Commercial brokerage compensation should be evaluated with the mandate, services, property, transaction and execution risk—not reduced to an assumed market percentage. Alberta's regulatory framework makes the written service agreement the place to state services, responsibilities, remuneration and when it becomes payable.
This is general information, not legal, tax, environmental, engineering, accounting or investment advice. Obtain advice specific to the property and transaction.
1. There is no Commercially-published standard rate
RECA material describes commission rates as a matter of negotiation and written agreement. Commercially does not publish, recommend or imply a fixed Alberta commission schedule.
Property type, price, leasing or sale structure, complexity, duration, marketing, cooperating brokerage, confidentiality and required resources can affect the agreed compensation.
2. Put the relationship and services in writing
RECA Rule 43 says a licensee establishing a commercial real-estate client relationship should enter into a written service agreement. The agreement should identify parties, property where applicable, duration, services, responsibilities, information use, remuneration or alternate compensation, payment circumstances and termination.
A clear agreement distinguishes the brokerage's work from legal, tax, appraisal, environmental, engineering, financing and other professional services.
3. Define how remuneration is calculated
Compensation may be structured as a percentage, flat amount, tiered formula, minimum, retainer, hourly or other agreed method, subject to law and brokerage policy. State the calculation base, thresholds, exclusions and rounding.
The Real Estate Act prohibits a commission based on the difference between listing price and actual sale price. Have the brokerage and counsel confirm any unusual structure before signing.
4. State when it is earned and payable
Define whether remuneration becomes payable on an accepted agreement, removal of conditions, closing, lease execution, occupancy, renewal, expansion, option exercise or another event. Address failed closing, buyer or tenant default, owner withdrawal and post-expiry protection.
Do not treat the marketing start date, deposit or conditional offer as automatic evidence that every fee has been earned. The written terms and actual events control.
5. Explain cooperating-brokerage treatment
State whether and how the listing or landlord brokerage proposes compensation to another brokerage representing or introducing a buyer or tenant. Explain whether it is paid from the agreed remuneration or is additional.
Cooperation can expand qualified reach, but compensation does not change representation duties. Each party should understand who represents whom and disclose conflicts or transaction-brokerage arrangements as required.
6. Connect compensation to the actual service scope
List pricing and positioning, data preparation, photography, video, drone, plans, brochure or memorandum, property website, listing-feed distribution, advertising, outreach, inquiry qualification, tours, reporting, offers, diligence and closing coordination included in the mandate.
Identify third-party production and advertising costs, approval rights, ownership of materials, cancellation treatment and whether costs are included, advanced or separately reimbursed.
7. Model GST and seller proceeds separately
Brokerage services are generally taxable supplies, so applicable GST can be added to the agreed brokerage remuneration. Confirm the invoice, recipient and ITC treatment with the brokerage and tax advisor.
GST on the brokerage service is separate from GST treatment of the property sale or lease. A seller net-proceeds model should show remuneration and tax as distinct lines.
8. Compare mandates by expected execution
Compare strategy, evidence quality, market reach, media, direct outreach, qualification, reporting, advisor capacity, cooperation, confidentiality, duration, termination and cost. The lowest fee is not automatically the best net outcome, and a higher fee does not guarantee performance.
Ask for measurable deliverables and decision points rather than vague claims. Do not rely on unverifiable sales volume, database size or national reach statistics.
9. Confirm amendments, referrals and payment path
RECA rules require written and signed amendments to written service agreements. Referral benefits known to a licensee require prescribed disclosure, and real-estate remuneration flows through the registered brokerage.
This guide is educational and is not a fee quote, service agreement, legal interpretation or promise of sale price, timing, inquiry volume or closing.
Primary sources
Verify the current rules.
Government and regulator pages can change. These links were reviewed on August 26, 2026.
CRA: Commercial real property—sales and rentals↗CRA: Real property and the GST/HST↗CRA: GST/HST rates and calculator↗Alberta: Register a land title document or plan↗Alberta: Land Titles common document fee schedule↗Alberta Land Registry: Transfer of land↗RECA: Real Estate Act↗RECA: Real Estate Act Rules↗FINTRAC: Real estate sector requirements↗RECA: Industry standards plain-language summary↗RECA: Service agreements—real estate brokerage↗A real property decision?
Share the property, objective, timing, required services and confidentiality needs for a written proposal.Who, how and why
Who: Commercially Research & Editorial.
How: Primary-source research and AI-assisted drafting were used to organize this guide around a practical commercial real estate decision. Source links, factual claims and material limitations were checked against Commercially's editorial standards on the review date.
Why: To help owners, buyers and tenants identify the records, questions and professional advice that belong in a real transaction work plan.
Editorial owner: Commercially Research & Editorial.
Commercial review: Slav Loban, Commercial Real Estate Division Leader.
Questions or corrections: hello@commercially.ca
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