Question:
An Offer is being presented to a Self Represented Seller (SRP). Form 223 was completed, Commission Agreement with direction for the Seller’s Lawyer to pay the Buyer’s Brokerage directly.
On the Confirmation of Cooperation and Representation (CCR), Form 320, the wording gets a little confusing, there is nowhere on this Form that addresses an SRP.
Answer:
For a year and a half there was a debate as to whether an SRP could pay a commission. Of course they could, but it took a long time to get RECO and OREA to acknowledge that fact.
Form 223 was created for this purpose, but Form 320 was not subsequently updated. So, you have to add your own words. This document is to confirm:
1) Seller is not represented,
2) Buyer is represented by “X”, and
3) Seller will pay the commission plus HST to “X”.
Effectively, it’s all very simple, but there was no OREA Form for it.
Form 223
The important words here are set out in the first paragraph:
“1. The Seller agrees to pay the Brokerage ……………………………………………………………………(Brokerage) (Name of Brokerage) a commission of …………… % of the sale price of the Property or ……………………………………………………………………………………………………. (Commission) All amounts set out as commission are to be paid plus applicable taxes on such commission.”
Form 320
The important words here are set out in the third paragraph:
“3. PROPERTY SOLD BY BUYER BROKERAGE
a) The Brokerage or a Designated Representative of the Brokerage represents the Buyer and the Brokerage will be paid by the Buyer directly.”
The next option, that is the Seller is to pay the Buyer’s Brokerage is not available. That should be 3 b), but it’s not there.
So, you will have to draft something up and create your own 3 b) as proposed above
Note: published 31 July 2025. Check the Form carefully in the future to see if a 3 b) has been included.
Brian Madigan LL.B., Broker