Selling a dental practice is one of the most significant financial and professional transitions a dentist will ever make. It represents years—often decades—of work, goodwill, patient relationships, and personal sacrifice. Yet many dentists unknowingly jeopardize that value the moment they sign a so-called “standard listing agreement” with a brokerage. What appears to be a straightforward engagement can quickly become an expensive, restrictive, and misaligned relationship.
And then those same dentists approach us about the bad deal they made and how they could have saved tens or even hundreds of thousands of dollars by avoiding brokers altogether. And we ask to see what they signed. And this is where things get bad for the dentist.
1. The 10% Commission: Giving Away Your Retirement
Let’s start with the headline number: 10%. That is what many brokerages expect as commission on the sale of your practice. For most dentists, this is not a trivial fee—it is a direct slice of your retirement.
What are you getting in exchange? Typically, an appraisal, some marketing materials, and efforts to locate a buyer—often through an open-house-style process or database outreach.
The issue becomes even more concerning when the same brokerage both appraises and sells your practice. That dual role raises an obvious conflict of interest. Are they incentivized to maximize your value, or to price it in a way that ensures a quick sale and a guaranteed commission?
Some listing agreements also try to get the seller to agree up front to a minimum purchase price. That may sound harmless, but it can be another way of protecting the brokerage’s economics rather than preserving your flexibility as the seller.
When you consider that legal work, negotiations, lease assignments, and transaction structuring still require a lawyer—often at additional cost—the 10% commission becomes even harder to justify.
2. The Term and the Trap of Holdover Periods
Most listing agreements lock you in for at least 12 months (although brokers will certainly ask for more). Ask yourself: why does it take a full year to sell a dental practice in an active market? In many cases, it doesn’t. The extended term benefits the brokerage, not you.
Even more concerning is the holdover period. These provisions can extend for one, two, or even three years after the listing expires! During that time, if your practice sells to someone who had any connection to the listing period, you may still owe the full commission to the broker!
This means you could terminate your relationship with the brokerage, independently find a buyer months later, and still be obligated to pay 10%. That is not just restrictive—it is financially punitive.
Here’s another nugget dentists seem to miss: if the seller withdraws the dental practice during the term or fails to abide by the terms of the agreement for any reason, then the seller has to pay for the brokerage’s expenses, up to 50 percent of the brokerage fee (up to 5 percent of the purchase price)! Wowza!
3. “Inquiry” Clauses: Undefined and Unfair
Many agreements include language stating that if there was an “inquiry” during the listing or holdover period that leads to a sale, commission is owed. The problem? The term “inquiry” is often undefined.
Did the brokerage introduce the buyer? Did they actively negotiate? Or did someone simply request information at some point?
Often, there is no clear obligation for the brokerage to provide a documented list of prospects. This ambiguity creates risk for you as the seller. You could unknowingly trigger a commission obligation based on activity you had no control over and no visibility into.
4. Deposits: They Want a Cut of That Too
In the rare event that a transaction collapses and you retain a deposit, some agreements entitle the brokerage to a portion—often 10%—of that amount.
This is particularly aggressive when you consider that deposits in dental transactions are usually conditional and frequently returned. Yet, in the limited scenarios where a deposit is forfeited, the brokerage still seeks to participate in that recovery. But those fees should go to the selling dentist to recoup their lost time, and also the fees incurred to date by lawyers and accountants who provided professional services.
By brokers participating in a forfeited deposit, it reinforces a consistent theme: the agreement is structured to protect the brokerage’s financial interests at every stage.
5. Dual Relationships and Divided Loyalties
Some agreements allow the brokerage to enter into a “customer service relationship” with prospective buyers. On paper, this may sound administrative. In practice, it can blur the lines of representation.
You may find that your own representative is providing financial or operational information to the other side to facilitate their decision-making. That is not advocacy—that is compromise.
A dental practice sale involves sensitive data, strategic positioning, and negotiation leverage. You need someone firmly on your side, acting with a duty of loyalty and confidentiality. That is precisely the role of a lawyer.
6. No Legal Advice—But They Want to Talk to Your Landlord
Brokerages are clear on one point: they do not provide legal advice on leases, tax, accounting, or employment matters. That is appropriate. They don’t have insurance to cover them if they’re wrong, they didn’t go to law school, they don’t practice law, etc, they don’t draft complex legal documents, etc.
However, many agreements still seek authorization to communicate with your landlord. This is where the risk escalates.
Dental leases are often complex, with assignment clauses, consent requirements, and negotiation sensitivities. A poorly handled conversation can damage relationships or weaken your negotiating position. The same applies to interactions involving accountants or staff-related issues.
These are not administrative matters—they are legal and strategic. They should be handled by your lawyer, not a salesperson.
A Better Approach: Lawyer-Led, Cost-Controlled, Aligned
The alternative is straightforward: work directly with a dental lawyer and leverage a targeted platform like dentalplace.ca.
Instead of paying 10% to a brokerage and then hiring a lawyer on top of that, you consolidate the process. You get proper preparation, compliant documentation, strategic marketing, and professional negotiation—all aligned with your interests. Because after a buyer is found, the real work of the transaction is often just beginning. The deal still has to be structured, negotiated, documented, and coordinated with the buyer’s representatives, your accountant, your banker, and your landlord.
Your lawyer handles the lease. Your lawyer interfaces with your accountant. Your lawyer manages employment considerations. And your lawyer ensures that every step of the transaction protects your value.
This is not just about saving money—though the cost difference is substantial. It is about control, clarity, and peace of mind.
Selling your practice should not feel like navigating a minefield of hidden obligations and conflicting incentives. It should be a structured, professionally managed transition that maximizes your return and protects what you have built.
Skip going “broke-er.” Choose a model that works for you.
