Which of the following is an example of a "material fact" that must be disclosed?

A history of flooding on the property qualifies as a "material fact" because it significantly impacts the value and desirability of the property. Buyers rely on this information to make informed decisions about their purchase. Disclosures about material facts are crucial in real estate transactions, as they can affect the safety and overall investment potential of a property. If a buyer is unaware of past flooding issues, they may face significant future costs for repairs or remediation, making this information vital.

In contrast, the seller's reasons for selling, the neighborhood crime rate, and the age of the appliances, while potentially relevant in a broader context, do not rise to the same level of necessity for disclosure. The reasons for selling are personal and not inherently tied to the property's condition or legal obligations, the crime rate does not directly affect the physical attributes or known issues of the property, and the age of the appliances might be relevant but does not constitute a critical risk or liability like a history of flooding would. Therefore, it is clear why the history of flooding stands out as a material fact that must be disclosed to potential buyers.