2.5%, 3.5%, 5%, 6%, 1%. How is it possible to make sense of real estate commissions?
Lets start with a basic understanding of the MLS SYSTEM. When a client lists their home for sale on the MLS SYSTEM they agree to pay a listing commission to the listing broker and they agree that the listing broker will pay a commission to any co-operating broker.
The power of the MLS SYSTEM is that homes listed on the system can have showings booked by any Realtor not just the Realtor or company that listed the house. Other Realtors will show the property in order to collect the co-operating broker commission. Well over 90% of all homes sold on the MLS SYSTEM are sold with two Realtors involved in the transaction, the Listing Realtor represents the interests of the homeseller and the Co-operating Realtor represents the interests of the homebuyer.
Commission Rates are 100% negotiable. Sellers have to realize that in Toronto and Durham Region co-operating brokers are offered a 2.5% commission by pretty much all Listing Brokerages and if your Listing Broker chooses to discount the commission offered to the co-operating broker then a HUGE mistake has been made. Why would a co-operating broker show your home to collect a 2% discounted commission if they can get a full 2.5% commission if they sell the house down the street?
The negotiability of the commission rate revolves around the Listing Realtors commission rate. Most Realtors automatically charge a 2.5% commission since that is the rate being offered to the Co-operating Broker. The amount of the Listing Realtors commission should be a reflection of the level of service, advertising support and any Guarantees that will be attached to the listing.
So. If you are thinking of listing your home for sale and you see an ad from a Realtor advertising a 2.5% commission, how much do you think you will pay? Well you will pay 2.5% to the co-operating broker and 2.5% to the listing broker for a total of 5% commission.
Please note that the comments contained on this page are for information purposes only and do not constitute legal advice.
Buying Property in Canada
The bottom line is that buying real estate in Canada is very easy.
From a residency point of view, if you plan to stay in Canada for 6 months or less each year, the government considers you a non-resident, which means that you can still open a bank account and buy property, etc. If you plan to live in Canada for more than 6 months per year, you must apply for immigrant status.
It is important to note, however, that while the majority of Provinces (British Columbia, Ontario, Quebec, Nova Scotia, Newfoundland, New Brunswick) have no restrictions on foreign ownership of real estate in Canada, some do limit the amount of property/land that a non-resident can purchase. On Prince Edward Island, non-resident buyers must apply to the Island Regulatory and Appeals Commission for land over 5 acres in size, or land with a shore frontage greater than 165 feet. In Manitoba, non-residents are prevented from owning farmland unless they actually plan to move there within 2 years. Non-residents may not own land over 10 acres in size in Saskatchewan, whilst in Alberta they may only own up to 2 plots of land not exceeding 20 acres in total.
Once you have chosen a realtor, secured a mortgage and found your property, an offer is made and once accepted, a deposit is payable. When buying a house in Canada, an offer must be made in writing so that all aspects of the transaction are clearly outlined within the offer. Once you (the buyer) have signed the document, it becomes legally binding. If you withdraw from the offer at this stage, you may lose your deposit and may also be sued. Make sure that every item staying in the property, eg. carpets, fixtures and appliances, is written on the offer as 'chattels included'. Your realtor should also insert two clauses stating that the offer will only proceed subject to building inspection and that you as the buyer are able to meet your financial obligations. Once your offer is complete it will be presented to the seller and negotiations are made. This may include changes in price, completion date and chattels. The changes are initialled by the seller and returned to you (the buyer) for your initials. The resulting Agreement of Purchase and Sale will state the purchase price and the deposit. The deposit is placed in a trust account and is credited towards the purchase price once the offer has been accepted by both the seller and the buyer and the transaction is complete.
Most realtors are self-employed and are on negotiable rather than fixed commission (payable by the seller). A purchaser can buy property using any realtor, regardless of whether that realtor originally listed the property. There are usually 2 realtors involved in a sale - the seller's agent and the buyer's agent. The commission received upon the sale of the property is divided between the 2 realtors. Some agents can also be dual agents but must declare this to buyers and sellers alike.
