Non-disclosure refers to a form of fraud that occurs when a seller or landlord conceals or fails to disclose material defects about a property, thereby misleading the buyer/tenant. This is considered fraudulent because non-disclosure can legally void a contract.
State law non-disclosure refers to non-disclosure agreements found in different state laws that pertain to the sale or rental of property in a specific area or real estate project. State non-disclosure laws may be used for condominiums and subdivisions, and generally, it is illegal to sell/rent condominium units without disclosing information about them such as: how much money was paid for the unit (which may indicate value), what percentage of units were sold already (indicating demand), whether any non-condo units will be constructed on the property, and what may happen to non-sold units in the future.
State non-disclosure laws are found in many states, including Ohio, Illinois, New Jersey, Florida, and California. These non-disclosure agreements were added over time because people began selling multiple developments or building plots without revealing how much they had been offered for them. In addition, nondisclosure was implemented so that sellers did not have a competitive advantage while trying to market their home or condo unit. It is common practice to include a nondisclosure agreement in a final contract of sale regardless of whether it is required by law or not. The purpose of nondisclosure is to protect buyers and sellers by protecting non-disclosure agreements.
