A seller in Huntington, West Virginia, is conveying a property that has a severed mineral estate — the mineral rights were separated from the surface rights by a deed recorded 40 years ago and are owned by a coal company. The seller claims he never personally extracted any minerals and therefore believes no disclosure is necessary. The listing agent, aware of the severance, proceeds with the listing without disclosing the severed estate. Which of the following most accurately describes the agent's exposure under West Virginia law?
Correct Answer
B) The agent may face disciplinary action by the WVREC and civil liability for failing to disclose a known material condition affecting the property
In West Virginia, severed mineral estates are a well-recognized material condition that can significantly affect property use, value, and marketability. A licensee who is aware of such a condition has an independent duty under the WV Real Estate License Act (W. Va. Code §§ 30-40-1 et seq.) and WVREC regulations to ensure material facts are disclosed to prospective buyers. The agent's knowledge of the severance creates direct exposure to WVREC disciplinary action for failure to disclose a known material fact, as well as potential civil liability to the buyer.
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