Oregon Broker PSI Practice Exam 2025 - Free Broker Exam Practice Questions and Study Guide

A "material defect" in a property refers to a significant issue that directly impacts the property's value or desirability. This can include problems such as structural issues, plumbing and electrical failures, or environmental hazards, which can deter potential buyers and affect how the property is perceived in the market. Identifying material defects is critical for both sellers and buyers, as failure to disclose such defects can lead to legal repercussions and financial losses.

In real estate transactions, understanding what constitutes a material defect is essential for ensuring transparency and maintaining trust between parties. If a property has a material defect, it may require repairs or concessions in the sale price, as it directly influences the overall appeal and functionality of the property. Other options listed do not align with the definition of a material defect. For instance, issues that enhance the aesthetic value are not considered defects, while minor cosmetic flaws and upgrades made after a sale do not significantly affect a property's marketability or functional integrity.