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Why Buyers Can’t SeeSeller Commission in Ontario — TRESA Explained
Arthur Zhao · April 13, 2026 · 8 min read
The Question Most Buyers Never Think to Ask
Most buyers go through an entire home purchase without ever knowing how much commission the seller paid — or how much of that went to their own agent. That’s not an accident. It’s a structural feature of how real estate transactions are documented in Ontario, and since TRESA Phase 2 took effect in December 2023, the information gap has widened.
The short version: sellers decide whether to offer a cooperating commission to the buyer’s agent. That amount is written into the listing agreement — and it is not publicly visible on MLS. Buyers have no way to see this figure, and many first-time buyers don’t even know they might be responsible for paying their own agent’s fee.
A commonly cited benchmark in Ontario is a 5% total commission — but this is a market convention, not a legal requirement. Commission is fully negotiable, and TRESA has made the landscape considerably more complex for buyers who aren’t paying attention.
⚠ You May Owe Your Agent Fees Out of Pocket
If a seller chooses not to offer a cooperating commission — or offers less than what your buyer’s agent is owed under your signed agreement — you are responsible for the difference. This is not theoretical. In a buyer’s market, some sellers are actively reducing or eliminating cooperating commissions to lower their transaction costs. Make sure you understand this risk before signing a Buyer Representation Agreement.
What TRESA Phase 2 Actually Changed
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Buyer Representation Agreements Are Now Mandatory
Before TRESA, agents could show properties without a formal written agreement. Now, a Buyer Representation Agreement must be signed before any property showing. This agreement must clearly state the agent’s compensation, the scope of services, the area covered, and the duration of exclusivity. The intent is to ensure buyers know exactly what they’ve agreed to.
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Cooperating Commission Is No Longer Publicly Visible on MLS
Previously, the cooperating commission offered to buyer’s agents was visible on public-facing MLS listings. TRESA removed this disclosure from the public view. The information still exists in the listing agreement and within REALTOR-to-REALTOR data systems — but buyers themselves cannot see it without asking their agent to check.
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Commission Changes After Offers Are Submitted Must Be Disclosed
A key new protection: if the seller reduces the cooperating commission after offers have been submitted, this change must be disclosed to all competing buyer’s agents. This prevents sellers from quietly cutting the buyer agent fee mid-competition to capture more net proceeds.
Commission Flow in an Ontario Transaction (Post-TRESA)
Buyer pays purchase price to seller
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Seller pays total commission to listing brokerage
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Listing brokerage pays cooperating commission to buyer’s brokerage (if offered)
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If cooperating commission is insufficient, buyer pays the shortfall directly
The Knowledge Asymmetry — and How to Close It
Here’s the practical reality: the seller, the listing agent, and the listing brokerage all know exactly how much commission is on the table. You, as a buyer, do not — unless your agent checks. This creates a structural disadvantage that well-informed buyers can close by taking three simple steps:
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Ask your agent to verify the cooperating commission before showing interest
Your buyer’s agent can check the cooperating commission through REALTOR-to-REALTOR data systems before you invest time and emotion into a property. Make this a routine step in your search process.
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Read your Buyer Representation Agreement carefully before signing
Pay particular attention to the compensation clause and how it interacts with cooperating commissions. Understand exactly what you would owe your agent if a seller offers no cooperating commission.
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Include buyer agent compensation in your offer if needed
In a buyer’s market, you can include a clause in your offer requiring the seller to pay your buyer agent’s full compensation as a condition of the deal. Motivated sellers will often accept this to secure a firm transaction.
Frequently Asked Questions
Q: Can I see the cooperating commission on MLS as a buyer?
No. Since TRESA Phase 2 (December 2023), this figure is no longer publicly displayed. Your buyer’s agent can check it through the REALTOR systems, but you as a consumer cannot access it directly on any public-facing MLS platform.
Q: Do I have to sign a Buyer Representation Agreement before seeing homes?
Yes, under TRESA. The agreement can be a single-property limited agreement (low commitment) or a broader agreement covering a geographic area for a set period. What matters most is understanding the compensation clause — how your agent gets paid and what you owe if the seller doesn’t cover it.
Q: Is 5% a fixed commission rate in Ontario?
No. There is no fixed or regulated commission rate in Ontario. Five percent is a commonly cited benchmark, but commissions are fully negotiable between all parties. Sellers negotiate with their listing agent; buyers negotiate with their buyer’s agent; and commission terms can also be negotiated as part of a purchase offer.
Q: What’s the difference between being a “client” and a “customer” of a real estate agent?
A client has signed a representation agreement and receives the agent’s full fiduciary duty: loyalty, confidentiality, full disclosure, and advocacy. A customer receives only basic professional service obligations — no fiduciary duty, no confidentiality, no advocacy. In a transaction as large as a home purchase, the difference is significant. Always sign a representation agreement.
Full Transparency on Every Transaction
When you work with me, I walk you through the commission structure on every property we look at — before you fall in love with it. No surprises at closing. Let’s talk about your search.
arthurzhao.realtor
📞 416-277-3836
