For the purposes of this chapter, an adverse material fact is information that negatively affects the value of the property or a party's ability to perform its obligations in a real estate transaction. Adverse material facts include:

1. (1) Any environmental hazards affecting the property which are required by law to be disclosed;
2. (2) Any material defects in the property;
3. (3) Any material defects in the title to the property which are anticipated to survive the closing; and
4. (4) Any material limitation on the client's ability to perform under the terms of the contract.

Source: SL 1998, ch 229 , § 2.