Non-Compete Agreement at a Realty Agency

[Victor Pedro]

I would like to start wholesaling and investing in real estate but I’m not sure if I will be in violation of my job Non-Compete Agreement. I currently work as a Graphic Designer at Berkshire Hathaway Carolinas Realty. Will real estate investing be considered competition? This agreement seems really broad. Are all avenues of real estate investing consider competition? (Wholesaling, Fix and Flip, etc.) HR didn’t really know how to answer my question. Maybe I’m just overthinking this? Clause below.

“During your employment and for two years after your employment ends for whatever reason, you will not own, manage, operate, be employed by or under contract with, participate in, consult with, or render services to, any enterprise or entity on behalf of which would result in your competing with any business engaged in by Company or its Affiliates as of the date of Employee's termination, that is located or does business within Alamance, Cabarrus, Catawba, Caswell, Chatham, Davidson, Davie, Durham, Forsyth, Gaston, Guilford, Harnett, Iredell, Johnston, Lee, Lincoln, Mecklenburg, Moore, Orange, Person, Randolph, Rowan, Rockingham, Stokes, Surry, Union or Wake Counties, all in the State of North Carolina, or Lancaster or York Counties, both in the State of South Carolina. This agreement does not prevent you from making a passive investment in any publicly traded securities so long as such investment does not confer upon you or any entity that controls you, is controlled by you, or is under your common control of 5% or more of the outstanding securities of any such entity as described above. Employee agrees to promptly notify Company of employment or other affiliation with any other business or entity during the Period.”

Thank you for your time reading this.

[Eamonn McElroy]

You should consult an attorney if you want an answer you can rely on.  I am not one.

Non-competes between employer and employee rarely hold up in court.  They can't prevent you from making a living.

Non-solicitation agreements are much more common in the employer-employee context.