Oregon Real Estate Practice Test 2025 – Complete Exam Prep

The term 'material defect' in real estate refers specifically to a condition that significantly affects the value, safety, or habitability of a property. This definition highlights the critical nature of such defects; they are not merely cosmetic or superficial issues but rather relate to fundamental problems that can influence a buyer's decision. For instance, issues like structural damage, issues with electrical systems, or significant plumbing problems fall under this category as they can pose safety risks or lead to costly repairs.

In contrast, cosmetic flaws, minor repairs, or trivial issues do not qualify as material defects because they do not fundamentally alter the safety or value of the property. Thus, while these aspects may still be relevant in a real estate transaction, they do not carry the same weight in legal and practical terms as material defects do. Understanding this distinction is crucial for both buyers and sellers in navigating real estate transactions effectively.