Material fact
Something that would likely affect a reasonable buyer's decision to buy or their price. Sellers and agents generally have to disclose material facts they know about.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
A material fact is anything that would change a reasonable buyer's mind or price, and in most states a seller who knows one has to say it. The test is the buyer's decision, not the seller's opinion of how serious it is.
Part 2 of 4
A simple example
The roof was replaced after a hail claim, the neighbor's fence is two feet over the line, and a bedroom addition was built without a permit.
| The fact | Is it material? |
|---|---|
| An unpermitted bedroom addition | Yes; it affects value, insurance and what the buyer can do with it |
| A fence two feet over the line | Yes; it is a boundary question the buyer inherits |
| The kitchen was painted last spring | No; it changes nobody's decision |
If it would change what a buyer pays or whether they buy, it is material.
Part 3 of 4
What people get wrong
That material means big. A small fact can be material if it changes the buyer's decision, and a big one may not be if everyone can see it.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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