Compliance Problems

Fix SharePoint Error: Item Cannot Be Modified Due to Retention Policy

Olivia MillerOlivia Miller Oct 15, 2026 869 views

Question details

Users are blocked from uploading or modifying files in SharePoint due to active compliance holds or retention policies.

How to Fix SharePoint Item Cannot Be Modified Because of a Hold Policy Error
Product
SharePoint Online
Device & OS
not provided
Scenario
External or internal users attempting to upload, edit, or delete files in a SharePoint site or document library.
Observed behavior
SharePoint displays an error message stating that the item cannot be modified because it is subject to a hold or retention policy.
Before you start

Ensure you have the necessary administrator privileges to access the Microsoft Purview compliance portal. Verify your organization's legal and compliance guidelines before altering any active retention policies or eDiscovery holds.

Solution 1Recommended

Review and Exclude the Site from Retention and DLP Policies

Identify and adjust the specific policy blocking modifications via the Microsoft Purview portal.

Data Loss Prevention (DLP) and retention policies are designed to protect critical organizational data. However, if a site is overly restricted, administrators must manually exclude the affected SharePoint URL from the active policy.

1
Access Microsoft Purview

Navigate to the Microsoft Purview portal at https://compliance.microsoft.com and sign in with your Global Administrator or Compliance Admin credentials.

2
Locate Active Policies

Select 'Data loss prevention' or 'Data lifecycle management' from the left-hand navigation menu to review the active policies.

3
Edit Policy Locations

Locate the specific policy affecting your SharePoint site, click on it, and select 'Edit policy'. Navigate to the 'Locations' configuration.

4
Exclude the SharePoint Site

Add the specific URL of the affected SharePoint site to the excluded sites list within the policy configuration.

5
Save Changes

Save your policy updates. Keep in mind that changes may take up to 24 hours to sync across the SharePoint environment.

Review and Exclude the Site from Retention and DLP Policies
Propagation Time: Changes made to compliance holds and retention policies in Microsoft 365 can take up to 24 hours to fully take effect across all SharePoint sites and libraries.
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Frequently Asked Questions

Why am I getting a retention policy error as an external guest user?

External users encounter this error when the SharePoint site owner or IT administrator has applied a strict compliance policy (such as a legal hold) that prevents any user from modifying or deleting files to preserve the document's historical state.

Can a standard SharePoint site owner remove a retention policy?

No. Usually, only Microsoft 365 Global Administrators or Compliance Administrators have the necessary permissions to modify or remove data loss prevention (DLP) and retention policies in the Microsoft Purview portal.

How long does it take for the error to disappear after changing the policy?

Once an administrator successfully excludes a site from a retention policy or legal hold, it typically takes between 15 minutes and 24 hours for the backend changes to fully propagate across the SharePoint server.

Can I edit a file without deleting it while the site is under a legal hold?

Depending on how the hold or retention policy is configured, some files can still be edited (which creates a preserved version in the Preservation Hold library). However, if the policy strictly blocks all modifications, an administrator must adjust the settings before you can proceed.