Laws & AgencyQuestion 35 of 120
A fact that would affect a reasonable buyer's decision to purchase or the price they would pay is called a:
a.Material fact
b.Confidential fact
c.Latent puff
d.Fiduciary term
Explanation
A material fact is any information that could influence a reasonable buyer's decision or the price offered. Agents and sellers must disclose known material facts affecting value or desirability. Failure to disclose material facts is a common basis for lawsuits and DRE discipline.
Law Reference: CA Civil CodePractice all 120 questions free — no signup required.
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