Real Estate Non-Disclosure Agreements

The Use, Protection, and Enforceability of Real Estate Non-Disclosure Agreements

Confidentiality and protection of sensitive information are essential in real estate transactions. Non-disclosure agreements (NDAs) provide an easy method for parties to ensure privacy of sensitive information throughout a deal and beyond.

Here are some of the most frequently asked questions about NDAs as used in Oklahoma real estate transactions:

What is a non-disclosure agreement?

A non-disclosure agreement, or NDA, is a type of confidentiality agreement. These agreements are written contracts that outline the terms and conditions under which the parties agree to share and protect certain confidential information. The terms of an NDA will often survive, or extend past, the closing or termination of a transaction – this protects the disclosing party for the long-term.

What are common terms of a non-disclosure agreement?

Parties should include the following terms in their NDA, among others:

• Carefully define what information is confidential
• Identify who is the disclosing party and the receiving party (in real estate transactions, this may extend to the parties to the transaction as well as their agents, brokers, and advisors)
• Clarify when, where, and how the confidential information is to be received and returned
• Ensure the term, or duration, of the agreement is long enough to protect the parties and information
• Pre-select the court that will handle any disputes between the parties about the specific confidential information

What type of transactions should have an NDA?

The common residential real estate transaction does not typically require NDA-level confidentiality unless the parties wish to be extra careful. However, commercial real estate agreements, commercial leases, business equity sales, and similar transactions are sure to benefit from carefully prepared NDAs.

Are NDAs enforceable in Oklahoma?

Yes. Oklahoma courts allow enforcement of NDAs and other confidentiality agreements, assuming that the minimum contract formalities are observed.

Get Help Drafting, Negotiating, or Enforcing an NDA

NDAs are an essential tool for ensuring your privacy. If you need assistance preparing, negotiating, or enforcing the terms of an NDA, contact Avenue Legal Group.