Newfoundland Real Estate Commission Calculator 2021
What Are Real Estate Commissions?
The average real estate agent commission in Newfoundland and Labrador is 5%, but it can range from 3% to 5% . Newfoundland and Labrador's Real Estate Trading Act regulates real estate commissions in the province. Real estate agents are not allowed to charge commission based on the difference in a home's listing price and the actual selling price of the home.
If a commission amount was not agreed upon prior to a sale, then the commission will be based on the average commission charged in the area. The Lieutenant-Governor in Council has the authority to fix or limit commission or commission rates charged by real estate agents in Newfoundland and Labrador.
Newfoundland and Labrador Real Estate Commission
Note: Most provinces in Canada require real estate brokerages to hold real estate commissions in a separate brokerage trust account. Newfoundland is an exception to this, as there is no requirement to segregate commissions.
What is the Average Real Estate Commission Rate?
$750,000 Property Selling Price Example
The above chart demonstrates the following: 5% commission on the selling price and a 15% tax that is applied to the total commission. The remaing values is what you receive.
Comparison of Real Estate Commission Across Provinces
| Province | Typical Real Estate Commmission Rate | Average Sold Prices of Homes in September 2020 | Average Total commission Paid to Both Agents |
|---|---|---|---|
| Alberta | 7% for 1st $100K and 3% for the remaining balance | $403,163 | $16,095 |
| Ontario | 5% of total price | $741,395 | $37,070 |
| B.C. (Greater Vancouver Area) | 7% for 1st $100K and 2.5% for the remaining balance | $801,039 | $24,526 |
| Saskatchewan | 6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance | $403,163 | $16,095 |
| Manitoba | 5% of the total price | $308,689 | $15,434 |
| Quebec | 5% of the total price | $477,609 | $23,880 |
| Nova Scotia | $1,500 flat fee for properties under $25,000, and 5% of the total price for other properties | $319,726 | $15,986 |
| New Brunswick | 5% of the total price | $203,907 | $10,195 |
| Prince Edward Island | 5% of the total price | $300,538 | $15,778 |
| Newfoundland and Labrador | 5% of the total price | $249,368 | $13,091 |
Ontario and British Columbia have some of the highest housing prices, which results in higher average total real estate commissions. Although British Columbia’s real estate commission rates are one of the lowest in the country, homeowners ultimately end up paying a comparatively higher real estate commission due to the higher average selling price of homes.