This standard real estate document does exactly what its name implies. Everyone who signs this document (seller, potential buyers, real estate agents, etc.) agrees to not disclose the details of the purchase or sale, including even in the preliminary stages.
Such agreements are often created in order to prevent other real estate agents or brokers from poaching potential buyers for the property and claiming the commission themselves, something that often occurs in Southern California's highly competitive real estate market. There are many other reasons why people choose to have a nondisclosure agreement for a property.
Prospective buyers who sign a nondisclosure agreement when considering purchasing a property often have an advantage over potential buyers who refuse to sign such documents. Specifically, buyers who sign such agreements often have access to information that might be withheld from potential buyers who refuse to sign such documents. The more information you have before purchasing a property, the better.
One of the most annoying aspects of selling a property often involves dealing with countless people or real estate agents making lowball offers that don't even come close to your asking price for your business or residential property.
By requiring potential buyers to sign a nondisclosure agreement, many casual buyers will likely not put in an offer since they might not be aware of the sale. That's because some real estate agents or brokers will refuse to sign such documents because they're simply looking to make a quick, lowball offer to buy a property.