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Community Disclosure Agreement

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COMMUNITY DISCLOSURE AGREEMENT

This Community Disclosure Agreement (the Agreement) is made effective as of by and between Community Organization: whose principal address is (Discloser), and Recipient: whose principal address is (Recipient).

WHEREAS

WHEREAS, Discloser operates community programs, events, records and services that include sensitive personal, demographic and programmatic information (the Community Information) related to residents, participants and stakeholders; and

WHEREAS, Recipient has requested access to certain Community Information for the purpose of and Discloser is willing to provide such information subject to the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend that disclosure be limited to the minimum information necessary to accomplish the stated purpose and that Recipient protect such information from unauthorized use and disclosure.

SCOPE OF WORK

Recipient shall use the Community Information solely for the purposes described above and shall not use, copy, transmit, aggregate or analyze Community Information for any unrelated commercial purpose without the prior written consent of Discloser.

PAYMENT TERMS

All amounts are payable in U.S. dollars and are exclusive of any taxes, assessments or charges, which shall be the responsibility of the paying party where required by law. Recipient shall pay any undisputed invoice within the time set forth above. Late payments shall bear interest at the rate set forth in the Late Fee field or, if no rate is specified, at 1.5% per month on the outstanding balance until paid. Discloser reserves the right to suspend disclosures for nonpayment.

TERM AND TERMINATION

Term Commencement: . Term Expiration: .

Either party may terminate this Agreement for any reason upon written notice in accordance with the Notice Period. Either party may terminate immediately upon written notice if the other party materially breaches its obligations and fails to cure such breach within fourteen (14) days after receipt of written notice. Termination shall not relieve Recipient of obligations respecting Confidential Information disclosed prior to termination.

CONFIDENTIALITY

For purposes of this Agreement, "Confidential Information" means Community Information and all nonpublic information disclosed by Discloser in any form that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential Information does not include information that (a) is or becomes generally known to the public other than as a result of a breach of this Agreement by Recipient; (b) is lawfully received from a third party without restriction; (c) is independently developed by Recipient without use of Discloser's Confidential Information; or (d) is required to be disclosed by law, provided Recipient gives Discloser prompt written notice and cooperates with Discloser, at Discloser's expense, in any lawful effort to limit or contest such disclosure.

Recipient shall: (i) use Confidential Information solely for the permitted purpose; (ii) restrict access to Confidential Information to its employees, contractors or agents who have a need to know and who are bound by confidentiality obligations at least as restrictive as those herein; (iii) protect Confidential Information with at least the same degree of care it uses to protect its own confidential information, but in no event less than a reasonable standard of care; and (iv) promptly notify Discloser of any unauthorized use or disclosure. Upon Discloser's request or upon termination of this Agreement, Recipient shall return or destroy all Confidential Information and certify in writing that such actions have been completed.

The confidentiality obligations under this Agreement shall survive termination for a period of unless a longer period is required by applicable law. Nothing in this Agreement limits either party's right to seek equitable relief, including injunction, to prevent or remedy breaches of confidentiality.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in the chosen jurisdiction for the resolution of disputes arising under this Agreement.

ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

Neither party may assign this Agreement without the prior written consent of the other except to a successor in interest to substantially all of its business by merger or sale. Failure or delay to exercise any right shall not constitute a waiver. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

NOTICES

Community Organization (Discloser)

Printed Name:

By:

Date:

Recipient

Printed Name:

By:

Date:

Enter text✕

What a Community Disclosure Agreement Is

A Community Disclosure Agreement is a written statement used to disclose material information about a property, project, homeowners association rules, or community conditions to prospective purchasers, tenants, contractors, or other stakeholders. It organizes facts such as shared facility usage, assessments, pending litigation, environmental issues, zoning constraints, and HOA restrictions so recipients can evaluate risk and obligations before entering into a transaction. The agreement serves as a formal record of the seller’s or administrator’s disclosures and can be incorporated into contracts, leases, or closing paperwork when required by state or local law.

Why a Clear Community Disclosure Agreement Matters

A clear Community Disclosure Agreement reduces post-transaction disputes by documenting known facts and warnings, supports informed consent, and helps satisfy statutory disclosure duties in many states while creating an auditable record of what was shared.

Why a Clear Community Disclosure Agreement Matters

Who Typically Prepares and Receives These Disclosures

Organizations and individuals involved in property transfers or community governance commonly prepare Community Disclosure Agreements; recipients vary by transaction type.

  • Homeowners associations and property managers supplying HOA rules, assessments, and pending special assessments
  • Sellers and listing agents disclosing neighborhood conditions, known defects, or litigation affecting common areas
  • Buyers, tenants, and lenders requesting full disclosure for underwriting, inspection, and closing reviews

The document is typically maintained by the seller, HOA, property manager, or closing agent and provided to buyers, tenants, lenders, and counsel during due diligence.

Essential Sections to Include in a Professional Disclosure

A well-drafted Community Disclosure Agreement groups information into clear sections so recipients can quickly find relevant facts and attachments; use numbered headings and exhibits to keep the record organized.

