Definition
Material facts are information a reasonable buyer would consider important—like structural problems, previous damage, or environmental hazards. Sellers must disclose all known material facts.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Material facts are significant information that could affect property value, desirability, or the buyer's decision to purchase. Examples include structural problems, previous damage, environmental hazards, neighborhood nuisances, or legal issues. Sellers have a legal duty to disclose all known material facts. Failure to disclose material facts can expose sellers to fraud liability even after closing. The definition of 'material' is broad and varies by state but generally includes anything that would influence a reasonable buyer's decision.
Pro Tip
Disclose all known material facts. Failure exposes you to fraud liability.
Example
The seller failed to disclose the material fact of previous mold damage, exposing them to fraud liability.