Delaware License Law

What is a 'non-solicitation' agreement and how does it apply to Delaware real estate teams?

AAn agreement prohibiting agents from soliciting FSBO properties
BAn agreement restricting a team member or agent from soliciting the brokerage's clients if they leave the team or brokerage — enforceable in Delaware if reasonable in scope and duration✓ Correct
CA Delaware law prohibiting all real estate telemarketing
DAn agreement between brokerages not to compete in the same geographic area

Explanation

Non-solicitation agreements restrict departing agents from soliciting the brokerage's clients for a defined period and geographic area. Delaware courts will enforce reasonable non-solicitation provisions. They must be limited in scope, duration (typically 1–2 years), and geographic area. Overly broad restrictions may not be enforced. These agreements are common in Delaware team and brokerage employment agreements.

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