How do I handle a seller who wants to terminate my listing?

QUESTION: I always do my best to set realistic expectations for my sellers when I take a listing. However, despite my best efforts, a seller I am representing now is very unhappy with how prospective buyers are reacting to the listing price set in Form 101 (Exclusive Right to Sell Listing Agreement). The seller thinks it is my fault, and now he wants to change listing firms instead of changing the list price. I am debating whether to agree to let the seller go. If I do, am I allowed to charge a fee? Is there a limit on the fee I can request?

ANSWER: You can charge a fee, and there is no specific limit on what you can ask for, but the law does provide some guidance on what you would be entitled to if the seller breaches the listing agreement.

To start, you are correct that the threshold question is whether you will agree to release the seller. You and the seller have a binding contract. In Form 101, you and the seller have agreed that your firm alone has the right to sell his property, and that your fee will be earned and paid on certain conditions outlined in that contract. In this previous Q&A, we covered this issue in more detail and noted that while the seller can unilaterally end the agency relationship, that decision does not relieve the seller of their contractual duty to pay a listing firm (assuming that the listing firm is not itself in breach of the listing agreement).

Part of the issue here is the property’s listing price that you and the seller set in the listing agreement. In the future, if you know that the seller is insisting on an unreasonable listing price, you may want to consider not taking the listing at all. The listing price in Form 101 is very important not only because it helps set the seller’s expectations, but also because the receipt of a full price offer triggers your commission being earned under Form 101.

As to your questions, section 21 of Form 101 makes clear that “[i]n the event of termination, Firm may require reimbursement of fees, costs, and expenses, in addition to other remedies.” The term “other remedies” includes legal claims under North Carolina law such as breach of contract. A successful claim for breach of contract could mean that you would be entitled to receive monetary damages in the amount of the commission had the seller not breached. You might also be able to recover reimbursement of the costs and expenses incurred as part of getting the listing to market.

While there is no technical limit on what fee you can request from the seller in order to release them from their contractual obligations with your firm, you might want to consult with legal counsel if you are considering a fee that is more than your expected commission plus expenses. You may be entitled to more than that depending on the case, but you will want an attorney’s help to make that determination.

Before you approach the seller with a proposed termination of the listing agreement, be sure to consult with your broker-in-charge. Some firms have specific policies regarding termination (if allowed at all). After that, if you and the seller do agree on a fee, that fee can be stated in section 5 of Form 720 (Termination of Agency Agreement and Release).

Release Date: 7/2/2026

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