What is a material defect and why should it matter to you? A material defect is any issue with a property that affects the value or usability of that property. As a homeowner selling their home you are obligated to disclose any and all material defects that you are aware of. As real estate licensees anyone assisting in the sale of a home must also disclose any known material defects even if the property owner does not want us to disclose them (it is a violation of real estate license law and could result in suspension or revocation of licensing).
Here are a seven examples of what constitutes a material defect:
- Roof leak/damage
- Plumbing leaks
- Defective drywall
- Wood destroying organisms (active infestation and/or previous damage)
- Foundation issues
- HVAC system (not working)
As a homeowner you may not know of some of these things (more common that you might think) but if you do – disclose, disclose, disclose. Better safe than sorry.