Legal Question in Real Estate Law in Pennsylvania

Re: Mineral Rights on Purchased property not properly disclosed

I am a new member of the Guru network, so I just received this posting.

There is a questionnaire that a seller must complete and submit to you prior to your submission of the agreement of sale. That document is known as the seller's disclosure statement. The preamble to the statement reads as follows:

A seller must disclose to a buyer all known material defects about property being sold that are not readily observable. This disclosure statement is designed to assist the seller in complying with disclosure requirements and to assist the buyer in evaluating the property being considered. This statement discloses the seller's knowledge of the condition of the property as of the date signed by the seller and is not a substitute for any inspections or warranties that the buyer may wish to obtain. This statement is not a warranty of any kind by the seller or a warranty or representation by any listing real estate broker, any selling real estate broker or their agents. The buyer is encouraged to address concerns about the conditions of the property that may not be included in this statement. This statement does not relieve the seller of the obligation to disclose a material defect that may not be addressed on this form. A material defect is a problem with the property or any portion of it that would have a significant adverse impact on the value of the residential real involves an unreasonable risk to people on the land.

As you can see, the issue of what you did or did not purchase is not a potential defect in the land. Rather, it is a legal issue concerning what exactly was sold. That in turn depends on the language of the deed itself. If the deed specifically excepted and/or reserved the mineral rights, the prior owner may indeed still have those rights. But it must be specifically excepted and/or reserved to accomplish that goal.

Fraud only exists when there is a material misrepresentation of fact that you reasonably rely on to your detriment. It seems clear that any question of mineral rights was not a factual issue, but a legal one. You were aware of the issue and could have hired a professional to review the deed prior to closing to confirm whether or not the rights were excepted/reserved. Unfortunately, he either has the rights by virtue of the deed or he does not.

I trust this has been helpful, but feel free to call or e-mail with any questions.

Re: Mineral Rights on Purchased property not properly disclosed

It is difficult to answer this question without a full review of all the documents and title information. If the mineral rights were not specifically excluded by the prior owner, it is quite possibly that those right in fact belong to you. There are disclosure requirement and fraud may be involved. I suggest you consult an attorney. If you want a more detailed answer I suggest you call or email me. My email address is [email protected] and telephone 215-579-9390

Gerald Hershenson Esq.