It's all greek to me! - Kansas City real estate : Buyer's Agents - Third party vendors... sign a non-compete?

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Buyer's Agents - Third party vendors... sign a non-compete?

By: Ron, Parker & Carmen Byron
Wednesday, February 28, 2007 8:35 PM

Recently I was working with an investor client who flips properties. We had a 3rd party vendor (foundation repair) come look to provide a quote for the work needed to be done. We never received the quote and then found out that within the following 48hours that the person (or company) made an offer and it was accepted on that same property!!!

I am pretty well convinced at this point to always have a vendor sign a non-compete for each property that we involve their services on... I don't want to lose another sale due to unethical behaviour of a vendor.

Next issue, I have buyer's agents and have never required any non-compete agreements. Some of my competition does require that. My philosophy is that I don't want to create an adversarial relationship at the point I have an agent that wants to leave. Historically I have had a number of agents come back once they realized the 'grass isn't greener'. Note: I control all technology on the team (12 year network engineer)... when an agent decides to leave I have their accounts shut down virtually instantly. I will provide them only with a copy of the data they personally own. I also forward all their email to another buyer's agent...not the agent that has left.

So what do you think:

1. Require non-compete agreements for all 3rd party vendors (including home inspectors)?
2. Require non-compete agreements for buyer's agents?

Thanks!

Parker Byron
Kansas City Real Estate
www.JohnsonCounty.com

Comments

Member Since '05	Dan Grammatica, e-PRO said: I would agree to a non compete clasue with the agent as far as opening his own company, even I' not sure I would do that. In general, I don't agree with non compete agreements, it's a FREE Country. Deal with loyal and honest people and you won't need a non compete. if you can't find the above...then do your non compete agreement :) What is that going to get you? Attorney fees mounting to more than your commission? send your CT referrals to http://realestatetorrington.com March 1, 2007 6:32 AM
Member Since '05	Robert Wilson said: Forget the non-compete largely unenforceable in most states. Do your best to share your story about the 3rd party vendor with every agent in town. March 1, 2007 7:13 AM
Member Since '04	Joshua Farber said: Just write contracts contingent upon inspection. If your customer has the best offer he'll get it, if not he won't. I agree with Dan, it's a FREE Country. March 1, 2007 10:32 AM
Member Since '06	Ron, Parker & Carmen Byron said: Thanks for your comments... I do have one side note: a FREE Country has nothing to do with unfair business practices. The laws exist to protect us. Just because it's a FREE Country doesn't mean you have the right to steal business - non-compete laws DO exist and CAN be enforced, you just have to get the right attorney (I know this from experience with the other company that I own). Because it's a FREE Country gives us the ability to pursue protections under the law and not stand back and allow your rights to be walked all over. Ron Tarvin posted a few days ago about other agents taking his content and using it on their website without permission... how is this any different? Are we just supposed to say 'It's a FREE Country' so that makes it OK? Every work typed in a blog is automatically copyrighted to the individual who produced the work unless they took the content from elsewhere. I believe that each time I work with vendors on projects that we conceived that they should not have the right to infringe on that idea... FREE Country or not. Thanks! Parker Byron Kansas City Real Estate [url=www.johnsoncounty.com]www.johnsoncounty.com[/url] March 1, 2007 11:40 AM