60-second summary
A residential real estate transaction in Florida traditionally produced two commissions, both paid by the seller out of closing proceeds, with the listing broker sharing a pre-published portion with the buyer's broker through the Multiple Listing Service (MLS). The 2024 settlement of the Sitzer/Burnett class action against the National Association of REALTORS (NAR) ended that publication mechanism. Two practice changes took effect on August 17, 2024 and received final court approval on November 26, 2024.
First, offers of buyer broker compensation can no longer appear on any REALTOR-affiliated MLS, including Stellar MLS, MIAMI MLS, and the BeachesMLS used across Palm Beach, Broward, and Miami-Dade. Second, any agent who works with a buyer must have a written agreement signed before showing a home, and that agreement must state the agent's compensation in specific, objectively ascertainable terms.
For a Canadian buyer, the practical effect is that you walk into the Florida market with a contractual obligation to pay your agent a defined fee. Whether the seller ends up reimbursing that fee through a credit at closing or a direct cooperation agreement is a matter to be negotiated property by property. Total commissions in Florida have not collapsed since the rule change. They have, in most price brackets, slightly increased.
Glossary of acronyms
BBA: Buyer Brokerage Agreement, the written contract between the buyer and a Florida-licensed broker. CIGM: Chambre immobilière du Grand Montréal, the Montreal-area REALTOR association in Quebec. DBPR: Florida Department of Business and Professional Regulation, the state agency that oversees real estate licensing through the Florida Real Estate Commission (FREC). EBBA: Exclusive Buyer Brokerage Agreement, the most common form of BBA used by Florida REALTORS. FREC: Florida Real Estate Commission, the licensing and disciplinary body inside DBPR. MLS: Multiple Listing Service, the cooperative database of properties listed for sale. NAR: National Association of REALTORS, the US trade association whose policy changes drove the 2024 settlement. OACIQ: Organisme d'autoréglementation du courtage immobilier du Québec, the Quebec real estate brokerage regulator. REALTOR: A real estate licensee who is a member of NAR (or, in Canada, of CREA). Not all licensees are REALTORS, but the vast majority are.
What the NAR 2024 settlement actually changed
Verified fact. On March 15, 2024, NAR announced a proposed settlement of class action claims (Sitzer/Burnett, Moehrl, and related cases) alleging that NAR rules inflated broker commissions. NAR agreed to pay USD 418 million over four years and to implement two practice changes. The changes took effect on August 17, 2024. Judge Stephen R. Bough of the US District Court for the Western District of Missouri granted final approval on November 26, 2024. Sources: NAR press releases of August 1 and August 16, 2024; final approval order dated November 27, 2024.
The first change is a prohibition on offers of compensation through the MLS. Before August 17, 2024, a listing agent typically advertised on the MLS that a cooperating buyer's broker would receive a stated percentage (commonly 2.5% or 3% of the sale price) at closing. That field has been removed from every REALTOR-affiliated MLS in Florida. Sellers and listing brokers can still offer compensation to a buyer's broker, but the offer must be communicated outside the MLS, through phone, email, the listing brokerage's own website, marketing flyers, or a direct compensation agreement between brokers.
The second change is the written buyer agreement requirement. Any agent who is an MLS participant and provides brokerage services to a buyer must enter into a written agreement with that buyer before touring a home. Touring includes physically entering the property and live virtual tours where the buyer is being walked through a home in real time. Open houses where the listing agent represents the seller, and generic recorded virtual tours, do not trigger the requirement.
The agreement must include a specific and conspicuous disclosure of the amount or rate of compensation the agent will receive, expressed in a manner that is objectively ascertainable, not open-ended ("whatever the seller offers" is not acceptable). It must also state, in plain language, that broker compensation is not set by law and is fully negotiable. In Florida, the most widely used form is the Florida REALTORS Exclusive Buyer Brokerage Agreement, revised on July 9, 2024.
