When you signed your independent contractor agreement, you probably focused on the big things......your split, the brokerage support, maybe marketing perks. But buried in that paperwork, some
Dated: August 26 2025
Views: 483
Non-compete agreements for real estate agents have no place in the real estate profession. They do not protect consumers, they do not improve professionalism, and they do not advance the interests of the public. Instead, they restrict choice, stifle competition, and allow brokerages to exercise control over agents in a way that creates more harm than good.
A real estate license is a professional credential. Agents earn their license by meeting educational standards, passing state exams, and adhering to a strict code of conduct. The license belongs to the agent, not to the brokerage. It exists to protect the public, not to give brokerages leverage to keep agents from pursuing opportunities in the market.
Consumers hire agents based on trust and personal relationships. When a non-compete prevents an agent from serving a client simply because they have changed brokerages, it interferes with consumer choice. Sellers and buyers should not lose the right to work with the person they trust because of a contract designed to benefit a brokerage.
Non-competes also create unnecessary hardship for agents. Real estate professionals are often independent contractors who rely on their ability to move between brokerages to find the right fit for their business. Locking them into one brokerage by threat of litigation undermines the entrepreneurial nature of the profession and leaves agents vulnerable to exploitation.
The courts in Ohio have struggled with this issue, as seen in the Burton Minnick Realty case and others. Judges are asked to weigh “reasonableness” and public policy on a case-by-case basis, which leads to inconsistent results and wasted resources. The better solution is clarity. Licensed agents should be free to move without restriction, and consumers should be free to choose their representation.
Other industries are already moving away from non-competes. The Federal Trade Commission has proposed a nationwide ban. Ohio has an opportunity to lead by establishing a carve-out in our state law that prohibits non-compete agreements for licensed real estate salespeople and brokers. This would align with the purpose of our licensing laws, which are designed to protect the public and uphold standards of professionalism, not to give brokerages power to restrain trade.
As a statewide brokerage serving markets throughout Ohio, we are calling on the Ohio Division of Real Estate and the Ohio Legislature to take up this issue and bring needed clarity. A simple statutory amendment could resolve the matter by making any covenant not to compete between a broker and a licensed agent void and unenforceable.
The real estate profession thrives on trust, mobility, and open competition. Removing non-competes will protect consumers, support agents, and strengthen the industry as a whole.
When you signed your independent contractor agreement, you probably focused on the big things......your split, the brokerage support, maybe marketing perks. But buried in that paperwork, some
Non-compete agreements for real estate agents have no place in the real estate profession. They do not protect consumers, they do not improve professionalism, and they do not advance the interests
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