Working With a Wholesaler - Sign a NDA?

[John Romero]

I'm talking to a wholesaler, and they're very secretive about the properties they have. NO information will be disclosed without an NDA signed and in place. Which I can understand, but is it right to have an NDA with an investor looking to buy the property? Or should they have an NDA in place with the property's owner?

This is the first time i'm considering working with a wholesaler and wanted to know if this is industry standard to sign a form like this to view/consider properties...(they have some spelling errors, so that tells me it probably wasn't drafted by an attorney.)

Here it is...




CONTINUING
NON-CIRCUMVENTION AND
NON-DISCLOSURE AGREEMENT

COVERING ANY AND ALL REAL ESTATE AND OTHER DISCLOSURES VERBAL OR WRITTEN


1. THIS AGREEMENT CONFIRMS THAT EACH OF THE BELOW SIGNED INDIVIDUALS, THEIR CORPORATIONS, COMPANIES, EMPLOYEES, EMPLOYERS AND/OR ASSOCIATES, WILL NOT MAKE CONTACT WITH OR USE ANY OF THE EXCHANGED INFORMATION OR OTHERWISE BY INVOLVED IN ANY TRANSACTION USING THE EXCHANGED INFORMATION WITHOUT NOTIFICATION KNOWLEDGE AND PERMISSION OF THE INTRODUCING PROVIDER SIGNATORY.

2. THIS AGREEMENT IS EFFECTIVE FROM THE DATE NOTED BELOW FOR A PERIOD OF ONE (1) YEAR. TO THE
UNDERSIGNED OF THIS AGREEMENT IT IS MUTUALLY UNDERSTOOD THIS AGREEMENT WILL BE ENFORCED BY ALL LAWS GOVERNING THE STATE OF NEW JERSEY.

3. PROPERTIES:

ANY AND ALL PROPERTIES OR REAL ESTATE ASSETS SENT BY THE UNDERSIGNED XXXXXXX PROPERTIES, LLC TO THE RECEPIENT / SIGNATORY AND THEIR ASSIGNEES, AGENT AND ANY OTHER ENTITIES ALLIED TO THE SIGNATURES AGREEMENT AND ABIDE BY THESE TERMS.

4. ONCE THIS AGREEMENT IS RETURNED WITH SIGNATURES IT IS CONSIDERED FULLY EXECUTED AND ENFORCABLE BY LAW. CONFIDENTIAL INFORMATION WILL BE LISTED AND SENT TO RECEPIENT SIGNATORY FOR REVIEW.

PROVIDER SIGNATURE :
XXXXXXX PROPERTIES, LLC

X____________________________________________


RECEPIENT SIGNATURE: X____________________________________________


DATE: 02 / 17 / 10

CONFIDENTIAL PROPERTY DETAILS: ________________________________________________________________________

[James Hiddle]

Actually NDA's can be useful to a wholesaler who does have a property under contract but hasn't clouded the title.

If you can't get the title clouded by using a Affidavit and Memorandum of Interest than you can use a NDA in place of it.

NDA's are good for out of state wholesalers who can't use the Affidavit to record at the clerks office.