In real estate transactions, a material fact is a fact that an agent should recognize as likely to influence the judgment or decision of a principal. It is information that could affect whether the principal would consent to entering into a particular transaction or agree to the specified terms.
Material facts may relate to the physical condition of a property, legal issues, financial considerations, or other circumstances that bear on value or desirability. Real estate agents have a duty to disclose known material facts, as failure to do so can mislead the principal and may result in legal or ethical consequences.
