Do You Still Owe Commission After Your Listing Expires? The Holdover Clause Explained

Your listing expired or you took your home off the market, and now you are ready to sell privately or hire a new agent. Then you learn your old brokerage may still be owed a full commission. That is the holdover clause, and most sellers do not know it exists until it costs them. This guide explains what it is, how long it lasts, exactly when it applies and how to protect yourself before you sell to anyone.

Written by a Richmond Hill and Markham Real Estate Expert

At Kirby Chan & Co. Real Estate Team, we regularly talk to Richmond Hill sellers whose listing has just expired. We have seen a seller line up a quiet private sale to a buyer who first walked through during the listing, then receive a commission invoice from their old brokerage weeks later over a clause they never noticed. If your listing has expired in Richmond Hill or Markham, the holdover clause is the one part of your old contract worth understanding before you sell to anyone.

Quick takeaway: A holdover clause lets your former brokerage collect commission after your listing ends if you sell to a buyer who was introduced to the property during the listing period. In Ontario the holdover window is commonly 60 to 90 days past expiry, and the exact number is written into your listing agreement. It does not apply to every sale, only to buyers connected to the original listing. Read your agreement, ask your brokerage in writing for the exact holdover period and the list of protected buyers, and get any release confirmed in writing before you list with a new agent or sell privately. The specifics turn on your contract wording, so confirm with your brokerage and, if a dispute arises, a real estate lawyer.

What a Holdover Clause Is
Why the Clause Exists
How Long the Holdover Period Lasts
When It Applies and When It Does Not
Expired, Terminated or Cancelled: Does It Still Count?
How to Protect Yourself Before You List
What to Do the Day Your Listing Expires
Frequently Asked Questions

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Kirby Chan & Co. Real Estate Team

What a Holdover Clause Is

The Definition Commission Can Survive the End of the Listing

A holdover clause is a standard paragraph in an Ontario listing agreement. It says that for a set number of days after your listing ends, your brokerage is still entitled to its commission if you sell the home to a buyer who was introduced to the property during the listing term. The listing being over does not, on its own, erase the commission obligation to those particular buyers.

The number of days is not fixed by law. It is a blank that gets filled in when you sign the listing agreement. Many sellers sign without noticing it, then assume that once the listing expires they can sell freely to anyone with no commission owing. That assumption is where the trouble starts.

The Trap The Private Sale That Is Not Actually Commission-Free

Here is the scenario that catches Richmond Hill sellers. A buyer tours the home during the listing, does not make an offer, then comes back after the listing expires and offers to buy privately to save everyone the commission. The seller thinks they are getting a clean deal. But that buyer was introduced during the listing, so within the holdover window the original brokerage can still claim its commission. The seller ends up paying anyway, sometimes after already discounting the price on the assumption that no commission was owed.

Why the Clause Exists

The Reason It Stops Sellers From Waiting Out the Commission

The clause is not there to trap you. It exists so that a brokerage cannot do all the work of marketing your home, running the open houses and producing a ready buyer, only to have the seller quietly wait for the listing to lapse and then close with that same buyer to avoid paying. Without a holdover period, the agent's entire investment of time and marketing dollars could be sidestepped in the final days of a listing. The clause protects the brokerage that actually found your buyer. The problem is only when it catches a seller by surprise, which is why it is worth reading before you sign and again the week your listing ends.

How Long the Holdover Period Lasts

The Typical Range: 60 to 90 Days

In most Ontario listing agreements the holdover period runs somewhere between 60 and 90 days after the listing ends, though shorter and longer terms exist. There is no legal maximum set in stone, which is exactly why you need to check your own contract rather than assume a standard number. The holdover period is often the same length as, or tied to, the original listing term. A 90-day listing may carry a 90-day holdover. Always confirm the actual figure written on your agreement.

