What constitutes a “material fact” in a real estate transaction?

A "material fact" in a real estate transaction is any information that could significantly impact a buyer's decision to purchase the property. This encompasses a wide range of facts, including but not limited to the physical condition of the property, the presence of any liens, or issues related to zoning that could influence the desirability of the property. The essence of a material fact is that it holds enough importance that, if a buyer were aware of it, it could change their actions regarding the transaction, such as moving forward with an offer or deciding to walk away from the deal.

While details about the neighborhood can be important and may influence a buyer's decision, they don't necessarily meet the thresholds of materiality in the same way that direct information regarding the property itself might. Similarly, knowledge about the seller's motivation or data regarding previous ownership could paint a fuller picture of the real estate deal but don't inherently affect the structural integrity, legal standing, or fundamental value of the property. Therefore, it is the broad scope of information that could indeed alter a buyer's choices, defining the concept of a material fact in real estate.