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Buying & Selling a Business

Can I still owe commission if my listing expires before I find a buyer?

TSL Written by the Treadstone Law team· Updated August 2026

Yes, this is possible, and it catches sellers off guard more often than almost any other listing agreement term. Many agreements include a "tail" or holdover clause providing that if you sell to a buyer the broker introduced during the listing term — even after the agreement has expired — commission is still owed, often for a defined period after expiry. The idea is to stop a seller from waiting out the listing term and then closing directly with a buyer the broker already did the work of finding.

Whether this applies to your situation depends entirely on the tail clause's specific wording: how long it lasts after expiry, and whether it's limited to buyers the broker can show they actually introduced (sometimes through a list provided at expiry) versus any buyer at all. If your listing has expired and you're now negotiating with someone, check whether that buyer came through the broker's efforts and review the tail language carefully before assuming you're in the clear. A Treadstone business lawyer can review the specific clause against your situation.

Key takeaways

  • Tail or holdover clauses can keep commission owed even after a listing expires.
  • They typically apply only to buyers the broker actually introduced during the term.
  • The clause's specific duration and wording control the outcome, not general assumptions.
  • Check whether a post-expiry buyer came through the broker's efforts before assuming no commission is owed.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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