Rhode Island Real Estate Continuing Education - RHODE ISLAND School Permit: REE.0001035
4.0 hours Disclosure Is Not A Secret Course Syllabus
4.0 Core Topic.
So, how bad must a defect be to count as material?
Many real estate disputes deal with the non-disclosure of material facts regarding the property. A fact is material if it is likely to influence the decision of a potential buyer, such as the square footage of a house, any hidden construction defects, or flooding problems. For pre-existing homes, sellers generally are required by law to provide a disclosure statement providing information regarding known problems or conditions with the house.
Not all problems in a house are equally serious, and the seller needs to disclose only those considered material. A leaky sink that simply needs something tightened is dramatically different than a crack in a plumbing pipe that needs to be completely replaced. A material defect is a problem that cannot be corrected with simple maintenance it's something that will require significant effort to repair.
As a practical matter, however, sellers are usually best advised to disclose any defect that they're not sure whether to call material or not ' or to fix it before completing the disclosure form.
This course provides a practical approach to the various disclosures a real estate professional may encounter. Case studies with real world examples are provided to aid in understanding.