Opinion. The settlement's stated purpose was to reduce commissions through transparent negotiation. As of early 2026, Florida data does not show a meaningful reduction. Buyer agent commissions briefly dipped, then rebounded above pre-settlement levels in most price brackets. The change Canadians should plan for is procedural, not financial: the seller no longer pre-commits, and the buyer signs a binding contract before touring.
Who pays the listing agent
The seller continues to pay the listing agent. This part of the structure was not affected by the settlement. When a Florida homeowner signs a listing agreement with a brokerage, the agreement specifies a total commission rate, paid by the seller out of the closing proceeds. Florida REALTORS now offers three listing variants: Option A bundles the listing fee with an offer to compensate the buyer's broker, Option B keeps the listing fee separate and lets the seller negotiate buyer-side compensation offer by offer, and a third option declines to offer any buyer-broker compensation upfront.
Typical range. Across Florida in 2025 and early 2026, the listing agent's commission averages around 2.75% to 2.90% of the sale price. The precise figure is freely negotiable and varies with property type, price point, and market conditions. Luxury listings above USD 1 million commonly land below 2.5%. Sources: Clever Real Estate February 2026 agent survey; RealEstateWitch 2026 Florida data; Redfin Q3 2025 commission analysis.
Who pays the buyer's agent: the actual change
This is where the Canadian buyer needs to slow down. Three pathways now exist for paying the buyer's agent. None of them is automatic.
Pathway one: the seller offers compensation off-MLS. Most Florida sellers, in most price brackets, still offer to compensate the buyer's broker, because doing so widens the buyer pool and makes the property more competitive in a market that has favored buyers since 2024. The offer is communicated outside the MLS, often through the listing brokerage's website, a flyer, or a direct compensation agreement signed broker-to-broker. If the seller's offer matches what the buyer's BBA says the buyer owes, the buyer pays nothing out of pocket and the seller pays both agents at closing through the title company.
Pathway two: the buyer asks for a seller concession in the offer. Even if the seller has not pre-committed to a buyer-broker compensation, the buyer can include a concession request in the purchase offer ("Seller to credit Buyer USD 12,000 toward Buyer Broker compensation at closing"). This is now one of the standard negotiating items, alongside price, closing date, and inspection contingencies. Whether the seller accepts depends on market dynamics and the strength of the offer.
Pathway three: the buyer pays the agent directly. If neither of the above produces a sufficient cooperation, the buyer is contractually liable for whatever shortfall exists between what the BBA names and what the seller has agreed to cover. This is the scenario every Canadian buyer should understand before signing a BBA, because the obligation flows from the buyer's signature, not from market convention.
Verified fact. Florida REALTORS has stated explicitly that "compensation is fully negotiable and not set by law" and that the BBA must state how and from whom the broker will be compensated. Source: Florida REALTORS NAR Settlement FAQ, accessed April 2026.
A Florida quirk Canadians rarely know: brokerage relationships under FS 475.278
Florida is one of the few US states that does not allow traditional dual agency. Under Florida Statute 475.278, a real estate licensee can operate in three modes. The default presumption, when no written disclosure says otherwise, is transaction broker. A transaction broker provides a limited form of representation to either or both parties without acting as a fiduciary for either. Most Florida residential transactions are handled this way.
A licensee can also operate as a single agent, owing fiduciary duties of loyalty, obedience, full disclosure, confidentiality, and accounting to one party only. A single agent who later wants to facilitate a transaction where the brokerage also represents the other party must obtain written transition consent from the principal, converting the relationship into transaction brokerage going forward.
The third mode is no brokerage relationship, where the licensee owes only honesty, accurate disclosure of material facts, and accounting for funds, but no fiduciary duty.
For a Canadian buyer, the practical implication is that the Florida REALTOR you sign with, by default, is most likely operating as a transaction broker rather than as your fiduciary advocate. This is materially different from the buyer's broker model in Quebec, where the Real Estate Brokerage Act and the OACIQ Brokerage Contract for the Purchase of Immovables establish the broker as your representative with specific duties to you. The Florida BBA does not automatically convert the Florida licensee into a single agent. If you want fiduciary representation, you must specifically request it and have the box for "single agent" selected and disclosed in writing before showings begin.
