SOUTH CAROLINA REAL ESTATE EXAM
STATE PORTION ONLY PRACTICE
QUESTIONS AND CORRECT ANSWERS 2026
COMPLETE SC STATE LAW LICENSING
EXAM STUDY GUIDE LATEST REAL
ESTATE SALESPERSON EXAM PREP
GRADE A+ STUDY RESOURCE
The South Carolina Real Estate Commission has the authority to _____.
A) make and enforce the rules by which all real estate licenses must abide
B) compose the examination questions on the state exam
C) administer the exams given at the testing sites
D) enact the laws that govern real estate licenses - CORRECT ANSWER -A)
make and enforce the rules by which al The creditor should ascertain the
preference of the _____ as to legal counsel relating to closing the loan and
insurance agent.
A) lender
B) seller
C) real estate agent
D) borrower - CORRECT ANSWER -D) borrower
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 - CORRECT 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 - CORRECT 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% - CORRECT 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 - CORRECT 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 - CORRECT 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% - CORRECT 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% - CORRECT 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 -
CORRECT 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 - CORRECT 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)
A) $300.75
B) $325.75
C) $345.75
STATE PORTION ONLY PRACTICE
QUESTIONS AND CORRECT ANSWERS 2026
COMPLETE SC STATE LAW LICENSING
EXAM STUDY GUIDE LATEST REAL
ESTATE SALESPERSON EXAM PREP
GRADE A+ STUDY RESOURCE
The South Carolina Real Estate Commission has the authority to _____.
A) make and enforce the rules by which all real estate licenses must abide
B) compose the examination questions on the state exam
C) administer the exams given at the testing sites
D) enact the laws that govern real estate licenses - CORRECT ANSWER -A)
make and enforce the rules by which al The creditor should ascertain the
preference of the _____ as to legal counsel relating to closing the loan and
insurance agent.
A) lender
B) seller
C) real estate agent
D) borrower - CORRECT ANSWER -D) borrower
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 - CORRECT 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 - CORRECT 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% - CORRECT 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 - CORRECT 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 - CORRECT 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% - CORRECT 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% - CORRECT 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 -
CORRECT 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 - CORRECT 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)
A) $300.75
B) $325.75
C) $345.75
