Supervisor-trainee Agreement/stealing Clients

[Kathryn Bowen]

I am a trainee, and my supervisor has asked me to create our agreement however I want but to make sure there's a clause to prevent me from "stealing [his] business" once I am certified. Has anyone had a similar request to this? Our agreement is pretty straight forward and will easily go into writing, but I am not getting a clear answer from him or anyone I've asked regarding stealing business/clients... It is my understanding that appraisers essentially work as contractors where a bid is sent, fees and experience/competency are compared, and then a Lender chooses the bid most appropriate for the order. So my question is this: How can I distinguish the difference between being the preferred 'bidder' or stealing his orders? I want to be as fair as possible, but I do not want to hinder my success once I am on my own.. Any thoughts or advice are greatly appreciated!

 

[Overimprovement]

How big is your primary market area? I think having a non-compete clause is perfectly reasonable, especially in a smaller market--though admittedly tough to enforce without your clients' cooperation. If someone has taken hundreds or even thousands of hours to train you, is it fair to them if you start bidding against them for the same clients you used to get your training? You will have intimate knowledge of your supervisor's clients, what is important to them, exactly who to contact, etc. You more than any other appraiser off the street will have a great 'in' with those clients already, moreso if you will be signing the reports during your training.Your agreement most likely is a work in exchange for knowledge/training, not work in exchange for easy pickings once you strike out on your own. In most cases, it is the trainee who benefits FAR more from a supervisor/trainee relationship than the supervisor.

 

[Flakey]

I used to make a deal with my trainees. Any new business they brought in the door while in training, I would increase their fee split by 15% for that work. If it developed into a regular client, I considered it their client and they were free to take that client with them when they left. I considered networking and business development part of the training. However, all bets were off if I caught them poaching my work and they were out the door immediately.

 

[Raven59]

Hard to enforce non-compete clauses. I do not believe the agreement can be so restrictive to eliminate you from a panel. AMC panels cover large areas, most likely much larger than your supervisor covers. The likelihood you would effect his/her volume the way AMC's are set up these days is unlikely. However, if his work comes from small AMC's with a limited number of appraisers that might matter. I'd say its more an honor system and respect at this point.

 

[George Hatch]

Your best bet would be to plan on going after different types of clients. Legal liability or no, appraisers know other appraisers and lenders and word gets around. It's not too early in your career to come to an understanding that the primary product we appraisers sell is not signed 1004 appraisal reports, but rather our professional reputations for honesty and integrity. That approach and orientation is not an exercise in false humility or altrusim, either; it's strictly self serving.

 

[Michigan CG]

.. It is my understanding that appraisers essentially work as contractors where a bid is sent, fees and experience/competency are compared, and then a Lender chooses the bid most appropriate for the order.

Are you doing commercial work?

 

[Terrel L. Shields]

A clause to the effect that any client whom your supervisor has worked for in the last six months of your employment with him you will turn down the work for a period of 2 years. He can provide that list to you at the termination of employment. Be sure to have a clause that you can access your appraisal files if the state requires so for the statutory 5 years.

 

[Meandering]

I am a trainee, and my supervisor has asked me to create our agreement however I want but to make sure there's a clause to prevent me from "stealing [his] business" once I am certified. Has anyone had a similar request to this? Our agreement is pretty straight forward and will easily go into writing, but I am not getting a clear answer from him or anyone I've asked regarding stealing business/clients... It is my understanding that appraisers essentially work as contractors where a bid is sent, fees and experience/competency are compared, and then a Lender chooses the bid most appropriate for the order. So my question is this: How can I distinguish the difference between being the preferred 'bidder' or stealing his orders? I want to be as fair as possible, but I do not want to hinder my success once I am on my own.. Any thoughts or advice are greatly appreciated!

Write; you promise never to steal his clients, in your contract.

He'll be happy,

and it won't be enforceable, unless you capture and control his clients to his exclusion.

And really, you're not going to control any client in this industry.

.

 

[bnmappraisal]

I'd say its more an honor system and respect at this point.

Well worth repeating, IMO (and my bold)

 

[bnmappraisal]

Personally, we had no written anything, but as I quoted Hillbillyman above, it just became a matter of honor/respect (whatever you want to call it)

I had a GREAT relationship with my supervisor and the owner of the firm (smaller firm; about 5 guys or so)

The unspoken rule was "we train you at a fair split for 2+ years, you "give back" 2+ years at a more generous fee split once you're CR"
I never considered "stealing" a client of theirs and when we did part ways, I had built up a small client base, large enough to ... break away
We left each other on good terms and 6 yrs later after the split, I'm still in contact with the owner and even consult with him once in a while on certain property types

Honor, respect, professionalism can go a LONG way sometimes - even without something in writing (although having it in writing may not be a bad idea)