1. What is Alberta Real Estate Commission?

Real estate commission in Alberta is the fee paid to real estate agents for their services in facilitating a property sale. 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

The standard Alberta commission calculation uses a tiered structure:

Where:

• First $100k — First $100,000 of sale price
• Balance — Remaining amount above $100,000
• Rate1 — Commission percentage on first $100k (typically 7%)
• Rate2 — Commission percentage on balance (typically 3%)

Example: For a $500,000 home: (7% × $100,000) + (3% × $400,000) = $7,000 + $12,000 = $19,000 total commission

3. Typical Commission Rates in Alberta

Standard Rates: While commission rates are negotiable, the typical structure in Alberta is:

• 7% of the first $100,000 of the sale price
• 3% of the remaining balance

Note: This is usually split between listing and buying brokers (e.g., 3.5%/1.5% split on the tiers).

4. Using the Calculator

Instructions: Enter the property sale price in CAD dollars and the commission rates (default values show typical Alberta rates). The calculator will compute the total commission based on the tiered structure.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in Alberta?
A: No, commission rates are negotiable between the seller and their real estate agent.

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

Q3: Are there alternatives to percentage-based commissions?
A: Yes, some agents offer flat-fee or tiered services, but percentage-based remains most common.

Q4: Is GST included in commission?
A: No, GST (5%) is added to the commission amount in Alberta.

Q5: Can I negotiate different tier amounts?
A: Yes, all aspects of the commission structure are negotiable with your realtor.