It Is Negotiable Before You Sign

The holdover period is a term you can discuss before you sign the listing agreement, not a fixed rule handed down from above. If a proposed holdover feels long, you can ask for a shorter one. A reasonable agent will explain why the number is what it is and will not treat the question as a problem. If an agent refuses to discuss it at all, that tells you something about how the relationship will go.

The Clock Starts When the Listing Ends

The holdover window begins on the day your listing expires or is terminated, and runs forward for the number of days in your agreement. If your listing expired on the first of the month with a 60-day holdover, the window closes around the first of the month two months later. Mark that date. A sale that closes with a protected buyer inside that window can trigger the commission. A brand-new buyer with no connection to the listing, or the same protected buyer after the window has fully closed, generally does not.

When It Applies and When It Does Not

The clause is narrower than most sellers fear.

Applies A Buyer Introduced During the Listing

The core trigger is a buyer who was shown the property or introduced to it during the listing term. That includes someone who attended an open house, booked a private showing, received the listing from their agent or otherwise came into contact with the home because it was on the market. If that person buys within the holdover window, the commission is generally owed. This is the situation to watch most carefully, because it is easy to think a returning buyer is a fresh private deal when the clause sees them as a protected buyer.

Usually Does Not Apply A Brand-New Buyer

If, after your listing ends, you sell to a buyer who had no contact with the property during the listing, a neighbour who only decided to buy later, a relocating family who found the home through your new agent, the holdover clause generally has nothing to attach to. The clause protects the brokerage that introduced a buyer, not every future sale of the home. The wording of your specific agreement controls the details, so confirm rather than assume.

The Relist Exception Listing With a New Brokerage

Many Ontario listing agreements include wording that protects you from paying two commissions. In broad terms, if you list the property with a new registered brokerage during the holdover period and sell through that new listing, the older brokerage's holdover claim is typically limited or waived so you are not billed twice for the same sale. This protection depends entirely on how your original agreement is worded, so do not rely on it blindly. Have your new agent review the old holdover language, and if there is any doubt, get a real estate lawyer to read it before you firm up a deal.

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Expired, Terminated or Cancelled: Does It Still Count?

All Three The Holdover Can Survive However the Listing Ended

Sellers often assume the holdover only applies to a listing that ran its full term and expired. In practice it can attach whether the listing expired at the end of its term, was terminated early by agreement or was cancelled. The trigger is the introduction of the buyer during the listing, not the reason the listing ended. Ending your listing early does not automatically reset the holdover clock.

This is one reason the distinction between expired, terminated and cancelled matters less than sellers think when it comes to commission. Our guide to your privacy rights after an expired listing walks through each status and what protections follow.

How to Protect Yourself Before You List

The best time to handle the holdover clause is before you sign.

Before Signing Read the Holdover Number Out Loud

Before you sign any listing agreement, find the holdover period and read the number. Ask your agent to explain what it means in plain language and how it would apply if the listing did not sell. A good agent will walk you through it without hesitation. If the holdover feels too long for your comfort, ask to shorten it. Getting clarity at this stage costs nothing and prevents almost every unpleasant surprise later.

During the Listing Understand Who Counts as a Protected Buyer

If your listing does not sell, your brokerage can usually provide a list of the buyers who were shown the property during the term. That list is exactly who the holdover protects. Knowing the names lets you make informed decisions afterward. If a private buyer approaches you after the listing ends, you can check whether they were among those introduced during the listing and factor the possible commission into any deal rather than being blindsided by an invoice.

Get It in Writing Ask for a Written Release If You Are Owed One

If you and your brokerage agree to part ways cleanly, or the brokerage confirms it will not pursue a holdover claim, get that in writing before you move on. A verbal assurance is hard to rely on if a dispute arises later. A short written release confirming the listing is ended and no holdover claim will be made removes the ambiguity entirely. Reputable brokerages provide this without a fight when the situation calls for it.

