PSI Test Practice
**** A broker cannot legally collect commissions from both the seller and the buyer without
A) notifying both parties of this fact orally after the sale has closed
B) notifying both parties of this fact in writing after the sale has closed
C) having exclusive listing agreements signed by both the seller and the buyer
D) having the prior knowledge and written consent of both the seller and the buyer - ANS -D)
having the prior knowledge and written consent of both the seller and the buyer
\**** A broker has a house listed and one of the sales agents has a buyer client who is
interested in the property. That sales agent must
A) refer the client to another real estate company to avoid problems
B) tell the client that he or she must agree to become a customer
C) get prior consent from both buyer and seller to participate in either dual or designated agency
D) let the seller know of the agency relationship with the buyer simply as a courtesy - ANS -C)
get prior consent from both buyer and seller to participate in either dual or designated agency
\**** A broker-in-charge intends to open a branch office in a neighboring town. The
Broker-in-charge applies for a branch office license, giving a name that clearly identifies its
relationship with his main office. The BIC names a licensed real estate salesperson as the
branch office manager. Under these facts, could the BIC receive approval for the branch office?
A) Yes, the BIC has fully complied with the requirements
B) No, under the license, brokers cannot be in charge of branch offices in more than one
municipality
C) Yes, by naming the salesperson as the branch's manager, the BIC is in compliance with the
requirement that a broker may be in direct operational control of only one office or branch.
D) Yes, if the SC Real Estate Commission approves one broker acting as BIC of two offices -
ANS -D) Yes, if the SC Real Estate Commission approves one broker acting as BIC of two
offices
\**** A buyer agency agreement must contain all of the following EXCEPT
A) method of compensation
B) explanation of compensation to participating brokers
C) description of agent's duties
D) notification of intent to cancel after expiration date - ANS -D) notification of intent to cancel
after expiration date
\**** A couple has signed a lease containing a provision to waive their rights to the interest
earned from the security deposit. This provision is
A) unenforceable, thus making the lease invalid
B) unenforceable, but the lease is still valid
,C) enforceable, because the couple agreed to the provision
D) enforceable only up to a security deposit limit of $1,000 - ANS -C) enforceable, because the
couple agreed to the provision
\**** A lease with an escalator clause is an example of what type of lease?
a. Graduated
b. Net
c. Gross
d. Percentage - ANS -a. Graduated
\**** A licensee from another state applying for a license in South Carolina must file with the SC
Real Estate Commission a
A) certificate of specific performance
B) irrevocable consent to suit
C) corpus delicti
D) copy of their birth certificate - ANS -B) irrevocable consent to suit
\**** A person must be licensed as a real estate broker or salesperson if that person is
A) selling his or her house
B) buying a house for his or her personal use
C) engaging in the real estate business
D) constructing houses - ANS -C) engaging in the real estate business
\**** A real estate licensee who wishes to also become a property manager
A) may also apply for a property manager's license
B) must first acquire a broker's license
C) must attend a 30-hour property management course
D) may manage property with a real estate license - ANS -D) may manage property with a real
estate license
\**** A resident licensee may pay a part of his/her commission on a cooperative basis to a
licensee of another state if that licensee does not conduct any of the negotiations for which a
fee, compensation or commission is paid in this state.
a. true
b. false - ANS -a. true
\**** A sales agent has a buyer-client that wishes to put in an offer on a property that the
company has listed. Both the seller and the buyer want exclusive representation. Which type of
agency would satisfy this request?
A) disclosed dual agency
B) designated agency
C) buyer agency only
D) seller agency only - ANS -B) designated agency
,\**** A special warranty deed differs from a general warranty deed in that the grantor's covenant
in the special warranty deed
A) applies only to a definite limited time
B) covers the time back to the original title
C) is implied and is not written in full
D) protects all subsequent owners of the property - ANS -A) applies only to a definite limited
time
\**** A tenant pays rent and a security deposit. What are the regulations regarding the deposit of
these funds?