Mortgage
As a Canadian resident, financing is typically available at 75% of the purchase price for a primary residence over a 25-year term. For a non-resident, the ratio is generally 65% mortgage and 35% as a down payment. Qualifying for the mortgage financing is probably the same as in other countries - interviews via phone, fax, e-mail to gather personal information which includes assets/liabilities, employment and/or income information. Each borrower's application will be considered on a case-by-case basis. Your realtor will be able to advise you on suitable mortgage brokers.
The mortgage approval may take approximately 24-48 hours after application and documentation has been submitted to the lender. The documentation generally required is income verification, tax returns, credit bureau or bank's report (letter from borrower's own bank stating that all accounts are in good standing to date), down payment confirmation via bank statements, copy of 2 pieces of ID and real estate appraisal. Foreign banks cannot register mortgages in Canada, so any mortgage would have to be raised via a Canadian mortgage broker. (Please see 'Transferring Funds' for more information).
The borrower will require the services of a Canadian lawyer or notary public to prepare the mortgage documents and registration at the Land Titles office. Documents can be couriered outside Canada for signing - this will need to be arranged with the lawyer and lender well in advance of the completion date.
Selling Property in Canada
When a non-resident sells Canadian real estate, he/she is required to pay the appropriate amount of taxes on any capital gain. The normal Canadian tax rates will be applied to 50% of the gain. However, a non-resident is required to pay an estimate of the tax before the sale, an amount equal to 25% of the gain. This amount is to be retained by the seller's lawyer until such time as a clearance certificate is received from the Canada Revenue Agency (CRA) in connection with the sale of the property. Upon payment, the CRA will issue a clearance certificate to the seller, but not until there has been a contract of purchase and sale with all subjects (conditions) removed. The wait for the certificate is usually 6-8 weeks. If the certificate is not obtained, the purchaser is required to withhold from the sale proceeds, a percentage of the selling price (usually 25-50%).
On or before the closing date, the mortgage money is transferred to the seller's lawyer and then to the seller and the title is transferred to the buyer's name.
The non-resident seller should file a Canadian income tax return for the year in which the sale occurs and should expect to receive a refund of a portion of the taxes paid. The taxation of Canadian real estate depends on whether the use of the property is for a principal residence, an active business or as a rental property. If it is used as a rental property, a 25% non-resident tax must be paid on the gross rent a tenant pays. However, if you use a professional property manager, the manager will, by law, withhold 25% of the gross rental revenue at source to be remitted to the Canada Revenue Agency. Then on or before March 31 of the following year, the property manager issues an NR4 form and you then have the right to file a Canadian tax return. The tax return is due before June 30 and enables you to claim expenses against that income and potentially request a refund.
Many countries, such as the U.S., have tax treaties with Canada that prevent you from being taxed in both Canada and your home country. It is advisable to contact a tax accountant in your country for more information.
Additional Costs and Fees when Buying and Selling Property
The following represents many of the additional costs and fees incorporated when buying property. Your realtor will be able to let you know which are applicable in your Province.
Taxes
Non-residents of Canada pay tax on income received from sources in Canada. The type of tax paid, and the requirement to file income tax returns, depends on the type of income received.
Canada has tax treaties with many countries, including the United States and the UK. A tax treaty is designed to avoid double taxation for people who would otherwise pay tax on the same income in two countries.
Property Transfer (or Purchase) Tax / Land Transfer Fees are calculated between 0.5-2% of the property's total value (not applicable in Alberta, rural Nova Scotia or Saskatchewan). They are generally 1% of the first $200,000 of the value and 2% of the remainder.
Since the 2005 Provincial Budget, Property Transfer Tax (PTT) is now exempt for individuals buying their first home as long as they meet certain criteria, namely that they are a Canadian citizen or Permanent Resident and have never owned a home anywhere in the world; that they have lived in the province for at least one year prior to purchase; that they have filed two Canadian tax returns within the last six years; and that they must occupy the property as their principal residence for the first year of ownership.
As of December 2007, the Ontario Provincial Land Transfer Tax exemption for first time buyers (up to $2,000) now applies to resale as well as newly constructed homes. Similarly, from February 2008, Toronto (and this may spread to other provincial cities) has its own Land Transfer Tax which allows first time home buyers of both new and resale homes to qualify for a rebate.
