OfflineThe "Non-Circumvention, Non-Disclosure, Non-Competition Agreement" Form
This form has been promoted to be used when bird-dogging properties to a seller as a way of securing their agreement not to circumvent you in buying the property.
There is a more universal usage of such a form. The version that I would recommend is a reciprocal version of the form, that equally protects both parties to the agreement.
In essence, what the agreement states is that each of the parties to the agreement may share valuable information with the other party, and that the receiving party may not use that information for profit or share with anyone else without either a written approval from or compensation to the providing party.
Since the agreement goes both ways, it is actually a really good way to solidify a relationship with a cash buyer. It feels like you have formalized an agreement to work together, and that both parties are protected within that agreement.
For this reason, this would be a good follow-up to an initial interview with a cash buyer where they have shared their property buying criteria with you.
Having this agreement in place guarantees that the other party cannot use the proprietary information of the other party for five years without compensation. So consider using this agreement to formalize and solidify relationships with your cash buyers. After all, these are money relationships, and we want to start strong, and build and nurture those relationships for future benefits for both parties.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
While this form has had many names, the generic version is usually called either a Notice of Interest or an Affidavit of Agreement. In its best version, we want it to be nondescript, providing as little information as possible about the nature of our involvement with a property. Otherwise, we'd just file the whole darn agreement, and anybody and everybody could find out exactly what kind of a deal we've worked out.
Notice of Interest basically states that the undersigned holds an equitable interest in a property, and that anyone dealing in or with the subject property should contact the undersigned.
It places a cloud on title, and requires that anyone researching title, who will inevitably find our little notice, must contact us and ask about the nature of our claim to the property. It also gives us an opportunity, at that point, to ask them why they want to know, and find out that someone is trying to close a deal on the property without us being notified or paid. If we have a legitimate claim that is defensible, we can then step forward with our paperwork in evidence and demand payment.
While filing a Notice of Interest is not mandatory, you can see how this little form can operate a bit like an alarm clock to wake us up when needed.
If you choose to file a Notice of Interest on a property, you will need to have the form notarized. Take two copies with you, have the notary notarize both. Then take the two forms to the county courthouse or office building where the county recorder's office is located, ask the recorder to record the document and provide you with a conformed copy. They will keep one form for filing and stamp the other form as an original recorded document for your files. The cost, including conforming, is usually around $20 to $25, but may vary from one location to another.
The form remains as a recorded cloud on the property, but indicates that it is of even date. You do not need to remove the notice until such time as the property is sold. This is a simple additional method to make sure that no one circumvents you or usurps your claims with respect to a property.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
Great twist to the NCNDA. Do you have a sample form that is a simple version such as what you have mention here?
Thank you for sharing!!