What Happens to the Bonus Added to the Commission

Cartoon Businesswoman with Big Bonus Money Bag Stock Vector - Illustration  of character, money: 134365750

Ontario?

Question:

What about adding a bonus to buyer’s Agent’s commission….does it work? I have a high end property that I would like to see more activity on and have never tried a large bonus style payout….say 2.5% + $50,000. How does this work?

Answer:

The fiduciary duty of accounting obligates the Agent to report and REMIT the $50,000 bonus to the Buyer.

Then, comes the “discussion”, where will this bonus end up:

1) Buyer (where it sits, legally),

2) Agent, (where it arrives) or

3) some split between the two.

It can often be very effective!

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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