you should have some prior real estate experience before choosing to self-list your home.
If you choose to self-list your own home, we recommend that you offer the buyer agent a commission so buyer agents will show your home to potential buyers.
Many popular websites allow you to self-list your home online. They encourage “for sale by owner” transactions by facilitating buyers to contact the sellers directly. These websites typically charge a small flat fee (for example, a few hundred dollars) that is much lower compared to traditional real estate agent commissions.
- Duproprio offers three flat-fee options for residential and commercial real estate listings. Their packages cost $699.95 (Classic), $899.95 (Premium) and $1,099.95 (Prestige). The services that Duproprio offers include photography of your home, property appraisal services, listing services, and legal advice by telephone. The services offered will differ depending on the package that you choose to purchase.
- For Sale by Owner Inc. allows you to list a property online for a flat-fee. For a price of $325, your property will be listed on the For Sale by Owner website and for a flat fee of $599, your property will be listed on the For Sale by Owner website as well as the Multiple Listings Service (MLSⓇ) System.
- Point2Homes is a real estate search website that allows a seller to list their home for free. If you are looking to maximize your exposure, Point2 also offers various advertisement packages that can help boost your listing and gain more visibility. For instance, the membership that gives you access to post a Silver Listing Ad starts at $199.
Real Estate Commissions for a $400K Property*
Commissions are estimates based on typical commission rates only and do not represent a standard or set rate for these regions.
Comparison of Real Estate Commission Across Provinces
| Province | Typical Real Estate Commission 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.
Should I list my home on MLSⓇ
The Multiple Listing SystemⓇ is owned and operated by the Canadian Real Estate Association (CREA). The MLSⓇ system has been operating for more than 65 years and is the predominant system that buyer agents use to browse potential properties for their clients. FSBO websites typically have their own listings and some may show MLSⓇ listings as well. If you list on an FSBO website, your listing will be shown on the specific FSBO website, but unless you purchase a package that includes an MLSⓇ listing, you risk not having your home shown to potential buyers that browse for a home on the MLSⓇ system.
Closing Costs and Costs of Selling
The closing costs are the costs associated with buying a home and include inspection fees, welcome tax, and lawyer fees. The closing costs can amount to approximately 3-4% of the purchase price of your home, so you should budget accordingly in advance.
The costs of selling a house include the real estate agent commissions, taxes on real estate agent commissions, and lawyer/legal fees.
Taxes on Real Estate Commission (QST and GST)
In Quebec, you are required to pay Quebec sales tax on real estate commission, which includes QST (provincial) and GST (federal). The Quebec Sales Tax (QST) rate is 9.975% and the Goods and Services Tax (GST) is 5%, which in total equals 14.975%.
For instance, if your total real estate commission is $20,000, then you will pay $2,995 (or 14.975%) in total taxes on the real estate commission.
Real Estate Lawyer (Avocat Immobilier)
In addition to the real estate agent commission, you should also consider the costs associated with hiring a real estate lawyer. Hiring a real estate lawyer typically costs around $500-$1000. There are two types of real estate lawyers in Quebec -- advocates and notaries. A real estate notary provides legal services to both sellers and buyers to ensure the transaction is completed smoothly while a real estate advocate helps resolve real estate disputes by representing their client in court.
The seller lawyer will provide the buyer agent with a letter of direction stating that any mortgages and lines of credit will be paid off using the proceeds of the sale of your home. The seller lawyer will also electronically transfer funds from the buyer to the seller and the real estate agents on the closing date.
The buyer lawyer will conduct a title search on the property to ensure the seller has legal ownership of the property. The buyer lawyer will also assist with completing the contracts for your mortgage and purchase and sale agreement.
