Disclosure Forms - How to Get and Protect Information
Disclosure forms are a valuable tool for accessing vital or protecting confidential information. Disclosure is the act or process of revealing relevant or material information. A disclosure statement is a document prepared to disclose material facts to the extent disclosure is required by statutes. Many federal and state laws require mandatory disclosure of material facts and information. For instance, auditors have to prepare disclosure statements disclosing key issues relating to the financial statements.
Sometimes, nondisclosure contracts are entered into between parties to protect material facts and information. In the United States, public disclosure of private facts is an invasion of privacy, which in turn is a tort. A nondisclosure agreement or NDA is an agreement that restricts disclosure of information to third parties. By signing non-disclosure agreements, parties restrict each other from revealing any type of confidential information, like trade secrets, to a third party. Nondisclosure agreements are also known as secrecy agreements or confidentiality agreements.
Non-Compete and Non-Disclosure Agreements
Apart from non-disclosure agreements, companies may sign non compete agreements restricting pursuit of similar trade or business. A non-compete agreement is a contract entered between parties in which one party agrees not to pursue a parallel trade in competition with the other party. Non-compete agreements are also entered into between employers and employees restricting an employee from seeking or accepting employment with the employer's competitor or pursuing a similar business or trade.
Before applying for patents, inventors will have to reveal their secret formulae to outsiders like the patent department of a company or a patent attorney. To facilitate non disclosure of patentable formulae, inventors prepare invention disclosure documents along with initial disclosures. Initial disclosure is a document that details how an invention works. An invention disclosure document is a nondisclosure statement prepared by an inventor when an unpatented idea is shown to the patent department of a company or a patent attorney. An invention disclosure document restricts the other party from disclosure of confidential information related to the patent.
Real Estate Disclosure
In real estate transactions, sellers are required to prepare real estate disclosure statements. Federal and state laws insist that sellers of real estate issue a statement of disclosure to potential buyers. Such property disclosures restrict sellers from concealing significant facts.
There are certain statutory house disclosures to be made by homeowners before leasing or selling their home. Homebuyers are entitled to seller disclosures and to be informed of material facts. Such home disclosures include disclosure about known defects, disclosure about hazards like flooding, and lead paint disclosures.
There are federal and state lead paint disclosure laws to protect families from exposure of lead based paint. A lead disclosure form is often required by EPA rules. A lead paint disclosure statement is a statement that discloses the presence of lead based paint in the dwelling. Lead paint statutory regulations require sellers or landlords of houses to disclose to home buyers or renters all material and relevant information about the presence of lead based paint, as well as hazards resulting from the usage of lead based paint in the dwelling.
The U S Legal Forms website contains information on what is a disclosure form. The website also contains various disclosure forms including home sale disclosure forms, lead disclosure, and nda templates.
Disclosure Forms FAQs
What are disclosure forms?
Disclosure forms are documents that disclose material information or facts as required by statutes. Disclosure forms are used in several contexts. Non-disclosure and non-compete agreements are used to protect the confidentiality of corporate information. In auditing, a disclosure form is a statement by an auditor about an entity's financial position. In bankruptcy, it is a statement about a plan of reorganization prepared by a Chapter 11 debtor. In banking, it refers to a statement outlining the terms of a loan.
What is a disclosure form in the banking context?
In the context of banking, a statement of disclosure provides important facts about a loan. It is a statement given by a lender to a prospective borrower specifying the terms and conditions of a loan. Information included in banking disclosure forms includes:
- interest rate
- method of computation of interest rate
- actual monthly payment
- duration of the loan
- statutory charges and fees
What information should be included in a home sale disclosure form?
Home sellers are required to disclose material facts about their homes to prospective buyers. Real estate disclosures are regulated by various state laws. Property disclosure laws stipulate mandatory disclosure of apparent and latent defects and hazardous conditions of a property. Latent defects are conditions that an ordinary man cannot discover through normal inspection. Examples of latent defects are structural and foundation problems or a leaking underground oil tank. Home disclosure forms should also include information related to environment risk, especially those that create health hazards.
What is a lead based paint disclosure form?
Home owners are statutorily required to inform prospective buyers or tenants if any lead based paint was used in the construction of a property. Home sellers have to sign a seller disclosure form showing that buyers were notified about such a risk. Similarly, along with the lease agreement, landlords have to sign a lead disclosure form attesting that the tenants were informed of the lead based risk. In a lead paint house disclosure form, a seller or landlord must disclose information such as:
- lead based paint hazards
- condition of the painted property
- surface where the lead paint is located
What is an invention disclosure form?
Invention disclosure form is a statement made by an inventor when an unpatented formula is revealed to an outsider. For instance, an inventor makes a patent attorney sign an invention non-disclosure form. An invention nondisclosure statement prevents an outsider from disclosing confidential information or formula of a patentable invention. Invention nondisclosure statements are made along with initial disclosure documents that explain the procedure or working of an invention.
What are non-disclosure agreements?
Nondisclosure agreements are agreements that restrict the contracting parties from revealing any type of confidential information. Non disclosure agreements are commonly known as NDA forms. Disclosure of another person's confidential information and other material facts will amount to invasion of privacy. Along with nondisclosure agreements, entities also sign non-compete agreements to restrict competitive trade similar to the other party's trade. A wide selection of non-disclosure agreements and NDA templates are available on the US Legal Forms website.