Good Morning Good folks! As I continue the attemp of scaling my Land Investing business someone mentioned to me yet another form called “Non Disclosure” for Buyers. Where the buyer signs and it will prevent them from going behind your back and working with your “Seller” client. Is this something that is needed, in your opinion? and if so does anyone have a template copy? Cheers!
@starrmarksol are you talking about an assignment or double closing scenario? There probably is such a form, but I’ve never bothered with that. The end buyer could certainly go behind your back, but that would be a very short-sighted blunder for any investor who wants to do more than one deal in that market. It would damage their reputation for the sake of saving some money in the short term.
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I think you are likely talking about a non-circumvention agreement. These are often used when you have a lead on a deal but do not yet have it signed up (or do not have it closed) and are shopping it to prospective financing partners. The non-circumvention agreement places restrictions upon the prospective financial partner from doing things such as (i) contacting the prospect or any of its employees or officers and (ii) entering into a transaction with the prospect directly.
These are usually time-limited, in the sense that the restrictions are for only a set period of time (usually a year or less).
If you were to enter into one of these (something I am a fan of in some circumstances and not in others), you would want to enter into the agreement with your prospective financial partner BEFORE providing them the name or description of the prospect.