A) the rent must be deposited into the general account and the security deposit placed into the
escrow account
B) the rent must be deposited into one escrow account and the security deposit placed into
another escrow account
C) both the rent and the security deposit can be deposited in the same escrow account
D) the rent must be sent directly to the owner and the security deposit placed into the escrow
account - ANS -A) the rent must be deposited into the general account and the security deposit
placed into the escrow account
\**** A third party holds title to property on behalf of someone else through the use of a
A) devise
B) quitclaim deed
C) bequest
D) deed in trust - ANS -D) deed in trust
\**** All of the following are protected classes under the Fair Housing Laws EXCEPT
A) race
B) handicap
C) value
D) national origin - ANS -C) value
\**** An unlicensed salesman negotiated the sale of real estate. The commission is payable to
A) the broker
B) the salesman
C) no one
D) an escrow holder - ANS -C) no one
\**** Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has
refused buyer representation. Karl is Joan's
a. client
b. principal
c. customer
d. fiduciary - ANS -c. customer
, \**** Confidentiality can be breached in all of the following situations EXCEPT when
A) the principal grants consent to disclose
B) the local association of REALTORS accuses an agent of wrongful conduct
C) a court of law requires the information
D) another client may benefit - ANS -D) another client may benefit
\**** How must a landlord handle a security deposit?
a. it can only be collected on a residential unit
b. landlords must pay tenants interest on their security deposit
c. at the end of the lease, the landlord cannot apply the security deposit to rent owed by the
tenant
d. the landlord must return the security deposit, with an itemized list of deductions, to the tenant
within 30 days of the end of the lease - ANS -d. the landlord must return the security deposit,
with an itemized list of deductions, to the tenant within 30 days of the end of the lease
\**** If a tenant's whereabouts are unknown, how many days must the landlord wait before
declaring abandonment?
A) 5 days
B) 10 days
C) 15 days
D) 30 days - ANS -C) 15 days
\**** If the buyer defaulted some time ago on a written contract to purchase a seller's real estate,
the seller can still sue for damages if he is not prohibited from doing so by the
a. statute of frauds
b. law of agency
c. statute of limitations
d. broker-attorney accord - ANS -c. statute of limitations
\**** In SC, the following requirements for obtaining a broker's license EXCEPT
A) having successfully completed 150 hours of approved real estate courses
B) being at least 21 years of age
C) having been actively engaged as a licensed salesperson for at least 5 years
D) being of good moral character - ANS -C) having been actively engaged as a licensed
salesperson for at least 5 years
\**** In South Carolina, real estate license law is administered by the
A) South Carolina Human Affairs Commission
B) South Carolina Real Estate Commission
C) South Carolina Association of Realtors
D) Department of Housing and Urban Development - ANS -B) South Carolina Real Estate
Commission
**** A broker cannot legally collect commissions from both the seller and the buyer without
A) notifying both parties of this fact orally after the sale has closed
B) notifying both parties of this fact in writing after the sale has closed
C) having exclusive listing agreements signed by both the seller and the buyer
D) having the prior knowledge and written consent of both the seller and the buyer - ANS -D)
having the prior knowledge and written consent of both the seller and the buyer
\**** A broker has a house listed and one of the sales agents has a buyer client who is
interested in the property. That sales agent must
A) refer the client to another real estate company to avoid problems
B) tell the client that he or she must agree to become a customer
C) get prior consent from both buyer and seller to participate in either dual or designated agency
D) let the seller know of the agency relationship with the buyer simply as a courtesy - ANS -C)
get prior consent from both buyer and seller to participate in either dual or designated agency
\**** A broker-in-charge intends to open a branch office in a neighboring town. The
Broker-in-charge applies for a branch office license, giving a name that clearly identifies its
relationship with his main office. The BIC names a licensed real estate salesperson as the
branch office manager. Under these facts, could the BIC receive approval for the branch office?
A) Yes, the BIC has fully complied with the requirements
B) No, under the license, brokers cannot be in charge of branch offices in more than one
municipality
C) Yes, by naming the salesperson as the branch's manager, the BIC is in compliance with the
requirement that a broker may be in direct operational control of only one office or branch.
D) Yes, if the SC Real Estate Commission approves one broker acting as BIC of two offices -
ANS -D) Yes, if the SC Real Estate Commission approves one broker acting as BIC of two
offices
\**** A buyer agency agreement must contain all of the following EXCEPT
A) method of compensation
B) explanation of compensation to participating brokers
C) description of agent's duties
D) notification of intent to cancel after expiration date - ANS -D) notification of intent to cancel
after expiration date
\**** A couple has signed a lease containing a provision to waive their rights to the interest
earned from the security deposit. This provision is
A) unenforceable, thus making the lease invalid
B) unenforceable, but the lease is still valid
,C) enforceable, because the couple agreed to the provision
D) enforceable only up to a security deposit limit of $1,000 - ANS -C) enforceable, because the
couple agreed to the provision
\**** A lease with an escalator clause is an example of what type of lease?
