West Virginia Real Estate Salesperson Exam — All Questions

A West Virginia license is NOT required of a person who:

• a.acquires or disposes of an interest in timber or minerals✓
• b.manages residential rental property for several owners
• c.collects rent and security deposits for an out-of-state owner
• d.assists in procuring a prospect for a fee

The Act's exception list reaches anyone acquiring or disposing of any interest in timber or minerals, and anyone acquiring or disposing of property for easements and rights of way — a practical carve-out in a state where severed estates are common. Property management, by contrast, is inside the licensed practice. Cite: W. Va. Code §30-40-5(c)(7); §30-40-4 ("Property management").

Under West Virginia's Cotenancy Modernization and Majority Protection Act, an operator may develop an oil or natural gas mineral property over a co-owner's objection when royalty owners consent who hold at least:

• a.a simple majority of the right to develop, operate and produce
• b.two thirds of the right to develop
• c.three fourths of the right to develop, operate and produce✓
• d.ninety percent of the right to develop

With reasonable efforts to negotiate with all royalty owners and consent from owners of at least a three-fourths interest, the use or development is permissible, is not waste, and is not trespass. Cite: W. Va. Code §37B-1-4(a); §37B-1-3 (definitions).

A West Virginia nonconsenting cotenant who receives the operator's best and final lease offer has how long to elect between a production royalty and participation in the development?

• a.30 days
• b.45 days✓
• c.60 days
• d.six months

If no written election reaches the operator before the 45 days run out, the cotenant is deemed to have chosen the production royalty option, and then has 30 days to appeal to the commission on whether the royalty offered matches the highest royalty paid in the same mineral property. Cite: W. Va. Code §37B-1-4(b), (c).

Under West Virginia's Oil and Gas Production Damage Compensation article, the right to receive surface damage compensation:

• a.may not be assigned apart from the surface estate, except to a tenant✓
• b.may be sold separately like a royalty interest
• c.belongs to the mineral owner, not the surface owner
• d.passes to the county when the surface is sold at tax sale

The developer owes the surface owner for lost income, crops destroyed, damage to a water supply in use before the permit, repair of personal property and diminution in value of the surface. The statute then locks that claim to the surface estate. Cite: W. Va. Code §22-7-3(a), (b).

West Virginia's excise tax on the privilege of transferring title to real estate is imposed at a state-level rate of:

• a.$0.55 for each $500 of value or fraction of it
• b.one percent of the sales price
• c.$2.20 for each $1,000 of value or fraction of it
• d.$1.10 for each $500 of value or fraction of it✓

A separate additional county excise tax of 55 cents for each $500 runs alongside it, which a county commission may raise to as much as $1.65 for each $500. A $20 fee for the Affordable Housing Fund is also collected before the clerk records a transfer for consideration. Cite: W. Va. Code §11-22-2(a), (b).