What Is A Material Fact?

Pitt Home Buyers | What Is A Material Fact?

Transcription: hey everyone scott johnson here with pitt realty group hope you’re having a fantastic day per the usual so today we’re going to talk about material facts so what the heck is a material fact and why is this something that you need to be concerned about well those are very valid questions which i just asked for you and we’re going to go over that today now the bit one of the big reasons you need to understand a material fact and what it is is because it’ll help avoid a lot of issues with your real estate agent all right the reason is because you will receive a disclosure when you are selling this property your property and we’ll go over that in another video now on this disclosure you are able to put no representation for certain things that maybe there’s a leak in your roof and you don’t want to really say anything about it because of caveat emptor the buyer beware you don’t have to tell them if you don’t want to right you can’t misrepresent it but you can’t tell them absolutely no the roof is in perfect condition but you can check the box that says no representation i will tell you though that a material fact is a absolute known or a something that should have been known about the property that can affect a party’s decision-making in the home buying process extremely important for you to understand right so let me put it this way one material fact is let’s just say you have the load-bearing wall in your house has started to kind of tilt down right it’s kind of started sagging a little bit well that is a material fact because if i as a buyer go in and let’s just say i don’t even see it let’s say me and my agent were walking through the house we don’t see anything wrong with that with the wall at all but the listing agent does they saw the sag in a couple of spaces had it checked out and they know that that low-bearing wall is kind of coming down a little bit that is a material fact it is something that even if you as the seller said oh i’m not going to represent that i’m not going to say anything about that okay the listing agent has to say it if you say to the listing agent oh i’m not going to make you do any or i’m not going to make any representation on the air conditioning working and the real estate agent goes in or the listing agent you’re working with goes in and sees the ac ain’t working that is a material fact all right they have to absolutely tell the buyer about it period and that can cause a lot of irritation on your part especially when you’re like listen i just want to get the highest price i can for my house and that’s that’s you know that’s what uh the real top real estate agents are there to do but you gotta understand that legally even though it is buyer beware and they have to go through their due diligence and make the decision on their own if there is something that is that important that it could make the buyer completely change their decision on buying that house it has to be communicated to them a second example is let’s say i’m a buyer and i’m taking a look at your property and what i want to do is i have to have a place where i can put up a fence because i got a dog or maybe i want to have some chickens or whatever right and then i come to find out that after i purchase it that there are restrictive covenants and we’ll go over those in a different video as well and those restrictive covenants say no you cannot put up a fence in this neighborhood that is something important that is a material fact that would have changed my decision as to whether i wanted to buy that house or not so in closing a material fact is something that is known or should be known about the property zoning is another one because if you’re living in a residential area and everything around it is about to be rezoned to commercial then that’s going to have a big effect on on the ability to use the property in the future for residential purposes it’s almost going to negate it not right away but it will all right so something that is known or should be known that could change the buyer’s decision on that property any of those facts even if you say i don’t want to represent it have to be disclosed so if you have any questions on this please feel free to reach out again if you like this video go ahead and hit the thumbs up button if you didn’t like it well just just skip by you know you don’t have to don’t have to hit the thumbs down you’re good uh but also if you uh you know want to hear more from us go ahead and hit the subscribe button below it’s also important that if you know someone who’s selling their house in greenville north carolina go ahead and forward this to them hit the share button down to the bottom right and you know share it with them because knowledge is power in the home buying and selling process and that’s something that pit realty group is here to assist you with thanks so much y’all and have a fantastic day

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