BIC TIP #1311: It Is STILL Material
The seller fixed it, so we do not have to mention it, right? Not so fast. Stephen Long, your Notorious BIC, explains that while many issues stop being material once they are properly repaired, the Real Estate Commission generally considers structural issues and fire damage to be items that should always be disclosed, even after repairs.
Most Repairs End the Story
Material facts are things a reasonable buyer would want to know because they could affect value or the decision to buy. In many cases, once a problem has been repaired, it is typically no longer material. A replaced water heater or a fixed leaky faucet is not something you need to announce forever.
But some issues are in a different category.
Structure and Fire Are Different
If a home has had major structural issues, or the sellers had to make major structural repairs, that still needs to be disclosed. The same goes for a home that experienced a fire, even if everything has been repaired.
These are significant events in a home’s history. A buyer deserves to know about them, no matter how good the repair looks today.
The Buyer Gets to Verify
Why disclose something that has already been fixed? Because the buyer needs the opportunity to inspect the work and make sure it was done to their satisfaction and that it is in fact up to code.
Disclosure is not an accusation that the repair was bad. It is simply giving the buyer the information they need to do their own due diligence. A broker who hides a repaired fire or structural problem takes on risk that is not worth it.
The Practical Takeaway
When you learn a home had structural problems or fire damage, disclose it, even if it has been repaired. Share any documentation the seller has about the repairs and encourage the buyer to inspect. When you are unsure whether a repaired issue is still material, check with your broker-in-charge.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
