Any info on the laws for Employees that work at a Real Estate office?

Question

I recently had an interview with a Real Estate office and he told me that I would have to give up my rights as a loan officer if I was to work at his company and if I should ever leave there I wouldn't be able to work as a loan officer or Admin Assist. for a Real Estate office for another 3 years. Can they do that??

Answer 1

You should ask them why they have the requirement. Each state has some odd laws when it comes to real estate. There could be conflict of interest laws in force here. It could also be part of a non-compete agreement.

Answer 2

You may have a couple different things intermingeling here.

1) Mixing Banking or money lending with Real Estate Brokerage is an absolute no-no. Most states do not allow individuals licensed to lend money to also carry a real estate sales license. The state tries to look out for the best interest of the residence of the state by making sure these 2 activities are seperate.

2) He is probably trying to have you sign a "no-compete" agreement which is typical in business but not the real estate industry. You see this in smaller brokerages where the company spends a lot of money on your behalf. Especially if they are paying you a salary.

So....You'll need to look at your state licensing agency. You probably just can't have each liscence active at the same time. As far as the broker, unless they are the only real estate company in town, just talk with another one.

Answer 3

i doubt the courts would enforce the provision that you could not work as a loan officer for three years after you left, when courts look to enforce non-compete clause they look at the scope, the length, and how will it hamper your right to earn a living, three years is way to long probably not enforceable