Free West Virginia Real Estate Practice Exam

Q1.A broker's salesperson represents a seller of a 40-unit residential apartment complex. A prospective buyer offers to purchase all 40 units subject to existing leases. The buyer requests that the broker's salesperson draft a contract addendum allocating seller liability for any pre-closing violations of the Fair Housing Act (42 U.S.C. § 3604) discovered post-closing. Which statement MOST accurately reflects the broker's supervisory obligation and the legal effect of such an addendum?

• A.The broker should approve the addendum because private contractual allocation of Fair Housing liability between sophisticated parties is fully enforceable and eliminates government enforcement risk.
• B.The broker must refuse to supervise drafting of the addendum because the Fair Housing Act prohibits any contractual language that discriminates in the sale of residential property.
• C.The broker should recognize that while private indemnification between seller and buyer for pre-closing violations is enforceable as a civil remedy between the parties, it does not insulate either party from HUD or DOJ enforcement, and should counsel both parties accordingly before approving the addendum.
• D.The broker has no supervisory obligation over addendum language drafted by the salesperson, because addendum drafting is a legal matter exclusively within the purview of the parties' attorneys.

Q2.Under the Fair Housing Act, which of the following is protected under the category of 'familial status'?

• A.Families with children under 18, including pregnant women
• B.Married couples only
• C.Single-parent households only
• D.All household arrangements including single adults

Q3.In West Virginia, which document is the principal vehicle used by licensees to satisfy the agency disclosure requirement under W. Va. Code §30-40-18 when first meeting with a prospective buyer or seller?

• A.The Exclusive Right to Sell Listing Agreement
• B.The West Virginia Residential Property Disclosure Form
• C.The Consumer Information Statement (CIS)
• D.The HUD-1 Settlement Statement

Q4.A property manager is analyzing a potential acquisition with the following data: Gross Potential Income $500,000, Vacancy Rate 8%, Operating Expenses $180,000, Debt Service $200,000. If the required capitalization rate is 9%, what is the maximum justified purchase price?

• A.$2,800,000
• B.$3,555,556
• C.$2,888,889
• D.$2,400,000

Q5.Under federal law, which type of property disclosure is required for most residential properties built before 1978?

• A.Asbestos disclosure
• B.Radon disclosure
• C.Mold disclosure
• D.Lead-based paint disclosure

Q6.A consumer files a complaint with the West Virginia Real Estate Commission alleging that a licensee committed fraud during a real estate transaction. Which of the following best describes the Commission's investigative authority in this situation?

• A.The Commission may only refer the complaint to local law enforcement and take no independent action.
• B.The Commission may investigate the complaint and, if warranted, bring disciplinary charges against the licensee.
• C.The Commission may investigate only if the consumer first obtains a court order.
• D.The Commission has no authority to investigate complaints; this is the sole responsibility of the Attorney General.

Q7.Under West Virginia law, if a salesperson wishes to transfer their license from one sponsoring broker to another, what must happen for the transfer to be effective?

• A.The salesperson may simply begin working for the new broker immediately without any formal notification
• B.The transfer must be approved by the West Virginia Real Estate Commission before the salesperson may act for the new broker
• C.The salesperson must retake and pass the state licensing examination before transferring
• D.The transfer requires approval only from the West Virginia Association of REALTORS®

Q8.Under RESPA Section 8, which of the following would constitute an illegal kickback arrangement that could result in criminal penalties for a real estate licensee?

• A.Accepting a referral fee from another licensed real estate agent for sending a client
• B.Receiving a commission split from a cooperating broker in an MLS transaction
• C.Getting paid marketing fees from a title company in exchange for referring clients to that company
• D.Earning a bonus from their employing broker for exceeding annual sales goals

Q9.Under W. Va. Code Chapter 30, Article 40, which of the following statements is TRUE regarding the public member of the West Virginia Real Estate Commission?

• A.The public member must hold an active real estate broker's license at the time of appointment.
• B.The public member serves to represent consumer interests and may not be a licensed real estate professional.
• C.The public member is elected by popular vote of West Virginia citizens.
• D.The public member's role is purely advisory and carries no voting privileges.

Q10.Wire fraud in real estate transactions most commonly occurs when:

• A.A seller fails to pay off an existing mortgage at closing
• B.A buyer's lender miscalculates closing costs
• C.A title company fails to record the deed within 24 hours
• D.A cybercriminal intercepts email communications and sends fraudulent wiring instructions

Q11.West Virginia's Real Estate License Act vests rulemaking authority in the Real Estate Commission. As a licensed managing broker, which of the following reflects the Commission's proper exercise of that rulemaking authority?

• A.The Commission may promulgate legislative rules pursuant to WV Code §29A-3-1 et seq. (the State Administrative Procedures Act) that govern licensing standards, education requirements, and conduct of licensees
• B.The Commission may issue binding rules without following the Administrative Procedures Act because real estate is an unregulated industry under state law
• C.The Commission may only issue advisory guidelines and must seek legislative approval for each individual rule it wishes to enforce
• D.The Commission delegates all rulemaking authority exclusively to the National Association of REALTORS®, which sets standards binding in West Virginia

Q12.Under the West Virginia Human Rights Act, a person who believes they have been subjected to housing discrimination must file a complaint with the West Virginia Human Rights Commission within what time period from the alleged discriminatory act?

• A.90 days from the date of the alleged discriminatory act.
• B.180 days from the date of the alleged discriminatory act.
• C.One year from the date of the alleged discriminatory act.
• D.Two years from the date of the alleged discriminatory act.

Q13.When acting as a designated agent for a buyer using FHA financing, RESPA requires specific disclosures about settlement costs. If the agent fails to provide the required RESPA disclosures, this breach most directly violates which fiduciary duty?

• A.Duty of loyalty to the buyer's interests
• B.Duty of reasonable care and competence
• C.Duty of confidentiality regarding financial information
• D.Duty of accounting for client funds

Q14.Under West Virginia law, when the Real Estate Commission seeks to discipline a licensee, which of the following actions is the Commission authorized to take as a formal disciplinary measure?

• A.Impose a criminal fine payable to the county court where the violation occurred
• B.Revoke, suspend, or refuse to renew a license, or impose a civil penalty
• C.Order the licensee to pay restitution directly to harmed consumers without a hearing
• D.Permanently ban the licensee from all real estate activity without providing notice

Q15.Which West Virginia state agency is responsible for issuing and regulating real estate salesperson licenses?

• A.The West Virginia Division of Labor
• B.The West Virginia Secretary of State
• C.The West Virginia Real Estate Commission
• D.The West Virginia Department of Commerce