SC REAL ESTATE LICENSING EXAM
In which of the following cases would a person probably be required to have a real estate
license?
Correct answer: Bruce gets hired to nd an oice suite for a friend who is relocating her
business.
A license applicant signs up to take the state examination, but has failed to obtain an
employer prior to the exam date. In this case, the applicant
Correct answer: may take the exam and receive an inactive license.
A broker operates an oice in a town on the state line. A buyer from the adjoining state
wants to see homes on both sides of the border. In this case, the broker
Correct answer: may not show the buyer homes in the other state without a non-resident
license.
A principal role of the real estate commission is to
Correct answer: administer state licensing requirements.
License regulators, empowered by state law to oversee brokerage practices, may
Correct answer: take punitive actions against fraud or misrepresentation.
A broker has her license suspended for violating state license law. In such a case, the
licenses of her three salespeople are
Correct answer: not valid.
The purpose of a recovery fund is to
Correct answer: ensure that judgments against licensees will be collectible.
,Of the following risk management strategies, the one that aims at minimizing both the
severity and the likelihood of loss is
Correct answer: reduction.
Insurance is a method of
Correct answer: risk outsourcing.
How does disclosure manage risk?
Correct answer: It deects and reduces risk by preventing others from claiming they were
misled.
Which of the following statements about a company procedures manual as a risk
management device is true?
Correct answer: It can be a guide to compliance with the law.
In what sense is the use of standardized forms a risk management procedure?
Correct answer: It reduces the risk of committing an unauthorized practice of law.
Keeping thorough records of every transaction is not only a risk management technique, it
is
Correct answer: a legal requirement.
Which of the following communication records must (as opposed to should) be kept?
Correct answer: Copies of required communications to principals.
The standard E & O policy covers damages resulting from
, Correct answer: negligence (failure to use reasonable care), error or omission in carrying
out professional services.
Which of the following is a common risk relating to the agency relationship?
Correct answer: Failing to inform and disclose properly.
Even after giving buyer and seller the required information about property condition
disclosures, the licensee may still be subject to legal action for
Correct answer: failing to disclose known adverse facts.
In performing a comparative market analysis, a licensee must be careful to
Correct answer: avoid creating a false impression that the licensee is a certied appraiser.
In fullling a listing agreement, one of the major risk areas is
Correct answer: exceeding the authority of the agreement.
A simple way of reducing the risk of committing an error or omission in the contracting
process is
Correct answer: use a checklist of all items, contingencies, dates and responsibilities that
must be met.
Regarding contracts and forms,
Correct answer: the principals may make changes as long as they sign or initial each
change.
The best way to minimize the risk of violating fair housing laws is to
Correct answer: obtain education in the content and intent of the laws.
In which of the following cases would a person probably be required to have a real estate
license?
Correct answer: Bruce gets hired to nd an oice suite for a friend who is relocating her
business.
A license applicant signs up to take the state examination, but has failed to obtain an
employer prior to the exam date. In this case, the applicant
Correct answer: may take the exam and receive an inactive license.
A broker operates an oice in a town on the state line. A buyer from the adjoining state
wants to see homes on both sides of the border. In this case, the broker
Correct answer: may not show the buyer homes in the other state without a non-resident
license.
A principal role of the real estate commission is to
Correct answer: administer state licensing requirements.
License regulators, empowered by state law to oversee brokerage practices, may
Correct answer: take punitive actions against fraud or misrepresentation.
A broker has her license suspended for violating state license law. In such a case, the
licenses of her three salespeople are
Correct answer: not valid.
The purpose of a recovery fund is to
Correct answer: ensure that judgments against licensees will be collectible.
,Of the following risk management strategies, the one that aims at minimizing both the
severity and the likelihood of loss is
Correct answer: reduction.
Insurance is a method of
Correct answer: risk outsourcing.
How does disclosure manage risk?
Correct answer: It deects and reduces risk by preventing others from claiming they were
misled.
Which of the following statements about a company procedures manual as a risk
management device is true?
Correct answer: It can be a guide to compliance with the law.
In what sense is the use of standardized forms a risk management procedure?
Correct answer: It reduces the risk of committing an unauthorized practice of law.
Keeping thorough records of every transaction is not only a risk management technique, it
is
Correct answer: a legal requirement.
Which of the following communication records must (as opposed to should) be kept?
Correct answer: Copies of required communications to principals.
The standard E & O policy covers damages resulting from
, Correct answer: negligence (failure to use reasonable care), error or omission in carrying
out professional services.
Which of the following is a common risk relating to the agency relationship?
Correct answer: Failing to inform and disclose properly.
Even after giving buyer and seller the required information about property condition
disclosures, the licensee may still be subject to legal action for
Correct answer: failing to disclose known adverse facts.
In performing a comparative market analysis, a licensee must be careful to
Correct answer: avoid creating a false impression that the licensee is a certied appraiser.
In fullling a listing agreement, one of the major risk areas is
Correct answer: exceeding the authority of the agreement.
A simple way of reducing the risk of committing an error or omission in the contracting
process is
Correct answer: use a checklist of all items, contingencies, dates and responsibilities that
must be met.
Regarding contracts and forms,
Correct answer: the principals may make changes as long as they sign or initial each
change.
The best way to minimize the risk of violating fair housing laws is to
Correct answer: obtain education in the content and intent of the laws.
