Nondisclosure Agreement: Protecting Your Interests in Real Estate Transactions

Nondisclosure agreements are common in real estate transactions, but can be complicated. NDAs are often used to protect sensitive information during negotiations. At Chung & Reynolds, P.C., we understand the complexities of these agreements. Our experienced real estate lawyers have provided litigation services to the Irvine community for over 30 years.

Our commercial lawyers have extensive experience in litigating breach of NDA cases, often resulting from leasing transactions, fraud and concealment. If you need legal guidance on a real estate transaction involving a nondisclosure agreement, our commercial litigators can help. 

What Is A Non-Disclosure Agreement?

A non-disclosure agreement is a legally binding contract between two or more parties that outlines the confidential information to be shared, the purpose of sharing such information and the obligations of the parties to maintain secrecy. 

In the context of real estate, an NDA is typically used to protect sensitive information about a property, such as its value, condition or potential liabilities. By signing an NDA, parties agree to keep confidential information confidential and not disclose it to third parties without permission.

What Constitutes A Breach Of An NDA In Real Estate Law?

A breach of an NDA in real estate law occurs when one party fails to uphold their obligations to maintain confidentiality. This can take many forms, including:

• Seller misrepresentation claims: If a seller provides false or misleading information about a property in a real estate purchase, which the buyer relies on to their detriment, the buyer may have a claim. 
• Property defect lawsuits: When a seller fails to disclose known defects or hazards, such as structural damage, environmental hazards or water damage concealment, there may be a claim for a property or construction defect. 
• Real estate fraud litigation: When a party intentionally misrepresents information or conceals material facts to induce another party to enter into a transaction. 
• Material defect disclosure: When a seller fails to disclose latent defects or other material information that could affect the value or desirability of the property. 
• Breach of fiduciary duty: When a party, such as a real estate agent, fails to act in the best interests of their client.

If you suspect that an NDA has been breached, you may be entitled to remedies such as the rescission of the contract, compensatory damages, punitive damages and attorney’s fees. 

Schedule A Consultation With A Real Estate Attorney

If you are involved in a real estate transaction and need guidance on nondisclosure agreements or suspect that an NDA has been breached, we invite you to schedule a consultation with our experienced real estate attorneys. 

Our real estate lawyers are available by appointment. You can schedule an appointment by calling 949-345-1621 or by sending us a confidential message through our website.