Contracts
Which of the following is considered a 'material fact' that must be disclosed in a North Dakota real estate transaction?
AThe seller's reason for moving
BA known defective septic system✓ Correct
CThe seller's divorce proceedings
DThe neighbor's occupation
Explanation
A material fact is information that would affect a reasonable person's decision to buy or the price they would pay. A defective septic system is clearly material to the property's value and habitability and must be disclosed.
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Key Terms to Know
Earnest Money
A 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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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