For simplicity sake please understand that duration of the restriction, geographic area of the restriction, scope of what is considered a 'competitive business' to your employer, and public policy all affect your employers chances of enforcing a non compete.
For example a six month restriction in a large geographic area may be upheld, and a three year restriction limited to State of Connecticut may also be upheld.
The reality is very fact specific. There are many cases where an attorney can only give you a rough idea of the enforceability of the restrictions because the facts that would lead to a conflict between you and a former employer may not have occurred yet, and because Courts do not act in a uniform way at all times. For example, there are some Connecticut trial courts that have held that an employer cannot enforce a non compete restriction against an employee where that company has previously violated a material component of the employment agreement within which the non compete restrictive covenant is contained. Such a fact may inform a court reviewing your matter, and such a fact may be persuasive to the Court, but they would not be bound to follow the decision of another Superior Court Judge. One other factor to consider is the simple concept that statutes and case law change from time to time. Be wary of anyone who claims to have a crystal ball.
Non compete clauses should be taken very seriously. Do not just assume that if a restriction is broad and vague that it won't be enforceable. Do not assume that just because you have a reason to believe that the employer won't enforce it against you that such notion is an absolute fact.
You should consult with an attorney before you sign any employment agreement, especially one with a non compete clause.
**Please note: This article is for general information and discussion purposes only. You should not use any information in this article as a substitute for consulting an attorney or other competent advisor. Nothing in this article should be construed as forming the basis of an attorney-client relationship. This article is not a solicitation.
Attorney Unger is licensed to practice law in Connecticut State and local federal courts only.
Saturday, October 14, 2006
Friday, October 13, 2006
Can you afford this home??
Buying a home is not as simple as picking a home and getting a loan. Here is a brief list designed to help you avoid pitfalls in regards to financing a home purchase:
1. You need to determine if you can truly afford the purchase. Find out before you sign a purchase contract what your monthly cost is going to be including loan payment, taxes, common charges, association due, and estimated utilities.
2. Get a Good Faith Estimate from your loan officer prior to signing a contract to purchase a home.
3. Get a preliminary Truth in Lending sheet showing the estimated payment schedule for your loan. You may be surprised to see that a few years down the line your payments are expected to jump dramatically.
4. Realize that if a loan program seems to good to be true, it probably is......
5. Pay attention to how responsive your mortgage broker is in returning your calls/emails, following up on pending items, and explaining the details of the loan product & pricing that you are considering. Look to see to what extent they deliver on any promises they make early on. Whatever early experience you have with them, bad or good, is likely to be reflective of how the entire transaction proceeds.
6. Most importantly, talk to trusted independent financial advisors about what you can afford after choosing a loan product but before signing a real estate purchase contract. Your attorney is generally not the one you should rely on for financial advice, and most will not offer it. You want to talk to a reputable CPA, financial analyst, perhaps a family member that is excellent with budgeting and finance.
1. You need to determine if you can truly afford the purchase. Find out before you sign a purchase contract what your monthly cost is going to be including loan payment, taxes, common charges, association due, and estimated utilities.
2. Get a Good Faith Estimate from your loan officer prior to signing a contract to purchase a home.
3. Get a preliminary Truth in Lending sheet showing the estimated payment schedule for your loan. You may be surprised to see that a few years down the line your payments are expected to jump dramatically.
4. Realize that if a loan program seems to good to be true, it probably is......
5. Pay attention to how responsive your mortgage broker is in returning your calls/emails, following up on pending items, and explaining the details of the loan product & pricing that you are considering. Look to see to what extent they deliver on any promises they make early on. Whatever early experience you have with them, bad or good, is likely to be reflective of how the entire transaction proceeds.
6. Most importantly, talk to trusted independent financial advisors about what you can afford after choosing a loan product but before signing a real estate purchase contract. Your attorney is generally not the one you should rely on for financial advice, and most will not offer it. You want to talk to a reputable CPA, financial analyst, perhaps a family member that is excellent with budgeting and finance.
Sunday, July 23, 2006
WSJ warns about inflated home valuations
My comments are based on a Wall Street Journal front page article dated 07/22/06.
Up until fairly recently residential real estate appraisers had a lot of incentive to make rosy best case scenario valuations that may have been somewhat justifiable only because the market was moving so fast. Banks and appraisers are now getting more conservative based on a slower market.The problem now is that people who bought in the recent past received loans based on those inflated valuations. For some people, if they need to sell or refi they may find that they have a problem because they will owe more than the current value.
If you think you may be at risk for this type of home valuation problem, be proactive! At the very least get a market evaluation of your home by a good real estate agent, compare that valuation to the appraisal that was done when you first bought the problem, and check your loan statement to see if you owe more than th current market value.
