Practice and liability
Material fact
A fact that would affect a reasonable party’s decision about the property
Structural defects, a failed septic system, a known flooding history, a pending assessment. Material facts about the property must be disclosed to everyone in the transaction, client and customer alike.
How the exam asks about it
The exam’s sharpest distinction: facts about the property are disclosable, and facts about people generally are not — several states expressly provide that a death on the property is not material, and anything touching a protected characteristic must never be volunteered.
Related terms
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