You and your REALTOR® will agree to this beforehand. There's no set fee commission rate in the real estate profession. Most Realtors are paid after ownership is transferred. Fees are typically paid to the real estate company by the lawyer or notary in the transaction, from the sale proceeds.
Compensation is always agreed to beforehand between you and your Realtor. The commission paid depends on the services your Realtor provides, which can vary significantly depending on your needs as a client or the business model your Realtor employs.
The standard Multiple Listing Contract provides that commission is payable on the earlier of the following: Completion date under the Contract of Purchase and Sale, or the actual date that the sale completes.
When is a commission or fee payable?
The Multiple Listing Contract states the fee or commission is payable on the earlier of the following: completion date under the Contract of Purchase and Sale; or the actual date that the sale completes.
Home owners typically want to spruce up their home to get it ready for sale. This can involve hiring landscapers, home stagers and even Feng Shui experts.
Home inspection fee
A seller may want to hire a home inspector to report on the condition of the home, including structural and moisture problems, and the electrical, plumbing, roofing and insulation. The fee ranges from $500 - $900 depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with secondary suite, a crawlspace or a laneway home.
Goods and Services Tax (GST)
The GST applies to fees of Realtors, contractors, and home inspectors.
- Property taxes - depending on the contract, you may be required to reimburse the buyer for prepaid property taxes if all parties agree to extend the time you remain in the home.
- Rent and security deposits: if there's a secondary suite or a laneway home rental and the tenancy continues, you'll have to transfer the security deposit with accrued interest to the buyer because the buyer is responsible for reimbursement when the tenant leaves.
Legal or notary public fees
Buyers typically hire a lawyer or notary public to assist with drafting documents and ensuring the title of the home is properly transferred.
Final utility payments
Sellers are responsible for utility payments until the date of possession.
Moving fees vary depending on the distance moved and whether professional movers do the packing. Rates vary.
Costs of clearing the property title
- Discharge fees charged by encumbrance holders; and
- Pre-payment penalties.
If you have questions about selling costs, contact your Realtor.
LOOKING FOR YOUR NEXT HOME?
Realtors work from a powerful business system called the Multiple Listings Service® (MLS®). The MLS® contains detailed information on home listings. Owned and operated by the Real Estate Board of Greater Vancouver and its Realtor members, Realtylink is powered by the MLS®. Use Realtylink today to find your next home