1. What is Alberta Real Estate Commission?

Real estate commission in Alberta is the fee paid to real estate agents for their services in buying or selling property. It's typically a percentage of the final sale price and is split between the buyer's and seller's agents.

2. How Commission is Calculated in Alberta

The standard commission structure in Alberta is:

Example Calculation:

• $400,000 home: (7% × $100,000) + (3% × $300,000) = $7,000 + $9,000 = $16,000 total commission
• This is typically split between listing and buying brokers

3. Typical Commission Rates

Standard Rates: While commissions are negotiable, most Alberta transactions follow the 7%/3% structure on residential properties. Commercial properties may have different rate structures.

4. Using the Calculator

Instructions: Enter the sale price of the property in Canadian dollars and the commission rate (default is set to 7%). The calculator will automatically apply the Alberta standard rate structure.

5. Frequently Asked Questions (FAQ)

Q1: Are real estate commissions negotiable in Alberta?
A: Yes, commission rates are always negotiable between the client and the real estate professional.

Q2: Who pays the real estate commission?
A: Typically the seller pays the commission, which is then split between the listing and buying brokers.

Q3: Is GST included in the commission?
A: No, GST (5%) is added to the commission amount and paid separately.

Q4: What's the average total commission in Alberta?
A: For a $500,000 home: $7,000 (first $100k) + $12,000 (remaining $400k) = $19,000 before splits.

Q5: How is the commission split between agents?
A: The total commission is typically split 50/50 between listing and buying brokerages, with each agent then getting a percentage of their brokerage's share.