Can You Keep a Secret?

LOS ANGELES—“Most real estate deals begin with a letter of intent spelling out the principal terms of the deal, the only enforceable paragraph of which is an agreement to keep the transaction strictly confidential. Before due diligence starts on a real estate acquisition, the seller usually requires the buyer to agree to keep anything learned about the property confidential,” says Tom Muller, co-chair of land use and real estate practice at Manatt, Phelps & Phillips LLP. In the exclusive column below, Muller takes a close look at whether or not these confidentiality agreements are really enforceable.

The views expressed in the column below are the author’s own.