What are considered adverse facts in real estate?

Adverse facts in real estate refer specifically to conditions or occurrences that negatively affect the value of a property. This could include factors such as environmental hazards, structural issues, or any other circumstances that might lead to a decrease in the property's marketability or appeal.

Recognizing adverse facts is crucial for both buyers and sellers because they can profoundly impact decisions and negotiations within the real estate market. For a buyer, being aware of these adverse facts is essential to make informed choices and assess potential risks associated with a property. For a seller, disclosing such information is often not only ethical but also a legal requirement, as failing to do so could lead to significant legal and financial consequences.

In contrast, conditions that improve property value or positive changes that enhance structural integrity relate to scenarios that would augment a property's appeal or market worth, thus falling outside the definition of adverse facts. Occurrences that have no impact on property also do not fit within this concept, as they do not pertain to any factors affecting value at all. Understanding these distinctions is key to the practice of real estate and timeshare transactions.