Are real estate rebates legal in Canada?
Real estate rebates are generally permitted across Canada. Provinces regulate brokerages differently, but the common conditions are similar.
Common conditions
- The rebate is paid by the brokerage, not by the agent personally.
- It is in writing, usually in the buyer agreement.
- It is disclosed as required by provincial rules.
British Columbia
Rebates are common in the Lower Mainland because prices make the commission large. BC rules on disclosure apply.
Ontario
Rebates are permitted and offered by several brokerages in the Toronto area.
Quebec
Brokerage is regulated by the OACIQ. Any rebate should be written into the brokerage contract.
Elsewhere
Alberta, the Prairies and Atlantic Canada also see rebates, though less often advertised. Our partner rebate outside the Lower Mainland is 25%.