What is a material fact that must be disclosed in real estate?

A material fact is any information that could affect a reasonable buyer's decision to purchase the property or the price they would offer. Common material facts include known structural defects, water damage, mold, foundation problems, roof leaks, boundary disputes, environmental contamination, deaths on the property in some states, proximity to nuisances like landfills, and pending special assessments. Agents must disclose material facts they know or should have known through reasonable diligence. Failure to disclose can result in lawsuits, license revocation, and rescission of the sale.