March 21st - 2014

Flexible remuneration a positive change

REALTOR workingBrokerages will now be able to give consumers more options on how to pay for real estate services.

REALTOR working

REALTOR workingBrokerages will now be able to give consumers more options on how to pay for real estate services.

A recent change to legislation has removed a former limitation to the way brokerages are paid. Previously, consumers could pay either a percentage commission or an agreed fee, but not both, according to the legislation governing trades in real estate, the Real Estate and Business Brokers Act (REBBA), 2002.  

Consumers and brokerages now have more flexibility on payment since this restriction has been removed, thanks to an amendment to the act. The amendment is due in part to ongoing advocacy efforts by OREA’s government relations department and committee. The association lobbied the provincial government to amend a section of Bill 55, Stronger Protection for Ontario Consumers Act, 2013, which was introduced in the legislature in spring 2013 to strengthen consumer protection.

“We’re delighted that this aspect of the law has been changed,” says Phil Dorner, president of OREA. “It gives brokerages more flexibility to be able to choose how we’re paid for our work. It also gives consumers more choice and a greater say on compensation when they’re buying or selling a property.”

Up until now, the framework for compensation has been quite limited, Dorner noted. This change will provide a range of options for real estate professionals and the public. “This is a terrific victory for OREA and for consumers,” he said. “The hard work of staff and committee members, along with our meetings with Consumer Services Minister Tracy MacCharles, got our voices heard at Queen’s Park. Market forces will now play a greater role in determining which fee structures are best, which is good for consumers and good for us as an industry. We’re happy that we’ve been able to work with the government to help provide more choice for consumers.”

Bill 55 continues to be the focus of OREA’s lobbying efforts. Another section of the act called for listing brokerages to keep all unsuccessful written offers on a property. The association felt that this would involve too much red tape and place a heavy administrative burden on brokerages. OREA was successful in communicating concerns around this to the government. Details on this section of the legislation are currently being reviewed by OREA, RECO and the government. For more information, watch the Government Relations section of the blog and website at

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

416-445-9910 ext. 246