Verified fact. Under Florida Statute 475.278(1)(b), it is presumed that all real estate licensees operate as transaction brokers unless a single agent or no brokerage relationship is established in writing. Florida law explicitly forbids "disclosed or nondisclosed dual agent" relationships in the traditional sense. Source: 2025 Florida Statutes, Chapter 475 § 278.
What the buyer brokerage agreement actually commits you to
The Florida REALTORS Exclusive Buyer Brokerage Agreement, in its 2024 revision, sets out a small number of commercially loaded clauses that a Canadian buyer should understand before signing.
The compensation clause names the rate or amount the buyer owes the broker on a successful purchase, expressed either as a percentage of the purchase price or as a flat fee. This figure is the buyer's contractual obligation. If the seller covers all of it, the buyer's net out-of-pocket is zero. If the seller covers less, the buyer pays the difference. The contract also specifies that any compensation the broker receives from the seller or seller's broker reduces, dollar for dollar, the amount the buyer owes.
The retainer clause is optional but increasingly common, especially with high-end brokerages serving foreign buyers. A non-refundable retainer is paid at signing and is in addition to the compensation owed at closing. It is not credited against the closing compensation unless the contract specifically says otherwise.
The protection period clause typically runs for 30 days after the agreement expires. If the buyer closes during that period on a property the broker showed during the agreement term, the broker is still owed compensation. This protects the broker from buyers who try to wait out the agreement and close directly.
The early termination clause allows the buyer to exit the agreement, sometimes with a defined fee. This is now negotiated frequently in Florida, particularly for buyers who want a short trial period before committing to a single brokerage.
The brokerage relationship clause indicates whether the broker is operating as a transaction broker, a single agent, or under no brokerage relationship. Default is transaction broker.
The arbitration clause in the 2024 form is now opt-in rather than mandatory. If the parties decline arbitration, disputes are resolved in court.
Opinion. For a Canadian buyer making a single Florida purchase, a 30-day BBA tied to a specific list of properties is more flexible than a six- or twelve-month exclusive contract covering "any Florida residential property". Several Florida brokerages now offer this short-form structure on request. Asking for it is reasonable. The market has adapted.
Worked example: a USD 500,000 condo in Boca Raton
Assume a Canadian buyer signs a BBA naming 2.75% as the buyer's broker compensation. The buyer makes an offer on a condo listed at USD 500,000.
Verified fact. The figures below illustrate the math. Actual rates vary by transaction and are negotiable.
| Scenario | Seller offers | BBA says buyer owes | Buyer pays out of pocket | Listing fee paid by seller (assumed 2.75%) | Total seller cost |
|---|---|---|---|---|---|
| A: Full cooperation | USD 13,750 (2.75%) | USD 13,750 | USD 0 | USD 13,750 | USD 27,500 |
| B: Partial cooperation | USD 10,000 (2.0%) | USD 13,750 | USD 3,750 | USD 13,750 | USD 23,750 |
| C: No seller cooperation, no concession | USD 0 | USD 13,750 | USD 13,750 | USD 13,750 | USD 13,750 |
| D: Buyer requests concession in offer, seller agrees | USD 13,750 credit at closing | USD 13,750 | USD 0 | USD 13,750 | USD 27,500 (effectively, via reduced net price) |
Scenario A is still the most common in Florida as of early 2026. Scenario D is the most common path when the seller has not pre-committed but is willing to negotiate. Scenario C is rare in residential resales but is the default in some new construction situations where the developer refuses to compensate buyer brokers.
