What does "material fact" refer to in real estate transactions?

"Material fact" refers to information that could influence a buyer's decision in a real estate transaction. This concept is crucial as it encompasses any details that are significant enough to sway a buyer's choice, whether that be regarding the property’s condition, location, zoning, or other elements that affect its value and desirability.

In real estate, both agents and sellers have a legal obligation to disclose material facts to ensure that buyers can make informed decisions. For instance, if there are known defects in the property or if the neighborhood is subject to zoning changes that could affect future property values, these would be considered material facts.

The other choices do not accurately describe material facts. Minor details that are not relevant do not fit the definition, as material facts are significant and relevant. Information that is only disclosed in a listing agreement implies a limited sharing of information, while material facts must be communicated to all potential buyers, not just contained in a specific agreement. Lastly, aspects that are only of concern to appraisers miss the broader implications for buyers, who also need to know about crucial factors that can impact their purchase decision.