West Virginia Real Estate Licensing and Regulations, Exams of Real Estate Management

Download West Virginia Real Estate Licensing and Regulations and more Exams Real Estate Management in PDF only on Docsity! WV Real Estate FINAL EXAM 100% verified solution graded A+ The purpose of the West Virginia License Act is to --- limit competition in the real estate industry. protect the public in real estate transactions. regulate the limit for brokerage compensation. impose license fees to generate income. - ANS; protect the public in real estate transactions. Jim acquires a West Virginia broker license. He wants to sell real estate without opening a business so he decides to remain at his salespersons desk on the sales floor at Acme Realty. Jims license status will be that of a(n) --- associate broker. Salesperson. broker apprentice. designated broker. - ANS; associate broker. Salesperson Sharon received a $3,000 deposit from a buyer on Tuesday morning and gave it to her broker before noon. The brokerÂs normal banking day is Tuesday and the seller wonÂt be available until Thursday, so the broker placed the funds in her personal checking account until the seller returns. The broker: --- can hold the funds until the seller accepts or rejects the offer. must wait for the seller's signature before depositing the funds. may be sanctioned by the Commission and lose her license. should have waited for the seller's oral instructions before depositing the money. - ANS; may be sanctioned by the Commission and lose her license. A broker who changes his or her business address must notify the Commission of the address change within how many days? --- 30 14 10 60 - ANS; 10 Days Velma is a licensed salesperson in West Virginia. Velma may properly receive compensation or commissions from --- Any landlord or seller. the principal. any other licensed real estate broker. her employing broker only. - ANS; her employing broker only. West Virginia law requires all advertising placed by salespersons and associate brokers include --- the licensees license number. name of the salesperson or associate broker. the employing broker's name. all of the above. - ANS; the employing broker's name A West Virginia license to act as a salesperson or associate broker shows on the certificate the: --- employing brokers name. January 1. - ANS; June 30. Broker Bob is moving his real estate firm to a new and trendy location. Bob must make application to the Commission before changing the address of his office, or must notify the Commission in writing within ______________ after changing the address. --- 10 30 90 14 - ANS; 10 According to the West Virginia Real Estate License Act, a licensee who is authorized to conduct any real estate business and is required to comply with any continuing education requirements is____________________. --- in violation of law. on active status. on inactive status. unlicensed. - ANS; on active status For first violations, the West Virginia Real Estate Commission does NOT have the power to impose civil penalties in excess of ________________ per day, per violation. --- $1000 $100 $3000 $2500 - ANS; $1000 A broker who has written permission to represent both the seller and the buyer in the same transaction is acting as a (n) __________________. --- designated agent. non-agency representative. mediator. dual agent. - ANS; dual agent How many members can belong to the same political party in the West Virginia Real Estate Commission? --- one. two. three. four. - ANS; four A nonresident licensee who applies for a comparable real estate license in West Virginia must sign a statement he or she has read and agrees to abide by the license laws and file with the Commission a bond in the penalty of _______________. --- $1000 $5000 $2000 $10000 - ANS; $2000 The license of a licensee who is not authorized to conduct real estate business and is not required to comply with continuing education requirements is classified as _________________. --- expired status. on active status. on inactive status. a revoked license. - ANS; on inactive status The power to issue, renew, suspend or revoke real estate licenses is under the authority of_____________________. --- WVRE Commission. The Governor. WV legal system. The department of labor. - ANS; WCRE Commision All active West Virginia real estate brokers are required by law to maintain a physical ______________ in keeping with the standards of real estate trade. --- website. or virtual office. home office. place of business. - ANS; place of business Which of these persons is required to hold a West Virginia real estate license? --- George owns a small apartment building and personally manages the property. Kelly is an attorney who charges clients for writing purchase contracts for real property. Leon is paid a salary for maintenance work on George's apartments. Leon occasionally opens an apartment for viewing by a prospective tenant. Hugo earns commissions for renting space in commercial office buildings. - ANS; Hugo earns commissions for renting space in commercial office buildings. Phillip is paid a salary as Broker Tim's unlicensed personal assistant. Which of these actions is a violation of West Virginia license law? --- Phillip answers the phone and directs calls to Tim. Phillip provides information about which listed properties are still available. Phillip drives prospective buyers