Real estate commission is the amount of money paid to the Nova Scotia Realtors for their work on the transaction. It is almost always based on a percentage of the purchase price of the home.

THE GENERAL RULE IS 5% OF THE TOTAL PURCHASE PRICE

Individual agents and clients can negotiate what that percentage is, but as a general rule we tend to see 5% of the total purchase price used to pay both the Seller’s and Buyer’s agents.

REALTORS COMMISSION IN NOVA SCOTIA IS SUBJECT TO 15% HST

Keep in mind, like other service fees, Realtor’s commission is subject to HST. That means if your house sells for $500,000 and you’ve agreed to pay the Realtor 5%, you will owe $25,000 + 15% HST for a total owing of $28,750.

THE DEPOSIT IS DEDUCTED AGAINST THE COMMISSION OWING TO THE SELLER’S REALTOR

In Nova Scotia, the seller’s agent’s brokerage holds the purchaser’s deposit in trust until the sale closes. They then keep the deposit as part of the commission they are owed. That is why when you see your invoice from your lawyer it may appear that your own agent was paid less if you are the seller.

COMMISSION FOR BOTH REALTORS USUALLY COMES OUT OF THE SALE PROCEEDS

Typically, the buyer does not pay the Realtors. The commission for both agents comes out of the sale proceeds.

The amount of money paid to each agent is based on the ‘Commission Statement’ submitted to the seller’s lawyer by each of the agents’ brokerage. The seller’s lawyer will pay the amount owing out of the closing funds. In Nova Scotia, neither the Seller nor the Purchaser are responsible to pay the Realtor’s commission directly.

By: Briana C. O’Grady, J.D

Have Questions For Us?:

If you have any questions about an issue with a property in Nova Scotia process, you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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