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A Disclosure Statement provides key facts and information that a business or individual must share with others by law. It helps people make informed decisions by revealing important details about products, services, or business relationships. Common examples include credit card terms, real estate transaction details, and investment risks.

These statements protect both parties: they shield businesses from liability by ensuring customers were properly informed, while giving consumers or investors the facts they need before making decisions. Federal agencies like the SEC and FTC set specific rules about what must be disclosed, with penalties for companies that fail to provide accurate, complete information.

Use a Disclosure Statement anytime you need to formally share important information that could affect someone's decision-making. This includes launching new financial products, selling real estate, starting investment partnerships, or offering professional services. Many federal and state regulations require these statements when dealing with consumer finances, securities, or real estate transactions.

Time your Disclosure Statement before key business milestones: mergers and acquisitions, new product launches, or significant company changes. Getting ahead of disclosure requirements helps avoid regulatory issues, builds trust with stakeholders, and protects your business from future legal challenges. Pay special attention when dealing with sensitive financial information or material changes to existing agreements.

• Financial Disclosure Statements: Required for securities offerings, loan applications, and investment products. These detail risks, fees, and terms.
• Real Estate Disclosure Statements: Cover property conditions, defects, and historical information for home sales or leases.
• Professional Services Disclosure: Used by doctors, lawyers, and financial advisors to outline fees, conflicts of interest, and service limitations.
• Corporate Disclosure Statements: Detail company financial health, ownership structure, and material business changes for stakeholders.
• Consumer Product Disclosure: Explain product features, warranties, and safety information for retail goods and services.

• Financial Institutions: Banks, credit card companies, and investment firms must provide detailed disclosures about fees, risks, and terms to customers.
• Real Estate Professionals: Agents, sellers, and property managers use disclosure statements to document property conditions and transaction details.
• Corporate Officers: CEOs, CFOs, and board members submit disclosures about company finances, insider trading, and material business changes.
• Legal Professionals: Attorneys draft and review disclosure statements to ensure compliance with federal and state regulations.
• Regulatory Bodies: The SEC, FTC, and state agencies enforce disclosure requirements and monitor compliance.

• Identify Requirements: Check federal and state regulations for your industry to determine mandatory disclosure elements.
• Gather Facts: Collect all relevant information about products, services, risks, or business relationships that need disclosure.
• Document Details: List financial terms, material facts, potential risks, and any limitations or conditions that affect the subject matter.
• Format Structure: Our platform generates properly formatted disclosure statements that meet legal requirements and use clear, understandable language.
• Review Content: Verify all information is accurate, current, and complete before finalizing the document.

• Identification Section: Clear statement of all parties involved, including full legal names and relevant contact information.
• Material Facts: Complete disclosure of all significant information that could influence decisions or understanding.
• Risk Factors: Detailed explanation of potential risks, limitations, and uncertainties associated with the subject matter.
• Legal Compliance: References to relevant laws, regulations, and industry standards being addressed.
• Signature Block: Date, parties' signatures, and acknowledgment of understanding the disclosed information.
• Certification: Statement confirming the accuracy and completeness of all disclosed information.

A Disclosure Statement differs significantly from a Non-Disclosure Agreement (NDA), though both deal with information sharing. While Disclosure Statements proactively reveal important information to interested parties, NDAs restrict information sharing and create confidentiality obligations.

• Purpose and Direction: Disclosure Statements share information outward to inform decision-making, while NDAs protect information by limiting its distribution.
• Legal Obligations: Disclosure Statements fulfill regulatory requirements to provide information, whereas NDAs create contractual duties to maintain confidentiality.
• Timing and Duration: Disclosure Statements typically provide a snapshot of information at a specific time, while NDAs create ongoing confidentiality obligations that extend into the future.
• Enforcement Focus: Disclosure Statements protect the discloser by proving information was shared, while NDAs protect confidential information through legal penalties for unauthorized sharing.