to properties and may show the property if Tim is late. must be a resident of West Virginia. - ANS; must sign an affidavit that he or she is the individual who completed the exam. After a student successfully completes an approved pre-license course, the school must: --- supply the student with a certificate of course completion with letter grades. guarantee the student will pass the licensing exam. refund tuition if the student fails the state exam. provide the student with a practice state licensing exam. - ANS; supply the student with a certificate of course completion with letter grades. The West Virginia Real Estate Commission has the authority to deny a licensee's application if: --- the applicant does not reside in West Virginia. the applicant has ever been licensed in another jurisdiction. the licensee was convicted of a felony. the applicant has ever been in foreclosure. - ANS; the licensee was convicted of a felony. At the conclusion of a hearing following a complaint against a West Virginia licensee, a final decision will be made by: --- the Executive Director. a judge of the appellant court. the Assistant State Attorney General. the Commission or presiding officer. - ANS; the Commission or presiding officer. Any person adversely affected by a final decision: --- will automatically lose the license. is entitled to a judicial review. may not practice real estate for a minimum of two years. must apply for a license reinstatement within two years. - ANS; is entitled to a judicial review. Which of these circumstances would NOT cause the Commission to deny a license application? The applicant: --- willfully departed from accepted standards of professional conduct. was convicted of a felony. lost a bundle of money on a bad real estate investment. has engaged in acts constituting professional negligence. - ANS; lost a bundle of money on a bad real estate investment. A witness in a contested hearing: --- can lose his or her license after testifying. can be granted immunity from disciplinary action by the Commission. can refuse to respond to a subpoena. has no obligation to help the Commission. - ANS; can be granted immunity from disciplinary action by the Commission. Shelley and Nadine bought a store building and took title as joint tenants. Nadine died testate.Shelly now owns the store: --- as joint tenant with rights of survivorship. in severalty. as a tenant in common with Nadine's heirs. in trust. - ANS; in severalty. Enid lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, she owns stock in the corporation and has a lease to her apartment. This type of ownership is called a: --- condominium. planned unit development. time-share. cooperative. - ANS; cooperative. Victor and Norman are co-owners in fee simple of a small office building. Norman dies intestate and leaves nothing to be distributed to his heirs. Victor is neither related to Norman nor his creditor. Which of the following would explain why Victor acquired Norman's interest? --- Adverse possession. Reversionary rights. Joint tenancy. Foreclosure. - ANS; Joint tenancy. Kyle and Ursula owned a combination apartment building-restaurant. They shared their profits and losses on ventures equally, but did not have any written partnership agreement. One day, Ursula died of a heart attack. If, after her death, Kyle continued to only own the same undivided interest in the real estate as he did before, then: --- they were joint tenants. they were tenants in common. they were stockholders in their own corporation. Ursula died intestate. - ANS; they were tenants in common. Under what circumstance would the WVRE Commission, permit an associate broker or a designated salesperson licensed to complete and close existing business of a sole proprietor broker? --- When the responsible broker goes on vacation. 9 hours. 12 hours. 7 hours. 6 hours. - ANS; 7 hours When a salesperson decides to stop working for a real estate company: --- the employing broker must place the salesperson's license on hold with the WVRE Commission. the salesperson must return the salesperson's license to the WVRE Commission. the salesperson must return their employing broker. the employing broker must return the salesperson's license to the WVRE Commission. - ANS; he employing broker must return the salesperson's license to the WVRE Commission The West Virginia Real Estate Commission is composed of a total of ____ members. --- seven. five. four. ten. - ANS; five In order to apply for a broker's license, the applicant must provide proof of ___ year(s) experience as a licensed salesperson, or some equivalent experience --- two. four. five. one. - ANS; two Select the best answer, West Virginia real estate license laws protect the public by: --- appointing a real estate Commission to oversee all areas of the licensing process. prosecuting any licensee that violates real estate laws. establishing standards for the privilege of obtaining and keeping a real estate license. providing multiple ways for real estate to be bought and sold without requiring licensing. - ANS; establishing standards for the privilege of obtaining and keeping a real estate license Applicants for a broker's license must satisfactorily complete an additional ___ hours of commission-approved education. --- 90 hours. 120 hours. 70 hours. 