Commission is usually the biggest cost of selling a home in BC after paying off the mortgage, and it's the one sellers understand least. It's often quoted as a formula rather than a number. It's split between two brokerages, carries GST, and is sometimes described as "standard" when no standard exists. This page puts it in dollars at your price, shows where it goes, and explains what you can negotiate.
How commission works in BC
When you list, you sign a listing contract with a brokerage, not an individual agent. The contract sets the total commission you'll pay if the home sells. Through the MLS®, the listing brokerage offers part of that commission to whichever brokerage brings the buyer. That part is the cooperating commission.
On completion, the commission is usually paid out of the buyer's deposit held in trust. Each brokerage then pays its own agent, after its split and fees.
The rate isn't set by law or by any real estate board. Canada's Competition Bureau has made clear that commission must be negotiated, not fixed, and a common structure isn't a required one. The most common structure in the Lower Mainland is still 7% on the first $100,000 and 2.5% on the balance. Flat percentages, other tiers and flat fees are all used.
Common structures and what they cost
| Sale price | 7% / 2.5% | Effective rate | 3% flat | 2.5% flat |
|---|---|---|---|---|
| $600,000 | $19,500 | 3.25% | $18,000 | $15,000 |
| $900,000 | $27,000 | 3.00% | $27,000 | $22,500 |
| $1,200,000 | $34,500 | 2.88% | $36,000 | $30,000 |
| $1,800,000 | $49,500 | 2.75% | $54,000 | $45,000 |
| $2,500,000 | $67,000 | 2.68% | $75,000 | $62,500 |
Two things stand out.
- Tiered commission falls as a share of the price as prices rise. On a $600,000 condo, 7% / 2.5% is about 3.3% of the price. On a $2.5 million house, it's about 2.7%.
- A 3% flat rate costs more than 7% / 2.5% above about $900,000, and less below it. The two structures cross at $900,000.
So "a lower rate" isn't always cheaper. Compare in dollars at your likely price, which is what the calculator's comparison table does.
The cooperating commission
The listing brokerage shares the commission with the buyer's brokerage. A common Lower Mainland offer is 3.255% on the first $100,000 and 1.1625% on the balance, roughly half the total. On a $1,150,000 sale under 7% / 2.5%:
- the buyer's brokerage receives about $15,461
- the listing brokerage keeps about $17,789
- GST adds $1,663 to the seller's bill on top
What you offer the buyer's side affects how agents talk about your home to their clients. Offering well below the going rate can mean fewer showings, especially in a market with plenty of listings.
In BC, a buyer's agent's pay is set out in the buyer's own arrangement with their brokerage, and it should be confirmed in writing. If the cooperating commission a seller offers is less than the buyer agreed their agent would receive, the buyer's agreement may require them to make up the difference.
The rules that shape commission in BC
- Dual agency is prohibited. Since June 15, 2018, one licensee can't represent both buyer and seller in the same trade, except in remote, under-served locations. There's no "my agent sells to their own buyer" discount of the kind common in some other places. What you can negotiate is a lower total if the buyer has no agent at all, since then there's no cooperating commission to pay. See the "no cooperating commission" option in the calculator.
- Designated agency. Two different agents at the same brokerage can represent the buyer and the seller. Each owes duties only to their own client.
- Disclosure. Licensees must give you the Disclosure of Representation in Trading Services form before providing services, so you know who represents whom. Remuneration disclosed to sellers must include a dollar amount, not just a formula.
GST on commission, and no PST
Commission carries 5% GST, which comes off your proceeds along with the commission. On a $33,250 commission, that's $1,663.
BC's October 1, 2026 PST expansion covers non-residential real estate services only. Residential commissions still carry GST alone.
Negotiating commission
Everything in the listing contract is negotiable. The useful questions are about value and structure, not just the headline rate.
- Compare in dollars at your realistic price. The comparison table does this.
- Ask what's included. Photography, video, floor plans, staging advice, pre-listing inspection, digital advertising, open houses, and how offers will be handled.
- Negotiate the unrepresented-buyer case. A common clause reduces the total commission if the buyer has no agent. The calculator's option shows the effect.
- Consider a performance structure. For example, a lower base rate with a higher rate on any amount above an agreed target price.
- Set the cooperating commission deliberately. It's part of the total, and it affects showings.
- Check the term and cancellation terms. A shorter listing term, and clarity on what happens if you cancel, are as important as the rate.
