- The Holdover Clause This is the single biggest source of post-listing commission disputes.
- Locate and re-read the actual listing agreement(s) involved.
- The Real Estate Council of Ontario (RECO) regulates real estate salespeople and brokers under the Trust in Real Estate Services Act — their licensing, conduct, and professional obligations.
You sold your home, closing is done, and then a letter arrives from a brokerage — often one whose listing agreement with you already expired — claiming they're owed commission. Or two brokerages are both claiming credit for the same sale. Commission disputes are one of the more common post-sale surprises for Ontario sellers, and they're almost always rooted in the fine print of a listing agreement most sellers signed months earlier without a second read.
Where Commission Disputes Usually Come From
The Holdover Clause
This is the single biggest source of post-listing commission disputes. A holdover clause entitles a brokerage to commission if you sell — within a set period after your listing agreement expired — to a buyer who was introduced to the property during the original listing term. Sellers are often caught off guard because they assume that once the listing ends, so does any obligation to that brokerage. The holdover clause exists specifically to prevent sellers from waiting out an expired listing to avoid paying commission to the agent who found the buyer.
Competing Claims Between Two Brokerages
If you list with a new brokerage after an earlier listing expires, and the buyer who eventually purchases was shown the property (or otherwise introduced) during the earlier listing, both brokerages may claim they're entitled to commission on the same sale. You can end up on the receiving end of two competing demands even though, from your perspective, you only agreed to pay one.
Disagreement Over What Triggered Commission
Some disputes aren't about the amount but about whether commission was earned at all — for example, whether a sale that fell through and later closed on different terms still counts as the same transaction, or whether a private sale to a buyer with a prior connection to you falls inside or outside the listing agreement's scope.
Steps to Take When a Commission Dispute Arises
- Locate and re-read the actual listing agreement(s) involved. The commission trigger language and holdover clause wording control the outcome — general fairness arguments matter less than the specific contract terms.
- Gather your timeline. When did each listing start and end? When was the buyer first shown or introduced to the property? Documentation of dates matters enormously in holdover disputes.
- Ask the brokerage to explain their claim in writing, specifically pointing to the clause they're relying on.
- Get legal advice before paying or refusing to pay. Commission disputes often hinge on contract interpretation that isn't obvious from a plain reading of the clause.
What RECO Can and Can't Do
The Real Estate Council of Ontario (RECO) regulates real estate salespeople and brokers under the Trust in Real Estate Services Act — their licensing, conduct, and professional obligations. A complaint to RECO can be appropriate if you believe a brokerage or salesperson acted unprofessionally or breached a regulatory obligation. RECO is a conduct and licensing regulator, though — not a forum designed to adjudicate the dollar value of a contractual commission dispute between you and a brokerage. That's a matter for negotiation, mediation, or, if necessary, the courts.
Resolving the Dispute
| Approach | When it fits |
|---|---|
| Direct negotiation with the brokerage | Straightforward disagreements, or where the contract language is ambiguous and a compromise is workable |
| Mediation | Both sides want to avoid litigation costs but can't agree directly |
| RECO complaint | Concerns about the brokerage's or salesperson's professional conduct, separate from the money itself |
| Litigation (Small Claims or Superior Court, depending on amount and complexity) | The dispute can't be resolved directly and the amount at stake justifies the process |
Frequently asked questions
My listing expired months ago — can the brokerage still claim commission?
Possibly, if your agreement included a holdover clause and the buyer was introduced to the property during the original listing term. Review the specific wording and time period in your agreement rather than assuming an expired listing closes the matter.
What if two brokerages both claim commission on the same sale?
This happens most often when a seller relists with a new brokerage shortly after an earlier listing expires. Both agreements need to be reviewed together, since the outcome depends on the specific holdover and commission language in each — get legal advice before agreeing to pay either claim.
Can I refuse to pay commission I think isn't owed?
You can dispute a claim you believe isn't supported by the agreement, but be prepared for the brokerage to pursue it, including through litigation if it isn't resolved. Get advice on the strength of your position before simply refusing to pay.
Does a RECO complaint get me my money back?
Not directly. RECO can investigate professional conduct and impose regulatory consequences on a brokerage or salesperson, but recovering or resisting a specific dollar claim is a separate legal process, typically through negotiation or the courts.
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