Talk to a good real estate lawyer, mortgage broker, and real estate salesperson before you start running into problems. If you see you have a problem or are heading towards one you may have more of a chance to minimize the costs of the problem as well as to rectify it. This may be a good time for some kind of diagnostic to attempt to avoid terminal asset/liability problems.
Up until fairly recently residential real estate appraisers had a lot of incentive to make rosy best case scenario valuations that may have been somewhat justifiable only because the market was moving so fast. Banks and appraisers are now getting more conservative based on a slower market.The problem now is that people who bought in the recent past received loans based on those inflated valuations. For some people, if they need to sell or refi they may find that they have a problem because they will owe more than the current value.
If you think you may be at risk for this type of home valuation problem, be proactive! At the very least get a market evaluation of your home by a good real estate agent, compare that valuation to the appraisal that was done when you first bought the problem, and check your loan statement to see if you owe more than th current market value.
Talk to a good real estate lawyer, mortgage broker, and real estate salesperson before you start running into problems. If you see you have a problem or are heading towards one you may have more of a chance to minimize the costs of the problem as well as to rectify it. This may be a good time for some kind of diagnostic to attempt to avoid terminal asset/liability problems.
Wednesday, February 22, 2006
Interesting Supreme Court Case Regarding Discrimination
Discrimination in the workplace is a rather important issue that is frequently in the news. We all need to be aware of such actions taking place. I recently found an interesting article from the Chicago Sun Times that can be found here. To follow the most recent Supreme Court cases, go to findlaw.com.
Tuesday, February 14, 2006
T – E – A – M !
By Albert Unger, Esq.
$300,000? $500,000? $800,000? More???? A large percentage of buyers will spend this kind of money to buy a house or condo in Fairfield County, CT. Whether you have bought real estate before or not you want a group of professionals to help you turn your dreams into reality…right? The seller has a team protecting their interests and advancing their goal. Who is protecting you and helping you ‘win’ in this process? How do you maximize the chance that things will go smoothly? How do you gain leverage that may affect whether or not you get the property that you want? How do you attempt to control the emotional and financial cost? How do you spell relief?
T – E – A – M. Yes, team. YOUR team.
Most homebuyers do not realize that they are general managers in their home buying process who are drafting a team to assist them. You want a winning team that will carry your ball across the goal line for a score. Unfortunately many buyers view the real estate agent, mortgage broker, home inspector, and attorney as individual interchangeable parts of the machine. A buyer might think that each of the four parts plays a very specific individual role in the process……right?? Well…sort of…..
Reality: Like it or not you are assembling a team (or an engine, or a gourmet meal). Put together the wrong parts or ingredients and the whole thing falls apart…or at least does not come together without a little extra stress and strain on you. The four professionals you choose will work together most efficiently and effectively in their quest to carry out your goal when they communicate well together and work hand in hand. It is really that simple. However there is so much going on in the buying process….and sometimes so quickly…that the team concept can get lost on anyone. If that concept is missed you may inadvertently end up with firefighters…or worse yet Monday morning quarterbacks. You need team builders and professional players.
Start with a good real estate agent. They need to make you feel comfortable and they need to be educators, facilitators, and your quarterback on the field. At the point where they have successfully helped you negotiate a deal for your desired property, they may be cheering on the sidelines, but they are still communicating with your team members on the field. The agent also continues to orchestrate events and stands ready to get back on the field if necessary to keep things flowing. Money makes the deal go ‘round. So make sure you are picking a great mortgage professional who will work well with the rest of your team and communicate with them as needed. The best mortgage professionals are extremely service oriented relationship builders who do not rest on their laurels after they deliver a mortgage pre approval or commitment to you. They remain actively engaged in the process. That mortgage team member can make or break the deal based on how diligent they are in pushing the ball downfield and communicating with your other team members. The home inspector has a small but very vital role to play. They need to be diligent, flexible, efficient, and honest. They need to give you the straight scoop on the condition of the property without alarming you over defects that by most standards would be considered minor. Lastly, they must quickly and effectively provide your real estate agent and attorney with the relevant details of the inspection in a manner that will arm them with the facts necessary to smooth over any bumps in the road that may occur. This is a stage where you often still have a chance to cleanly back out of a bad deal. So do not overlook their importance as a team player. The last critical piece of the team is the attorney. Once a deal is in place the attorney is the person most responsible for protecting you, facilitating the execution of the transaction that your real estate agent put in place for you, and trouble shooting issues that may block your path to the goal line. A good attorney needs to communicate well with your other team members, as well as the seller’s representatives. A good attorney needs to keep track of dates and items to complete to make sure the deal stays on track. A good attorney is not afraid to pick up the phone and communicate in an effective manner with others that impact your home purchase. You don’t want to be left holding the ball with time running out. You want your team members running the ball for you based on your instructions intended to achieve your goals.