Community Identity

Name and legal description of the community, HOA contact information, and governing documents referenced as exhibits for easy verification.

Financials

Current operating budget, reserve study summary, recent assessments, outstanding special assessments, and delinquency statistics where applicable.

Rules and Restrictions

Material covenants, conditions and restrictions (CC&Rs), architectural guidelines, pet rules, leasing limits, and parking policies that impact owners.

Pending Matters

Pending litigation, arbitration matters, code violations, or insurance claims that materially affect community obligations or assessments.

Physical Condition

Known structural or environmental issues in common areas: roof condition, asbestos, mold, lead paint, drainage, or pest infestations.

Attachments

Exhibits such as minutes, financial statements, reserve studies, insurance certificates, and maps supporting the disclosures.

Required Core Fields for the Disclosure

Document Title: Community Disclosure Agreement
Parties: Full legal names of discloser and recipient
Property: Street address, unit number, legal description
Effective Date: MM/DD/YYYY format
Material Facts: Concise list of issues disclosed
Signature Block: Signer name, title, date, and capacity

Step-by-Step: Completing a Community Disclosure Agreement

Follow this sequence to prepare, review, and execute the disclosure with legal and administrative accuracy.

  • 01
    Gather records: Collect budgets, minutes, reserve studies, insurance certificates
  • 02
    Draft disclosures: Summarize material facts and reference exhibits
  • 03
    Review legally: Have counsel or managing agent confirm required items
  • 04
    Execute and distribute: Sign, date, and send to recipients with receipt confirmation

Where to Send or File Completed Disclosures

Routing depends on transaction type: closings require delivery to buyers and title companies; leases require tenant copies; regulatory filings may need submission to local authorities.

  • Buyers/Lenders: Provide signed disclosure to buyer and lender during closing
  • Title Company: Include as part of closing package for escrow and title review
  • Tenant/Occupant: Give executed copy to tenant before lease commencement
  • HOA Records: Retain signed copy in the association’s official records

Distribution Methods and Technical Requirements

Use secure delivery methods and file formats that preserve integrity and evidence of receipt.

  • Integration Ecosystem: Salesforce, NetSuite, Microsoft 365 integrations
  • File Formats: PDF, DOCX, and robust archival formats
  • Authentication Options: Email links, SMS codes, or two-factor methods

Key Timing, Deadlines, and Processing Expectations

Certain timelines influence when disclosures must be provided and when remedies or rescissions may be available; plan for lead time in transactional workflows.

Pre-Closing Delivery:

Deliver disclosures early enough for buyer review; timing depends on contract terms

Response Window:

Allow reasonable period for questions and additional documentation

Record Retention Start:

Retention typically begins on effective date or closing

Regulatory Filing:

If law requires filing, verify local deadlines and procedures

Correction Period:

Correct material omissions promptly to reduce liability risk

Common Mistakes to Avoid When Preparing Disclosures

  • Omitting relevant exhibits or financial statements that materially affect obligations
  • Using vague or ambiguous language that fails to identify the precise issue
  • Mismatching signer names or lacking authority statements for corporate signers
  • Failing to preserve an auditable copy or proof of delivery to recipients

Consequences of Inaccurate or Missing Disclosures

Contract Rescission: Aggrieved parties may seek rescission or termination
Monetary Liability: Damages or statutory penalties may be assessed
Title Complications: Undisclosed defects can delay or impair closings
Regulatory Fines: Local statutes may impose fines for noncompliance
Insurance Issues: Claims may be denied for undisclosed conditions
Reputational Harm: Trust and future transactions can be impacted

eSignature Vendor Comparison for Executing Disclosures

Comparison of common features and starting prices across vendors; signNow appears first. Confirm specific plan features and compliance add-ons directly with each vendor.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical Examples of Community Disclosure Use

Two real-world scenarios illustrate how disclosures function in transactions and governance.

HOA Sale Scenario

A seller attaches HOA financials to disclose an upcoming special assessment

  • Assessment equals 3% of annual budget
  • Buyers used the exhibit to negotiate an escrow holdback and the closing proceeded with both parties acknowledging the disclosure.

Tenant Lease Scenario

A property manager lists pending common-area repairs in a tenant disclosure

  • Repairs completion timeline included
  • Tenant signed acknowledging the schedule, reducing later repair disputes and clarifying temporary access needs.

Practical Tips for Accurate and Efficient Completion

Follow these best practices to reduce errors, speed review, and improve defensibility of disclosures.

Be specific
Describe material facts with dates, amounts, and exhibit references rather than generalities to reduce ambiguity and follow-up queries.
Use standardized exhibits
Attach labeled exhibits (A, B, C) for financials and minutes so recipients can cross-reference and auditors can trace sources.
Preserve audit evidence
Capture signed copies, delivery receipts, and IP/time-stamped execution records for a defensible chain of disclosure.
Confirm signer authority
Document corporate capacity or agent authority to sign, especially for associations or managers acting on behalf of organizations.

Frequently Asked Questions About Community Disclosure Agreements

Answers to common questions about completion, enforceability, electronic signing, and retention for Community Disclosure Agreements.


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