Material defect
A problem that would significantly affect a property's value or a reasonable buyer's decision, such as a cracked foundation or a failing roof. Sellers and agents generally must disclose known ones.
Also called: material fact, latent defect, known defect
Related terms
A form where the seller lists known problems with the property, such as leaks, repairs or defects. Requirements vary by state; a few states lean toward buyer-beware rules.
Cracks, settling, or movement in a home's foundation. Some cracks are normal, but serious ones can be costly and may need a structural engineer to assess.
A visual check of a home's structure and systems by a trained inspector, usually during the buyer's contingency period. It finds problems before you're locked in; it is not a pass or fail test.
A sale where the seller will not make repairs. Buyers can usually still inspect, and seller disclosure duties still apply in most states.