ESCROW EXAM ACTUAL EXAM SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ The assumption fee when assuming a loan in SC may not exceed
_____.
A) 1% of the loan or $400, whichever is greater
B) 1/2% of the loan
C) $500
D) 1% of the loan or $400, whichever is less.
Answer: D) 1% of the loan or $400, whichever is less
◉ Loans that can be prepaid without penalty are those which are
_____.
A) $150,000 or less
B) Residential mortgage loans of $150,000 or less
C) Investment mortgage loans of $150,000 or less
D) Commercial mortgage loans of $150,000 or less.
Answer: B) Residential mortgage loans of $150,000 or less
◉ No greater than _____ interest can be charged in South Carolina on
loans that are agreed to orally.
,A) 3%
B) 4%
C) 6%
D) 12%.
Answer: C) 6%
◉ In South Carolina, if a mortgage loan is written, the amount of
interest that can be charged is _____.
A) no more than 6%
B) any amount agreed to by the parties
C) no more than 18%
D) not covered by this law.
Answer: B) any amount agreed to by the parties
◉ Federal law allows lenders to charge a pre-payment penalty on
adjustable rate mortgages. How does this affect borrowers in South
Carolina?
A) Borrowers in South Carolina do not pay a pre-payment penalty on
loans under $150,000 but federal law takes precedence on ARMs
B) Although the federal law allows it, SC law does not allow a pre-
payment penalty on ARMs
C) ARMs do not have a pre-payment penalty as long as the mortgage
balance does not exceed $150,000
,D) ARMs do not have a pre-payment penalty as long as the mortgage
balance does not exceed $250,000.
Answer: B) Although the federal law allows it, SC law does not allow
a pre-payment penalty on ARMs
◉ In South Carolina, the law has set an assessment rate. What is the
rate for RESIDENTIAL OWNER-OCCUPIED property?
A) 4%
B) 6%
C) 9 1/2%
D) 10 1/2%.
Answer: A) 4%
◉ In South Carolina, the law has set an assessment rate. What is the
rate for RENTAL NONOWNER-OCCUPIED property?
A) 4%
B) 6%
C) 9 1/2%
D) 10 1/2%.
Answer: B) 6%
◉ A person who is over 65 years of age may get a break on his/her
Ad Valorem tax. What is the nature of this special treatment?
, A) With application, his/her appraised value will be reduced by
$50,000
B) His/her assessed value will be reduced by $50,000
C) With application, his/her assessed value will be reduced by
$20,000
D) With application, his/her appraised value will be reduced by
$20,000.
Answer: A) With application, his/her appraised value will be
reduced by $50,000
◉ The assessed value is $3,000 and the tax is based on 200 mills.
How much is the tax?
A) $500
B) $600
C) $700
D) $800.
Answer: B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) =
$600 annual tax]
◉ The assessor's appraisal was $67,900 on the rental house owned
by the three little pigs. They sold it and had a closing on August 18.
What was the amount of taxes to be prorated at closing if the tax rate
was 134 mills, the assessment rate was 6%, and the pigs agreed to
pay through closing? (Use a 360 day year)
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ The assumption fee when assuming a loan in SC may not exceed
_____.
A) 1% of the loan or $400, whichever is greater
B) 1/2% of the loan
C) $500
D) 1% of the loan or $400, whichever is less.
Answer: D) 1% of the loan or $400, whichever is less
◉ Loans that can be prepaid without penalty are those which are
_____.
A) $150,000 or less
B) Residential mortgage loans of $150,000 or less
C) Investment mortgage loans of $150,000 or less
D) Commercial mortgage loans of $150,000 or less.
Answer: B) Residential mortgage loans of $150,000 or less
◉ No greater than _____ interest can be charged in South Carolina on
loans that are agreed to orally.
,A) 3%
B) 4%
C) 6%
D) 12%.
Answer: C) 6%
◉ In South Carolina, if a mortgage loan is written, the amount of
interest that can be charged is _____.
A) no more than 6%
B) any amount agreed to by the parties
C) no more than 18%
D) not covered by this law.
Answer: B) any amount agreed to by the parties
◉ Federal law allows lenders to charge a pre-payment penalty on
adjustable rate mortgages. How does this affect borrowers in South
Carolina?
A) Borrowers in South Carolina do not pay a pre-payment penalty on
loans under $150,000 but federal law takes precedence on ARMs
B) Although the federal law allows it, SC law does not allow a pre-
payment penalty on ARMs
C) ARMs do not have a pre-payment penalty as long as the mortgage
balance does not exceed $150,000
,D) ARMs do not have a pre-payment penalty as long as the mortgage
balance does not exceed $250,000.
Answer: B) Although the federal law allows it, SC law does not allow
a pre-payment penalty on ARMs
◉ In South Carolina, the law has set an assessment rate. What is the
rate for RESIDENTIAL OWNER-OCCUPIED property?
A) 4%
B) 6%
C) 9 1/2%
D) 10 1/2%.
Answer: A) 4%
◉ In South Carolina, the law has set an assessment rate. What is the
rate for RENTAL NONOWNER-OCCUPIED property?
A) 4%
B) 6%
C) 9 1/2%
D) 10 1/2%.
Answer: B) 6%
◉ A person who is over 65 years of age may get a break on his/her
Ad Valorem tax. What is the nature of this special treatment?
, A) With application, his/her appraised value will be reduced by
$50,000
B) His/her assessed value will be reduced by $50,000
C) With application, his/her assessed value will be reduced by
$20,000
D) With application, his/her appraised value will be reduced by
$20,000.
Answer: A) With application, his/her appraised value will be
reduced by $50,000
◉ The assessed value is $3,000 and the tax is based on 200 mills.
How much is the tax?
A) $500
B) $600
C) $700
D) $800.
Answer: B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) =
$600 annual tax]
◉ The assessor's appraisal was $67,900 on the rental house owned
by the three little pigs. They sold it and had a closing on August 18.
What was the amount of taxes to be prorated at closing if the tax rate
was 134 mills, the assessment rate was 6%, and the pigs agreed to
pay through closing? (Use a 360 day year)
