Patricia is under contract to sell her home in Charleston, West Virginia. After she signed the listing agreement but before the buyer made an offer, Patricia discovered a significant water intrusion problem in the basement that she had not previously known about. Patricia did not update her disclosure form and the sale closed without the buyer being informed. Which of the following best describes the legal consequence Patricia may face under West Virginia law?
Correct Answer
D) Patricia may face rescission of the sale or a claim for damages by the buyer for failure to disclose a known material defect
Under the West Virginia Residential Property Disclosure Act (W. Va. Code §§ 36B-1-1 et seq.), sellers are required to disclose known material defects. Once Patricia became aware of the basement water intrusion — even after signing the listing agreement — she had an obligation to update the disclosure form before the buyer made an offer. Failure to disclose a known material defect can result in the buyer seeking rescission of the sale or pursuing a claim for damages.
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Related Topics & Key Terms
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Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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