What could lead to the loss of a real estate license in West Virginia regarding compensation?

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Accepting compensation from any person other than your employing broker can indeed lead to the loss of a real estate license in West Virginia. This is because real estate professionals are required to operate under a broker's supervision and receive their earnings through that broker. Under the law, commissions and other types of compensation must flow through the broker to maintain clear accountability and compliance with legal and ethical standards. Accepting payment directly from clients or other parties undermines the broker's role and can create conflicts of interest or issues related to trust funds, leading to disciplinary action, including the potential revocation of one's license.

In the context of the other choices, paying compensation to individuals legally is permitted as long as it complies with regulations and is appropriately documented, while the stipulation regarding earnest money does not inherently relate to the loss of a license. Accepting compensation from the employing broker aligns with state regulations, affirming the importance of the broker-agent relationship in real estate transactions.

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