The simplest nondisclosure agreement, often abbreviated as an NDA, is a contract in which at least one person or organization agrees not to discuss or reveal certain information to other people. People can use nondisclosure agreements in almost any situation, but they are usually found in business negotiations where one or both parties reveals information of a confidential or secretive nature. Nondisclosure agreements are contracts, but you do not have to file or record them with a government agency.
Real Estate NDA
A real estate nondisclosure agreement is simply an NDA that involves a real estate transaction or negotiation. For example, as a home seller, you may want to enter into an NDA with your real estate agent to ensure that the agent keeps your financial and personal information confidential. As a buyer, you may want to hire an agent with an NDA to ensure the agent does not reveal your identity to the seller until you choose to have it revealed.
Nondisclosure agreements typically include specific terms that detail what each party can reveal to others outside of the agreement. If you want to hire an agent to sell your real estate for you, you can require the agent to only disclose financial information about your property to interested buyers who also sign a nondisclosure agreement. You can also set a time limit, such as limiting the agent from disclosing information for a period of several years after you enter into the agreement.
As a contract, an NDA must meet state-specific legal requirements before it is binding. In general, you should make an NDA in writing, detail the names of the parties involved, have each party sign it, date it and get the agreement notarized, though notarization is typically not required. NDAs are typically two-way, meaning they bind both parties from revealing certain information, though you can also create one-way agreements that limit only one party.