60 hours. - ANS; 90 hours Failure to adequately supervise the salespersons and associate brokers who are registered with the Commission as the broker's employees, may result in: --- the removal of employees from the brokers supervision. a $5000 fine. incarceration, depending on the infringements of the employees. suspension or revocation of the broker's license. - ANS; suspension or revocation of the broker's license From whom may a West Virginia real estate salesperson lawfully collect compensation? --- the buyer. his or her employing broker only. the seller. any party to the real estate transaction. - ANS; his or her employing broker only A licensee may offer, directly or indirectly, to clients or customers rebates, inducements, or other discounts, if --- they disclose in writing, the terms of any rebate, inducement or other discount offered. the offers are made under the direct supervision of the responsible broker. they disclose in writing, the fair market value of any rebate, inducement or other discount offered. All of the above. - ANS; All of the above Which activities are normally performed as practice of a real estate brokerage? --- Home Inspections, & Appraisals. Acting as a legal consultant. The sale, purchase, and leasing of property. Mortgage financing. - ANS; The sale, purchase, and leasing of property How long after a copy of a complaint is provided to a licensee do they have to file an answer with the Commission? --- 1 year. 20 days. 90 days. 180 days. - ANS; 20 days What is the possible outcome for a licensee that violates any fair housing law in the state of West Virginia? --- revocation of their real estate license. suspend of their real estate license. The licensee must disclose the party or parties the licensee is representing to all parties to the real estate transaction. The licensee must discuss how different Real estate broker-client relationships are defined. The licensee must explain the implied actions they will take to sell the property. - ANS; The licensee must disclose the party or parties the licensee is representing to all parties to the real estate transaction What is true about dual agency in the state of West Virginia? --- Dual agency is the best way to earn the highest possible commission. Disclosure of a dual agency is required either orally or in writing. Written consent for dual agency must be obtained from both the buyer and the seller. Dual agency is illegal in the state of West Virginia. - ANS; Written consent for dual agency must be obtained from both the buyer and the seller What is not an allowed physical space for branch offices? --- A room in a broker's private home. A temporary shelter in a subdivision being sold by the broker. A rented office space in a converted warehouse. A shared traditional office building. - ANS; A room in a broker's private home In a complaint case, if the licensee fails to appear for a hearing at the appointed time, the hearing will: --- be rescheduled. be dismissed. continue. be delayed until the licensee appears. - ANS; continue What type of items may the WVRE Commission subpoena from parties involved in hearing cases? --- books, papers, records and other relevant evidence. cellphones, voicemail recordings and secretly taped videos. The WVRE Commission does not have subpoena power. All of the above. - ANS; books, papers, records and other relevant evidence Upon receiving a licensee's response to a complaint, it is the duty of the Commission to determine if ____________ exists for further action. --- reasonable doubt. a sufficient number of witnesses. subpoena duces tecum. probable cause. - ANS; probable cause What actions critically define a Designated Broker? --- Is appointed by a partnership, association, corporation, or other business organization. Engages in the real estate brokerage business as a fully designated representative of a business organization. Both A & B. None of the above defines a Designated Broker. - ANS; Both A & B The relationship in which a salesperson is taught the methods, techniques and terminology of the real estate business under the guidance and direction of a Broker is called a(n) --- internship. candidateship. apprenticeship. voluntarist. - ANS; apprenticeship The rights of ownership of real property include all of the following EXCEPT --- compatibility. disposition. exclusion. control. - ANS; compatibility A business leases a store space to open a restaurant and installs ovens, booths, counters, and other equipment. When would these items become real property? --- At lease expiration, if the man does not remove them. After they are installed. After the man defaults on his rental payments. After the lease takes effect. - ANS; At lease expiration, if the man does not remove them A real estate professional who represents the seller is showing a house to a prospective buyer-customer. The real estate professional knows that the house has water problems in the basement. Which of the following is TRUE? --- Withholding the information prevents the buyer from making an informed decision. Withholding the information properly protects the confidence of the seller. Disclosing the information could create a fiduciary relationship with the buyer. Disclosing the information violates the real estate professionals fiduciary duty to the seller. - ANS; Withholding the information prevents the buyer from making an informed decision. A broker's newest sales associate brings in