Hot Areas to Invest in Vancouver December 17, 2020 Christian Dy, Latitude West Financial…
Disclosure of Remuneration: What is that?
Updated May 3, 2019
How a Realtor gets paid and by whom is always a source of interest in Vancouver.
Want to know EXACTLY How Much? Check out this great Realtor Commission Calculator for Sellers!
In British Columbia, Buyers Agents (ie Real Estate Agents who are representing a Buyer) must disclose in writing to the Buyer they are working with, how much they are being paid and by whom when they are preparing an offer or Contract of Purchase and Sale for a Buyer.
The Buyer should know who is paying their Realtor, how much the Realtor is paid, and the Buyer gets this in writing from their Realtor!
Buyers Agents are required to have a Buyer read over and initial a Real Estate Council of British Columbia provided Disclosure of Remuneration form. 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 Buyers Agent?
Nine times out Ten, a BUYER DOES NOT PAY THEIR BUYERS AGENT!
The Sellers Agent (or Listing Agent) will split the commission offered by the Seller with the Buyers Agent. The commission offered by the Seller is nearly always split 50/50 between the Buyers Agent and the Sellers Agent with a few percentages more going to the Sellers Agent to cover their costs of listing and marketing the property.
When does the Buyers Agent Get Paid?
The Buyers Agent gets paid on the Completion Date, the date on which 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 title to the property the Buyer wrote an offer or Contract of Purchase and Sale on, transfers ownership at the Land Titles Office. This is after the Buyers 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 buyers and sellers 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 Sellers and Buyers Agents have to disclose to their respective clients how much they are getting paid and by whom.
How Much does the Buyers Agent get Paid?
This amount varies because in Canada there is no set amount for Real Estate commissions 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!).
First Time Home Buyer?
YOU MUST Check out my Series of Videos with Great Tips For First Time Home Buyers in Vancouver!
I STRONGLY ENCOURAGE QUESTIONS AND COMMENTS! Thanks!