Material Fact
A fact that affects the value or desirability of property and that a licensee must disclose if it is not readily observable.
A material fact is information that would affect a reasonable buyer's decision or the value of the property. Under Florida law and the Johnson v. Davis standard, a seller and the licensee must disclose known material defects that are not readily observable to the buyer.
The duty to disclose known material facts applies across all brokerage relationships, including transaction brokerage and no brokerage relationship. Some matters, such as a prior occupant's death or illness, are not treated as material facts requiring disclosure in Florida.
On the exam
Exam trap
Tested in
Authorized Relationships (7% of the exam)
From definition to recall
See this term inside a real exam question.
Pass Florida gives you Florida-specific practice, diagnostics across the 19 exam areas, Trap Library, Math Coach, offline access, and one $39.99 purchase. No subscription. No copied exam questions.
Try 5 free questionsRelated terms
- No Brokerage Relationship
A Florida brokerage status in which a licensee deals with a buyer or seller as a customer and owes only three limited duties.
- Transaction Broker
Florida's default brokerage relationship, in which a licensee gives limited representation to a buyer or seller without full fiduciary duties.
- Single Agent
A licensee who represents one party, the buyer or the seller, with full fiduciary duties under Florida law.
This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.