Ace the Humber/Ontario Real Estate Course 4 Exam 2025 – Unlock Your Property Potential!

The holdover clause in a seller representation agreement primarily serves to protect the interests of the brokerage, such as ABC Realty Inc. This clause typically stipulates that if a seller ends the representation agreement but sells the property to a buyer who was introduced to the property during the term of the agreement within a specified timeframe afterward, the brokerage is entitled to a commission. This provision ensures that brokerages receive compensation for their efforts in marketing the property and facilitating potential buyer interest, even if the agreement is terminated before a sale occurs.

This protection is crucial for brokerages as it provides a safeguard against losing out on commissions for potential deals cultivated during their representation period. Other options, such as the seller, the purchaser, or related parties like the salesperson or escrow agent, do not directly benefit from the holdover clause in the same way the brokerage does.