Seller's Guide
The Real Cost of Selling a House in Quebec
Most sellers calculate their net proceeds like this: sale price, minus the mortgage balance, minus broker …
Commission is the fee everyone has heard of and almost nobody gets explained in full. Sellers often discover the real number the day before signing at the notary, taxes included. Buyers frequently believe they are paying their broker out of pocket, which is not the case in the vast majority of transactions.
Here is the complete picture, with the numbers.
There is no fixed rate in Quebec
This is the starting point, and it is the most commonly ignored. No law, no regulation and no professional body imposes a percentage. Commission is negotiated between the seller and their listing broker, then written into the brokerage contract before the property goes to market.
In Greater Montreal, structures usually fall between 4% and 6% of the sale price. That is not a rule, it is an observation of the market. The percentage varies with property type, price, the marketing effort involved, and what you negotiate.
If a broker presents a rate as “the standard rate” or “the required rate”, treat it as a signal. The rate is always negotiable and should be presented to you that way.
Who pays, and the exception few people know about
In the usual structure, the seller pays the commission out of the sale proceeds, at the moment the deed is signed at the notary. The buyer does not pay out of pocket to compensate their own broker.
The exception is worth knowing. When a buyer signs a buyer brokerage contract, that contract can provide for remuneration payable by the buyer if the selling party pays nothing, or pays less than the agreed amount. This comes up in particular for properties sold without a listing broker. Read that clause before signing and ask to have the exact circumstances explained to you.
The taxes almost nobody budgets for
Commission is a service, so it is taxable. GST at 5% and QST at 9.975% are added to the agreed amount. The gap between the headline percentage and the amount actually withheld at the notary is far from symbolic.
| Sale price | Rate | Commission | GST + QST | Total withheld |
|---|---|---|---|---|
| $400,000 | 4% | $16,000 | $2,396 | $18,396 |
| $500,000 | 5% | $25,000 | $3,744 | $28,744 |
| $600,000 | 5% | $30,000 | $4,493 | $34,493 |
| $750,000 | 6% | $45,000 | $6,739 | $51,739 |
Put differently, a 5% commission actually costs about 5.75% once taxes are added. That is the figure to use when you calculate your net proceeds, not the gross percentage.
The closing costs calculator lets you place that amount beside the other costs of the transaction.
How the commission gets split
When a property sells through the Centris system, the commission agreed in the contract is usually split between two sides: the listing side, meaning the seller’s broker, and the collaborating side, meaning the buyer’s broker. The split is frequently 50/50, but it is set in the contract and can vary.
There is then a second split, invisible to the client: each broker gives a share to their agency. The broker does not keep everything their half suggests. This detail explains why a commission reduction affects the broker’s income far more than it affects your bill, and why some reduction requests meet real resistance.
This split also drives something important for sellers: the share offered to the collaborating broker influences how much attention your property gets from buyer brokers. Cutting that share to save money can reduce showings, which usually costs more than the saving.
What commission actually pays for
“Broker services” is vague. Here is the concrete detail of what is covered when a seller lists with me.
Preparation. Professional photography, staging consultation, floor plan, virtual tour. The difference between a well presented property and one photographed on a phone shows up in days on market and in the final price.
Pricing analysis. A serious comparative market analysis is not a look at what the neighbours got. It adjusts for condition, size, exposure, renovations, time of year, and the properties that were withdrawn without selling. Those last ones are often the most useful information, because they show where buyers refuse to go.
Distribution. The listing reaches every active buyer broker in the region through Centris, and the general public through the public portals. It is the most powerful distribution mechanism in the Quebec market.
Negotiation. When offers arrive, they have to be read in full: the price, but also the conditions, the deadlines, the strength of the financing, the buyer’s real ability to close. This is the point in the transaction where money is won or lost.
Management through to closing. Between the accepted offer and the signing at the notary there are inspection, financing, legal documents and deadlines. A file that is poorly followed at this stage ends in a sale that collapses.
Professional accountability. A broker is regulated by the OACIQ, held to a duty to advise, and covered by mandatory professional liability insurance. That is protection you do not have in a private transaction.
The alternatives, honestly
Sliding percentage. A rate that decreases above a certain price. Worth considering for higher value properties, where a flat percentage produces an amount out of proportion with the actual work.
Flat fee. A set amount instead of a percentage. Predictable, but check what is included and what becomes a paid option.
Discount brokerage. Reduced commission in exchange for reduced service. This suits a seller who accepts handling part of the process, knows their sector’s values well, and is comfortable negotiating. It transfers execution and risk to the seller.
Selling without a broker. It avoids the listing side commission, but not necessarily the buying side, since many buyers arrive represented. The real calculation is not “commission versus zero”, it is “commission versus the price you would have obtained otherwise, minus the time invested and the risk carried”.
When commission becomes payable
Commission is generally due when the deed of sale is signed, and it is withheld by the notary from the sale proceeds. No sale, no commission, in the usual structure.
Two clauses deserve your attention before you sign:
The protection clause, which provides that commission remains payable if the property is sold, within a set period after the contract ends, to a buyer who was introduced to you during the contract. It is normal. Just check its duration.
The length of the brokerage contract itself. It is negotiable. A short contract leaves you free to change brokers if the marketing does not deliver, and it obliges your broker to perform early.
Questions to ask before signing
- What is the rate, and how is it split with the buyer’s broker?
- What exactly is included: photos, floor plan, virtual tour, staging, paid advertising?
- How often and through which channel will you update me?
- How long is the contract, and how long is the protection clause?
- Which comparable sales support the price you propose, and did you look at properties withdrawn without a sale?
- What happens if I am not satisfied with the marketing?
A broker who answers those six questions clearly has already shown you how they will work during the transaction.
The bottom line
Commission is not a tariff, it is the price of a service you should be able to describe. What matters is not paying as little as possible, but knowing exactly what you get for what you pay, and being able to see whether it was delivered.
If you are preparing a sale, start by knowing your baseline with a property value estimate, then place commission and taxes in the full picture of your costs.
Questions about how commission works in your specific situation? Let’s talk about it directly.
Georges Matar
Residential Real Estate Broker · RE/MAX DU CARTIER INC.
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