Montreal Homebuyers’ Guide: Realtor Referral Fees and Negotiation Tips

Realtors, real estate brokers earn revenue not just from traditional commissions, but through a range of referral fees tied to the services and professionals they recommend during the homebuying process. If you’re buying a home, understanding these streams can help you have smarter, more open conversations with your agent, ensuring transparency and possibly saving you money.

Below you’ll find all the common sources for these fees, how much might be charged, and practical advice for negotiating with your broker.​

Common Referral Income Streams for Montreal Realtors

Agent to agent referrals. Montreal realtors often refer clients to other agents, locally or across Canada, and earn 20% to 30% of the gross commission from the resulting transaction. For example, a $500,000 sale at 5% commission ($25,000) with a 25% referral fee means $6,250 paid to the referring agent.​

International and cross-border referrals. These can command 25% to 35% of the commission because they require more coordination.​

Mortgage broker referrals. Brokers may provide a flat finder’s fee, often between $300 and $1,000, when legal and compliant with Quebec’s real estate and finance rules.​

Referrals to notaries, inspectors, or lawyers. Quebec rules usually restrict direct fee-splitting, but minor incentives or small gifts (under $200) can be offered, provided they are disclosed to the client in writing.​

Moving companies, home stagers, trades, or renovators. Ancillary businesses may provide bonuses or cash-back deals (typically $50 to $500) for each client referred, or offer discounts to the client with a small reward to the realtor.​

Affiliate products and services. Realtors earn small commissions (often 1% to 5%) by recommending home insurance, smart home devices, or service subscriptions tied to the buying process.​

Property management and rental referrals. Real estate agents may earn the equivalent of one month’s rent or 10% to 20% of the rental commission for referring landlord or rental clients.​

Income from coaching and training referrals. More experienced agents sometimes refer new realtors to training programs, earning $200 to $2,000 per sign-up.​

Typical Fee Chart

Source	Typical Fee	Example
Realtor to Realtor	20% to 30% commission	$5,000–$7,500 per deal​
Mortgage Broker	$300 to $1,000	Each closed mortgage​
Notary, Lawyer, Inspector	Up to $200 (gift/legal)	Per closed referral​
Moving, Stager, Trades	$50 to $500	Per service used​
Affiliate Services	1% to 5%	Varies by product​
Rental Referrals	10% to 20% or 1 month rent	Per contract​

Disclosure and Compliance

In Quebec, agents must provide written disclosure of all referral fee arrangements to their clients. This includes the source of the referral, the amount or method of calculation, and any non-cash benefits. Written notices should be filed in your transaction record and provided to all parties without delay for full transparency.​

Negotiating with Your Broker

Start the conversation early. Raise the topic of referral and commission fees in your first meeting to set a tone of openness and partnership.​

Request written disclosures. Quebec homebuyers can always ask their realtor for written information about any referral fees or commissions received from recommended professionals. By law, these must be disclosed, so you are fully in your rights to ask for it.​

Compare and interview different brokers. Meet more than one agent, and ask about their commission structures and referral practices. Agents are often willing to negotiate, especially when approached respectfully and honestly.​

Offer your loyalty and future referrals. Agents are more likely to reduce fees or provide service rebates if they know you’ll refer more clients in the future or use them for a sale and purchase. Loyalty and repeat business are valuable in the negotiation.​

Negotiate a flat fee or sliding scale. Instead of a percentage, you might suggest a single flat fee or a schedule where fees drop for more expensive homes, helping keep costs predictable.​

Ask for bundled services. If you need help buying, selling, leasing, or have lots of referrals to other service providers, request a bundle or package discount. Many agents will offer lower fees if they handle more of your transactions.​

Focus on value, not just price. Explore what you receive for the commission or referral fee, asking your agent to clarify their value. This approach builds mutual respect, trust, and a better partnership.​

Negotiation Language Sample

“Would you please let me know if there are any referral fees or bonuses you’ll earn if I work with your recommended lawyer or inspector? Could we discuss sharing those, perhaps as a rebate on my closing costs?” “I’m meeting with a few agents and want to be open about budget. Can you adjust your commission or offer an incentive if I use you for both my purchase and sale?”

Montreal Buyer Reminder

Fees in Quebec are negotiable, never fixed by law, and full disclosure is your legal right. Ask for all numbers and arrangements to be put in writing, balance your requests with respect for your broker’s expertise, and aim for clarity and collaboration at each step.​

TIPS stands for To Insure Proper Service. It’s completely normal to pay for a service, just make sure the fee actually brings real value to the deal. When your agent’s service improves your outcome, those costs are worth it. If you’re ever unsure, just ask for clarity on what you’re receiving. In the end, a fair fee for excellent service is the smartest investment you can make as a homebuyer.