A seller, Mr. Lee, signed a seller representation agreement with Sarah for his commercial property in Vaughan. The agreement has a holdover period. If Sarah's agreement expires and the next day Mr. Lee enters into a new agreement with another brokerage, but then sells the property two weeks later to a buyer Sarah had introduced during her representation period, what is most likely to happen?

Question: A seller, Mr. Lee, signed a seller representation agreement with Sarah for his commercial property in Vaughan. The agreement has a holdover period. If Sarah's agreement expires and the next day Mr. Lee enters into a new agreement with another brokerage, but then sells the property two weeks later to a buyer Sarah had introduced during her representation period, what is most likely to happen?

Answer options: ✅ Mr. Lee will owe a commission to Sarah's brokerage due to the holdover clause.

• Mr. Lee will only owe commission to the new brokerage.
• Sarah's brokerage will only be entitled to an introductory fee.
• Mr. Lee will owe no commission to either brokerage due to the new agreement.

Correct answer: Mr. Lee will owe a commission to Sarah's brokerage due to the holdover clause.

Explanation: A holdover clause in a representation agreement typically entitles the previous brokerage to commission if the property is sold to a buyer introduced by that brokerage within a specified period after the agreement expires, provided no new agreement is in place with another brokerage at the time of introduction.