What is a holdover clause in an Ontario listing agreement and how long does it last?

A holdover clause (also called a tail or override clause) in an Ontario listing agreement means that if your home sells to a buyer who was introduced to the property during the listing period — even after the listing has expired — your listing brokerage may still be entitled to a commission.

The holdover period is typically negotiated and written into the listing agreement, often ranging from thirty to ninety days after the listing expires, though the exact duration depends on what you agreed to when you signed. The clause is designed to protect the brokerage from a situation where a seller waits for the listing to expire and then completes the sale privately to avoid paying commission.

If you relist with a new brokerage before the holdover period ends, most agreements include language that limits the former brokerage's claim if the new brokerage earns a commission on the same buyer. Always read the holdover provisions carefully before signing a listing agreement, and ask your lawyer to review any clause you are unsure about.