Laws that require an individual to reveal certain facts or information are called disclosure regulations. An individual or an entity may be obliged to reveal what are considered private information. Multiple areas of law like corporate, real estate and banking are considered by governments who have enacted disclosure regulations.
A corporate law frequently requires a company to report complete financial and operating information to government agencies. Whether a company is publicly or privately owned is reliant on the amount of information that a company is allowed to disclose. Public companies are usually required to disclose more information than a private company. Real estate laws are also governed by disclosure regulations. Some states require a seller to disclose conditions or any defects to buyers to protect them from purchasing defective materials or products. Such conditions refer to calamities like flood or earthquake. In banking law, disclosure regulations often require the banks to divulge credit and lending information to clients whether an account opening or loan applications, “terms and conditions” apply. For example, when opening an account, banks are required to inform the clients of the minimum deposit, maintaining balance and charges of dormant accounts. For loans, law requires banks to disclose information such as installment payments, finance charges and interest rate computations. This type of banking regulations however may vary from country to country.
There are also other industries that are governed by disclosure regulations such as retail sales, manufacturing and gaming. Disclosure agreements are often implemented to control the possibility of corruption and to promote accountability.