A buyer in Fairmont, West Virginia enters into a purchase agreement for a property that includes both surface rights and mineral rights. The seller owns both. Two weeks after the purchase agreement is signed, the seller is approached by an energy company offering $50,000 for the mineral rights alone. The seller conveys the mineral rights to the energy company by deed before closing. At closing, the buyer learns of the mineral rights conveyance and refuses to complete the purchase. Under West Virginia law, which of the following best describes the buyer's legal position?
Correct Answer
A) The buyer may rescind the contract and recover damages because the seller conveyed property that was under contract, constituting a breach
In West Virginia, mineral rights are real property, and when a purchase agreement covers a parcel without expressly severing the mineral rights, the conveyance is presumed to include all real property interests held by the seller, including mineral rights. By conveying the mineral rights to the energy company after the purchase agreement was executed, the seller breached the contract by impairing the buyer's right to receive the full property as agreed. The buyer may rescind the contract, recover the earnest money, and potentially seek additional damages for the seller's breach.
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Related Topics & Key Terms
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Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
- → A Nevada real estate salesperson is helping a buyer draft a purchase agreement. Which of the following is NOT a required element for a Nevada residential purchase agreement to be legally enforceable?
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Tom and Linda sign a purchase agreement for a home in Hartford, Connecticut. The agreement includes a financing contingency stating that if Tom cannot obtain a mortgage commitment within 21 days, either party may void the contract. On day 19, Tom's lender issues a written mortgage commitment. On day 22, Tom changes his mind and tries to void the contract by claiming the financing contingency was not satisfied. Which of the following best describes the legal status of the contract?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
- → Johnny wants the seller's patio furniture included in his purchase of a house. Before the offer is signed and delivered to the seller, he asks his agent to attach a page covering the furniture to the offer. That attached page is best described as:
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