I work for a real estate VA company and I signed a non-compete in the beginning. As it was explained to me it was there so that I wouldn't start my own VA company and steal clients. Now that being said, would one think that the non-compete would stop me from working as a REVA for someone else?

It would depend on what your non-compete wording is. It may not only be to stop you from working for yourself but others as well. This is standard in non-competes and usually there is a time frame that the contract is in place should you decide to leave your current VA company. If you are considering a change you may want come legal advice on the non-compete contract.

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Lee Drozak
My Office Assistant

Definitely seek legal advice in this matter.

I don't think non-competes like this stand up in court (but I'm not a lawyer). I don't think that anyone can stop another person from trying to make a living. But check with a lawyer. I'd never sign a non-compete agreement, but then again, I don't work as a subcontractor.

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Julia

I have read the non-compete over and over and it does appear to zero in on creating my own business vs. working for another. I will try to find a legal expert next week to help me with this, thanks for the input.

I live in Florida and I have heard on various occasions that non-compete's do not hold up in the state. I am sure the lawyer can help me with that. On a normal basis I would not have signed one but just starting out I thought I needed to do what was necessary to get in the "VA World" !! But of course that was before I found this wonderful forum!

Check out the SBA and Score they may have someone who can answer your questions since this is a business-contractor issue. I think the biggest thing depends on whether the company who had you sign the agreement will pursue legal action should you actually break the contract.

This is not legal advice but sometimes if you do pursue other interests and don't go after their clients they will not pursue.

I never sign no competes, I was given that advice early on in my mortgage settlement career. Or at least make sure the compensation is enough for the term of the agreement.

Good Luck on this one.

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Lee Drozak
My Office Assistant

What is Score? I have no intention on taking any clients or being vindictive to where the company would feel threatened in having to take action. I honestly am not sure how, unless I told them, they would know if I was providing services of a similiar aspect to another person or company.

These laws can vary from state to state. If you can tell me which state you reside in, I will do some research for you. However, it is somewhat dfficult without being able to see the actual wording of that contract. I can tell you that your signature is legally binding and from a legal standpoint, lack of understanding is not a defense.

I have just found a website which may be of help to you. Law.JustAnswer.com is a website where you can ask an attorney and get a quick answer. You may want to specify which state you reside in as these laws can vary from state to state. There is good news however, the Oregon and California Supreme Courts changed their laws regarding non-compete areements and my guess is that other states have followed suit.

Wow thanks alot defrag1 that is a wonderful help! I will check out JustAnswer.com today.

That is Law.JustAnswer.com Be sure that you get that website right, otherwise you could be getting advice from anybody. We want to be sure that you get legal advice from a licensed and practicing attorney. Let me know how it turns out. I trust that everyhing will work out for you!

Check the wording of your non-compete. Normally they just state that you cannot go after the persons "existing" clients. This is to protect them from hiring contractors/employees who may in the course of business obtain their client list and use it to solicit their clients away from them. They also usually have a time limit, such as 2 years. It doesn't stop you from running your business.

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Rebecka Melson ~ Virtual Business Services

Better to check it out with some legal experts. I think there is something about the "right to work" in your chosen profession. Don't quote me tho...

Rhonda

This has never been an issue for me until... today.
A new real estate client has forwarded me an Addendum of Non-Disclosure/Non-Compete Agreement. After reading it I realized that there was no way I was going to sign it. Why? Read for yourself then my response. This is very long winded and I apologize. My intent is to inform new VA's to tread carefully.
______________________________ ____________________________
FOR GOOD CONSIDERATION, and in consideration of being contracted by the ***** Real Estate Group (the Company, the Business), the undersigned Independent Contractor hereby agrees and acknowledges:


1. That during the course of my time working with the ***** Real Estate Group there may be disclosed to me certain trade secrets of the ***** Real Estate Group; said trade secrets consisting but not necessarily limited to:
(a) Technical information: Methods, processes, formulae, compositions, systems, techniques, inventions, machines, computer programs and research projects.
(b) Business information: Customer lists, pricing data, sources of supply, financial data and marketing, production, or merchandising systems or plans.


2. I agree that I shall not during, or at any time after the termination of my working relationship with the ***** Real Estate Group, use for myself or others, or disclose or divulge to others including future Independent Contractors, any trade secrets, confidential information, or any other proprietary data of the ***** Real Estate Group in violation of this agreement.

3. That upon the termination of my working relationship with the ***** Real Estate Group:
(a) I shall return to the ***** Real Estate Group all documents and property of the ***** Real Estate Group, including but not necessarily limited to: drawings , reports, manuals, correspondence, customer lists, computer programs, and all other materials and all copies thereof relating in any way to the ***** Real Estate Group’s business, or in any way obtained by me during the course of employ. I further agree that I shall not retain copies, notes or abstracts of the foregoing.

(b) The ***** Real Estate Group may notify any future or prospective employer or third party of the existence of this agreement, and shall be entitled to full injunctive relief for any breach.

(c) This agreement shall be binding upon me and my personal representatives and successors in interest, and shall inure to the benefit of the ***** Real Estate Group, its successors and assigns.


4. That upon the termination of my working relationship with the ***** Real Estate Group:
(a) I shall not compete with the Company in any similar business, including without limitation the business of selling real estate. For the purposes of this Agreement, the term "compete" shall mean with respect to the Business: (i) managing, consulting, supervising, or otherwise participating in a management or sales capacity; (ii) attempting to call on, solicit, take away, or accept as a client or customer, any individual, partnership, corporation, company, association, or other entity that is or was a client, customer or co-investor of or with the Company or any of their affiliated companies as of the date hereof or as of the date of termination of your employment with the Company; (iii) hiring, soliciting, taking away, or attempting to hire, solicit, or take away, either on your behalf or on behalf of any other person or entity, any person serving immediately prior to the date hereof or during the term hereof as an employee in connection with the Business; or (iv) entering into or attempting to enter into any business substantially similar to the Business, either alone or with any individual, partnership, corporation, company, association, or other entity.
Signed this _____ day of ____________________, 20____.

Signatures
______________________________ _________

First, I have an inactive Real Estate License which I am in the process of reactivating. Secondly, If I signed this I would already be in breach by the vary nature of my business, for working with the other agents from the affiliated company, my association with various lenders and title companies, as well as the referrals I may receive from my friends, family, and colleagues. Thirdly, as the clause is written, it could effectively and potentially put me out of business because it restricts my ability to make a living in this industry from here to eternity.

Why do I know this? <drum roll please> I contact my attorney on retainer.

Not wanting to raise any animosity, I have contacted the new client in an attempt to address their specific concerns for wanting a Non-Compete clause in the first place.

Typically my clients, and I, sign a Non-Disclosure / Confidentiality Agreement.

Bottom line... unless you have legal expertise, never sign anything without having an attorney review it for you.

Best,

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Jeanette Rivét, PREVA
~ helping YOU get on course with your business