the staff of the Ridgewood blog
Ridgewood NJ, in big news in Ridgewood Real-estate ,an ongoing agent-poaching lawsuit between a Christie’s affiliate and Compass . Christie’s International Real Estate’s Ridgewood, New Jersey-based affiliate celebrated a preliminary victory against Compass and four former agents who jumped to the rival brokerage earlier this year after the defendants signed a consent order certifying that they do not possess confidential Christie’s information.
The Christie’s affiliate sued Compass and its former agents in May, accusing Compass of soliciting the agents and unlawfully encouraging them to breach their existing contracts. The court order, filed earlier this month, also prohibits the agents from contacting old clients or attempting to recruit any other Christie’s agents or employees to join them until April 2023.
For Compasses point of view, a company spokesperson called Christie’s suit an “unsuccessful” attempt to “stifle” agent movement.
“Compass has never had any interest in Christie’s confidential information, nor has Compass ever used such information,” the spokesperson said. “What we do have an interest in, however, is an agent’s right to choose the brokerage that is best for them.”
The case, filed in civil court in Bergen County, is ongoing. It’s one of nine lawsuits filed against Compass (or newly-recruited Compass agents) by rival brokerages so far this year, though two have since settled.
Its a joke when ANY business expects employees to sign ”non-compete” agreements. If that employee is so valuable, give them a piece of the action as an incentive to stay.
Real estate is a personal acquaintance business and the agents bring with them their social contacts from the schools, neighborhoods, country clubs etc.. So a smart firm recruits those agents with the most contacts as they produce the most listings, sellers, buyers. With the advent of Zillow, MLS and others, the brokers’ “Brand” is a diminishing value in a place like Ridgewood. Would you pay more than market price for a home because of a broker’s affiliation with a known firm? Or would you make the best deal you could on the existing available home for sale? Its not like a builder with a quality reputation vs a builder with a poor reputation (which you”d see in a place like FLA with lots of new construction) The people here don’t know the difference between plywood and particle board!
The usual commission rate was 6%.
Now the usual rate is 5%.
Should be on it’s way down to 4%.
In the hysteria houses sell themeselves.
The usual commission rate was 6%.
Now the usual rate is 5%.
Should be on it’s way down to 4%.
In the hysteria houses sell themselves.
Licensees are independent contractors. Hard to enforce a non-compete on a non-employee. Now, if the licensee was hired as a W-2 employee or had a management contract, that’s another story. How did Ilija get agents for his newly-branded brokerage? He gave them sweetheart deals. It’s the nature of the business.
https://www.christiesrealestate.com/article/christies-international-real-estate-expands-in-new-jersey-with-company-branded-brokerage
Christies is not one of the better brokerages. It’s all about the hustle of the realtor. “ certifying that they do not possess confidential Christie’s information.” is ridiculous.
If Christies was rewarding these independent contractors they never would have left.