BIC TIP #1105: Understanding What Truly Counts as a Material Fact
In North Carolina, a material fact is not limited to what you can see inside the walls of a home. A material fact is anything that would influence a reasonable buyer’s decision to purchase, or the price and terms they are willing to offer. This includes obvious physical issues, but it also extends far beyond them.
Agents must remember that material facts include conditions and circumstances surrounding the property too, not just the property itself. This may involve zoning changes, environmental concerns, flood hazards, noise disruptions, encroachments, easements, drainage issues, planned developments, or neighborhood conditions that could meaningfully affect value or desirability.
The duty to disclose is not optional. Brokers must identify and communicate material facts to every prospective buyer, regardless of which party the broker represents. Buyers rely on us to provide clarity and context so they can make informed decisions. When in doubt, disclose. Transparency protects consumers, strengthens our professionalism, and keeps us aligned with our legal responsibility.
Understanding material facts is essential to protecting clients and maintaining trust. Make it part of your daily practice to look beyond the obvious and consider the circumstances that surround the property as well.
