Posted by Anonymous on 12/15/05 9:31am
Msg #82721

Everyone seems to like Realty Title Co, BUT...

did anyone read their contract before signing and sending right off? This was an interesting part that I thought should be brought to everyone's attention.
DISCLAIMER: I AM NOT AN ATTORNEY AND I AM NOT GIVING ANY ADVICE LEGAL OR OTHERWISE. THIS IS STRICKLY AN OPINION.



NON-COMPETE AGREEMENT

Independent Contractor agrees that during his/her relationship with Realty Title Company and for a period of one year after termination of relationship for any reason, Independent Contractor will not, on his/her behalf or on behalf of any other person, firm or corporation, call on any of the clients or known prospects of Realty Title Company or of any of its affiliates or subsidiaries with whom Independent Contractor was involved directly or indirectly, nor will Independent Contractor in any way directly or indirectly, for their self or for others, solicit, divert or take away such client.



Not sure about everyone else, but NO I wouldn't agree to that!

1. If I had say ABC Company I worked with in the past or still do occassionally and that turns out to be one of their clients or known prospects....then what? I can't work with them anymore? Technically that's exactly it.

2. Now let's say that one of their clients IS one that I have worked with and I work with Realty Title Co for awhile and that client decides that they like working with me and stops sending anything in my state to Realty Title Co and only works with me? Are they saying that can't happen? Yep, that's what it looks like. Because that would be taking away their client INDIRECTLY. So, just because your good at your job you could be in a situation where YOU CAN TAKE THE WORK SINCE YOU SIGNED THIS CONTRACT.

3. Now what about the 1 year AFTER your last signing with Realty Title Co? Your not going to work with a company that calls you even IF it's a client that you know has worked with them? You didn't solicit, but that would be indirectly.


Now this is just my take on this and when I asked a friend who is an attorney, they said that IF Realty Title Co wanted they could enforce it exactly as I gave those examples. Because its vague.
So, what if they changed it to say this??? Seems a little more fair.


NON-COMPETE AGREEMENT

Independent Contractor agrees that during his/her relationship with Realty Title Company and for a period of one year after termination of relationship for any reason, Independent Contractor will not, on his/her behalf or on behalf of any other person, firm or corporation, call on any of the clients or known prospects of Realty Title Company or of any of its affiliates or subsidiaries with whom Independent Contractor was involved directly or indirectly, nor will Independent Contractor in any way directly or indirectly, for their self or for others, solicit, divert or take away such client.
The fore mentioned is excluded in relation to Independent Contractors current clients, past clients, known prospects and any client relationships associated with said clients prior to the date this agreement is signed AND during the year following termination of relationship should the Independent Contractor be contacted by any Realty Title Company client directly. Also, the enforcement of the non-compete agreement will only be enforceable should Realty Title Company supply a complete list of Realty Title Company’s current clients and known prospects for Independent Contractor’s review to affirm that clients that are currently or have in the past worked with Independent Contractor are not on the list or will be agreed upon by Realty Title Company and Independent Contractor to be excluded from the list.


Something like that seems a good compromise. What do you all think?

Reply by Charm_AL on 12/15/05 9:40am
Msg #82725

To me that says...
I won't call on my behalf to solicit. divert or take away the TC's they work with, it doesn't tell me that their clients can't call me. I know an owner of a Mortgage company that believes these contracts (non compete mortgage broker contract)are so vague, no one would win a law suit trying to keep someone from their livelihood.

***his/her behalf or on behalf of any other person, firm or corporation, call on any of the clients or known prospects of Realty Title Company or of any of its affiliates or subsidiaries with whom Independent Contractor was involved directly or indirectly, nor will Independent Contractor in any way directly or indirectly, for their self or for others, solicit, divert or take away such client.***

Reply by Anonymous on 12/15/05 9:49am
Msg #82732

Agree to stat to Charm, BUT...

that's why I think the other should be put in there or they really should take those out. They could just as well say

"don't intentially seek out & try to take my business from me in any malicious manner. If you do a better job than I and they choose you, then shame on me and good for you."


Then at least they are on the up and up and it's more like "if I'm not doing a good enough job to keep them, I shouldn't have them or I should evaluate how to keep them. Because you know damn well that all those companies are out for OUR clients and they can do it. Why else are some companies trying to get us to tell them our clients so we can get the work through the SS"

Reply by Anonymous on 12/15/05 9:50am
Msg #82733

ooops Re: Agree to THAT I mean n/m

Reply by Charm_AL on 12/15/05 10:10am
Msg #82738

Re: Agree to that to Charm, BUT...

"don't intentionally seek out & try to take my business from me in any malicious manner. If you do a better job than I and they choose you, then shame on me and good for you."

lol...yes that would sound better, but then it wouldn't sound like scary legal mumbo jumbo that it's designed to be! That's what gets the non-attorney individual...they hope we can't figure it out.

Reply by LawrenceOK on 12/15/05 11:07am
Msg #82755

Re: Agree to that to Charm, BUT...

I think for any non-compete contract to be enforceable, they would have to send you a certain amount of work for your particular area. Companies that send you one or two a month would not have a snowballs chance in hell enforcing such a contract. jmo

Reply by Danny_FL on 12/15/05 1:26pm
Msg #82791

Re: Agree to that to Charm, BUT...

My take on this has always been that I will not come back to the borrower to sell Mary Kay products or Home insurance too.

Danny

Reply by Colleen/ closing dept Mooney/Realty Title on 12/20/05 3:36pm
Msg #83717

We have had several notaries feel uncomfortable with this specific section of our Closing Agent Agreement. This agreement was written by one of our in-house attorneys and the purpose of the non-compete agreement is for our notaries to simply not seek out our clients intentionally. We are not looking for lawsuits, by any means, we would instead remove a closer from our database if he or she were deliberately contacting our clients for business. We also give our notaries the option to cross out that section of the agreement and initial beside it if they disagree with it- no big deal! It is mainly a formality we go through to protect ourselves, not to go around filing lawsuits.