What to Do the Day Your Listing Expires

Step 1 Confirm the Exact Holdover End Date

Pull out your listing agreement, find the holdover period and count forward from the expiry date. Write down the exact day the holdover window closes. Until that date passes, any sale to a buyer introduced during the listing can carry commission. Knowing the date turns a vague worry into a concrete deadline you can plan around.

Step 2 Request the List of Introduced Buyers

Ask your former brokerage, in writing, for the names of any buyers who were shown the property during the listing. This is the group the holdover protects. If a private buyer surfaces afterward, you can check the list and know immediately whether commission is a factor. This one email prevents the most common holdover surprise in Richmond Hill and Markham.

Step 3 Decide How You Want to Sell Next

With your dates and your protected-buyer list in hand, you can choose your next move with clear eyes: relist with a new agent, sell privately or wait out the holdover window. The reason a home did not sell the first time is usually fixable, and it is rarely the market alone. Our guide to why listings expire covers pricing, marketing and choosing the right agent the second time, and our relist timing guide covers when to go back to market.

Recognition

Kirby Chan Awards and Achievements

🏆 #1 Individual Producer in Ontario for eXp Realty 2023

🏆 Top 3 Best Rated Real Estate Agent in Richmond Hill

🏆 Toronto Star Platinum Award for Best Real Estate Agent

🏆 Top Real Estate Agent Award in Markham

🏆 2X ICON Agent Award with eXp Realty

🏆 2025 Community Votes Platinum Award, Thornhill

🏆 2024 Community Votes Platinum Award, Thornhill

🏆 2025 Gold Award for Real Estate Brokers in Markham

🏆 2024 Community Votes Bronze Award, Richmond Hill

🏆 2023 Community Votes Platinum Award, Thornhill

Frequently Asked Questions

Do I owe commission if my listing expires?

Only if you sell to a buyer introduced to the home during the listing, and only within the holdover window in your agreement, commonly 60 to 90 days. A sale to a brand-new buyer after expiry generally carries no commission.

How long does a holdover clause last in Ontario?

There is no fixed legal length. It is a number written into your listing agreement, most often between 60 and 90 days after the listing ends. Check your own contract for the exact figure.

Can I sell privately after my listing expires to avoid commission?

You can sell privately, but if the buyer was introduced during the listing and the sale is within the holdover window, the commission can still be owed. A buyer with no connection to the original listing is a different matter.

Will I pay two commissions if I relist with a new agent?

Usually not. Most Ontario agreements limit or waive the old holdover claim when you list with a new brokerage and sell through that new listing. It depends on your contract wording, so have your new agent review it.

Does the holdover apply if I terminated the listing early?

It can. The trigger is a buyer introduced during the listing, not the reason the listing ended. Terminating or cancelling early does not automatically reset the holdover clock, so confirm the terms with your brokerage.

Who can help me relist my home in Richmond Hill or Markham?

Kirby Chan and the Kirby Chan & Co. Real Estate Team help sellers in Richmond Hill and Markham relist after an expired listing. We review your old agreement, confirm the holdover terms, diagnose why the home did not sell and reposition it properly. Reach me at (416) 305-8008.

Contact Kirby Chan

Did Your Listing Just Expire?

Before you sell to anyone, it is worth having someone read your old agreement and tell you exactly where you stand on the holdover clause. I review the contract, confirm the protected buyers and the window, diagnose why the home did not sell the first time and give you a clear plan for the relist. No pressure, just clarity.

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Kirby Chan | Kirby Chan & Co. Real Estate Team
kirby@kirbychanandco.com
https://kirbychanandco.com

Dedicated Seller Hotline

416-305-8008

Note: Holdover periods, listing agreement terms and commission obligations described in this guide reflect common Ontario real estate practice and vary by contract. The specific wording of your listing agreement governs your situation, and this guide is for general information only and does not constitute legal advice. For advice specific to your contract or a commission dispute, consult a real estate lawyer or contact the Real Estate Council of Ontario.