Florida vs Quebec: how the structure differs
The comparison below uses Quebec as the reference Canadian province because OACIQ practice and the Brokerage Contract for the Purchase of Immovables provide a specific contractual point of reference. Equivalent comparisons for Ontario, British Columbia, and Alberta are forthcoming on this site.
| Item | Florida (State FL + Federal US) | Quebec (Provincial QC + Federal CA) |
|---|---|---|
| Regulator | Florida Real Estate Commission (FREC) inside Florida DBPR (state) | OACIQ (provincial) |
| Governing law | Florida Statute § 475.278 (state) | Real Estate Brokerage Act (provincial) |
| Default brokerage relationship | Transaction broker (limited representation, no fiduciary duty) | Broker represents the party who signed the brokerage contract (fiduciary duties under the Act) |
| Written buyer agreement required before showings | Yes, since August 17, 2024 (NAR settlement, applies to MLS participants nationwide) | Yes, the OACIQ Brokerage Contract for the Purchase of Immovables, Form ACI |
| Typical total commission | 5.5% to 6% of sale price | 4% to 7% of sale price, average around 5% |
| Who customarily pays the buyer's broker | The buyer is contractually liable; the seller may cover via off-MLS offer or concession at closing | The seller pays the listing broker, who shares with the buyer's broker per the listing contract; if the listing broker offers less than the buyer's contract amount, the buyer pays the shortfall (Clause 6) |
| Sales tax on commission | None at the federal or state level | GST 5% (federal) plus QST 9.975% (provincial), combined 14.975% on the commission amount |
| Where compensation is disclosed | Off-MLS only, since August 17, 2024 | Listing contract, Centris listing data, and brokerage contracts |
Verified fact. GST and QST apply to Quebec real estate brokerage services. The combined rate is 14.975% on the commission, calculated on the gross commission amount before any split. Sources: Canada Revenue Agency, Revenu Québec, OACIQ guidance.
The deepest delta for a Canadian buyer is not the rate. It is who carries the contractual risk. In Quebec, your purchase brokerage contract anticipates that the listing broker will offer cooperation, and Clause 6 protects you only when the listing broker's offer matches what your broker is owed. In Florida, the same risk exists but the negotiation now happens transaction by transaction, with no MLS-published expectation to anchor it. The buyer must verify cooperation before, not after, falling for a property.
Common mistakes Canadian buyers make
Signing a long BBA before understanding it. A six-month exclusive Florida BBA, signed on day one of a vacation house-hunt, ties the buyer to one brokerage even if the relationship turns out to be a poor fit. Florida brokers are now competing on flexibility. Asking for a shorter term, a single-property limit, or both is a normal request, not an imposition.
Assuming the seller will cover the buyer's broker. In most cases the seller does, but "most" is not "always". Inspecting the listing brokerage's website or asking your broker to confirm cooperation in writing before scheduling showings is the correct order. After you have toured the property, your negotiating leverage on this point drops sharply.
Confusing transaction broker with buyer's representative. A transaction broker does not negotiate against the seller on your behalf. They facilitate. If you want a Florida licensee with fiduciary duties to you specifically, you must request a single agent relationship in writing, and accept that the brokerage cannot then represent the seller in the same transaction.
Treating the BBA compensation rate as a published market rate. Florida REALTORS, the listing brokerages, and the FREC have all stated that compensation is not set by law and is fully negotiable. The figure your broker types into the BBA is one possible figure, not the only one. Comparing two or three brokers before signing is reasonable.
Forgetting the protection period. Closing on a property your former broker showed you, days after the agreement expires, can trigger a compensation obligation under the protection period clause. If you intend to switch brokers, the right step is a written termination plus a clean break before re-engaging on the same properties.
Assuming Quebec rules carry over. The OACIQ Brokerage Contract for the Purchase of Immovables and the Florida EBBA look superficially similar. They are not equivalent in their default fiduciary posture, in the legal recourse available, or in the tax treatment of the broker's commission. A Quebec licensed broker has no authority in Florida. A Florida licensed broker has no authority in Quebec.
Ignoring the title company's role. In Florida, the title company or closing agent (not a notary as in Quebec) handles the disbursement of all commissions and concessions at closing. If the cooperation agreement between brokers is not in the title company's file by closing day, the disbursement does not happen automatically. The buyer's broker is the one who pushes this paperwork through. A buyer who never asks about it can arrive at closing with a surprise.
