Definitions for "Material defect"
a condition that significantly affects the value, desirability, habitability, or safety of the building
a defect that is apparent and may be sizable enough to affect your decision to purchase a home
a problem with a residential real property or any portion of it that would have a significant adverse impact on the value of the property or that invloves unreasonable risk to people on the property
(Refer to Section I, "Definitions and Scope" Paragraph B).