36-21A-125. Adverse material fact defined.
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/sd/title-36/chapter-36-21/36-21a-125A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For the purposes of this chapter, an adverse material fact is information that negatively affects the value of the property or a party's ability to perform its obligations in a real estate transaction. Adverse material facts include:
(1)Any environmental hazards affecting the property which are required by law to be disclosed;
(2)Any material defects in the property;
(3)Any material defects in the title to the property which are anticipated to survive the closing; and
(4)Any material limitation on the client's ability to perform under the terms of the contract.