If the property is vacant land, the house must be constructed within one year of closing and the buyer must live in the house for the balance of the year.
There are other criteria needed as well to qualify for the PTT exemption, so it is best to consult a lawyer or notary.
Clearance Certificate The typical fees associated with preparing and filing a clearance certificate, paid by the seller, range from $300-$1000, depending on the complexity of the transaction.
Capital Gains Tax is not applicable on your principal residence.
Goods and Services Tax (GST) of 5% is only payable on newly constructed homes and is often included in the quoted sales price. New home buyers of residences costing $350,000 or less can apply for a partial rebate of the 5% GST applicable on the purchase price as long as the home is going to be the purchaser's primary place of residence.
For new homes priced between $350,000 and $450,000 before GST, the GST rebate reduces proportionately. New homes priced $450,000 before GST or higher do not receive a rebate. There is no GST on resale housing unless the home has been substantially renovated, and then the tax is applied as if it were a new home.
GST questions are best answered at source ie: the Revenue Canada website, or by an accountant who is familiar with real estate revenue taxation.
Provincial Sales Tax (PST) ranges from 0-10% and again, is normally included in the quoted sale price.
Property Tax is an annual fee levied within local communities, which means there are many different rates within each province. The difference between Property Tax and Property Transfer Tax is that PTT is a one-time provincial tax which comes into effect upon transfer of property and Property Tax is paid annually to the local taxation authorities. It is determined by applying the value of the property as assessed by the provincial assessment authority to the current tax rates as stated by the local tax authority. The amount can differ each year but generally Property Tax falls between 0.5-2.5% of the home's market value.
Other Expenses
Realtor's Fees are paid by the vendor and are negotiable between 3 and 7% of the home's market value. As a rule of thumb, Realtors often charge 7% on the first $100,000 of the sale price and 3% on the remainder. GST of 5% is also applied to the Realtor's commission and is payable by the vendor.
Appraisal Fee Your lender may require a property appraisal at your expense. The cost is between $150-$250.
Survey Fee Your lender will require an up-to-date survey. If the Seller does not have one, you will have to pay to have one done.
Lawyer's Fees Lawyers review the Offer to Purchase, search the title, draw up mortgage documents and tend to the closing details. The fee will be approximately $500-$800. This amount varies between Provinces depending on the complexity of the sale and the type of property.
Home Inspection Fee is usually around $150-$400.
Property Insurance which covers the replacement value of the structure of your home and its contents.
Service Charges can be in the region of $35-$50 to hook up new services and utilities.
Condominium (Strata) Fees are charged monthly and cover building insurance and maintenance. The building’s property manager will provide you with the fee. For a newly built condo worth $230,000, expect to pay approximately $200 per month (this varies from building to building).
1. The agent also arranges to advertise the properties she is showing, and may visit each property before it is shown to clients.
2. She needs to know about everything from floor plans to heating systems to cesspools-she’s a matchmaker, and she’s got to know both sides of the equation.
3. It’s also important for an agent to be familiar with the neighborhoods she works in, so she can counsel her clients about a property’s fair market value.
4. A good real estate agent is informed about things like schools, tax rates, and public transportation systems, and should be aware of going mortgage rates.
5. A real estate agent must manage delicate price negotiations when an interested buyer and seller hook up. “Negotiating skills are not just important but critical for real estate agents,” as one respondent put it.
6. The agent also coordinates the “closing” when a property is sold, which means the actual signing of papers and transfer of a property’s title.
7. Networking is a big part of the job-most real estate agents develop a group of attorneys, mortgage lenders, and contractors to whom they refer their clients.
8. Finally, a real estate agent should be able to discern and be sensitive to a client’s needs during what may be an uncertain time.
9. In order to be available when their clients have free time, real estate agents work many evenings and weekends. An experienced agent will sometimes avoid some of the weekend hours by having an “open house” and drafting a new agent to go and answer potential buyers’ questions.
10. Commercial real estate agents’ jobs involve more research on market trends and an even more detailed attention to the needs of buyers. Since they work longer on each deal, commercial agents and brokers make fewer sales than residential agents but receive higher commissions.
