3.81- What are the Required disclosures ?

At the outset it will be helpful to elucidate upon what a ‘disclosure’ actually is. In lay terms, it is revealing information about the business to the public and this must be done within a specific time frame. The ‘information’ must obviously be relevant and there is no obligation on the business to disclose everything. This ‘relevant information’ pertains to information that can make a difference to financial gains of the business. It is presumed that public companies will comply with this obligation.


For example, in Texas, we should note that the federal law necessitates specific forms to be provided to the customer. These forms are the HUD-1, final Truth in Lending disclosure, a Loan Estimate and Closing Disclosure depending upon the type of loan. In addition, the notice regarding "Right of Rescission" for certain transactions must be provided. In addition, Truth n Lending Disclosure, E-Sign Disclosure, Affiliated Business Disclosure are required on loans where applicable. The Texas Property Code Section 5.008 contains the obligations on the seller to disclose certain information. This should be alluded to.