When it comes to the world of real estate, employment agreements are a necessary tool to ensure that both parties involved in the transaction are protected. These agreements come with a variety of terms and conditions that must be adhered to, but there are two standard terms that are commonly found in real estate employment agreements. These are non-compete clauses and confidentiality agreements. In this article, we will explore these two terms and conditions in detail.
Non-Compete Clauses
One of the most common terms and conditions found in real estate employment agreements is the non-compete clause. This clause prohibits employees from working for a competitor or starting their own competing business for a period of time after leaving their current employer. The purpose of this clause is to protect the employer`s interests and to prevent the employee from taking clients and confidential information with them to a new employer.
The length of time for which the non-compete clause is in effect can vary and will depend on the specific agreement between the employer and employee. It is important to note that these clauses must be reasonable in terms of the length of time and geographic area they cover. If a non-compete clause is too broad or unreasonable, it may not be enforceable in court.
Confidentiality Agreements
Another important term and condition found in real estate employment agreements is the confidentiality agreement. This agreement is designed to protect sensitive information belonging to the employer and prohibits the employee from disclosing this information to third parties. This can include things like trade secrets, client lists, and financial information.
The scope and duration of confidentiality agreements can vary depending on the specific needs of the employer. In some cases, these agreements may be in effect for the duration of the employment agreement, while others may extend beyond the employment relationship.
In conclusion, non-compete clauses and confidentiality agreements are two standard terms and conditions that are commonly found in real estate employment agreements. These clauses are designed to protect the interests of both the employer and employee and should be carefully crafted to ensure that they are reasonable and enforceable. If you are a real estate professional entering into an employment agreement, it is important to carefully review these clauses and seek legal advice if necessary.