When entering in a deal, if either party i.e. buyer or seller wants the other party not to disclose any information or details of the deal until the deal is finalize and a contract is signed between the parties, they sign the disclosure agreement. With the disclosure agreement, both parties are forced not to say anything about the deal i.e. in case of real estate property deal; the parties can’t disclose the name of other party, the price for the property and particulars about the property. In case either party violates the agreement by telling the specifics of the deal to a third party, the other party reserves the right to terminate the agreement and take legal action against the breach of the disclosure agreement.
Introduction and brief description of Pre-settlement Real Estate Disclosure Agreement:
When two parties enter in a discussion about the sale or purchase of a real estate property, it is often very important for both of them to keep the dealing secret and not disclose any particulars of the deal to any other person or party who is in involved in the deal or anyone who might influence the deal. For example, a person approaches to the owner of a real estate property i.e. house and make an offer. Before the seller and buyer agree on mutual terms and sign the purchase contract, they have a lot to discuss and negotiate.
This can take weeks and even months before things settle and they agree to sign the agreement. For many reasons, it is very important for the buyer and seller not to tell anyone outside of the deal about the pact or arrangement they are making. The buyers benefit from this as other interested parties can’t know the price that the buyer has offered to the seller and the seller benefits from the disclosure as the market can’t know about the sale of his assets i.e. house or business. In order to force each party not to disclose the terms and conditions of the agreement before the buyer and seller can settle on mutual terms, they need to sign the pre-settlement real estate disclosure agreement.
Key elements to include in the Pre-settlement Real Estate Disclosure Agreement:
- Name of the person who is the owner of the property and selling it with complete address
- Name of the person who is buying the property with complete address
- Date when the buyer made an offer to the owner of the property
- Details of the offer made on the property
- Information if the seller accepted the offer or the parties negotiated on the price of the property
- Details f the property under discussion with complete address and particulars i.e. type of property, dimensions, covered area etc.
- Details of the items that either party doesn’t want to disclose before the agreement is signed
- Terms and conditions of the disclosure agreement
- Validation, expiration and termination of the disclosure agreement
- Signature of both parties and witnesses
Here is preview of a Free Sample Pre-settlement Real Estate Disclosure Agreement Template created as fillable PDF form,
Here is download link for this Pre-settlement Real Estate Disclosure Agreement Template,