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Licensed Real Estate Broker - Russell T Dickson

Termination Clause

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Article 12A - Termination Clause

To our current and future real estate clients;

The below clause/language may be utilized in many real estate brokerage’s listing contracts throughout New York State.


“I understand that I may revoke the LISTING BROKER’S authority to be my agent at any time, but that if I do so, the LISTING BROKER nevertheless shall retain its contractual rights, which may include but are not limited to: recovery of ‘Seller’s Commission’, advertising expenses, and/or other damages incurred by reason of seller’s early termination of this listing.”


             A New York State Administrative Judge has notified’s real estate broker Russell T Dickson, that the below law pertains to the “Termination” and it is a violation of Article 12A. Therefore, is proud to not utilize this illegal contract clause language in its listing contract.


The below information was provided to us by Scott NeJame (New York State Administrative Law Judge)

It is also well know New York law that, with respect to brokerage agreements,“…the right of the principal to terminate (the broker’s) authority is absolute and unrestricted, except only that he may not do it in bad faith, and as a mere device to escape the payment of the broker’s commissions.” Sibbald v. Bethlehem Iron Co./ 83 NY 378,  384  (1881); Aegis Property Services Corp.  v.  Hotel Empire Group., 106 AD2d 66, 484 NYS2d 555 (1st Dept. 1985) ; Timeless Realty Corp. v. Connecticut Diversified Holdings LLC, 11 Misc. 3d 1078 (A), 819 NYS2d 852 (NY Sup. 2006).


Question – If the above clause in the listing contract is a violation, are the rest of the contract terms void?

Answer- We are not attorneys. Any legal question you have, you should consult an attorney.


We are,


                                                                     0% SELLER COMMISSIONS. "NONE"


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