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Practice Of Real EstateLicense LawHARD

Broker Patricia in West Virginia is subject to a WVREC disciplinary proceeding. The Commission's hearing officer finds sufficient evidence of a violation and recommends a 12-month suspension. Patricia argues that the Commission lacks jurisdiction because she performed the transaction in a neighboring state. How should the Commission most likely respond to this jurisdictional argument?

Correct Answer

B) The Commission retains jurisdiction because it regulates the licensee's conduct regardless of where the transaction occurred

The WVREC's jurisdiction is over the licensee — a holder of a West Virginia real estate license — not merely over transactions occurring within state borders. Under W. Va. Code § 30-40-18, the Commission may discipline a licensee for conduct that violates the License Act or demonstrates unfitness for licensure, even if that conduct occurred outside West Virginia, because the Commission's authority flows from the license it issued.

Answer Options
A
The Commission must dismiss the case because it only has jurisdiction over transactions occurring within West Virginia's borders
B
The Commission retains jurisdiction because it regulates the licensee's conduct regardless of where the transaction occurred
C
The Commission must transfer the case to the neighboring state's real estate commission for resolution
D
The Commission can only act if the neighboring state's commission formally requests that West Virginia take action

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Related Topics & Key Terms

Key Terms:

wvrecjurisdictionlicensee_conductout_of_state

Related Concepts

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

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