What Is A Material Fact

Dear Phyllis,
I really enjoy your column and
believe I have a new scenario
which you have not touched on.

My aunt has her home listed
and is moving to New Mexico.
A Realtor that showed it was
going to write an offer but
then emailed her Realtor that
a registered sex offender lives
on her same block. Apparently,
they moved in several years
ago. Although their address is
registered on the database they
don’t live there. Her Realtor
told her she must disclose this.

I don’t see why as they don’t live
there. What is your opinion?
— Marla

Dear Marla,
I appreciate your continued
readership. In my opinion, this
is a material fact and should
be disclosed. In real estate, a
material fact is any information
about a property that could
influence a buyer’s decision or
affect the price they are willing
to pay. In other words, if a
reasonable buyer would care
about it, it should be disclosed.
Specifically, a material fact
is something that impacts
value, desirability, or safety. In
addition, it may not be easily
observable. Furthermore, it is
known by the seller or the
agent.

Real estate decisions should
rely on current and verifiable
facts. However, disclosure
often depends on perception as
much as certainty. Even if the
information may be incorrect,
a buyer could still view it as
important.

As a result, most real
estate agents take a cautious
approach. If a concern could
influence a buyer’s decision,
they treat it as a material fact.
At the same time, how your
aunt presents the information
matters.

For example, your aunt
can clarify the situation. She
can explain that a registered
address appears in a public
database. Then, she can note
that, to her knowledge, the
individual does not currently
reside there. In addition, she
should encourage buyers to
conduct their own investigation.
This approach simply states the
facts that your aunt is aware
of and encourages the buyer
to independently verify the
information.

Phyllis