What Is a Holdover Clause in a Listing Agreement?

You sign a listing agreement, the home doesn't sell, the listing expires — and weeks later you sell privately to someone who toured during the listing. Can the old brokerage still bill you for commission? Often, yes. That's the work of a holdover clause, one of the most misunderstood lines in any Ontario listing agreement. Here's exactly what it does and how to avoid getting caught by it.

Key takeaways

• A holdover clause keeps your listing brokerage entitled to commission for a set period after the listing expires.
• It only applies to buyers the brokerage introduced to your property during the listing term.
• Holdover periods are negotiable — they typically run 30 to 90 days in Ontario.
• It exists to stop sellers and buyers from cutting the agent out at the last minute.
• HOMEH lists for a 1% fee, or free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting — so the math works in your favour from the start.

What a holdover clause actually is

A holdover clause is a standard provision in an Ontario listing agreement (the contract you sign with a brokerage to market your home). It says that for a defined period after your listing ends, you still owe the brokerage their commission if you sell to a buyer who was introduced to the property during the listing term.

In other words, the brokerage's right to be paid doesn't vanish the moment the listing expires. If their marketing produced the eventual buyer, the holdover clause protects that work. It's a routine part of selling — see the full process in our guide to how to sell your house in Ontario.

Why brokerages include it

The clause exists to prevent a specific kind of end-run: a buyer tours your home during the listing, then quietly approaches you after the listing expires to buy directly and split the saved commission. Without a holdover clause, the brokerage that did all the marketing, showings, and negotiating walks away with nothing.

The key trigger word: introduced

A holdover clause only catches buyers the brokerage actually introduced to your property — through a showing, an open house, or marketing during the listing term. It does not apply to a brand-new buyer you find entirely on your own afterward.

How long does a holdover period last?

The holdover period is negotiable and is written right into the listing agreement. In Ontario it commonly ranges from 30 to 90 days after the listing expires. A longer holdover period favours the brokerage; a shorter one favours you. Always read this number before you sign.

Negotiate it before you sign

Everything in a listing agreement is negotiable, including the holdover period and the commission rate. If you're unsure, ask for a shorter holdover and request that the brokerage provide a written list of buyers they introduced when the listing ends.

When the clause does and doesn't apply

The single biggest source of confusion is assuming the clause applies to any sale during the holdover window. It doesn't — it's tied to who the buyer is.

If you re-list with a new brokerage during a holdover period and the buyer turns out to be one the first brokerage introduced, you could face two commission claims. A good listing agreement addresses this overlap directly, so flag it when you sign. For more on agreements and commissions, see real estate commission in Ontario.

How HOMEH changes the math

Holdover clauses feel painful mostly because traditional commission is so high — around 5% in Ontario. HOMEH lists your home for a 1% listing fee and gives eligible buyers the industry's highest Cashback Rebate, so you keep far more of your equity from day one. Sellers who also buy with HOMEH within 6 months list for free, or pay $395 + HST for a Mere Posting. Estimate your net with the selling cost calculator and your cashback with the cashback calculator.

Sell smarter with HOMEH

Sell with HOMEH for 1%, or list free when you also buy your next home with us. Curious whether selling without an agent makes sense first? Read should you sell your home yourself (FSBO).