Broker Management: Trust Funds, Operations, and Supervision
The West Virginia broker state portion carries a distinctive Broker Management block of about 18 items. This chapter covers how a broker handles trust funds, operates the brokerage, and supervises affiliated licensees.
Trust and Escrow Accounts
A West Virginia broker who receives client money such as earnest money must place it into a designated real estate trust or escrow account, kept separate from the broker's business and personal funds. Commingling or converting trust funds is a serious violation and a frequent basis for discipline. The broker is ultimately accountable for the trust account, even when a salesperson receives the funds.
Operating the Brokerage
Broker Management covers the practical operation of a real estate firm: maintaining a place of business, keeping required records, handling advertising properly, and following the license law and Commission rules. The broker's decisions about policies and procedures set the standard the whole firm must meet.
Supervising Licensees
A salesperson may act only under a supervising broker, and the broker is responsible for supervising the salesperson's licensed activity. That supervisory duty, including oversight of client funds and disclosures, is what makes the broker license a higher tier and is heavily tested in the Broker Management block.