REALTORS® have the freedom to set commission rates or fees for services offered to the public.
However, agents can unknowingly violate provincial and federal rules and regulations if they don’t adhere to the federal Competition Act (Act).
For example, while REALTORS® can set commission fees at whatever rate they choose, any agreement to fix commission rates is a contravention of the Act. REALTORS® are encouraged to be open and frank with their clients about the value they provide and why their fees represent fair and reasonable compensation. While the listing contract with a seller generally confirms remuneration payable, a Buyer’s Agency Exclusive Contract (BCREA Access required) can do the same when working with a buyer.
To help members follow the do’s and don’ts when it comes to setting your commission rates, and stay on the right side of the Act, the Canadian Real Estate Association has produced this video as a tool and quick reference for members to follow.
For more information, visit the Competition page on the CREA Learning Hub. (CREA login required).