EXAMINATION
PRACTICE QUESTIONS WITH ANSWERS AND
RATIONALES
SECTION 1: BUSINESS MANAGEMENT AND LAW (Questions 1–15)
Question 1: Under South Carolina law, which entity has the primary authority to issue
residential builder licenses?
Answer: South Carolina Residential Builders Commission (under LLR).
Rationale: The South Carolina Residential Builders Commission, operating under the
Department of Labor, Licensing and Regulation (LLR), is responsible for issuing residential
builder licenses and certificates of registration. All residential builders must be licensed by the
commission.
Question 2: A residential builder is required to be licensed before performing residential
construction work. What is the minimum bond requirement?
Answer: $15,000 surety bond.
,Rationale: South Carolina law requires residential builders to submit an executed bond in the
sum of not less than fifteen thousand dollars ($15,000) with a surety approved by the
commission. This bond provides financial protection to consumers and the public.
Question 3: What is the minimum experience requirement to qualify for the residential builder's
license examination?
Answer: One year of actual experience under the supervision of a licensed residential builder.
Rationale: A prerequisite for taking the examination for a residential builder's license is a
minimum of one year of actual experience under the supervision of a licensed residential builder
or other appropriately licensed professional engaged in residential building construction.
Question 4: What is the primary purpose of the building code?
Answer: To protect public health, safety, and welfare.
Rationale: Building codes are established to ensure safety, health, and welfare of the public by
regulating construction standards. They are not intended to control costs, ensure speed, or
regulate aesthetics.
Question 5: Which South Carolina code governs residential construction?
Answer: The South Carolina Residential Code (2021 Edition).
,Rationale: The South Carolina Residential Code 2021 Edition is the state's official construction
code for residential buildings, effective statewide as of January 1, 2023. It sets minimum
standards for residential construction in the state.
Question 6: A contractor must be licensed before engaging in which type of construction
project?
Answer: Residential construction projects in South Carolina.
Rationale: In South Carolina, residential builders must be licensed before performing
construction work on residential properties. This applies to construction, remodeling, repair, or
improvement of residential buildings.
Question 7: Which of the following is considered a residential building under South Carolina
law?
Answer: A single-family home.
Rationale: Residential buildings include single-family homes, townhouses, and other dwellings
intended for occupancy. Commercial buildings, office buildings, and retail centers are not
considered residential under the licensing framework.
, Question 8: What is the passing score for the Business Management and Law for Residential
Builders Examination?
Answer: 68% (34 correct answers out of 50 questions).
Rationale: The Business Management and Law for Residential Builders Examination consists of
50 questions. Candidates must answer 34 questions correctly (68%) to pass. This passing score
may change as examination performance is evaluated.
Question 9: What is the passing score for the Residential Builder (Trade) Examination?
Answer: 70% (77 correct answers out of 110 questions).
Rationale: The Residential Builder Examination consists of 110 questions. Candidates must
answer 77 questions correctly (70%) to pass. This passing score may change as examination
performance is evaluated.
Question 10: Under South Carolina law, how many stories may a residential building have
under the Residential Builder license?
Answer: Not exceeding three stories.
Rationale: The Residential Builder license is limited to construction, remodeling, repair, or
improvement of one-, two-, or multi-family residences not exceeding three stories in height
and/or 16 units in any single apartment building.