Message from RECO – commission options changed
Recent changes to REBBA 2002 provide additional flexibility in how brokerages charge for real estate services. Bill 55, the Stronger Protection for Ontario Consumers Act, 2013, has amended REBBA 2002.

What’s changed
Previously, under Section 36(1) of REBBA 2002, brokerages could charge a flat fee or a percentage of the sale price, but not a combination of the two. Amendments to REBBA 2002 have removed the restriction, so brokerages now have the option to negotiate fee arrangements that could include a combination of a flat fee and a percentage of the sale price.

What it means
Brokerages now have additional flexibility in how they structure pricing to suit their business needs as they tailor their levels of service and set fees accordingly.

Ultimately, market forces will determine which fee structures are attractive to consumers. It’s more important than ever for consumers to understand what services their brokerage will provide and how they will pay for those services. RECO is reaching out to consumers to advise them of these changes and what it means for them.

Questions about the changes to REBBA 2002 should be referred to RECO.