Actionable checklist before signing a Florida BBA
- Confirm the broker holds an active Florida real estate license. Verify on the DBPR public license search (dbpr.myfloridalicense.com).
- Ask whether the broker will operate as a single agent, a transaction broker, or under no brokerage relationship. Get the answer in writing.
- Negotiate the term of the BBA. A short term tied to specific properties is reasonable for a first engagement.
- Negotiate the compensation rate explicitly. Understand whether it is expressed as a percentage of purchase price, a flat fee, or some hybrid.
- Read the protection period clause. Confirm its duration and the properties it covers.
- Read the early termination clause. Confirm whether a fee applies and how the agreement terminates.
- Ask the broker to confirm in writing, for each property of interest, what the listing brokerage is offering as buyer-side cooperation.
- Plan, with your broker, the standard concession language to include in offers when cooperation is partial or absent.
- Understand that the BBA compensation is what you owe on a successful close, regardless of how the seller chooses to pay.
- If the property is part of a new construction project, ask about the developer's policy on buyer broker compensation before any showings.
FAQ
Does the seller still typically pay the buyer's broker in Florida? In most Florida residential resales as of early 2026, yes. Buyer-side cooperation rates in the state have rebounded to roughly 2.4% to 2.8% on average, paid by the seller through off-MLS arrangements or closing concessions. The change is procedural: nothing is now automatic, and confirmation must be obtained per property.
Do I have to use a Florida REALTOR specifically, or can I use any licensed agent? You can use any Florida-licensed real estate agent. The settlement applies to NAR members and REALTOR-affiliated MLSs, which cover the vast majority of Florida residential listings. If you work with a non-REALTOR licensee, the MLS rules technically do not bind that agent, but in practice you will likely encounter MLS-listed properties, so the BBA requirement effectively applies.
Can I tour a Florida home as a Canadian without signing a BBA? You can attend an open house hosted by the listing agent without signing a BBA, because in that scenario the listing agent is representing the seller and you are an unrepresented buyer. As soon as a buyer's agent walks you into a private showing, the BBA becomes mandatory.
Is the BBA enforceable against me if I am Canadian and not US-resident? Yes. Florida courts have jurisdiction over real estate transactions situated in Florida. A BBA signed by a non-resident buyer is enforceable under Florida contract law. Disputes typically end up in Florida state court, in the county where the brokerage is located, unless the contract names another forum.
Are buyer broker fees deductible from my Canadian taxes? For a personal-use Florida home, generally no. For a Florida rental or investment property, the buyer-side commission is typically capitalized into the cost basis and recovered when the property is sold, both for US and Canadian tax purposes. Confirm with a cross-border tax professional before relying on either treatment.
Can my Canadian broker work the deal in Florida? A real estate broker licensed only in Quebec, Ontario, BC, or Alberta cannot perform brokerage activity in Florida. The transaction must be handled by a Florida-licensed broker. Some Canadian brokers maintain referral arrangements with Florida brokerages, which is permissible because the work itself is performed by the Florida-licensed party.
Does the NAR settlement apply to commercial real estate? Generally no. The settlement and the MLS practice changes apply to residential transactions on REALTOR-affiliated MLSs. Commercial listings on commercial information exchanges are largely outside the scope.
Editorial team and essential disclaimer
This guide was prepared by the editorial team of canadaflorida.com, drawing on official Florida Statutes, NAR settlement documentation, Florida REALTORS guidance, IRS publications, OACIQ practice, and Florida Bar journal commentary. It is intended as a reference manual for Canadians acquiring residential property in Florida.
This page is educational and does not constitute legal, tax, or real estate advice for any specific transaction. Florida real estate practice, NAR rules, and tax treatment continue to evolve. Always engage a Florida-licensed real estate broker, a Florida-licensed real estate attorney, and a Canada-US cross-border tax advisor before signing any agreement or closing any transaction.