Material Defect
A known defect in a property's condition that must be disclosed, and which confidentiality does not cover.
Quick flashcard
What does Material Defect mean on the Texas real estate exam?
Answer: A known defect in a property's condition that must be disclosed, and which confidentiality does not cover.
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Material Defect definition
A material defect is a known problem with the condition of the property significant enough to affect a reasonable party's decision. Disclosure of a known material defect is owed to all parties, including a customer the license holder does not represent.
In intermediary practice the point is sharper still: Sec. 1101.651(d)(3)(C) carves information materially relating to the condition of the property out of the confidentiality prohibition.
Source basis
Definition checked against the official sources below on .
On the exam
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Tested in
Texas Agency & Intermediary (11 of 40 Texas State Law)
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