Real Estate Non Compete Agreement Template for Australia

An Australian Real Estate Non-Compete Agreement is a legally binding document designed to protect business interests in the property sector by restricting certain competitive activities within specified geographical areas and time periods. This agreement, governed by Australian federal and state laws including the Competition and Consumer Act 2010, establishes clear parameters for restricted activities while ensuring compliance with Australian competition law principles. The document includes detailed provisions for enforcement, remedies, and specific carve-outs for permitted activities, tailored to the unique characteristics of the Australian real estate market and legal framework.

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What is a Real Estate Non Compete Agreement?

The Real Estate Non-Compete Agreement is essential for protecting business interests in Australia's competitive property market. It is typically used when real estate professionals, agencies, or property businesses seek to prevent direct competition from former employees, partners, or business associates. The agreement must carefully balance legitimate business protection with Australian competition law requirements, ensuring restrictions are reasonable in scope, duration, and geographical area. This document is particularly relevant in situations involving agency sales, mergers, employment transitions, or partnership dissolutions in the real estate sector. Key considerations include compliance with state-specific property legislation, the Competition and Consumer Act 2010, and relevant real estate industry regulations. The agreement typically includes detailed provisions on restricted activities, territorial limitations, confidentiality obligations, and enforcement mechanisms.

What sections should be included in a Real Estate Non Compete Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the non-compete restrictions

3. Definitions: Detailed definitions of key terms including 'Restricted Business', 'Territory', 'Restricted Period', and 'Confidential Information'

4. Non-Compete Obligations: Core restrictions and specific prohibited activities in the real estate sector

5. Duration and Territory: Temporal and geographical scope of the restrictions

6. Exceptions and Permitted Activities: Specific activities that are explicitly allowed despite the general restrictions

7. Confidentiality Obligations: Protection of confidential information and trade secrets

8. Acknowledgments: Parties' acknowledgment of the reasonableness of restrictions and receipt of consideration

9. Remedies: Available remedies for breach, including injunctive relief and damages

10. General Provisions: Standard contract clauses including governing law, severability, and entire agreement

What sections are optional to include in a Real Estate Non Compete Agreement?

1. Non-Solicitation: Additional restrictions on soliciting clients or employees, used when the agreement covers both non-compete and non-solicitation

2. Training and Support: Provisions regarding any training or support provided as consideration, included when specific business knowledge is transferred

3. Assignment and Succession: Rules for transferring rights under the agreement, included for larger businesses or when succession planning is relevant

4. Dispute Resolution: Specific procedures for resolving disputes, included when parties want to specify mediation or arbitration processes

5. Compliance with Industry Regulations: Specific provisions relating to real estate industry regulations, included when parties operate in heavily regulated markets

What schedules should be included in a Real Estate Non Compete Agreement?

1. Schedule 1 - Restricted Territory: Detailed map or description of the geographical areas covered by the restrictions

2. Schedule 2 - Restricted Activities: Comprehensive list of specific real estate activities that are prohibited

3. Schedule 3 - Consideration: Details of any consideration provided in exchange for the non-compete obligations

4. Schedule 4 - Existing Clients: List of clients or properties that are subject to specific provisions

5. Appendix A - Industry Codes: Relevant real estate industry codes of conduct or regulations referenced in the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Cost

Free to use

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