There is a lot more to the roles of the various players, but that is a topic for another day. Just remember that this is a team much like any team. The stakes are high and the stakes affect you directly in a very personal way. Great professionals carrying you across the goal line can even make a somewhat stressful process fun. Pick your team wisely! Questions? Email me: Albert@AttorneyUnger.com.
This article is ©Albert Unger, Esquire. All rights reserved. Do not duplicate without the permission of the author.
Attorney Albert Unger is a Connecticut Real Estate attorney, as well as a former practicing real estate agent. He has also been involved in home transactions as a buyer and as a seller.
$300,000? $500,000? $800,000? More???? A large percentage of buyers will spend this kind of money to buy a house or condo in Fairfield County, CT. Whether you have bought real estate before or not you want a group of professionals to help you turn your dreams into reality…right? The seller has a team protecting their interests and advancing their goal. Who is protecting you and helping you ‘win’ in this process? How do you maximize the chance that things will go smoothly? How do you gain leverage that may affect whether or not you get the property that you want? How do you attempt to control the emotional and financial cost? How do you spell relief?
T – E – A – M. Yes, team. YOUR team.
Most homebuyers do not realize that they are general managers in their home buying process who are drafting a team to assist them. You want a winning team that will carry your ball across the goal line for a score. Unfortunately many buyers view the real estate agent, mortgage broker, home inspector, and attorney as individual interchangeable parts of the machine. A buyer might think that each of the four parts plays a very specific individual role in the process……right?? Well…sort of…..
Reality: Like it or not you are assembling a team (or an engine, or a gourmet meal). Put together the wrong parts or ingredients and the whole thing falls apart…or at least does not come together without a little extra stress and strain on you. The four professionals you choose will work together most efficiently and effectively in their quest to carry out your goal when they communicate well together and work hand in hand. It is really that simple. However there is so much going on in the buying process….and sometimes so quickly…that the team concept can get lost on anyone. If that concept is missed you may inadvertently end up with firefighters…or worse yet Monday morning quarterbacks. You need team builders and professional players.
Start with a good real estate agent. They need to make you feel comfortable and they need to be educators, facilitators, and your quarterback on the field. At the point where they have successfully helped you negotiate a deal for your desired property, they may be cheering on the sidelines, but they are still communicating with your team members on the field. The agent also continues to orchestrate events and stands ready to get back on the field if necessary to keep things flowing. Money makes the deal go ‘round. So make sure you are picking a great mortgage professional who will work well with the rest of your team and communicate with them as needed. The best mortgage professionals are extremely service oriented relationship builders who do not rest on their laurels after they deliver a mortgage pre approval or commitment to you. They remain actively engaged in the process. That mortgage team member can make or break the deal based on how diligent they are in pushing the ball downfield and communicating with your other team members. The home inspector has a small but very vital role to play. They need to be diligent, flexible, efficient, and honest. They need to give you the straight scoop on the condition of the property without alarming you over defects that by most standards would be considered minor. Lastly, they must quickly and effectively provide your real estate agent and attorney with the relevant details of the inspection in a manner that will arm them with the facts necessary to smooth over any bumps in the road that may occur. This is a stage where you often still have a chance to cleanly back out of a bad deal. So do not overlook their importance as a team player. The last critical piece of the team is the attorney. Once a deal is in place the attorney is the person most responsible for protecting you, facilitating the execution of the transaction that your real estate agent put in place for you, and trouble shooting issues that may block your path to the goal line. A good attorney needs to communicate well with your other team members, as well as the seller’s representatives. A good attorney needs to keep track of dates and items to complete to make sure the deal stays on track. A good attorney is not afraid to pick up the phone and communicate in an effective manner with others that impact your home purchase. You don’t want to be left holding the ball with time running out. You want your team members running the ball for you based on your instructions intended to achieve your goals.
There is a lot more to the roles of the various players, but that is a topic for another day. Just remember that this is a team much like any team. The stakes are high and the stakes affect you directly in a very personal way. Great professionals carrying you across the goal line can even make a somewhat stressful process fun. Pick your team wisely! Questions? Email me: Albert@AttorneyUnger.com.
This article is ©Albert Unger, Esquire. All rights reserved. Do not duplicate without the permission of the author.
Attorney Albert Unger is a Connecticut Real Estate attorney, as well as a former practicing real estate agent. He has also been involved in home transactions as a buyer and as a seller.
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