a listing for the sale of a condominium. In this transaction, the sales associate --- improvements, for a total of $240,000. The property sold for $222,500. Which amount represents the property's market price? --- $190,000 $222,500 $225,000 $240,000 - ANS; $225,00 A house sold for $180,000 and the buyer obtained an FHA-insured mortgage loan for $120,000. If the lender charged two discount points, the buyer would pay --- $1,200. $1,000. $2,400. $1,800. - ANS; $2,400 In what way does a deed of trust differ from a mortgage? --- Number of parties involved in the loan. Obligation of the borrower to repay the funds. Redemption rights allowed after foreclosure. Time period permitted to cure a default. - ANS; Number of parties involved in the loan The type of title insurance that will protect the owner and heirs is called --- a lender's policy. a leasehold policy. an owner's policy. a certificate of sale policy. - ANS; an owner's policy A grantor does NOT wish to convey certain property rights. The grantor may note the exceptions in --- a separate document. the purchase agreement. the listing agreement. the deed of conveyance. - ANS; the deed of conveyance. Under the terms of a trust established by a will, the trustee is required to sell the real estate the trust holds. The deed that will be delivered at settlement of such a sale is a --- deed of release. warranty deed. trustee's deed. trustor's deed. - ANS; trustee's deed. The law that requires real estate contracts to be in writing to be enforceable is the --- statute of frauds. law of descent and distribution. parol evidence rule. statute of limitations. - ANS; statute of frauds. Taxes levied on a property owner to pay for installation of sidewalks or sewers are called --- ad valorem taxes. special assessments. general property taxes. special excise taxes. - ANS; special assessments. A property owner who does not want to deal with the everyday tasks of managing a rental property can hire --- a property manager. an appraiser. a home inspector. a developer. - ANS; a property manager Another word for uniqueness is --- scarcity. nonhomogeneity. fructus industrials. immobility - ANS; nonhomogeneity The Fair Housing Act does NOT prohibit discrimination on the basis of --- familial status. national origin. religious preference. annual income - ANS; annual income. Three brothers bought a farm together, and the deed listed only each of their names. What form of ownership are they presumed to have taken? --- Tenancy by the entireties. Joint tenancy with right of survivorship. Tenancy in common. In severalty. - ANS; Tenancy in common doctrine of public acquisition. - ANS; condemnation Which of the following is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land? --- Write a legal description. Find the monuments. Get a spot survey. Verify the benchmarks. - ANS; Get a spot survey A trust that is established after the death of the owner is called a --- testamentary trust. trust by will. beneficial trust. living trust. - ANS; testamentary trust. After real estate has been sold by the state or county to satisfy a delinquent tax lien, defaulted owners usually have a right to --- redeem the property within the time specified by law. have the sale canceled by paying the back taxes and penalties. pay their creditors directly and have their liens removed. record a notice of nonresponsibility for the unpaid taxes. - ANS; redeem the property within the time specified by law. The statute of frauds requires that real estate contracts to be --- recorded at the courthouse. no longer than 10 pages. verbal to be enforceable. in writing to be enforceable. - ANS; n writing to be enforceable. The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that --- all of the seller's interest in the property, if any, belongs to the buyer. the seller owned the property. there are no encumbrances against the property. the buyer now owns the property subject to certain claims of the seller. - ANS; all of the seller's interest in the property, if any, belongs to the buyer. Which of the following is an involuntary alienation of property? --- Quitclaim. Inheritance. Condemnation. Gift. - ANS; Condemnation Any of the following clauses in a loan agreement enable the lender to demand the entire remaining debt be paid immediately EXCEPT --- a due-on-sale clause. an acceleration clause. a defeasance clause. an alienation clause. - ANS; a defeasance clause. What would it cost to put new carpeting in a room measuring 18 feet by 20 feet if the carpet costs $16.95 per square yard, plus a $250 installation charge? --- $589 $928 $1,365 $6,352 - ANS; $928 A proration of any prepaid utility charges is reflected on a settlement statement in which of the following ways? --- Debit to the seller, credit to the buyer. Debit to the buyer only. Credit to the seller only. Debit to the buyer, credit to the seller. - ANS; Debit to the buyer, credit to the seller A house sells for $215,000. The listing brokerage receives a 6% commission on the sale. How much does the listing brokerage receive? --- $21,500 $12,900 $6,450 $12,300 - ANS; $12,900 A bill of sale is used to transfer the ownership of --- real property. fixtures. appurtenances. personal property. - ANS; personal property A real estate licensee helps both buyers and sellers with paperwork for transferring property. The licensee is not an agent of either party