Hourly Compensation For Agents

Comparing the Two Popular Pricing Models: Fixed Cost Vs. Hourly Rate

Question:

May I be compensated on the basis of an hourly rate for my services?

Answer:

Yes, set out below on the sections that apply to compensation. Nothing restricts hourly rates.

Commission and remuneration

36. (1) All commission or other remuneration payable to a brokerage in respect of a trade in real estate shall be an agreed amount or percentage of the sale price or rental price, as the case may be, or a combination of both. 2013, c. 13, Sched. 3, s. 2.

If no agreement

(1.1) If there is no agreement as to the amount of the commission or other remuneration, the rate of it or other basis for determining it shall be that generally prevailing in the community where the real estate is located. 2013, c. 13, Sched. 3, s. 2.

Percentages

(2) If the commission payable in respect of a trade in real estate is expressed as a percentage of the sale price or rental price, the percentage does not have to be fixed but may be expressed as a series of percentages that decrease at specified amounts as the sale price or rental price increases.  2002, c. 30, Sched. C, s. 36 (2).

Prohibition

(3) No registrant shall request or enter into an arrangement for the payment of a commission or any other remuneration based on the difference between the price at which real estate is listed for sale or rental and the actual sale price or rental price, as the case may be, of the real estate, nor is a registrant entitled to retain any commission or other remuneration computed upon any such basis.  2002, c. 30, Sched. C, s. 36 (3).

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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