In Alberta, the seller of a property is responsible for paying the real estate commissions for both the seller's realtor and the buyer's realtor. This means that the buyer's realtor typically does not receive direct payment from the buyer.
When a property is sold, the seller's realtor usually lists the property on the Multiple Listing Service (MLS) system. The commission offered to the buyer's realtor is typically included in the listing agreement and is a percentage of the sale price of the property. The commission is then split between the seller's realtor and the buyer's realtor, typically on a 50/50 basis.
Once the sale of the property is complete, the seller's realtor receives the total commission from the seller and then pays the buyer's realtor their portion of the commission. The buyer's realtor does not receive any direct payment from the buyer.
In Alberta a realtor is required to use a relationship agreement for non exclusive or exclusive buyer relationships. When using an exclusive relationship agreement, the realtor and buyer may agree to add a fee to the agreement to cover commissions if a seller is not paying ie. builders, FSBO, mere postings. But this will be discussed prior to signing an agreement.
It is important for buyers to understand that using a realtor typically does not result in any additional costs, as the commission is paid by the seller. Additionally, having a realtor represent you as a buyer can provide valuable guidance and expertise throughout the home buying process.