Commercial Leasing Commission in Alberta

1. Start with the written service agreement

RECA Rule 43 says an Alberta commercial licensee should enter into a written service agreement with a client. It should identify the parties, affected property where applicable, duration, services, responsibilities, information handling, remuneration or alternate compensation, payment circumstances and termination.

Do not rely on an email percentage, prior transaction or verbal description when the complete relationship and calculation have not been documented.

• Client and brokerage
• Premises
• Services
• Calculation
• Payment event
• Cooperation
• Termination

2. There is no Commercially-published standard leasing rate

Compensation is negotiated independently within applicable law and brokerage policy. Commercially does not publish, recommend or imply a standard Alberta leasing commission, fee split or cooperating amount.

Property type, market, area, term, rent structure, vacancy, exclusivity, construction, expansion, renewal, confidentiality and service scope can affect a proposal. Those factors do not prove a market rate.

3. Define the calculation base

State whether the formula uses base rent, another lease amount, area, term, a flat fee, milestone payments or an alternate agreed method. Define included years, escalations, options, free rent, expansions, contractions, additional rent, percentage rent and any minimum or maximum.

A reference to aggregate rent or lease value is incomplete unless the included cash flows, measurement, period, exclusions and rounding are reproducible.

4. Define when compensation is earned and payable

Address accepted offers, condition removal, executed lease, possession, fixturing, occupancy, rent commencement and other stated events. Map what happens if conditions fail, the tenant or landlord defaults, delivery is delayed or the lease is amended before opening.

Do not treat an inquiry, tour, offer, deposit or signed document as an automatic payment event. The written agreement and actual facts control.

5. Address renewals, expansions and later transactions

State whether renewals, extensions, options, expansions, contractions, relocations, assignments, subleases, additional premises or purchases are within the mandate and protection period. Define notice and calculation mechanics for each included event.

A later transaction involving the same parties or property does not automatically carry the same remuneration. Review the operative agreement and amendments.

6. Explain landlord, tenant and cooperating-brokerage roles

Identify which brokerage represents each client and whether a participant is a customer. Explain any proposed cooperating-brokerage remuneration and whether it is included in or additional to the client's agreed amount.

Compensation does not determine representation. Each licensee's duties, disclosure and conflict obligations remain distinct from the payment path.

7. Separate fees from property and construction economics

Model brokerage compensation beside free rent, tenant-improvement allowances, landlord work, legal cost, design, permits, restoration, moving and downtime. Keep each source and payment date visible.

Do not bury compensation in a face-rent comparison or treat it as NOI. Landlords, tenants and lenders can require different accounting and tax treatment.

8. Add GST as a separate service-tax line

Applicable GST can be added to taxable brokerage services. Confirm invoice recipient, payment timing and potential input-tax-credit treatment with the brokerage and tax advisor.

GST on brokerage services is separate from GST on rent, inducements, construction and a property transaction. This page does not determine any party's tax filing.

9. Compare the complete leasing mandate

Compare requirement definition, property preparation, market evidence, listing distribution, direct outreach, inquiry qualification, tours, proposals, financial comparison, construction coordination, reporting and lease-execution support.

This guide is educational and is not a fee quote, service agreement, competition-law opinion, tax conclusion or promise of lease timing, rent or occupancy.