Settling In
Working With a PEI Real Estate Agent: Buyer vs Seller Representation
PEI's typical 5% real estate commission isn't set by law, it's negotiable, and dual agency, where one agent represents both sides, comes with trade-offs buyers should understand before signing.
1. Commission Rates Are Negotiable, Not Fixed
PEI's Real Estate Trading Act explicitly bases commissions on an agreed percentage between the parties, not a fixed government rate. In practice, a 5% total commission is the common default, split roughly evenly between the listing (seller's) agent and the buyer's agent, plus 15% HST on top. That said, this is negotiable, and flat-fee or discount brokerage alternatives exist on the Island, typically running closer to 3% total.
2. Who Actually Pays
By convention, the seller pays the full commission, which the listing brokerage then shares with the buyer's agent according to what's disclosed in the MLS listing. As a buyer, this means working with a buyer's agent generally costs you nothing directly — their share comes out of the seller's proceeds.
3. Buyer Agency vs Seller Agency vs Dual Agency
| Representation type | Who the agent legally represents | What it means for you |
|---|---|---|
| Seller's (listing) agent | The seller only | Their job is to get the seller the best price and terms — don't treat them as your advocate |
| Buyer's agent | You, the buyer, exclusively | They negotiate on your behalf and owe you full disclosure and loyalty |
| Dual agency | Both parties, through the same agent | The agent can't fully advocate for either side; ask directly how your agent handles this before it comes up |
If you're viewing a property with the listing agent directly, without your own buyer's agent, you're generally not represented in the negotiation — the agent's duty runs to the seller. Getting your own buyer's agent early, ideally before you start touring homes, avoids this.
4. Licensing and Recourse
All real estate agents and salespeople in PEI must be licensed under the Real Estate Trading Act. If a dispute arises over conduct or commission terms, this licensing framework, and PEIREA, are your starting points before escalating further.
5. Questions Worth Asking Before You Sign a Buyer Agency Agreement
- How long does the agreement lock you in, and can you cancel it?
- Does the agent work with sellers on other listings you might want to view (creating a dual agency situation)?
- What's included in their commission split versus what the seller is offering through MLS?