都是REALTOR，还是有区别的，参考：
http://www.princetonreview.com/Careers.aspx?cid=135&uidbadge=%07
Real Estate Agent/Broker [
Day in the Life
Quality of Life
Present & Future
Facts & Figures
Majors
Graduate Programs
A Day in the life of a Real Estate Agent/Broker
Buying or selling a house or apartment is one of the biggest decisions of a person’s life, and real estate agents and brokers help people negotiate what can be a confusing process. Though both are often called real estate agents, agents and brokers have different roles. The broker has more administrative responsibility. There is usually one broker per estate, but often many agents are working with clients who are interested in the property. When someone wants to sell or rent his property he usually calls a real estate agent. A large chunk of the agent’s day may be spent on the phone obtaining listings for her agency. The agent also arranges to advertise the properties she is showing, and may visit each property before it is shown to clients. She needs to know about everything from floor plans to heating systems to cesspools-she’s a matchmaker, and she’s got to know both sides of the equation. It’s also important for an agent to be familiar with the neighborhoods she works in, so she can counsel her clients about a property’s fair market value. A good real estate agent is informed about things like schools, tax rates, and public transportation systems, and should be aware of going mortgage rates. A real estate agent must manage delicate price negotiations when an interested buyer and seller hook up. “Negotiating skills are not just important but critical for real estate agents,” as one respondent put it. The agent also coordinates the “closing” when a property is sold, which means the actual signing of papers and transfer of a property’s title. Networking is a big part of the job-most real estate agents develop a group of attorneys, mortgage lenders, and contractors to whom they refer their clients. Finally, a real estate agent should be able to discern and be sensitive to a client’s needs during what may be an uncertain time. In order to be available when their clients have free time, real estate agents work many evenings and weekends. An experienced agent will sometimes avoid some of the weekend hours by having an “open house” and drafting a new agent to go and answer potential buyers’ questions. Commercial real estate agents’ jobs involve more research on market trends and an even more detailed attention to the needs of buyers. Since they work longer on each deal, commercial agents and brokers make fewer sales than residential agents but receive higher commissions.
Paying Your Dues
About the only things real estate agents have in common in terms of preparation are high school diplomas and communication skills. More and more people are entering the field with college degrees, however, and some colleges even offer courses in real estate. These may be helpful, as would other business courses, but most of the learning takes place after you’ve entered the field. In fact many real estate agents come to the field from other, unrelated careers, attracted by the flexible hours or the potential for part-time work. Before you can use the title “Realtor” or become a member of the National Association of Realtors you must have a real estate license. Every state requires that a broker or agent undergo a series of examinations and log some experience before she is granted this license. Many real estate boards offer preparatory classes. Once you have the license, it’s usually renewed yearly without your having to repeat the tests. But each state has its own test, so if you want to work in a different state you’ve got to pass their exam.
Associated Careers
Careers associated with real estate often involve working with realtors. On the mortgage end, loan officers arrange the conditions for financing home purchases and act as liaisons between buyers and banks. Another possibility is the field of real estate law, which requires going to law school. Agents seeking further opportunities within the field have a few options, most of which involve setting up shop independently of brokers. Appraisers, for example, assess the fair market values of properties. Real estate counselors, likewise, are independent advisors who offer advice to buyers about the suitability of properties they are interested in.
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和者盖寡
2008-11-27 19:32
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In Wikipedia, the free encyclopedia, "Real estate broke" and "Real estate agent" are Redirect to the same page.
real estate agent or broker are realtor. There is no difference.
Real estate agent
http://en.wikipedia.org/w/index.php?title=Real_estate_agent&redirect=no
地产代理(real estate agent)又称地产经纪(Real estate broker)，属三级产业中的服务业，它的收入是经纪佣金，它自己没有地产物业作为货物，地产代理是物业市场上的中间人，外面的两方是物业买家和物业卖家（买卖盘），又或者租客和业主（租盘）。
http://zh.wikipedia.org/w/index.php?title=%E5%9C%B0%E7%94%A2%E4%BB%A3%E7%90%86&variant=zh-hans
Try to find a real estate agent or broker in the website below:
http://www.royallepage.ca/
网友投诉：遇到不诚信的经纪我怎么办？