Buyer Agent Commission Explanation

In 2024, a law was introduced that, in order to be paid, your commission must be contracted.  This means, the buyer and seller agree and understand what the buyer agent compensation being requested is.  And it must be agreed upon by all parties.


Commonly, we hear from sellers: 'my understanding is that I don't have to pay a buyers agent anymore'.


Here is the best response when at a listing appointment:  "Well, the commissions have always been negotiable.  However, prior to 2024, when a listing agent met with a seller, they agreed on a 'global commission'.  Which mean that out of that total amount (say- 4,5,6,7%) the listing agent would agree to offer an amount they felt was necessary to compensate a buyers agent for procuring a buyer.


In 2024, the new best practice is to follow the 'decoupling of commission'.

Clearly break the two apart.

  • Advise the seller of what your listing commission is to represent them
  • Advise that the buyers agent compensation is 100% negotiable, however, it will typically be written in as concession request in the purchase agreement.
  • 95-97% of buyers will be represented by an agent and will request agent compensation, which is why it's important to offer this compensation for buyers agents.  However, it is not mandatory.


Acceptable Methods

1. Written into the Purchase Contract

Your commission can be written directly into the purchase contract on Line 27 or Line 28.



2. Buyer Pays at Closing

If the seller is not willing to pay buyer agent compensation, or if your buyer agrees to pay your commission on their behalf, you will indicate this on Line 30 of the ECIAR purchase contract. In this case, the buyer will be responsible for the commission amount as outlined in your Buyer Agreement.

However, you must have your commission documented and agreed upon with the buyer in your Buyers Agency Agreement.