Real Estate Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Real Estate Non Compete Agreement

"I need a Real Estate Non Compete Agreement to restrict a property development company from competing within a 5-mile radius of our new shopping center in Manchester for 3 years from January 2025, including restrictions on both development and management activities."

Document background
A Real Estate Non Compete Agreement is essential when parties wish to protect their business interests in property development, investment, or management activities. This document, governed by English and Welsh law, is commonly used in business sales, joint ventures, or employment relationships within the real estate sector. It defines specific restrictions on competitive activities, including geographical boundaries and time limits, while ensuring compliance with competition law and the doctrine of restraint of trade. The agreement must balance the protection of legitimate business interests with reasonable limitations that courts will enforce.
Suggested Sections

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

2. Background: Context of the agreement, including the business relationship between parties and reason for the non-compete provisions

3. Definitions: Key terms used throughout the agreement, including definition of competitive activities, territory, and relevant business areas

4. Scope of Restrictions: Detailed description of prohibited activities and business areas covered by the non-compete

5. Duration: Time period for which the restrictions apply

6. Geographic Area: Specific definition of the territory where restrictions apply

7. Consideration: What is being provided in exchange for the non-compete obligations

8. Remedies for Breach: Consequences and available remedies if the agreement is violated

9. Governing Law: Specification that English and Welsh law governs the agreement

Optional Sections

1. Confidentiality Provisions: Additional provisions regarding confidential information - include when parties share sensitive business information

2. Non-Solicitation: Restrictions on approaching employees, clients, or suppliers - include when protecting client relationships or workforce

3. Assignment Rights: Rights to transfer the agreement to other parties - include when future business sales or restructuring may occur

4. Severability: Provisions for maintaining validity if parts are found unenforceable - include when agreement contains multiple separate restrictions

Suggested Schedules

1. Territory Map: Visual representation of restricted geographic area

2. Restricted Business Activities: Detailed list of specific activities covered by the non-compete

3. Competitor List: List of specific companies or business types considered competitors - include when restrictions apply to specific named entities

4. Property Schedule: List of properties or real estate assets relevant to the restriction - include when restrictions relate to specific properties

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 | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Competition Act 1998: Primary UK legislation governing competition law and anti-competitive practices. Relevant for ensuring non-compete provisions don't violate competition regulations.

Enterprise Act 2002: Legislation that complements the Competition Act and provides additional framework for competition law in the UK.

Article 101 TFEU: Retained EU law post-Brexit that prohibits anti-competitive agreements. Must be considered when drafting restrictions.

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts. Ensures terms in non-compete agreements are fair and reasonable.

Consumer Rights Act 2015: Relevant if one party is a consumer, providing additional protections and requirements for contract terms.

Common Law Restraint of Trade Doctrine: Legal principle requiring that restrictions in non-compete agreements must be reasonable in duration, geography, and scope.

Law of Property Act 1925: Fundamental property legislation in England and Wales that may affect how real estate aspects of the agreement are structured.

Land Registration Act 2002: Governs the registration of land and interests in land, relevant if the agreement relates to registered property.

Reasonableness Requirements: Legal principle requiring that restrictions must protect legitimate business interests and be reasonable in terms of duration, geographic scope, and prohibited activities.

Enforceability Principles: Legal requirements including clarity, consideration, and proportionality of restrictions for the agreement to be enforceable.

Public Interest Considerations: Legal principle requiring that the agreement must not be contrary to public policy or create unreasonable restraints on competition.

Remedies Framework: Legal framework for enforcement including injunctive relief and damages calculations in case of breach.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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