Non compete/non circumvent in wholesale deals

[Max H.]

Does anyone ever make potential buyers sign non-compete contracts before showing them a house? I was thinking that buyers may say they are not interested in your deal then go behind your back and contact the sellers directly after your contract expires if you do not sell?

[Bill Gulley]

Your term, putting this as a non-compete agreement is not applicable, such are generally for protected market areas as with a franchise. Non-compete agreements can be very restriced in reality as courts shoot right through those poorly or unfairly made.

In RE, you can have a protected period that survives the term of your buying agreement with your seller with an additional period as a first right of refusal. They generally don't exceed the term of your agreement, so if your purchase agreement is for 6 months, you could have a seller agree to an additional 6 months after your purchase agreement terminates. You can also just use a first right of refusal without other agreements.

All you can do is have the seller sell to you at a specified price.

Attempting to get a buyer to only buy through you is a buyer's agreement and you would need to be a real estate agent to have such a captured buyer relationship. :)