Canadian Buyer Commission Rebate Program PG Direct Realty Ltd. Brokerage (“PGDR”)

Program Terms, Conditions, Policies, and Disclosures

The following Terms, Conditions, Policies and Disclosures govern PGDR’s Commission Rebate Program as of April 01, 2023 and forms a material part of PGDR’s advertising regarding commission rebates. The following is not meant to replace the specific Terms, Conditions, Policies and Disclosures relating to the Commission Rebate and the related buyer service which must be captured within a Buyer Representation Agreement (“BRA”) as entered into between the parties. 

Important Notice: Commission Rebates are not meant to solicit, entice or induce buyers currently under contract with another brokerage. 

1. Commission Rebate Eligibility

Commission Rebates are offered exclusively through and paid by PGDR to eligible buyers on qualifying transactions while PGDR is acting as the buyer’s exclusive buyer brokerage. Though the amount of commission rebate we provide is negotiable, our standard commission rebate is for 20% of the commission we earn. As a buyer interested in our commission rebate program, you understand that Commission Rebates are subject to certain conditions, limitations, exclusions, and modifications all of which will be highlighted and disclosed to you in writing upon entering into a definitive agreement with PGDR. The following information describes the different policies, rules and guidelines that govern PGDR’s commission rebate program.

2. Buyer Representation Agreement (“BRA”)

To be eligible for a commission rebate, the buyer(s) must first enter into a BRA which will outline and disclose the more complete and specific conditions associated with the Commission Rebate being offered. Commission Rebates are only available in participating jurisdictions where PG Direct Realty Ltd. is advertising the availability of its Commission Rebate Program and where PGDR is eligible to offer Commission Rebates. Buyers who do not enter into a BRA, will not be eligible to receive a commission rebate.

3. Minimum Earned Commission 

A commission rebate shall only be owed to the buyer(s) when the buyer’s transaction results in PGDR earning and receiving a minimum amount of commission as agreed upon and as stipulated within the BRA. 

In the event that the commission received by PGDR is below the Minimum Earned Commission indicated and agreed upon within the BRA - NO COMMISSION REBATE SHALL BE OWED TO THE BUYER.

4. Payment of the Commission Rebate

Unless subject to any of the aforementioned limitations, the Commission Rebate will be paid to the buyer by way of cheque issued by PGDR in the amount of the Commission Rebate, mailed within sixty (60) days of closing (provided that all applicable commissions have been received by PGDR, and provided that the foregoing period may be extended by PGDR in its sole discretion by reason of matters outside of PGDR’s reasonable control). The Commission Rebate will only be issued to the person and/or entity listed as buyer on the applicable Agreement of Purchase and Sale. Though multiple buyers may be identified within the agreement, PGDR shall only issue 1 Commission Rebate Cheque. Though the Commission Rebate cheque will be ONLY issued to the buyer whose name appears first within the agreement while all listed buyers need to agree to the Terms and Conditions herein; 

3. Commission Rebate Calculation

If all Terms and Conditions are met and if the Brokerage earns an amount that exceeds the Minimum Earned Commission (as expressed in section 1), the buyer is eligible to receive a commission rebate as negotiated between PGDR and the Buyer as captured within the BRA as a % of the total commission received by PGDR.  The exact amount of any Commission Rebate that a buyer may receive will depend on the actual final sale price of the property which may change during the closing process due to changes in the terms of sale, and the commission rebate will therefore only be officially calculated and finalized after closing;

The commission rebate calculation is dependent on: the commission offered by the listing agent; the amount of commission that we recieve; the final sale price; the percentage of commission being offered to the buyer as a rebate; and the minimum earned commission by PGDR in order for the buyer’s transaction to qualify for a commission rebate;

Example of a Commission Rebate: This example is for illustrative purposes only as Commission Rebates are Fully Negotiable.

In this example, a buyer has been offered a 20% Commission Rebate (as captured within the executed BRA). The  minimum commission required is  $5000 (in order for the purchase to qualify for a commission rebate). The Buyer has purchased a property for $500,000 while using PGDR as their exclusive Buyer Agent. The listing brokerage has offered a commission to the Buyer Agent of 2.5% of the final sale price for representing the Buyer.  

