BAC in real estate stands for Buyer Agent Compensation (sometimes called Co-operating Brokerage Commission). It is the commission the seller offers to the brokerage that brings the buyer. In the GTA, BAC is typically 2–2.5% of the sale price plus HST and is published on the TRREB MLS so buyer agents know what they will earn. Recent CREA policy changes have shifted some practices but the seller-funded BAC remains dominant in Ontario.
In this guide, we cross-reference Ontario Realtor Fees, Calculate Realtor Fees, How to Pick a Real Estate Agent, and What Is APS in Real Estate? — click through whenever you want to go deeper on a related concept.
Where BAC Appears
On TRREB MLS, listings disclose the BAC offered to a co-operating brokerage. Buyer agents see this when they search. The number is also confirmed in the listing agreement between seller and listing brokerage.
How BAC Is Calculated
- Most common: a percentage of the sale price (2–2.5% in the GTA).
- Sometimes: a flat dollar amount.
- Sometimes: $1 ("buyer agent to seek compensation directly from buyer").
Who Actually Pays the BAC
Traditionally the seller pays both sides through the listing commission, with the BAC carved out and remitted to the buyer brokerage at closing. The buyer never writes a separate cheque — it is built into the sale price.
Recent CREA Rule Changes (Cooper / NAR Settlement Echoes)
Following litigation in the US (Sitzer/Burnett, NAR settlement) and a similar Cooper class action in Canada, CREA changed MLS rules. BAC must now be displayed; buyers must sign a Buyer Representation Agreement that explicitly addresses how their agent will be paid; and buyer agents can negotiate compensation directly with their buyer client. In Ontario practice, the seller-funded BAC remains the norm — but buyers should now expect explicit conversation.
Why a Low or $1 BAC Hurts Sellers
Listings with materially below-market BAC see fewer buyer-agent showings. Even if buyer agents are obligated to show what fits the client, lower BAC creates friction and reduces traffic. Most successful Toronto listings offer market-standard BAC.
BAC and Multiple Representation
If the listing brokerage also represents the buyer (multiple representation), the brokerage may keep both sides of the commission — but only with written informed consent under TRESA. The dynamics are different and worth discussing with your agent.
Frequently Asked Questions
Is BAC the same as commission?+
BAC is the buyer-side portion of the total commission. Total commission = listing commission + BAC. In Ontario, both are typically funded by the seller.
Can BAC be negotiated?+
Yes. Sellers and listing agents negotiate BAC at the time of listing. Buyers and their agents negotiate it in the BRA. Both numbers are flexible — the market just gravitates toward 2–2.5% in the GTA.
Why is BAC public on the MLS?+
Following CREA's recent rule changes (post-Cooper and aligned with US NAR settlement principles), BAC disclosure is required so buyers and their agents have transparency about compensation.
What if the BAC is $0 or $1?+
Buyer agents may negotiate compensation directly from the buyer in their BRA. In practice, most Ontario sellers continue to offer market-standard BAC because lower BAC reduces buyer-agent traffic.
Related Articles
Work With a Top Toronto Real Estate Agent
Confused about who pays what? Aldo will walk through your BRA or listing agreement clause-by-clause and tell you exactly how commission flows in your specific Toronto deal.