The optional "What the agents actually keep" section shows why a slightly higher commission isn't necessarily a windfall. After the brokerage split and the agent's own costs, each side's agent keeps a fraction of what the seller pays.
If you're buying
Buyers don't usually pay commission directly. It's paid by the seller out of the sale price. But in practice it's built into what homes sell for, and it affects how your agent is paid.
Ask your agent, in writing, how they'll be paid and what happens if a seller's cooperating commission is lower than you agreed. Some brokerages, including EstateBlock, share part of their commission with buyers as a cash rebate on completion. Rebates are allowed in BC with proper disclosure. Tell your lender about any rebate, because it can affect your mortgage. See our buyer cashback rebate.
Commission in special situations
Presales. The developer normally pays the buyer's agent a commission set by the developer, often a flat percentage of the price, sometimes paid in stages. As a presale buyer, having your own agent doesn't usually cost you anything directly. See our presale guide.
Assignments. Commission on assigning a presale contract is negotiated with your agent. It's often a percentage of the assignment price. Many developers restrict how assignments can be marketed, which affects what an agent can do for the fee. The assignment calculator includes commission in the net.
Land assemblies. When several neighbours sell together to a developer, commission terms are often different. Sometimes the buyer pays, or a single brokerage represents the group under separate agreements. Read the terms before anyone signs.
A buyer without an agent. If the buyer has no brokerage, there's no cooperating commission to pay. Unless your contract says otherwise, the listing brokerage may keep the whole commission. That's why the unrepresented-buyer clause is worth negotiating.
A sale that collapses. Commission is normally earned on completion. If a buyer defaults and forfeits the deposit, many listing contracts give the brokerage a share of the forfeited deposit, often capped at the commission it would have earned. Check how yours handles it.
Selling and buying at the same time. The commission on your sale comes off your proceeds. On your purchase, the seller normally pays. If you use the same brokerage for both, you can ask about a combined arrangement, but the two transactions stay separate.
Commission in perspective
Under 7% / 2.5%, each extra $10,000 of sale price adds $250 of commission and $12.50 of GST. The other $9,737.50 is yours.
A commission cut of 0.25% on the balance saves $2,625 plus GST on a $1,150,000 sale. That's real money. It's also less than a 0.25% difference in the sale price, which is $2,875, before commission.
The way an agent prices, prepares, markets and negotiates usually moves the result by more than the commission difference between two agents. Choose on both.
Mistakes we see with commission
Believing there's a standard rate. There isn't one, and claiming there is conflicts with competition law.
Comparing rates instead of dollars. "3% flat" costs more than "7% / 2.5%" on most Lower Mainland houses.
Forgetting GST. It's 5% on top of the commission.
Cutting the cooperating commission to save money in a slow market. It can cost you showings.
Not negotiating the unrepresented-buyer case. If no buyer's brokerage is paid, the total should usually come down.
Signing a long listing term without clear cancellation terms.
Questions people ask us
What is the standard real estate commission in BC?
There is no standard. Commission is negotiable. A common Lower Mainland structure is 7% on the first $100,000 and 2.5% on the balance, plus 5% GST. Flat percentages and flat fees are also used.
How much commission is paid on a $1 million house in BC?
At 7% on the first $100,000 and 2.5% on the balance, $29,500 plus $1,475 GST, for $30,975 in total. At 3% flat, it's $30,000 plus $1,500 GST.
Who pays the buyer's agent in BC?
Usually the seller, through the cooperating commission the listing brokerage offers to the buyer's brokerage. If that's lower than what the buyer agreed their agent would receive, the buyer may have to pay the difference under their own agreement.
Is GST charged on real estate commission in BC?
Yes, 5%. Residential commissions don't carry PST. BC's October 2026 PST expansion applies to non-residential real estate services only.
Can one agent represent both the buyer and the seller in BC?
No. Dual agency has been prohibited since June 15, 2018, except in remote, under-served locations. Two different agents at the same brokerage can represent each side under designated agency.
Can I negotiate a lower commission if the buyer doesn't have an agent?
Yes. Many listing contracts reduce the total commission if no cooperating brokerage is involved. Agree on it before you sign.
When is commission paid?
On completion, usually from the buyer's deposit held in trust, with any surplus going to the seller's lawyer. It's not paid if the sale doesn't complete, unless your contract says otherwise.
778-918-5990
Want the commission in writing, in dollars?
Dan will set out the commission, the cooperating commission and what's included before you sign anything, along with a pricing plan based on current comparable sales. Your calculator inputs come along with the message.
Buying instead? Ask about our buyer cashback rebate.
