How are real estate agents paid?

Real estate agents work on commission, not salary, and get paid only after your home search is over, the contract negotiated and the transaction complete. Under the typical arrangement, the seller pays the commission to the real estate agent, and the agent's services are free to the buyer. Most listing brokers get sellers to pay 5% of the sales price. For more expensive homes, say over $500,000 sellers can sometimes negotiate a lower commission rate.

Because most real estate transactions involve two brokers -- one that produces the buyer and one that helps the seller -- the commission is divided, usually 50-50, between the two brokerage offices. Then, within each office, the salesperson who handled the transaction gets a share.

Are there any consumer protection programs when dealing with someone who sells real estate?

When you deal with a registered real estate broker or salesperson in Ontario, you can enter the marketplace with a new level of confidence thanks to consumer protection programs administered by the Real Estate Council of Ontario (RECO).

Since January 2000, all registered brokers and salespersons have been required to adhere to a Code of Ethics. The rules of the Code of Ethics define the conduct expected of them and the principles upon which they must do business in Ontario.

The Code of Ethics covers areas such as confidentiality, written representation agreements, financial disclosure and advertising.

You may want to review the Code of Ethics to get a better understanding of what you should — and should not — reasonably expect of your registered real estate broker or salesperson. Click here to view the Code of Ethics.

Perhaps one of the most important things to remember is that RECO’s consumer protection safeguards apply only when dealing with a registered broker or salesperson. Therefore, the first thing you may wish to do when buying or selling a home is to ensure that the individual working with you is registered. You can do this by using RECO's online search. In order to trade in real estate in the province of Ontario, the individual must be registered under the Act (unless the Act specifically exempts them).

What is the importance of a property survey?

A Surveyor's Real Property Report provides information about one of the largest financial investments that most people ever make. The Real Property Report is a legal document illustrating the location of all visible public and private improvements relative to the property boundaries. In additon to detailing the varied physical features of the property, a written report is provided with the surveyor's opinion of any concerns. This report can be relied upon by all parties in a real estate transaction as an accurate representation of the property. The value of this document will ensure that Buyers, Sellers and Realtors can verify the size and boundaries of the property, and thereby confirm that fences, trees, driverways, buildings, gardens, embankments, swimming pools, additions, rights-of-ways and easements are all within the designated area and accurately described. Ultimately, all parties will feel assured that there is no misrepresentation, which results in fewer lawsuits. The cost of a Real Property Report is minimal compared to the value of the property investment.