Benefits of a Non-Disclosure Agreement for Real Estate Investing
Friday, June 2, 2017
Whether you’ve already started real estate investing or are trying to navigate how to buy a house, you should familiarize yourself with a non-disclosure agreement.
Regardless of the role you play in purchasing or selling a property, a non-disclosure agreement is designed to serve as protection for your interests in the property. This agreement is a common standard practice in all types of real estate investing and is not a lifetime contract. Keep in mind as you review and sign this form that it is in place as a safeguard for all parties. It also defines the obligations and rights of each party.
If you’re brokering a deal, a non-disclosure agreement will prevent transactions from occurring behind your back. As a broker, when your name is listed on this agreement it highlights your role in the transaction and assures that you will be compensated properly for your contribution and expertise.
For a buyer, the non-disclosure agreement provides legal protection of your personal and financial information involved in the transaction. It also limits the number of buyers that can consider the property.
The non-disclosure agreement aids the seller in the transaction by limiting the number of potential buyers. Too many buyers attempting to lowball or to consume your time when they don’t have a genuinely reasonable offer can be a drain on resources.
Some final key items to consider when forming your non-disclosure agreement are:
· Have the agreement drafted in writing
· Make sure all parties names are listed and each individual signs and dates
· Have the agreement notarized
Wolterman Law cares about protecting your interests in all of your legal transactions, contact us today at 513-488-1135 with any questions you may have regarding your real estate investing or to have a Non-Disclosure Agreement drafted.