A West Virginia seller's agent learns during the listing period that the property has a history of flooding in the basement — a fact the seller disclosed only to the agent in confidence. A buyer's agent later asks the listing agent directly: 'Are there any known water intrusion issues with this property?' Under West Virginia agency and disclosure law, what is the listing agent's MOST appropriate response?
Correct Answer
B) Disclose the flooding history because material defects must be disclosed regardless of confidentiality
Under West Virginia law, a licensee's duty to disclose known material defects supersedes the duty of confidentiality to the seller. The West Virginia Residential Property Disclosure Act (W. Va. Code §§ 36B-1-1 et seq.) and WVREC regulations require that material defects — including known water intrusion issues — be disclosed to prospective buyers. A history of basement flooding is clearly a material defect that would affect a reasonable buyer's decision. The listing agent cannot use the seller's confidentiality instruction as a shield to conceal a known material defect. If the seller refuses to permit disclosure, the agent must withdraw from the listing rather than participate in concealment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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