The failure to disclose a material fact in real estate can lead to which legal consequence?

In real estate transactions, failing to disclose a material fact can indeed result in recoverable attorney's fees for the winning party. Material facts are essential information that could influence a buyer's decision, such as issues related to the property's condition, legal status, or neighborhood aspects. When a party does not disclose such information, it can lead to legal disputes where the injured party seeks legal recourse.

Winning a case based on non-disclosure often allows the prevailing party to recover their attorney's fees as part of the judgment or settlement. This serves as a way to encourage transparency and honesty in real estate transactions, motivating sellers and agents to fully disclose pertinent information to prevent potential legal repercussions.

Other outcomes, such as immediate criminal prosecution, are unlikely because non-disclosure is primarily a civil issue rather than a criminal one. Moreover, guaranteed buyer refunds do not necessarily apply, as refunds depend on specific circumstances and agreements rather than being a guaranteed outcome of a non-disclosure case. Similarly, loss of property title is not a direct consequence of failure to disclose and usually pertains to different legal issues concerning ownership rather than disclosure.