Restraints And Real Estate – What Is Enforceable

What do post-employment restraints in real estate really mean for agents and employers? In the property industry, employment agreements often include three key restraints: non-solicitation, non-acceptance, and non-competition. These clauses aim to protect client relationships, confidential information, and business goodwill, but their enforceability depends on how they're drafted and applied. This article explores what each restraint covers, why defining a 'client' matters, and what recent case law tells us about balancing legitimate business interests with fair competition.

There are effectively 3 types of restraints that we see in real estate employment agreements.

1. A non-solicitation provision, preventing the agent from soliciting the business from clients of their previous employer;