PSI Virginia Real Estate Practice Exam

What is a material fact in real estate?

1. Information about property taxes

2. Any detail that might influence the buyer’s decision

3. A minor repair issue noted during inspections

4. Neighborhood statistics

The correct answer is: Any detail that might influence the buyer’s decision

A material fact in real estate refers to any detail that could significantly influence a buyer's decision regarding the purchase of a property. This encompasses information that could affect the value or desirability of the property in question. For instance, aspects such as the condition of the roof, the presence of a pest infestation, or zoning restrictions are considered material facts because they can directly impact the buyer's perception and the overall marketability of the home. The other options represent various pieces of information that might be important in the context of real estate transactions, but they do not necessarily qualify as material facts. For example, while information about property taxes is important, it wouldn't necessarily impact the core decision to purchase unless it were unusually high enough to deter prospective buyers. Similarly, minor repair issues noted during inspections typically do not rise to the level of being considered a material fact because they can often be negotiated and resolved without affecting the buyer's overall decision. Lastly, neighborhood statistics provide valuable context about the area but may not directly influence the decision on a specific property unless there is something particularly noteworthy that affects the property's value.