Wyoming salesperson Mark is showing a rural property to buyers. During the showing, the buyers ask Mark whether the water rights for the property's irrigation system are included in the sale. Mark is the seller's agent. Which of the following best describes Mark's obligation under Wyoming law?
Correct Answer
A) Mark must disclose to the buyers that water rights in Wyoming do not automatically transfer with the land and that they should verify the status of water rights independently
Under Wyoming's prior appropriation water rights doctrine (W.S. 41-3-101 et seq.) and the Wyoming Residential Real Property Disclosure Act (W.S. 34-1-401 et seq.), water rights in Wyoming are a property interest separate from the land and do not automatically transfer with the real estate. Even as the seller's agent, Mark owes all parties — including unrepresented buyers — the duty of honest disclosure of material facts. The separate nature of water rights is a material fact in Wyoming, and Mark must not misrepresent it. He should inform the buyers that water rights must be specifically addressed and verified, directing them to the Wyoming State Engineer's Office if needed.
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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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