Novations & Creative Finance

Lesson 5 of 5

Disclosures you must make, every time

The habit that keeps you in business longer than any script.

6 min read

The standing list

That you are a buyer or investor, not their agent. That you may assign the contract and be paid a fee. What that fee is when the structure requires it. That the existing loan may be called due on a subject-to. That a novation means they still hold title while it is marketed. That your numbers are estimates and which ones could move.

Written, signed, kept

Verbal disclosure is not defensible a year later. One signed page, stored with the file, dated. ArosFlow's decision reports keep your assumptions and sources with the deal for the same reason.

Marketing claims

Do not advertise properties you do not have under contract. Do not imply guaranteed timelines or amounts. Do not use another investor's photos. Regulators and local sellers both notice.

The standard to hold

If the seller found out everything you know a year from now, would they feel dealt with fairly? That is the only test that scales.

Do this next

  • Assemble your disclosure page and put it in your signing packet permanently.
  • Review any marketing you already have against the claims list above.

Education only — not legal, tax or investment advice, and no promise of income. Rules differ by state; check yours and use a real estate attorney.