Free West Virginia State Law Practice Test — LicenseIQ

Question 1

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 2

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 3

After passing the licensing exam, how long does a candidate have to pay the license fee and submit all supporting documents?

Accepted Answer

174CSR1 §4.7 requires the fee and documents within 3 months of passing, or the application is cancelled and the exam must be retaken; one 3-month extension may be granted for good cause.

Question 4

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 5

A salesperson passed both exams in February and was licensed in March. What CE must she complete to renew by the coming June 30?

Accepted Answer

174CSR1 §8 exempts persons who passed the national and state exams from CE for their first renewal, provided they renew by June 30 of that fiscal year. West Virginia does not impose a separate post-licensing course.

Question 6

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 7

A member of a real estate team signs an agency form with a buyer. What does the rule require regarding the other team members?

Accepted Answer

174CSR1 §16 requires all team members to be listed on or attached to any agency form signed by a team member.

Question 8

For how long must a broker keep transaction and trust account records?

Accepted Answer

Section 30-40-19(a)(28) and 174CSR1 §10.3 require records to be kept for five years. Two years is the complaint-filing window.

Question 9

According to 174CSR1 §16, when must all parties to a transaction sign each licensee's agency form?

Accepted Answer

174CSR1 §16 requires the licensee and client to sign when the relationship is created and all parties to sign each licensee's form before negotiations begin.

Question 10

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 11

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 12

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 13

A salesperson has been licensed for 18 months and has closed 25 sales transactions. Which statement is correct about her eligibility for a broker license on experience?

Accepted Answer

Section 30-40-12 requires either licensure as a salesperson during the preceding two years with at least 20 closed transactions, or at least 40 closed transactions over any period. Twenty-five deals in 18 months satisfies neither path yet.

Question 14

A private owner who owns two rental houses rents one directly, without a licensee or discriminatory advertising, and declines a family with young children. In West Virginia, this owner may rely on the exemption for:

Accepted Answer

The §16B-18-4 exemption covers owners of no more than three single-family houses who do not use a licensee or discriminatory ads, and it applies only to familial status.

Question 15

A buyer gives a promissory note as earnest money. Under W. Va. Code §30-40-19, this is permissible only if:

Accepted Answer

Section 30-40-19(a)(25) makes it a violation to accept non-cash earnest money or deposits without disclosing that fact in the related contract.

Question 16

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 17

Under W. Va. Code §30-40-23, how many acts performed for compensation are enough to make a person a broker or salesperson under the Act?

Accepted Answer

Section 30-40-23 provides that a single act for compensation or the expectation of it is evidence of practice. The 'three in 12 months' language comes from the fair housing definition of being in the business, not the License Act.

Question 18

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 19

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 20

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 21

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 22

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 23

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 24

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 25

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

West Virginia real estate state law practice test

1. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

2. A home sells for $400,000 with a 5% total commission. What is the total commission?

3. After passing the licensing exam, how long does a candidate have to pay the license fee and submit all supporting documents?

4. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

5. A salesperson passed both exams in February and was licensed in March. What CE must she complete to renew by the coming June 30?

6. In a lease, the tenant holds a estate and the landlord holds a .

7. A member of a real estate team signs an agency form with a buyer. What does the rule require regarding the other team members?

8. For how long must a broker keep transaction and trust account records?

9. According to 174CSR1 §16, when must all parties to a transaction sign each licensee's agency form?

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

11. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

12. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

13. A salesperson has been licensed for 18 months and has closed 25 sales transactions. Which statement is correct about her eligibility for a broker license on experience?

14. A private owner who owns two rental houses rents one directly, without a licensee or discriminatory advertising, and declines a family with young children. In West Virginia, this owner may rely on the exemption for:

15. A buyer gives a promissory note as earnest money. Under W. Va. Code §30-40-19, this is permissible only if:

16. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

17. Under W. Va. Code §30-40-23, how many acts performed for compensation are enough to make a person a broker or salesperson under the Act?

18. Under the statute of frauds, a real estate sales contract must be:

19. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

20. A salesperson receives an earnest money check from a buyer. The salesperson should:

21. Under an open listing, the seller owes a commission to:

22. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

23. When competing brokerages agree to charge the same commission rate, they commit:

24. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

25. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

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