Material Fact: Any fact that could affect a reasonable person’s decision to buy, sell, or lease is considered a material fact and must be disclosed by a broker to the parties in the transaction and any interested third parties regardless of the broker’s agency role within the transaction.
What is a material fact in real estate?
A material fact is defined as anything that would affect 1) the value of the property or 2) a buyer/tenant’s decision to purchase/lease the property or how much to offer to purchase or lease the property.
What is a material fact?
Meaning of material fact in English
important information, especially financial information, that a company must legally give to people who have invested or are going to invest in it: … important information that may affect a decision in a court of law: Material facts are those that are relevant to the court’s decision.
What are examples of material facts?
Examples of established Material Facts are:
- that the property was the site of a murder or other major crime;
- combustible cladding or asbestos being located on or in the property;
- prior use of the property as an illicit drug laboratory; and.
What is a material fact when selling a house?
A material fact is a fact that would be important to a reasonable person in deciding whether or not to proceed with a particular transaction. In a property services context, these are facts which: … could impact the market value of a property.
Do sellers have to disclose material facts?
In California, a seller has an obligation to disclose all material facts about a property, where a fact is considered material if a reasonable person thinks it would affect the property’s value.
Why is it called a material fact?
A material fact is a fact that a reasonable person would recognize as germane to a decision to be made, as distinguished from an insignificant, trivial, or unimportant detail. In other words, it is a fact, the suppression of which would reasonably result in a different decision.
What does material mean in legal terms?
In the context of contract law, material is a description frequently attributed to an important contractual provision or stipulation that would alter the contract performance. For example, a material breach of contract describes a court finding similar to that of lack of substantial performance of the contract.
Is square footage a material fact?
Square footage is considered a material fact, and a state’s licensing board has the authority to take disciplinary action on an agent making any willful or negligent misrepresentation regarding square footage. So make sure it’s accurate before you state it.