Ontario realtors, take advantage of corporate tax rates on the commissions you earn by setting up a personal real estate corporation (PREC) and running your revenues through it.
This Remuneration Agreement between the realtor, the PREC and the realtor’s brokerage establishes the relationship between the parties and sets out how revenues earned by the realtor will be paid.
- The realtor is engaged by the brokerage as a real estate salesperson and is the incorporator and shareholder of the PREC.
- Remuneration earned by the realtor is paid by the brokerage to the PREC instead of directly to the realtor.
- The Agreement does not create an employment, agency, partnership, joint venture or similar relationship between the brokerage and either of the other parties.
- The PREC and the realtor are responsible for withholding and remitting all required taxes and EI and other contributions.
- The PREC personnel are not eligible to participate in any benefit or compensation programs offered by the brokerage to its own employees.
- The PREC does not carry on business as a real estate brokerage.
- This document complies with the laws of the Province of Ontario, Canada.
Last Updated: 05-January-2021