Agency
Material Fact
A concise definition for the California Real Estate Exam study guide.
Definition
A fact that could affect a reasonable person's decision regarding a transaction, or the value or desirability of the property. Brokers must disclose known material facts.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 2: Agency, Fiduciary Duties & Disclosure →