Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →A holdover clause makes you liable to pay commission to your original brokerage if the property sells after the listing expires, within a stated period, to a buyer who was introduced to or shown the property during the listing. Market practice is commonly 60 to 90 days, it is negotiable, and there is no statutory maximum or minimum.
The usual safeguard is that if you relist with a new brokerage under a written agreement and sell through them, the original brokerage’s holdover claim is reduced by whatever is payable under the new listing — so you are not paying twice. That protection typically does not apply to a private sale to a buyer the first brokerage introduced.
What it does
Your listing expires. Some weeks later you sell the property. If the buyer was introduced to or shown the property during the listing period, and the sale falls within the holdover period, you may owe commission to the original brokerage — even though the listing had ended.
That is the whole clause, and its logic is straightforward: it prevents a seller and a buyer from waiting out a listing to avoid paying for the introduction that produced the sale.
The variables that matter
| Term | What to check |
|---|---|
| Length | Commonly 60 to 90 days in practice. No statutory limit. Negotiable. |
| Trigger | Whether it applies to buyers “introduced to” the property, “shown” it, or who made an offer. Narrower is better for the seller. |
| Naming | Whether the brokerage must provide a written list of qualifying buyers at expiry. This is the single most useful protection to ask for. |
| New listing offset | Whether commission payable under a subsequent written listing reduces the holdover claim. Standard, but confirm it. |
| Private sale | Usually caught, with no offset available. |
Where it causes problems
The private sale after expiry
A buyer viewed the property in March, the listing expired in June, and in July they approach the seller directly. This is the textbook holdover situation, the offset for a new brokerage listing does not apply, and it is where most disputes arise.
The long, quiet luxury listing
Above $3 million, listings run longer and buyers circle for months. With roughly 300 GTA sales above $3 million across four months, the same small group of buyers is likely to have seen the property during the listing. A 90-day holdover on a top-end property covers a meaningful share of the plausible buyer pool.
Switching brokerages
Where the property is relisted with a new brokerage under a written agreement and sells through them, the standard offset means you should not pay twice — but read the wording rather than assuming, and tell the new brokerage about the holdover at the outset.
What to do before you sign
- Read the clause. Find the number and the trigger.
- Negotiate the length if it is longer than you are comfortable with.
- Ask for a written list of covered buyers at expiry.
- Confirm the new listing offset is present.
- Have your lawyer read it where the property is significant. On a $4 million sale, the commission at stake is large enough to justify twenty minutes of legal time.
The practical takeaway
The holdover is not unreasonable in principle — it protects work that was actually done. What makes it a problem is that it is signed unread and enforced later. Read it, negotiate the length, and ask for the list of names at expiry. Those three steps eliminate almost every holdover dispute I have seen.
Frequently asked questions
What is a holdover clause?
A provision in a listing agreement making the seller liable for commission if the property sells within a stated period after the listing ends, to a buyer who was introduced to or shown the property during the listing period.
How long is a typical holdover period in Ontario?
Commonly 60 to 90 days in market practice. There is no statutory maximum or minimum, and the number is negotiable — check the actual figure in your agreement rather than assuming.
Do I pay twice if I relist with another brokerage?
Standard agreements usually provide that where the property is sold under a new written listing agreement with another brokerage, the original brokerage’s holdover commission is reduced by the amount payable under the new listing. Confirm the exact wording in your agreement.
Does the holdover apply to a private sale?
This is where it commonly bites. A private sale after expiry to a buyer who was introduced during the listing period is precisely the situation the clause is designed to capture, and the offset for a new brokerage listing does not help.
Can I negotiate the holdover period?
Yes. It is a contract term. Sellers commonly ask for a shorter period, and for the clause to apply only to buyers who were actually shown the property and are named in writing at expiry.
Does TRESA regulate commission?
TRESA regulates the disclosure of remuneration rather than its amount or structure. It must be set out in writing in the representation agreement, and under the open offers rules a commission arrangement that could affect whether an offer is accepted may be disclosed to competing buyers where the seller has authorised disclosure.
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Related reading
- How to choose an agent for a $3M+ Toronto sale
- TRESA in plain English: what changed for Ontario buyers and sellers
- Off-market and exclusive listings: when privacy actually costs you money
- Cancelling a real estate agreement with a brokerage in Ontario
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.