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Disclosure of Remuneration – How Does a Realtor Get Paid in BC?
Updated July 27, 2023
How does a Realtor get paid, and by whom is always a source of interest in Vancouver?
Want to know EXACTLY How Much a realtor gets paid in British Columbia? Check out this great Realtor Commission Calculator for Sellers!
Transparency is legally required for real estate agents and their commissions in BC.
In British Columbia, Buyers Agents (ie Real Estate Agents who are representing a Buyer), when they are preparing an offer or Contract of Purchase and Sale for a Buyer, must disclose in writing to their Buyers the following:
- How much are they being paid if the seller accepts the offer they are writing and completes it at the Land Titles Office?
- Who is paying the Realtor and how?
- This disclosure requirement includes all commissions, fees, bonuses, financial incentives, etc., paid to the buyer’s agent while representing the buyer in a purchase.
The Buyer should know who is paying their Realtor and how much the Realtor is paid, and the Buyer gets this in writing from their Realtor.
How does a Realtor Disclose their Commissions to a Buyer in BC? Disclosure of Remuneration
Buyers Agents disclose their commissions in writing with a Disclosure of Remuneration document provided by the British Columbia Financial Services Agency (BCFSA) regulates Realtors in BC.
(See an example of the document below)
Realtors in BC are required to have a Buyer read over and initial a Real Estate Council of British Columbia provided Disclosure of Remuneration form (see above).
This is part of the duty of Full Disclosure that all Real Estate Agents in British Columbia have with their clients as part of the Designated Agency Relationship.
I have embedded the Disclosure of Remuneration document below for reference.
Who Pays the Buyer’s Agent?
Nine times out of Ten, a BUYER DOES NOT PAY THEIR BUYERS AGENT!
The Seller’s Agent (or Listing Agent) will split the commission offered by the Seller with the Buyer’s Agent.
The commission offered by the Seller is nearly always split 50/50 between the Buyer’s Agent and the Seller’s Agent, with a few percentages more going to the Seller’s Agent to cover their costs of listing and marketing the property.
When does the Buyers Agent Get Paid?
The buyer agent gets paid on the Completion Date when the Seller gives up ownership of the property to the Buyer, and the Buyer gives the Seller the money to purchase the property.
This date is when the title to the property the Buyer wrote an offer or Contract of Purchase and Sale on, transfer ownership at the Land Titles Office.
This is after the Buyer’s offer or Contract of Purchase and Sale has been accepted by the Seller, the buyer is 100% satisfied with the property and has removed all subject conditions, and the buyer and seller’s lawyers have had sufficient time to prepare the transfer documentation.
So the Realtors, both Buyers and Sellers Agents, get paid ONLY if the deal goes forward and are always the last to get paid.
Both the Seller and Buyers Agents must disclose to their respective clients how much they are getting paid and by whom.
How Much does the Buyer’s Agent get Paid?
This amount varies because there is no set amount for Real Estate commissions in Canada according to the Federal Governments Competition Act.
The Buyer always has a right to know how much their Real Estate Agent is getting paid and by whom (So ask if you want to know!). This is all laid out in the Disclosure of Remuneration document.
Buyer’s agents are required to have their clients sign a Disclosure of Remuneration document and give their client a copy of it.
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