What Are Material Facts and What Does That Mean for You?

# What counts as a material fact

# Why disclosure matters in the Triangle Markets in Raleigh, Durham, Chapel Hill, Cary, and surrounding towns move quickly. When transactions close fast, missing a material fact can leave a buyer exposed to unexpected costs or legal disputes and can expose brokers and sellers to professional or legal consequences. Disclosure creates transparency so buyers can weigh the property's full day-to-day and long-term implications before making a binding commitment.

# Concrete categories that are material facts

• Environmental hazards and test results: Test results showing a hazard — for example, elevated indoor radon above the EPA's 4.0 pCi/L guideline cited in state guidance — are material facts that must be disclosed in writing, even if the owner intends to install a mitigation system. The presence of the hazard and prior test results remain relevant to a buyer's decision.

• Nearby construction and land use changes: Conditions outside the deed lines can be material. If a broker knows a commercial building or other significant development is being built next door, that knowledge must be disclosed. Such projects can change traffic, noise, privacy, and long-term market value.

• Boundary claims and neighbor litigation: Personal disputes don't automatically require disclosure. Active legal claims that affect property rights — for example, encroachment or boundary-line disputes — are material facts. Buyers should be told about them because they can impose costs, limit use, or produce litigation risk.

• HOA litigation and assessments: Pending lawsuits against a homeowner association are material when they could lead to special assessments or affect community finances and property values. Known, credible legal threats tied to the HOA should be disclosed.

# What professionals must do Licensed brokers are not passive conduits for seller disclosures. Under the cited rule, brokers have an affirmative duty to investigate and communicate material facts they know or should know. Sellers typically complete disclosure forms, but brokers still must act to identify and share material information promptly and in writing with prospective purchasers.

# Practical implications for buyers and sellers Buyers: Ask for written disclosure statements, inspection reports, and any known test results for environmental hazards. Ask the listing agent about nearby development plans and any community litigation.

Sellers and brokers: Disclose known hazards, test results, and credible legal claims in writing. Don't assume a planned fix removes the duty to disclose the underlying condition. Treat adjacent projects and HOA lawsuits as potentially material and provide clear written notice to prospective buyers.

# Short checklist before a purchase decision

• Request seller disclosures and supporting documents in writing.

• Ask about nearby construction or zoning changes that might affect the property.
• Inquire about any active legal disputes tied to the lot, neighboring properties, or the homeowners association.

Clear disclosure keeps negotiations grounded in accurate information and reduces the risk of surprises after closing. In rapidly changing markets, that clarity matters for both the buyer's budget and the seller's professional responsibilities.