Free West Virginia Property Practice Test — LicenseIQ

Question 1

A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

Accepted Answer

Down payment = $60,000; 1 point = $240,000 x 0.01 = $2,400; total = $60,000 + $2,400 + $450 + $1,800 = $64,650; minus $10,000 earnest money = $54,650.

Question 2

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 3

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 4

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 5

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 6

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 7

Which of the following documents is exempt from the West Virginia real estate transfer tax?

Accepted Answer

Section 11-22-1 excludes mortgages and deeds of trust given as security for a debt. Transfers for consideration, including mineral sales, are taxed.

Question 8

Who appoints members of the West Virginia Real Estate Commission?

Accepted Answer

Members are appointed by the Governor with Senate consent (§30-40-6). A trade association may have a nominating role for a seat, but it does not make the appointment.

Question 9

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 10

Which item would most likely be considered personal property rather than a fixture?

Accepted Answer

Items easily removed without damage, like a plug-in refrigerator, are usually personal property. Carpeting cut to fit, built-ins and HVAC are adapted or attached fixtures.

Question 11

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 12

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 13

A lender's title insurance policy protects:

Accepted Answer

A lender's (mortgagee's) policy protects the lender's interest up to the loan amount and declines as the loan is paid. An owner's (fee) policy protects the owner.

Question 14

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 15

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 16

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 17

A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

Accepted Answer

$200,000 / 100 = 2,000 units; 2,000 x $2.50 = $5,000.

Question 18

What is the minimum age for a West Virginia real estate license?

Accepted Answer

Section 30-40-11 requires an applicant to be at least 18 years old.

Question 19

Who may sue in a West Virginia court to collect a real estate commission?

Accepted Answer

Section 30-40-25 requires the plaintiff to prove a valid license at all times during performance. A salesperson may sue only his or her own affiliated broker.

Question 20

A property sells for $187,350 in a county using the base county rate. What is the STATE portion of the transfer tax?

Accepted Answer

$187,350 / $500 = 374.7, and a fraction of $500 counts as a full unit, so 375 units. 375 x $1.10 = $412.50. Prorating to $412.17 ignores the fraction rule; $618.75 is state plus county.

Question 21

An agent holds an active Ohio salesperson license and is affiliated with a West Virginia broker. May she list West Virginia property for compensation?

Accepted Answer

Section 30-40-3 states that a West Virginia license must be obtained even if the person is licensed in another state and affiliated with a West Virginia broker.

Question 22

In addition to the state and county excise tax, what fee does the county clerk collect on a transfer of real estate for consideration?

Accepted Answer

Section 11-22-2(a) adds a $20 fee on transfers for consideration, deposited in the Affordable Housing Fund.

Question 23

For transfer tax purposes, the 'value' of a deed for consideration is:

Accepted Answer

Section 11-22-1 defines value as the full actual consideration, including liens assumed. A declaration of consideration or value is placed on the deed under §11-22-6.

Question 24

A mother deeds her house to her son as a gift with no consideration. The transfer tax is:

Accepted Answer

Section 11-22-1 excludes no-consideration transfers between spouses, parents and children, grandparents and grandchildren, and siblings.

Question 25

A complaint alleges that a licensee misrepresented a property's flood history. When does the filing period begin?

Accepted Answer

For fraud, deceit or misrepresentation, §30-40-20 starts the two-year period at actual or constructive discovery. The 'date of the act' rule applies to other complaints.

West Virginia real estate property practice test

1. A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

2. A property manager owes fiduciary duties primarily to the:

3. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

4. In a deed, the party conveying title is the and the party receiving title is the .

5. A quitclaim deed is most often used to:

6. A licensee may manage property for an owner for a fee only if there is:

7. Which of the following documents is exempt from the West Virginia real estate transfer tax?

8. Who appoints members of the West Virginia Real Estate Commission?

9. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

10. Which item would most likely be considered personal property rather than a fixture?

11. An owner's title insurance policy protects against:

12. The four unities required to create a joint tenancy are:

13. A lender's title insurance policy protects:

14. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

15. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

16. Which is the most common and desirable way a real estate sales contract terminates?

17. A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

18. What is the minimum age for a West Virginia real estate license?

19. Who may sue in a West Virginia court to collect a real estate commission?

20. A property sells for $187,350 in a county using the base county rate. What is the STATE portion of the transfer tax?

21. An agent holds an active Ohio salesperson license and is affiliated with a West Virginia broker. May she list West Virginia property for compensation?

22. In addition to the state and county excise tax, what fee does the county clerk collect on a transfer of real estate for consideration?

23. For transfer tax purposes, the 'value' of a deed for consideration is:

24. A mother deeds her house to her son as a gift with no consideration. The transfer tax is:

25. A complaint alleges that a licensee misrepresented a property's flood history. When does the filing period begin?

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