Example Calculation:

Buyer Agent Commission of 2.5 % (as offered by selling agent) x $500,000 (property sale price) = $ 12,500 (total commission earned by PGDR excluding applicable tax)

20% (percentage of the commission offered as a Commission Rebate) of the total Commission earned $ of 12,500  = 

Amount of the Commission Rebate to the Buyer: $2500

4. No Guarantee / Not a Reduction of Price

The Commission Rebate is not a guarantee or an offer from PGDR to provide savings on the purchase of a specific property. The amount of the Commission Rebate is not guaranteed. The actual amount received may be limited, prohibited, or reduced pursuant to the Agreement of Purchase and Sale, possible lender restrictions, or changes to the enabling Real Estate Act or other Acts within the jurisdiction where you purchase or any other federal and provincial laws and the regulations thereunder that could potentially affect the commission rebate being offered;

5. Tax implications / Reporting

We will not be reporting the Commission Rebate to the Canada Revenue Agency. PGDR shall not be responsible for any tax implications resulting from the Commission Rebate. The buyer is responsible for any tax implications that may arise as a result of receiving the Commission Rebate. The buyer is urged to seek outside professional accounting advice regarding their Commission Rebate and their particular tax situation; 

6. Responsibility to disclose

The Buyer is advised that some organizations (not limited to mortgage lenders) may require that Commission Rebates are disclosed to them. The Buyer understands and is advised that any required disclosure is their sole responsibility. The Buyer is therefore urged to verify their responsibilities as it relates to such disclosures.

7. Failure to Close

Should the transaction fail to close for any reason, PGDR will not be responsible for paying any Commission Rebate to the buyer;

8. Disputes or Litigation

Where permitted by law, as in the event a Commission Rebate is paid to the Buyer prior to any commencement of a lawsuit involving the transaction, the Buyer hereby agrees to return the Commission Rebate on demand pending final settlement of such suit;

9. No Assignments

The Commission Rebate shall not be assignable to any other party;

10. Changes and Notices

PGDR reserves the right to make changes to the Commission Rebate Program at any time while honoring all agreements commenced prior to any changes to the Commission Rebate Program being communicated to the Buyer. If changes to the Commission Rebate occur, notices or revisions of these Terms and Conditions shall be sent to the buyer (by email) upon request. The Commission Rebate program is offered through December 31, 2023 in areas where PGDR operates and has agents to fulfill the program.  If you have questions regarding eligibility or Terms and Conditions of this Commission Rebate program, the Broker of Record can be reached at broker@pgdirectrealty.com.

11. No Commission Rebate on a Private Sale

Unless otherwise agreed to in writing, the parties agree that PGDR shall not owe the Buyer a Commission Rebate for a transaction involving a private sale.

12. Pre-established Relationships / Additional Disclosures

In the event that the agent of the brokerage has a pre-established “client” relationship with a private seller that the Buyer wishes to transact with, the parties agree that the agent shall immediately cease to represent the Buyer and the BRA will be canceled. The agent will then have the buyer sign all related paperwork necessary to capture the change in relationship between PGDR and the Buyer. Please review the additional disclosure(s) here below:

This additional DISCLOSURE explains the risks of working with a real estate professional who is already representing a client in the same transaction.

As a non-represented party, please understand that our agent owes a duty of loyalty to that client whom we have a pre-established relationship with and must therefore work in that client’s best interests. Our agent cannot in the circumstance highlighted above represent you or your interests in a transaction where we represent the interest of another party.

YOU SHOULD THEREFORE NOT  REVEAL TO THEM ANY INFORMATION PURSUANT TO YOUR INTENTIONS OR YOUR INTEREST IN THE TRANSACTION THAT YOU ARE NOT COMFORTABLE BEING DISCLOSED TO THE OTHER PARTY IN THIS TRANSACTION. 

PGDR RECOMMENDS THAT THE BUYER SEEK INDEPENDENT REPRESENTATION OR INDEPENDENT LEGAL ADVICE RELATING TO ANY TRANSACTION WHERE THE BUYER IS NOT BEING REPRESENTED.