Which of the following is the best definition of a material fact?

• A. A statistic about average price
• B. Knowledge that would affect a buyer's decision whether or not to buy
• C. The seller's annual income
• D. The age of the property

Answer: (B)

Material facts are information about a property that would influence a buyer’s decision to buy. The best definition here is knowledge that would affect a buyer’s decision whether to buy, because it captures information that can change how desirable or valuable a property is to the buyer—things like defects, zoning restrictions, liens, easements, or other issues that would alter the decision or price.

Think about why other items don’t fit. A statistic about the average price isn’t about this specific property and may not influence the buyer’s choice to purchase this home. The seller’s annual income isn’t related to the property’s condition or value. The age of the property is just a characteristic and, by itself, doesn’t define whether the information would change a buyer’s decision.