What is a Holdover Clause

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Adrian Trott

Adrian Trott is the co-founder of The Kormendy Trott Team and Renti, a residential property management company. With a reputation for innovative strategies and exceptional client service, Adrian has helped transform the real estate and property management experience for homeowners, tenants, and investors. Outside of work, Adrian is a tech enthusiast, fitness advocate, and family man dedicated to finding creative solutions for every challenge in the real estate world.

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What is a Holdover Clause

When hiring a real estate agent (or, more specifically, their brokerage), you’re required to sign many documents. A primary function of these documents is to establish the time frame for your relationship and a period afterwards that some terms and conditions still apply –aka—the holdover period.

What is a Holdover clause?

During the holdover period, if you purchase real estate that was introduced to you by the real estate brokerage while under contract or sell your home to a buyer who came to know of your property while it was previously listed, the real estate brokerage you were once under contract with is entitled to compensation equal to that stated in the original agreement.

Does a holdover clause apply if I sign with a new real estate agent?

This no longer applies to the one exception if you, the buyer or seller, sign an agreement with another brokerage –even if this new contract exists DURING the original holdover period. In this case, the new brokerage is paid, not the previous. However, if the compensation paid to the new brokerage is less than the amount you originally agreed to pay the first brokerage, the first brokerage is entitled to the difference. If the new amount is the same or more, the first brokerage receives no compensation.

Adrian explains his opinion on the clause here:

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Open House Terms & Privacy Agreement

for KT Open Houses

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1. Visitor Etiquette: All visitors are required to maintain a respectful and safe environment in our client’s property by adhering to the following etiquette guidelines unless otherwise directed by a representative of The KT Team:

  • Footwear: Please remove footwear upon entry to help preserve the property’s cleanliness.
  • Washroom Facilities: Visitors are kindly asked to refrain from using washroom facilities.
  • Personal Belongings and Furniture: For privacy and safety, please avoid touching personal belongings or opening furniture not part of the sale. Examples include dressers, media consoles, and most free-standing furniture.
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KT Realty
229 – 336 Bronte Street South
Milton ON L9T 7W6
[email protected]
1 (800) 617-0090

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