Transparency

Service Fees

Below is an example of a $750,000 list price (and closing price) of a typical detached home and the associated commissions (typical 7/3) for full-service representation by RealFour. Commissions are not fixed and different agents/brokerages can charge different rates.

1. RealFour (brokerage) Commission (7/3)

Price tier Rate Dollar amount
First $100,000 7% $7,000
Remaining $650,000 3% $19,500
Total commission $26,500

Alberta has no fixed commission; RealFour charges 7% on the first $100k and 3% on the balance and this remains the most common full-service model in Calgary.

50 / 50 split: $13,250 to the listing brokerage, $13,250 to the buyer's brokerage.

2. GST on Commission

  • The commission is a taxable service, so 5% GST is added.
  • $26,500 × 5% = $1,325 GST, collected by the listing brokerage and remitted to CRA.

3. Legal & Land-Titles Costs (Seller)

Component Typical amount
Lawyer flat fee (sale only) $1,200 – $1,600
Disbursements (courier, title search, bank draft) ≈ $300

Buyers usually pay more because they register a new mortgage and Land-Titles instruments.

4. Total Seller Closing Costs

Cost bucket Amount
RealFour (agent/brokerage) Commission $26,500
GST on commission $1,325
Legal fees & disbursements $1,500
Grand total $29,325
Net proceeds before mortgage payout:
$750,000 − $29,325 = $720,675

5. Quick Facts & Compliance Notes

  • Commissions are negotiable; advertising a fixed rate is prohibited.
  • GST is mandatory on commissions/admin fees; resale homes themselves are GST-exempt.
  • Each party hires its own lawyer; seller legal costs are never bundled into commission.
  • Land-Titles transfer levy (paid by buyers) rose to $5 per $5,000 of value on Oct 20 2024.

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