Cost of Services
When you hire a professional to work on your behalf, you have a right to know the cost of their services. In fact, when it comes to working with a real estate brokerage, mortgage brokerage, real estate appraisal or property management professional, it’s a requirement.
- Licensed professionals in Alberta’s real estate industry must disclose to their clients how they will be paid for their services.
If you’re the client of one of these professionals, they must tell you how they will receive pay, and the exact costs of their services (fees and disbursements) or how to calculate those costs before you enter into an agreement with them.
- If your professional is receiving pay from a third party as a result of providing services to you, they must also tell you that. If you want more information about the payment arrangements, your professional must be accurate and honest in their answers.
You should have an open and frank discussion about compensation with an industry professional BEFORE you sign an agreement. They are required, by law, to tell you honestly how they will be compensated.
- Professional commissions and fees are negotiable. Regulatory bodies and trade associations do not mandate fees, and any person who suggests they do is misleading. That being said, each individual brokerage or appraiser decides their own fee structure and they may not be willing to negotiate fees. It’s their right and decision if they aren’t willing to negotiate fees; but it’s not mandated by a regulatory body or a trade association.
If you can’t agree on fees with the professional you want to hire, hire someone else.