Definition: A material fact in real estate is well-defined as a fact that, if known, might have caused a buyer or seller of real estate to make a different decision with regards to remaining in a contract or to the price paid or received.
There are more fancy sounding legal definitions, but as a real estate professional, it clarifies what we should disclose in a transaction. Most laws require that we disclose known material facts. So, if I had shown a home in the past that had water damage at the time, even if it wasn't there later, I should disclose it to other potential buyers. Wouldn't you possibly reconsider the price offered or staying in the deal if you found out about significant water damage?
| 