QUESTION
Is a non-compete contract/clause enforceable in state of FLA? What could happen if I voluntarily left, placed license with another inside 250m radiu
Asked on Jan 13th, 2014 on Real Estate - Florida
More details to this question:
Real Estate Broker wants me to sign a non-compete which states... "During my time as an agent at XYZ I agree to develop relationships with customers using marketing, advertising materials, tools and methods agreed to and approved by XYZ and that all listings belong to the broker. If I violate or break this agreement in any way, I understand that I will owe XYZ for education, training, mentoring and support. In addition, I may not contact XYZ customers who would then have current listings for a period of 2 years from the date the listing becomes inactive or the property is sold. I understand and agree that reimbursement is due immediately upon said violation which would produce an early involuntary termination. In the case of a voluntary termination, I agree to not place my RE license with any competing broker within a radius of 250 miles for a period of one year from the date of license activation at XYZ as described above."
1 ANSWER
Business Formation Attorney serving Tampa, FL
at
Moffa, Sutton, & Donnini, P.A. - Business Law Division
Update Your Profile
Going on what you’ve written, I think you’d have a hard time arguing that its unenforceable in Florida. Main items I tend to look for are whether it is reasonable in terms of time and geography. I think you’d be on the losing end of successfully arguing these are unreasonable. Now, as far as your question about what would happen if you placed your license with a competing broker within 250 miles less than a year (aka breaching the non-compete)… well, likely first you and your new broker would likely get a pretty nasty demand letter from your previous broker’s attorney. Basically, you’ll be told that if this goes through, you’re going to be sued. The suit will likely be to get an injunction from placing your license in breach of the non-compete. Essentially, they’ll be seeking strict performance of the non-compete. You may have some room in the contract with the ambiguity of “competing broker,” but I would caution against laying my hat on that. Like anything, sometimes the details make all the difference, so if you really want to get advice specific to you and your situation, consult with an attorney to see exactly where you fall legally.
Answered on Jan 13th, 2014 at 4:13 PM