A buyer representation agreement expires, but the buyer purchases a property they were first shown by their former agent within the holdover period. What are the commission implications?

Correct Answer

B) The former agent is entitled to commission despite the expired agreement

A holdover clause in a buyer representation agreement keeps commission payable if, within the holdover period after expiry, the buyer agrees to buy a property that was shown or introduced to them during the term of the agreement. Here the former brokerage introduced the property during the term, so it is entitled to its commission. Under the standard Ontario form, if the buyer has signed a new buyer representation agreement with another brokerage, the amount owed is reduced by what that brokerage is paid.