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

In a real estate transaction, a "material fact" is defined as any information that could influence a buyer's decisions regarding a property. This encompasses various aspects, such as the property's condition, location, financing options, or any pending legal issues that may impact the property's value or desirability. If a buyer is unaware of a material fact, it could lead to decisions that they might have made differently had they known the full situation.

Material facts are crucial because they help ensure transparency and fairness in real estate dealings. Agents and sellers have a duty to disclose these facts to potential buyers to prevent misrepresentation and foster informed decision-making. This contrasts with other options like publicly disclosed information or confidential data, which may not necessarily impact a buyer's perception of the property or their ultimate decision to purchase.