Reference no: EM133100698

Read the following case study and answer the following question

Brent is the estate agent who is selling an inner city apartment on behalf of his clients, Maeve and Krista who have owned the property for five years. 

Maeve and Krista have told Brent that they wish to sell and move to a new neighbourhood because the apartment was the location where there had been a serious violent crime committed. 

As a result, they no longer wish to live there and they have engaged Brent to assist them in achieving the sale of the property. 

Brent knows the neighbourhood well and is normally confident that he will be able to achieve a good price for the property, but he is cautious about how to approach the sale of this particular property. He too has heard the stories about the crime which has been committed and he is worried about how this might affect the sale price. 

He has a discussion with Maeve and Krista about the issue and they ask him to avoid telling any potential buyers about the property's history.

Graham is looking to purchase an apartment within the inner city and has shown keen interest in the apartment.

1. What is a 'material fact' and how does it apply in this situation? What is one other example of a material fact that should be disclosed to a potential buyer?