a. Graduated
b. Net
c. Gross
d. Percentage - ANS -a. Graduated
\**** A licensee from another state applying for a license in South Carolina must file with the SC
Real Estate Commission a
A) certificate of specific performance
B) irrevocable consent to suit
C) corpus delicti
D) copy of their birth certificate - ANS -B) irrevocable consent to suit
\**** A person must be licensed as a real estate broker or salesperson if that person is
A) selling his or her house
B) buying a house for his or her personal use
C) engaging in the real estate business
D) constructing houses - ANS -C) engaging in the real estate business
\**** A real estate licensee who wishes to also become a property manager
A) may also apply for a property manager's license
B) must first acquire a broker's license
C) must attend a 30-hour property management course
D) may manage property with a real estate license - ANS -D) may manage property with a real
estate license
\**** A resident licensee may pay a part of his/her commission on a cooperative basis to a
licensee of another state if that licensee does not conduct any of the negotiations for which a
fee, compensation or commission is paid in this state.
a. true
b. false - ANS -a. true
\**** A sales agent has a buyer-client that wishes to put in an offer on a property that the
company has listed. Both the seller and the buyer want exclusive representation. Which type of
agency would satisfy this request?
A) disclosed dual agency
B) designated agency
C) buyer agency only
D) seller agency only - ANS -B) designated agency
,\**** A special warranty deed differs from a general warranty deed in that the grantor's covenant
in the special warranty deed
A) applies only to a definite limited time
B) covers the time back to the original title
C) is implied and is not written in full
D) protects all subsequent owners of the property - ANS -A) applies only to a definite limited
time
\**** A tenant pays rent and a security deposit. What are the regulations regarding the deposit of
these funds?
A) the rent must be deposited into the general account and the security deposit placed into the
escrow account
B) the rent must be deposited into one escrow account and the security deposit placed into
another escrow account
C) both the rent and the security deposit can be deposited in the same escrow account
D) the rent must be sent directly to the owner and the security deposit placed into the escrow
account - ANS -A) the rent must be deposited into the general account and the security deposit
placed into the escrow account
\**** A third party holds title to property on behalf of someone else through the use of a
A) devise
B) quitclaim deed
C) bequest
D) deed in trust - ANS -D) deed in trust
\**** All of the following are protected classes under the Fair Housing Laws EXCEPT
A) race
B) handicap
C) value
D) national origin - ANS -C) value
\**** An unlicensed salesman negotiated the sale of real estate. The commission is payable to
A) the broker
B) the salesman
C) no one
D) an escrow holder - ANS -C) no one
\**** Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has
refused buyer representation. Karl is Joan's
a. client
b. principal
c. customer
d. fiduciary - ANS -c. customer
, \**** Confidentiality can be breached in all of the following situations EXCEPT when
A) the principal grants consent to disclose
B) the local association of REALTORS accuses an agent of wrongful conduct
C) a court of law requires the information
D) another client may benefit - ANS -D) another client may benefit
\**** How must a landlord handle a security deposit?
a. it can only be collected on a residential unit
b. landlords must pay tenants interest on their security deposit
c. at the end of the lease, the landlord cannot apply the security deposit to rent owed by the
tenant
d. the landlord must return the security deposit, with an itemized list of deductions, to the tenant
within 30 days of the end of the lease - ANS -d. the landlord must return the security deposit,
with an itemized list of deductions, to the tenant within 30 days of the end of the lease
\**** If a tenant's whereabouts are unknown, how many days must the landlord wait before
declaring abandonment?
A) 5 days
B) 10 days
C) 15 days
D) 30 days - ANS -C) 15 days
\**** If the buyer defaulted some time ago on a written contract to purchase a seller's real estate,
the seller can still sue for damages if he is not prohibited from doing so by the
a. statute of frauds
b. law of agency
c. statute of limitations
d. broker-attorney accord - ANS -c. statute of limitations
\**** In SC, the following requirements for obtaining a broker's license EXCEPT
A) having successfully completed 150 hours of approved real estate courses
B) being at least 21 years of age
C) having been actively engaged as a licensed salesperson for at least 5 years
D) being of good moral character - ANS -C) having been actively engaged as a licensed
salesperson for at least 5 years
\**** In South Carolina, real estate license law is administered by the
A) South Carolina Human Affairs Commission
B) South Carolina Real Estate Commission
C) South Carolina Association of Realtors
D) Department of Housing and Urban Development - ANS -B) South Carolina Real Estate
Commission
