Quebec Real Estate Commission Calculator 2024
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 to incentivize them.
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 fixed-price options for commercial and residential real estate listings. The packages cost $1049.95 (Bronze Package), $1,449.95 (Silver Package), and $1,849.95 (Gold Package). The services Duproprio offers include photos of your house, property valuation services, listing services, and legal advice by phone. The services provided will vary depending on the package you purchase.
- For Sale by Owner Inc. allows you to list your property online for a fixed fee. For $199, your property will be listed on the For Sale by Owner website, and for a fixed fee of $499, your property will be listed on both the For Sale by Owner website and the MLSⓇ (Multiple Listings Service) system.
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 April 2024 | Average Total commission Paid to Both Agents |
|---|---|---|---|
| Alberta | 7% for 1st $100K and 3% for the remaining balance | $499,505 | $18,985 |
| Ontario | 5% of total price | $900,161 | $45,008 |
| B.C. (Greater Vancouver Area) | 7% for 1st $100K and 2.5% for the remaining balance | $1,006,248 | $29,656 |
| Saskatchewan | 6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance | $324,474 | $12,489 |
| Manitoba | 5% of the total price | $382,658 | $19,133 |
| Quebec | 5% of the total price | $498,124 | $24,906 |
| Nova Scotia | $1,500 flat fee for properties under $25,000 and 5% of the total price for other properties | $468,543 | $23,427 |
| New Brunswick | 5% of the total price | $334,561 | $16,728 |
| Prince Edward Island | 5% of the total price | $379,366 | $18,968 |
| Newfoundland and Labrador | 5% of the total price | $304,570 | $15,228 |
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 buyers and their 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.
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.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.