and may not disclose either party's confidential information to the other. Which of the following BEST describes the licensee? --- condemnation. license. - ANS; prescription Tenancy with survivorship means --- the tenancy interest will be inherited. the tenant's heir are survivors. the tenancy interest will pass to the surviving tenant(s) upon the death of one party. this is not a legal tenancy. - ANS; the tenancy interest will pass to the surviving tenant(s) upon the death of one party. A cooperative obtains the funds necessary to cover ongoing operating expenses and mortgage payments by --- charging rent to each of the shareholders. selling the common elements. charging special assessments. collecting regular assessments from stockholders. - ANS; collecting regular assessments from stockholders. A recorded subdivision plat is used in the --- geodetic survey system. lot and block system. rectangular survey system. metes and bounds system. - ANS; lot and block system. A broker's office policy is that the sales associate's share of a commission is 65%. What is the sales associate's compensation if the sales price of a property is $195,000 and the broker is entitled to a 5.5% commission? --- $697.13 $6,971.25 $8,872.50 $69,712.50 - ANS; $6,971.25 An owner of a ranch enters into a sale-and-leaseback agreement with a buyer. Which statement is TRUE of this arrangement? --- The buyer is the lessor. The owner retains title to the ranch. The buyer receives possession of the property. The owner is the lessor. - ANS; The buyer is the lessor. If the mortgage loan is 70% of the appraised value of a house and the interest rate of 5% amounts to $500 for the first month, the appraised value of the house is --- $14,285 $120,000 $165,428 $171,428 - ANS; $171,428 Which of the following is an example of involuntary alienation? --- Selling a property to pay off debts. Having a piece of land sold for delinquent taxes. Giving a piece of land to the zoo. Letting another person plant crops on an unused portion of a piece of land. - ANS; Having a piece of land sold for delinquent taxes A person owned a parcel of land. Subsequent to the owner's death, the probate court determined the distribution of the land in accordance with the state's statutes. This process is called --- escheat. condemnation. probate. adverse possession. - ANS; probate Which statement is TRUE regarding a special warranty deed? --- The grantor is making additional warranties beyond those given in a warranty deed. The grantor retains an interest in the ownership. The grantor is warranting that no encumbrances exist against the property. The grantors warranties are limited to the time the grantor owned the property. - ANS; The grantor's warranties are limited to the time the grantor owned the property. An amount that is stipulated in the contract that serves to compensate a seller in the event of a buyer default is called --- actual damages. escrow funds. liquidated damages. earnest money. - ANS; liquidated damages. To assign a contract for the sale of real estate means to --- record the contract with the county recorders office. permit another broker to act as agent for the principal. allow the seller and the buyer to exchange positions. transfer ones rights under the contract. - ANS; transfer one's rights under the contract. Office buildings and retail space are examples of --- $139,900 $193,746 $256,200 $387,492 - ANS; $387,492 The owner of a vacant lot adjacent to a school was persuaded to make the lot available to the school, which need to extend its parking lot. The owner's attorney prepared a deed that conveyed ownership of the lot to the school "so long as it is used not used for commercial purposes." After the completion of the transaction, the school will own a --- life estate. determinable fee estate. tenancy for years. periodic tenancy. - ANS; determinable fee estate. A homeowner's neighbor wants to park a boat in the homeowner's driveway for the summer months. The homeowner agrees to let the neighbor do so. This arrangement is --- an easement appurtenant. an easement by necessity. a license. an estate in land. - ANS; a license In a land trust, which of the following is FALSE ? --- Beneficial interest can be transferred by assignment. The beneficiary is usually the trustor. Public records list all the beneficiaries. The property can be pledged as security for a loan without recording a mortgage. - ANS; Public records list all the beneficiaries. How many acres are in the property described as follows: the NW¼ of the SW¼ of the NE¼ of Section 16? --- 5 10 20 40 - ANS; 10 All of the following are generally exempt from paying real estate taxes EXCEPT --- for-profit assisted living facility. municipal government. charitable hospital. private not-for-profit school. - ANS; for-profit assisted living facility. Refusal or failure to comply with the terms of a contract is --- specific performance. a breach. not justification for failure to return earnest money. acceptable if no harm results. - ANS; a breach. When grantors do NOT wish to convey certain property rights, they --- must note the exceptions in a separate document. may not do so because the deed conveys the entire premises. may note the exceptions in the deed of conveyance. must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor. - ANS; may note the exceptions in the deed of conveyance.