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Real Estate Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

Real Estate Non Compete Agreement

"I need a Real Estate Non-Compete Agreement for my brokerage firm in Florida that prevents agents from working within a 25-mile radius of our offices for 18 months after leaving, specifically protecting our luxury residential property client base and proprietary marketing strategies."

What is a Real Estate Non Compete Agreement?

A Real Estate Non-Compete Agreement is essential when real estate agencies or brokerages need to protect their legitimate business interests, client relationships, and market position. This document, governed by U.S. federal and state laws, establishes restrictions on former employees' or contractors' ability to compete within defined parameters. It typically includes specific geographic boundaries, time limitations, and detailed scope of restricted activities, while ensuring compliance with varying state regulations on enforceability. The agreement is particularly crucial in situations involving access to confidential information, specialized training, or significant client relationships.

What sections should be included in a Real Estate Non Compete Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the non-compete agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Compete: Specific restrictions and limitations on competitive activities

5. Geographic Area: Defined territory where restrictions apply

6. Duration: Time period for which restrictions apply

7. Consideration: Value exchanged for the non-compete agreement

8. Enforcement: Remedies and procedures for breach

9. Governing Law: Applicable jurisdiction and choice of law

What sections are optional to include in a Real Estate Non Compete Agreement?

1. Confidentiality Provisions: Protection of confidential information - include when sharing of sensitive business information is involved

2. Non-Solicitation: Restrictions on soliciting clients or employees - include when protecting client relationships or workforce

3. Training Compensation: Provisions regarding specialized training costs - include when significant training investment is involved

4. Assignment Rights: Rights to assign the agreement - include when transfer of rights might be needed

What schedules should be included in a Real Estate Non Compete Agreement?

1. Schedule A - Geographic Territory: Detailed map or description of restricted area

2. Schedule B - Restricted Activities: Detailed list of prohibited activities

3. Schedule C - Consideration Details: Specific terms of compensation or benefits provided

4. Appendix 1 - State Law Compliance: State-specific provisions and modifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Federal Antitrust Laws: Primary federal legislation including Sherman Antitrust Act, Federal Trade Commission Act, and Clayton Act that regulate competition and market practices

State Non-Compete Laws: State-specific regulations governing enforceability of non-compete agreements, including restrictions on duration and geographic scope. Notable variations exist between states (e.g., California's prohibition)

Common Law Principles: Legal doctrines including reasonableness, consideration requirements, and legitimate business interest protection that govern non-compete agreements

Real Estate Regulations: Specific regulations governing real estate practice including state licensing laws, Real Estate Settlement Procedures Act (RESPA), and state-specific practice requirements

Employment Law: Federal and state employment laws including Fair Labor Standards Act and regulations regarding employee vs. independent contractor classification

Constitutional Law: Constitutional considerations including interstate commerce implications and right to work provisions

Geographic Scope Requirements: Legal requirement for reasonable geographic limitations in non-compete agreements to ensure enforceability

Time Duration Requirements: Legal requirement for reasonable time restrictions in non-compete agreements to ensure enforceability

Business Interest Protection: Requirement to demonstrate legitimate business interests being protected by the non-compete agreement

Consideration Requirements: Legal requirement for adequate consideration (value exchange) to make the non-compete agreement binding

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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