In Ontario, the formula to calculate real estate commission typically involves multiplying the sale price of the property by a certain percentage, which is agreed upon between the seller and the real estate agent.

 

The commission rate can vary and is negotiable, but it is commonly around 4% to 5% of the sale price.

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To calculate the commission amount, you would multiply the sale price by the agreed-upon percentage. For example, if the sale price of a property is $500,000 and the commission rate is 5%, the calculation would be as follows:

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Commission = Sale Price x Commission Rate Commission = $500,000 x 0.05 Commission = $25,000

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Therefore, the real estate commission for that particular transaction would amount to $25,000. It's important to note that this is a general guideline, and the specific commission rate and terms may vary based on individual agreements between the seller and their chosen real estate agent.

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