For sellers, the holdover clause typically applies to potential buyers who were introduced to your property or viewed it while you were under an agreement.
Let’s say you signed a listing agreement with a brokerage, and your home was shown or introduced to buyers but didn’t sell by the time the listing expired. You could then opt to sell privately, but if you sell your home during the holdover period to someone who had seen it while it was listed, you could still owe commission to the original brokerage. Typically, if you list with another brokerage at an equal or higher commission amount, then the holdover does not apply. Remember to check the terms of your agreement, as holdover clauses can vary.
When selling, it doesn’t matter how the buyers were introduced to your home or why they came to see the property. Whether they wandered into an open house, responded to an advertisement or even if you know them personally and they expressed an interest, the holdover clause could still apply.
However, if you were introduced to the buyer after your listing agreement expired, you would not be subject to the holdover clause in this example.
If you are concerned with the holdover clause or any other aspect of your agreement, discuss the matter with your representative, the manager or Broker of Record of the brokerage. If you’re still not sure, consider getting legal advice before you sign on the dotted line.