South Carolina Real Estate Exam
Questions With Correct Marking
Scheme
When a loan is subject to the provisions of the Real Estate Settlement Procedures Act
(RESPA), Which of the following elements of the Real estate transaction need NOT
observe RESPA guidelines - Answer- The Commission structure for licensees
Regulation Z of the Truth_in lending Act Provides what penalty for licensees who
willfully fail to comply with its advertising guidelines for real estate financing? - Answer-
Fines and/or imprisionment
Salesperson A for Broker B has listed a home. Salesperson C for Broker D is acting as
a Buyers agent and trying to sell the same home to his buyer. Salesperson C is
primarily responsible to: - Answer- Broker D
In MOST states, the listing broker has a fiduciary duty with - Answer- The Client
A broker was employed by an owner to sell her home. What does NOT correctly
describe the broker's relationship to the owner - Answer- The broker is a General Agent
You are a licensee holding an open house on one of your listings. An old friend sees the
sign and stops in, and ultimately asks you to write an offer to purchase. At this point,
without any discussion about agency, what is true about agency - Answer- Your friend is
your Customer
You listed a home that was subsequently shown by six cooperating outside brokers.
How many seller-agency relationships are involved in this transaction? - Answer- One
A Salesperson listed a home for sale and transferred to another brokerage firm two
weeks later. What describes the status of the statement. - Answer- The listing will stay
with the former broker of the salesperson.
A salesperson presented an offer that was accepted and received an earnest money
payment for $2,000. The salesperson should.. - Answer- Give money to the Broker
You are working as a buyer's broker for a client. What would NOT describe your role as
a buyer's broker? - Answer- You should show the buyer properties only in which your
commission is protected.
According to the law of agency, a real estate broker does NOT owe the principal the
duty of.. - Answer- Offering legal advice
, A broker acting as the agent of the seller... - Answer- Must report all offers to the
principal unless instructed otherwise.
A broker listed a residential property under a valid written listing agreement. After the
sale was completed, the owner refused to pay the broker's fee. What can the broker do?
- Answer- She can take the seller to court and sue for the commission
Commissions and fees paid by the seller to a listing agency are determined by -
Answer- Negotiations between the seller and the the listing licensee.
A listing broker is MOST likely to have earned a commission from a principal when .. -
Answer- A "Ready, Willing, and able buyer" signed a non contingent or cash offer that
meets the terms of the listing contract
A broker listed an owner's home and later received an offer from another licensee that
met all of the listing terms and conditions. After considering the offer, the owner
informed the broker that the owner no longer wished to sell, and asked to be released
from the listing agreement immediately. What is a TRUE statement about the brokers
position in this situation? - Answer- The broker may succeed in collecting an earned
commission from the owner.
On July 1 an owner and a salesperson entered into a six month exclusive right-to- sell
agreement for a residential property. On July 15 the owner rejected a low offer and fired
the listing agent. On August 1 there was a house fire that required extensive kitchen
repairs. On Sep 12 the owner entered into another exclusive -right-to sell agreement
with a salesperson of a different agency. On Jan 1 the property was still unsold. On
which date was the first listing agreement Most likely to terminate. - Answer- September
12, Because the owner breached the first listing agreement by signing a second.
An option, prior to being exercised, is an example of - Answer- Unilateral Contract
What is a similarity between an exclusive-right-to sell listing and an exclusive- agency
listing? - Answer- Both give the responsibility of representing the seller to just one
broker.
A buyer has entered into an agency agreement with more than one buyer's agent but
only owes compensation to the one who puts an actual transaction together. This
arrangement is known as ... - Answer- Nonexclusive agency agreement
What type of clauses governs the right of a listing broker to collect a commission from
an owner who waits until the listing period expires and then personally contracts to sell
the property to a party the broker had shown the property to during the listing period. -
Answer- Protection
Questions With Correct Marking
Scheme
When a loan is subject to the provisions of the Real Estate Settlement Procedures Act
(RESPA), Which of the following elements of the Real estate transaction need NOT
observe RESPA guidelines - Answer- The Commission structure for licensees
Regulation Z of the Truth_in lending Act Provides what penalty for licensees who
willfully fail to comply with its advertising guidelines for real estate financing? - Answer-
Fines and/or imprisionment
Salesperson A for Broker B has listed a home. Salesperson C for Broker D is acting as
a Buyers agent and trying to sell the same home to his buyer. Salesperson C is
primarily responsible to: - Answer- Broker D
In MOST states, the listing broker has a fiduciary duty with - Answer- The Client
A broker was employed by an owner to sell her home. What does NOT correctly
describe the broker's relationship to the owner - Answer- The broker is a General Agent
You are a licensee holding an open house on one of your listings. An old friend sees the
sign and stops in, and ultimately asks you to write an offer to purchase. At this point,
without any discussion about agency, what is true about agency - Answer- Your friend is
your Customer
You listed a home that was subsequently shown by six cooperating outside brokers.
How many seller-agency relationships are involved in this transaction? - Answer- One
A Salesperson listed a home for sale and transferred to another brokerage firm two
weeks later. What describes the status of the statement. - Answer- The listing will stay
with the former broker of the salesperson.
A salesperson presented an offer that was accepted and received an earnest money
payment for $2,000. The salesperson should.. - Answer- Give money to the Broker
You are working as a buyer's broker for a client. What would NOT describe your role as
a buyer's broker? - Answer- You should show the buyer properties only in which your
commission is protected.
According to the law of agency, a real estate broker does NOT owe the principal the
duty of.. - Answer- Offering legal advice
, A broker acting as the agent of the seller... - Answer- Must report all offers to the
principal unless instructed otherwise.
A broker listed a residential property under a valid written listing agreement. After the
sale was completed, the owner refused to pay the broker's fee. What can the broker do?
- Answer- She can take the seller to court and sue for the commission
Commissions and fees paid by the seller to a listing agency are determined by -
Answer- Negotiations between the seller and the the listing licensee.
A listing broker is MOST likely to have earned a commission from a principal when .. -
Answer- A "Ready, Willing, and able buyer" signed a non contingent or cash offer that
meets the terms of the listing contract
A broker listed an owner's home and later received an offer from another licensee that
met all of the listing terms and conditions. After considering the offer, the owner
informed the broker that the owner no longer wished to sell, and asked to be released
from the listing agreement immediately. What is a TRUE statement about the brokers
position in this situation? - Answer- The broker may succeed in collecting an earned
commission from the owner.
On July 1 an owner and a salesperson entered into a six month exclusive right-to- sell
agreement for a residential property. On July 15 the owner rejected a low offer and fired
the listing agent. On August 1 there was a house fire that required extensive kitchen
repairs. On Sep 12 the owner entered into another exclusive -right-to sell agreement
with a salesperson of a different agency. On Jan 1 the property was still unsold. On
which date was the first listing agreement Most likely to terminate. - Answer- September
12, Because the owner breached the first listing agreement by signing a second.
An option, prior to being exercised, is an example of - Answer- Unilateral Contract
What is a similarity between an exclusive-right-to sell listing and an exclusive- agency
listing? - Answer- Both give the responsibility of representing the seller to just one
broker.
A buyer has entered into an agency agreement with more than one buyer's agent but
only owes compensation to the one who puts an actual transaction together. This
arrangement is known as ... - Answer- Nonexclusive agency agreement
What type of clauses governs the right of a listing broker to collect a commission from
an owner who waits until the listing period expires and then personally contracts to sell
the property to a party the broker had shown the property to during the listing period. -
Answer- Protection
