Real Estate Non Compete Agreement Template for Australia

A Real Estate Non Compete Agreement is a legal contract that restricts one party from competing with another in the property industry for a specified period and within defined geographical boundaries. In Australia, these agreements must comply with federal competition laws and state-specific real estate regulations to ensure enforceability while protecting legitimate business interests.

When do you need this document?

You need this agreement when hiring real estate agents or sales staff who will gain access to client databases, proprietary marketing strategies, or confidential business information. It's also essential when selling a real estate business, dissolving partnerships, or when independent contractors gain access to sensitive commercial information. Property management companies often require these agreements to protect their tenant databases and operational procedures from departing staff members. Additionally, real estate franchises use these agreements to prevent franchisees from competing directly after termination of their franchise relationship.

Key legal considerations

The agreement must include clearly defined restrictions that are reasonable in scope, duration, and geographical area to ensure enforceability under Australian law. You should specify exactly what activities are prohibited, such as soliciting existing clients, using confidential information, or operating competing businesses within designated areas. The restricted period should be proportionate to the level of access to sensitive information and typically ranges from 6 months to 2 years. Geographical restrictions must be justified by legitimate business interests and cannot be broader than necessary to protect those interests. Include provisions for confidentiality obligations, non-solicitation of employees, and clear consequences for breach of the agreement.

Legal requirements in Australia

Under the Competition and Consumer Act 2010, non-compete clauses must not substantially lessen competition in the relevant market. The agreement must demonstrate that restrictions protect legitimate business interests such as confidential information, customer relationships, or specialized training investments. Each state has specific property and stock agents legislation that may affect enforceability, particularly regarding licensed real estate professionals. The restraint must be supported by adequate consideration, such as employment, business sale proceeds, or other valuable benefits. Courts will assess reasonableness based on the protection of legitimate interests, the impact on the restricted party's ability to earn a living, and the broader public interest. Ensure the agreement includes severability clauses so that if one restriction is deemed unreasonable, other provisions remain enforceable.