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Real estate glossaryGeorgia-specific rule

Adverse material fact

An adverse material fact is significant information that is unfavorable to a party's interests, such as an actually known condition materially affecting the physical condition of the property or its immediate neighborhood, as described by Georgia law.

Exam area: Real Estate Practice in Georgia

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What does “adverse material fact” mean in real estate?

An adverse material fact is significant information that is unfavorable to a party's interests, such as an actually known condition materially affecting the physical condition of the property or its immediate neighborhood, as described by Georgia law.

How is “adverse material fact” different from the closest wrong answer?

Material fact is the broad category. Adverse material fact adds that the information is unfavorable and falls within the disclosure framework relevant to the transaction.

What is the Georgia-specific rule?

BRRETA imposes disclosure duties for specified adverse material facts actually known to a broker, including in transaction-broker situations. It does not create a general duty to perform expert inspections.

Worked exam example

Scenario

A broker actually knows that a listed home's foundation has serious unresolved damage that is not visible during an ordinary showing.

What is the most common exam trap?

Trap correction

Actually known is different from should have discovered. Do not invent an inspection duty unless the question provides one.

Original exam check

Apply the definition

A Georgia listing broker actually knows the home has serious foundation damage that an ordinary showing or a diligent inspection would not reveal. The seller asks the broker to say nothing. What must the broker do?

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Related terms to learn next

Material fact

A material fact is information a reasonable party would consider important when deciding whether or on what terms to enter a real estate transaction.

Material defect

A material defect is a problem with the property or its improvements that would significantly affect value, safety, intended use, or a reasonable buyer's decision.

Latent defect

A latent defect is a property defect that is hidden or not readily discoverable through a reasonable ordinary observation or inspection of the type described in the question.

Transaction broker

A transaction broker is a Georgia broker who has not entered a client relationship with a party but performs permitted ministerial acts and the statutory duties owed without representing that party as an agent.

Recommended next complete lesson

Continue with Real Estate Practice in Georgia complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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