Contracts
In Massachusetts, which of the following best describes a 'material fact' that must be disclosed in a real estate transaction?
AAny fact that might interest the buyer
BAny fact that would likely influence a reasonable buyer's decision to purchase or affect the property's value✓ Correct
COnly structural defects visible during an inspection
DOnly defects that cost more than $5,000 to repair
Explanation
A material fact is one that would influence a reasonable person's decision to purchase or the terms on which they would purchase. Massachusetts law and agency duties require disclosure of all known material facts.
People Also Study
Related Massachusetts Questions
- In Massachusetts, the seller's disclosure obligation for material facts applies to:Agency
- Massachusetts law requires buyer agents to provide buyers with a written agency disclosure:Agency
- Which Massachusetts law requires real estate licensees to disclose material facts about a property?Massachusetts License Law
- Under the Fair Housing Act, a person with a disability has the right to make reasonable modifications to a rental unit at their own expense, but the landlord may require:Fair Housing
- Under Massachusetts agency law, when must a licensee provide the 'Massachusetts Mandatory Licensee-Consumer Relationship Disclosure'?Agency
- A Massachusetts buyer signs an exclusive buyer agency agreement. The agent then finds a suitable home and the buyer refuses to purchase. The agent is entitled to:Agency
- Under Massachusetts fair housing law, a reasonable accommodation for a person with a disability might include:Fair Housing
- Under Massachusetts law, an agent who signs a purchase offer as 'agent for' a disclosed principal creates contractual obligations for:Contracts
Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →