#THECLOSERSDAILY : EPISODE 158: COMMISIONS HIDDEN COST

So one thing you may not have thought about when it comes to paying real estate commissions is you're gonna have to pay HST on that transaction. Lot of people kind of forego this when they're going through the paperwork, or don't explain to their clients properly that HST applies to all service transaction in Ontario. So the government's gonna come in and charge HST on that and the agent's not gonna actually get to keep the money. It's just gonna be held by them, and then come tax time they'll have to pay it back to the government. But HST's 13%, that's a big chunk of change. So we just like people to be informed and make sure you know what you're signing, make sure you know how to calculate your net proceeds, so you can make the right decision. Whether it be an investment, your family home, wherever you're moving to, these things really matter, so make sure you understand the full scope of the transaction.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”