Definition: A fact that may play a part in a buyer or seller's decision-making process. Seller's agents are required to disclose material facts to potential buyers.
- Structural defects and other statements regarding the condition of a property are material facts.
- The amount of property taxes paid per year is a material fact.
- The square footage of a home is a material fact.
On the other hand,
- Personal information about a seller or buyer is not a material fact. For example, the sellers may be getting a divorce or close to foreclosure. Neither of those situations are material facts. Seller's agents may not disclose personal information. Buyer's agents may disclose personal information to their clients.
