How Ontario’s differing MLS rules can affect when agents get paid

Ontario real estate agents have long operated without a single unified MLS database.

Several boards, including Cornerstone Association of Realtors and Brantford Regional Real Estate Board, use Information Technology Systems Ontario (ITSO) as the network that gives agents access to listings. Toronto Regional Real Estate Board (TRREB), meanwhile, uses PropTx, its own independent MLS system. 

These two systems have their own sets of MLS rules, which can lead to accidental non-compliance when agents aren’t well-versed in their respective guidelines. One potential source of confusion is differing rules surrounding commission payments for co-operating brokerages. 

Different rules, different timelines

Rule 7.05 in PropTx’s guidelines states: “The remuneration earned by a co-operating brokerage is due and payable within seven days of completion of the transaction.”

The rule under ITSO’s umbrella differs. According to rule 6.04 in its guidelines, “Where it is part of the arrangement between the listing brokerage and the seller, it shall be the responsibility of the listing brokerage to collect the compensation owing on completed trades and pay the share to the buyer brokerage within seven days of receipt.”

The core difference is what starts the seven-day clock. Under the PropTx rule, the co-operating brokerage is entitled to its full commission within seven days of closing, even if the listing brokerage is still waiting to receive funds from the seller’s lawyer.

Allison Ostafew, ITSO’s executive director, said the wording aims to give the listing brokerage sufficient time to receive funds from the seller’s lawyer if they were not immediately available upon closing.

“By calculating the deadline from the date the listing brokerage receives the compensation, the rule gives the listing brokerage a clear and achievable timeframe within which to complete the transfer,” Ostafew said.

Lawyers can be delayed in sending the balance of a commission. While most real estate brokerages process commission payments via electronic funds transfer (EFT) and receive trust funds electronically, many lawyers tend to send physical cheques by mail. 

According to Ann Cosens, broker of record at Coldwell Banker Community Professionals in Hamilton, following up for cheques from lawyers is part of the brokerage’s administrative routine.

“Some lawyers prepare the cheque and never mail it until we chase them for it,” said Cosens, adding that 2025’s rolling postal strikes are just one example of how commission payments can be delayed.

“We understand and have great empathy for the challenges faced by today’s brokerages and do not want to create additional stress over a rule on something that could be entirely out of their control,” Ostafew said.

How brokerages handle payment delays

For Jennifer Pearce, broker of record at Remax Rouge River and former TRREB president, maintaining a robust administrative process is key to ensuring compliance with PropTx’s MLS rules. 

While Pearce agrees that the lack of prompt payment from the lawyer and postal delays can complicate the seven-day rule, she argues that ITSO’s guideline creates less accountability for the listing brokerage to proactively pursue the outstanding funds.

In a statement to REM, TRREB CEO John DiMichele said PropTx’s rule 7.05 “is designed to create greater certainty around commission payments and to ensure co-operating brokerages receive payment in a timely manner.”

PropTx’s rule 7.09 clarifies this rule and takes it one step further by stating “no funds shall be transferred or paid to or for the benefit of the listing brokerage or any third party until the remuneration trust amount has been disbursed to the co-operating brokerage.”

Pearce confirmed that if the seller’s lawyer confirms closing but the balance of commission has yet to be received, Remax Rouge River makes a partial payment from any funds being held in trust to the co-operating brokerage. 

“Under rule 7.09, available funds are applied first towards the amount owing to the co-operating brokerage,” Pearce said. “As the balance is received, we complete the remaining payments. We are grateful to the co-operating salespeople who bring buyers to our listings and want them to have a positive experience working with us.”

What happens when a listing is on both systems?

Due to the lack of one centralized board and set of rules, many agents opt to “interboard” their listings by posting on their home board and send the listing on a secondary board to be posted. When one property is listed on both PropTx and ITSO, agents may raise the question: if the listing is posted on both boards, which commission payment rule should they follow?

“When a listing brokerage places a listing on both the ITSO MLS system and the PropTx MLS system, it is expected to comply with the rules of both systems,” Ostafew said. “In practical terms, the brokerage should follow whichever applicable requirement results in the earlier payment deadline to avoid breaching either set of rules.”

“We follow the ITSO rule, as it is not possible to pay funds we do not have. We await payment of the funds until we receive payment from the lawyer, as until then we are not assured that the commission funds are available.” Cosens said, adding that administrators keep the co-operating brokerage in the loop whilst chasing the funds from the lawyer.

“PropTx and TRREB recognize that there may be circumstances where a listing brokerage has not yet received the balance of commission,” DiMichele said. “In those situations, brokerages are expected to take reasonable steps to recover the shortfall and to keep all affected parties informed, including providing updates to the co-operating brokerage regarding the status of the outstanding funds.”

Ostafew sympathizes with agents who cringe at the possibility of having to abide by several sets of MLS rules that change and update on a regular basis.

“Just as ITSO supports a single provincial MLS database that Realtors can access through the MLS system of their choice, ITSO believes there should ultimately be a single set of MLS rules,” said Ostafew. “A harmonized set of rules would make compliance easier and more efficient for Realtors and brokerages.”

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