How to Enable a Non-Disclosure Agreement (NDA) for an Offering

To protect the confidentiality of your investment opportunities, you can activate a Non-Disclosure Agreement (NDA) for a specific offering.

What is an NDA (Non-Disclosure Agreement)?

A Non-Disclosure Agreement (NDA) is a legal agreement between the sponsor and potential investors. The NDA ensures that any confidential information exchanged during the syndication process remains protected and is not shared with unauthorized individuals. In the context of real estate syndications, an NDA safeguards sensitive details like property financials, investment strategies, projected returns, market analysis, and business plans.

Is an NDA Required for All Offerings in Real Estate Syndications?

An NDA is not mandatory for every real estate syndication offering. However, it is highly recommended and commonly used, especially when dealing with sensitive or proprietary information. The decision to implement an NDA depends on the nature of the offering and the type of confidential information being shared.

Types of NDAs Supported by SponsorCloud

• Text-Based NDA: A traditional agreement where the terms are presented in text format, and the party acknowledges the terms by clicking the "I Agree" button.
• eSign NDA: An electronic version of the NDA that allows the sponsor to upload a legal agreement (PDF) for parties to sign digitally before accessing the offering.

How to Enable an NDA for Your Offering

Follow these simple steps to enable the NDA feature on the investor platform:

1. Go to Portfolio > Choose the Offering > Offering details > Expand the Documents section.

2. Click on Manage NDA on the right side of the Documents section.

3. If you NDA is required for accessing the Offering, click on the checkbox to the right  "Require NDA to access offering"

4. You’ll see two options: Text Format or eSign PDF document.

For Text Format:

• The Text Editor will allow you to modify, edit, or copy/paste the textual content of your agreement. After modifying, you can preview and save the document.

Once saved, investors can accept the Textual NDA by clicking the "I Agree" button and then view the offering during the investment process. 

Sponsor View: Text Based NDA Feature Walkthrough

Investor View: Text Based NDA

For NDA eSign:

1. Select the eSign PDF Document option to upload the NDA PDF document (less than 5MB) and click Next. This will allow you to add fields and a signature box for investors.

2. Investors can then fill in the fields and sign the agreement before accessing the offering during the Investment Process.

Sponsor View: NDA Feature Walkthrough

Investor View: eSign NDA

Steps to Access the Signed NDA for an Investor:

1. Use the Global search bar to locate the investor by name or relevant identifier.

2. Click on the Investor’s account from the search results.

3. Within the account, go to the Activity Timeline.

4. Look for the timestamp indicating when the NDA was signed.

5. Click the link to access the signed NDA document.