The compensation of real estate brokers is often misunderstood, particularly when it is reduced solely to the commissions associated with transactions. In reality, a broker’s actual income is based on a more complex mechanism than it may appear, influenced by numerous professional, economic, and contractual factors.
This article provides a clear and nuanced overview of the real estate broker compensation: who pays the commission, what rates are typically charged, what expenses reduce net income, and what the average salary looks like in 2026. It is a useful read for anyone considering a buying or selling project, or simply wishing to better understand the financial reality behind real estate brokerage.
In brief
- In Quebec, a real estate broker’s commission generally ranges between 4% and 7% of the sale price, with an average of around 5%.
- Although the commission is paid by the seller, it is often shared between the seller’s broker and the buyer’s broker.
- A significant portion of the commission is used to cover mandatory professional expenses, which considerably reduces actual net income.
- In 2026, the median annual salary of a real estate broker in Quebec is estimated at approximately $124,000, but income can range from under $80,000 to over $200,000 depending on the broker’s profile and the market.
- Earning potential depends heavily on the number of transactions completed, the region served, and the real estate market.
What is the role of a real estate broker?
A real estate broker supports clients at every stage of a real estate transaction. Thanks to their expertise, the broker facilitates the transaction, reduces the risk of errors, and helps secure the buying or selling process. A real estate broker wears many hats and must, among other things:
- Advise the seller or buyer on the real estate market and appropriate strategies;
- Assess the listing or purchase price of a property;
- Ensure marketing, visibility, and promotion of the property;
- Organize and supervise property showings;
- Negotiate the terms of the transaction in the client’s best interest;
- Act as an intermediary between the buyer, the seller, and other stakeholders (inspector, notary, financial institutions, etc.);
- Ensure compliance with legal obligations, deadlines, and required documents (seller’s declaration, offer to purchase, etc.).
The seller’s broker must share their commission with the buyer’s broker.
How is a real estate broker paid?
In Quebec, real estate brokers’ salaries is commission-based, which corresponds to a percentage of the property’s sale price. This compensation is established in advance in the brokerage contract and becomes payable by the seller once the transaction is completed.
No law sets the commission rate. It is determined by free competition among brokers and real estate agencies. In practice, the percentage generally ranges between 4% and 7%, with an average of about 5%. Some agencies offer lower rates, sometimes around 2% or 3%, but these models may come with different or more limited services.
Who pays the real estate broker’s commission?
In a real estate transaction, the commission is generally paid by the seller, in accordance with the brokerage contract signed beforehand.
If both the buyer and the seller are represented by brokers, the commission is usually shared between the two professionals. The buyer therefore benefits from the services of a broker without having to pay their compensation directly.
What is the average commission of a real estate broker?
In Quebec, a real estate broker’s commission generally ranges from 4% to 7% of the sale price, with an average rate of about 5%. This percentage is not regulated and may vary depending on the agreement reached, the type of property, and the services offered. Recent trends even show a slight decline in rates in certain markets.
Depending on the sale price and the percentage applied, the commission can therefore represent very different amounts, as illustrated in the table below.
| Sale price | 4% | 5% | 6% | 7% |
| $200,000 | $8,000 | $10,000 |
| $14,000 |
| $300,000 | $12,000 | $10,000 | $18,000 |
|
| $400,000 | $16,000 | $20,000 | $24,000 | $28,000 |
| $500,000 | $20,000 | $25,000 | $30,000 | $35,000 |
| $600,000 | $24,000 | $30,000 | $36,000 | $42,000 |
Residential vs. commercial brokerage: does the commission differ?
Yes, the commission of a residential real estate broker and that of a commercial real estate broker can differ significantly. In the residential real estate market, rates generally range between 4% and 7% of the property’s market value.
In commercial real estate, the structure is more variable: the commission may be lower in percentage terms but applied to higher-value transactions, or calculated according to specific agreements related to the complexity of the mandate.
Independent broker or agency-affiliated broker: is the commission percentage different?
In practice, the commission charged to the client is generally similar whether the broker is independent or affiliated with a real estate agency. The agreed-upon percentage primarily stems from the agreement concluded with the seller, rather than the broker’s status.
The difference lies mainly in how the commission is split. An agent affiliated with a brokerage must remit a portion of their commission to the agency in exchange for services, administrative support, brand recognition, and tools provided.
Conversely, an independent broker keeps the entire commission but must personally cover all expenses related to their business, such as marketing, insurance, technological platforms, and administrative costs.
What expenses must be deducted from an agent income?
At first glance, a real estate broker’s commission may seem high. However, the amount received does not represent net income. A significant portion of this commission is used to cover various unavoidable professional expenses. The main costs include:
- The fee paid to the agency if applicable;
- Applicable sales taxes (GST/QST);
- Licensing fees, administrative fees, and dues required by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ);
- Office rent and related expenses;
- Advertising and marketing expenses;
- Professional photography costs;
- Professional liability insurance premiums.
What is the average real estate agent salary Quebec in 2026?
According to data from the Government of Canada’s Job Bank, compensation for real estate brokers in Quebec varies significantly depending on experience, transaction volume, and the market served. The following estimates illustrate the average annual salary of real estate agents, calculated on a 40-hour workweek (full-time basis).
| Compensation level | Salaire horaire estimé | Revenu annuel approximatif |
| Low end | 37,63 $/heure | 78 250 $/an |
| Median salary | 59,86 $/heure | 124 509 $/an |
| High end | 96,90 $/heure | 205 712 $/an |
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