Skip to content
Pass Georgia
Download
Complete glossary lessonNational exam concept

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.

Official area

Property Disclosures

Knowledge cluster

Property facts and disclosure

Learning sequence

Define, distinguish, apply, retrieve

Download PDF

Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Material fact mean in real estate?

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

How is Material fact different from the closest exam answer?

Material describes importance to the decision. A material defect is a physical or legal problem, while an adverse material fact is material information that is unfavorable to a party's interests.

What is the Georgia-specific rule?

Georgia duties depend on the relationship and the statute, but a licensee must not knowingly give false information and may have duties to disclose actually known adverse material facts.

Worked exam example

Scenario

A pending condemnation affecting the parcel could change a buyer's decision and is therefore material even though the building itself is sound.

Decision rule

Material describes importance to the decision. A material defect is a physical or legal problem, while an adverse material fact is material information that is unfavorable to a party's interests.

What is the most common exam trap?

Trap correction

A fact need not make the property unusable to be material. The test is significance to a reasonable transaction decision.

Memory cue: A fact need not make the property unusable to be material.

Original exam check

Apply the definition

Which statement correctly explains Material fact?

Mastery tracker

Do not mark this term complete until you can retrieve it.

0%

Progress is stored only in this browser.

Related terms to learn next

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.

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 property's physical condition or title as described by Georgia law.

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.

Patent defect

A patent defect is a property defect that is open, observable, or discoverable through the reasonable level of observation or inspection described in the transaction.

Recommended next complete lesson

Continue with Property Disclosures complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termMinisterial actNext term Material defect

Material fact quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is 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.

What is Material fact commonly confused with?

Material describes importance to the decision. A material defect is a physical or legal problem, while an adverse material fact is material information that is unfavorable to a party's interests.

How does Georgia treat Material fact?

Georgia duties depend on the relationship and the statute, but a licensee must not knowingly give false information and may have duties to disclose actually known adverse material facts.