Posted by O/Cnotary on 3/6/06 10:56pm
Msg #102695

Non-compete clause revisited. When getting started in this

bisiness, I am sure many of us, myself included, signed contracts and I m sure many of them had non-compete clauses in them. Some time later, when we are marketing ourselves to title co and lenders, how are we supposed to know/remember what SS do business with what TC etc. I am interested in hearing some thoughts from others that have encountered this issue. Thanks, O/C notary in CA

Reply by TitleGalCA on 3/6/06 11:07pm
Msg #102697

Because I was in a business before being a SA, I knew what a non-compete meant, and wouldn't ever sign one - ever; regardless of the business I wanted from signing services. At the same time, I researched non-compete and found that most professionals (SA's) didn't respect the language in the contracts, myself included.

For me, I won't sign, and if they (the SS with the non-compete) calls me anyway, I still won't agree. Just the way I run my side business.

Reply by Anonymous on 3/6/06 11:14pm
Msg #102699

I just went through my contracts with SS and none of them

have this clause, so apparently, it isnt something you will find in many of them.

Reply by SatomiCO on 3/7/06 8:24am
Msg #102752

Re: I just went through my contracts with SS and none of them

It may be worded differently, but in each one I've read, there has been some sort of language disallowing me to contact a company directly from knowledge obtained through the SS.

When I first began as a SA, I requested SSs to sign the contract first so I would have a fully executed copy for my own records. Not one company ever presigned. What's up with that?

Reply by CaliNotary on 3/6/06 11:15pm
Msg #102701

Re: Non-compete clause revisited. When getting started in th

I wouldn't even give it a second thought, just market yourself however you planned to.

Unless you're getting the TC info directly from the signing service, you're not doing anything remotely wrong ethically, and there's pretty much no chance in hell any signing service will try to enforce these agreements. It just wouldn't be worth the expense to them. And the odds of you getting work from a TC who you've previously worked for through a signing service are pretty slim, and the odds of the SS finding about about it on the off chance that it did happen are even slimmer.

Reply by Tina_MA on 3/6/06 11:16pm
Msg #102703

When was the last time you received a signed copy back of a contract?

No one I know has ever received a signed copy of a contract back. Could it be because most of them are not worth the paper they're written on?

Many of them are not complaint with the laws in various states regarding employment (right to work).

And how does one prove that you did or did not approach a TC before you started working for a SS? Not many people I know keep records of who they've sent postal mail or email to.

Reply by Korey Humphreys on 3/6/06 11:19pm
Msg #102704

I agree & come to think of it, Tina, you're right about not

ever getting a signed copy of the contract back.

Reply by Kelly M Robertson on 3/7/06 7:14am
Msg #102730

Since You're in California,I'd Definitely NOT worry about it

Since I have had the opportunity to meet with several attorney's, I've asked the question a zillion times and the answer has always been essentially the same: "Don't worry about it - it will never hold up in court in California".

Reply by Kevin Ahern on 3/7/06 7:49am
Msg #102745

A lot of it will depend upon the state in which enforcement of the non-compete clause
(aka restrictive covenant) is sought. Some states enforce them more strictly than others. The courts of Connecticut will enforce them, but will construe them as narrowly as possible to effectuate their purpose. The reason for this is that the clause is limiting someone's ability to earn a living. Consequently, the court will examine the clause to determine whether it is reasonable in the scope of the activity to be limited. the geographical area in which it is to be limited and the length of time for which it is to be limited.

The best way to avoid the problem is not to sign a non-compete clause.

Reply by SanDiegoCA on 3/7/06 12:37pm
Msg #102847

Re: Non-compete clause revisited. When getting started in th

If the DOCs go back to the title company (or excrow comapny, or mortgage company) and never go through the SS to get to the final desination, I'll always add my card with a post-it attached,

"IF you need to contact me directly about problems with this signing, please do not hesitate. I have a zero defect policy ...... and I stand behind it."

Is THAT marketing to the title company?

If the title company then choses to call me directly, about anything, it's their decision.

And Kelly is probably correct, you'd have to have pretty good EVIDENCE in Califonia to have a judgement against you due to a non-compete.

Now, a non-disclose is totally different. That's something that is either yes or no, no gray area ..... and ethically is pretty clear as well.

Reply by Kevin Ahern on 3/7/06 3:08pm
Msg #102926

Re: Non-compete clause revisited. When getting started in th

In Connecticut, if you were soliciting their clients for business in any form after signing the contract, you would be in violation of the non compete clause. We also have trade secrets statutes here, and very often client's identities are defined in the contract as a trade secret. Violation of this statute is an added protection for the party requesting you to sign the contract.