THE CE SHOP PRACTICE TEST SC REAL
ESTATE | 2026 ACTUAL UPDATE |
QUESTIONS AND ANSWERS | WITH
COMPLETE SOLUTION!!
**If there is no agency agreement in place, the agent who's assisting
the buyer represents the seller.
If special assessments apply to a property involved in a South Carolina
sales transaction, who's responsible for paying the assessment?
-The brokers representing the buyer and seller
-The buyer, if the assessment is applied prior to closing
-The closing attorney
-The seller, if the assessment is applied prior to closing - ANSWERS-
The seller, if the assessment is applied prior to closing
**The sellers are responsible for paying any special assessments
applied before closing, and the buyers are responsible for any that are
applied after closing.
Mark is a seller who prepaid his property taxes. What happens to the
amount he prepaid and won't benefit from when he sells?
-He'll receive a credit at closing.
-He'll receive a debit at closing.
,-The buyer must repay this amount when the next property taxes are
due.
-The excess funds are deposited into the state's Widows and Orphans
Fund. - ANSWERS-He'll receive a credit at closing.
**Prepaid items are credited to the seller at closing. Accrued but not
yet paid items are credited to the buyer at closing.
Deducting the costs of maintaining and operating an income property
provides a(n) _______ that's attractive to many real estate investors.
-Credit boost
-Increase in equity
-Profit
-Tax shelter - ANSWERS-Tax shelter
When performing a market analysis, given the adjusted sales prices of
three comparables, which comparable would you weigh most heavily?
-The one that had more upward adjustments than the others
-The one that required less adjustment
-The one with an adjusted sales price higher than the actual sales
price
-The one with the adjusted sales price lower than the actual sales
price - ANSWERS-The one that required less adjustment
**The comparable that required less adjustment overall (including
both upward and downward adjustments) will be the one most similar
to the subject property. Therefore, it would be weighed most heavily.
,In South Carolina, the parties agree in the sales contract to a repair
procedure unless what document is attached?
-Amendment to Repair Procedure
-Due Diligence Addendum
-Seller Disclosure Statement
-Waiver of Repair Procedure - ANSWERS-Due Diligence Addendum
Without a buyer agency agreement in place, which party does the
agent who's assisting the buyer represent?
-No one
-The agent
-The buyer
-The seller - ANSWERS-The seller
**Operating expenses can be deducted from rental income, and
therefore provide a tax shelter that makes investing more attractive.
Hiram plans to do a 1031 tax-deferred exchange. He just sold his
property. How many days does he have to close on a new property?
-180
-30
-45
-60 - ANSWERS-180
, Denise is the listing agent on a property that's next to a lake. When
advertising the property for sale, she describes it as "waterfront." Is
this okay?
-No, she didn't mention how much frontage the property has on the
lake.
-No, the word "waterfront" is misleading.
-Yes, as long as she includes a photo.
-Yes, the house sits next to the lake. - ANSWERS-Yes, the house sits
next to the lake.
**Using "waterfront" to describe this property is acceptable. Now, if
the only water in sight was a small man-made pond the sellers put in
... that'd be a different story.
Earnest money in South Carolina must be deposited using _________.
-Any legal tender
-Cash or money order
-Wired funds or a certified check
-Wired funds or a money order - ANSWERS-Any legal tender
**Earnest money in South Carolina can be paid using a personal
check, cash, or through other means.
The IRS will only allow _______ of passive losses to be deducted
against active taxable income.
-2000
-3000
-4000
ESTATE | 2026 ACTUAL UPDATE |
QUESTIONS AND ANSWERS | WITH
COMPLETE SOLUTION!!
**If there is no agency agreement in place, the agent who's assisting
the buyer represents the seller.
If special assessments apply to a property involved in a South Carolina
sales transaction, who's responsible for paying the assessment?
-The brokers representing the buyer and seller
-The buyer, if the assessment is applied prior to closing
-The closing attorney
-The seller, if the assessment is applied prior to closing - ANSWERS-
The seller, if the assessment is applied prior to closing
**The sellers are responsible for paying any special assessments
applied before closing, and the buyers are responsible for any that are
applied after closing.
Mark is a seller who prepaid his property taxes. What happens to the
amount he prepaid and won't benefit from when he sells?
-He'll receive a credit at closing.
-He'll receive a debit at closing.
,-The buyer must repay this amount when the next property taxes are
due.
-The excess funds are deposited into the state's Widows and Orphans
Fund. - ANSWERS-He'll receive a credit at closing.
**Prepaid items are credited to the seller at closing. Accrued but not
yet paid items are credited to the buyer at closing.
Deducting the costs of maintaining and operating an income property
provides a(n) _______ that's attractive to many real estate investors.
-Credit boost
-Increase in equity
-Profit
-Tax shelter - ANSWERS-Tax shelter
When performing a market analysis, given the adjusted sales prices of
three comparables, which comparable would you weigh most heavily?
-The one that had more upward adjustments than the others
-The one that required less adjustment
-The one with an adjusted sales price higher than the actual sales
price
-The one with the adjusted sales price lower than the actual sales
price - ANSWERS-The one that required less adjustment
**The comparable that required less adjustment overall (including
both upward and downward adjustments) will be the one most similar
to the subject property. Therefore, it would be weighed most heavily.
,In South Carolina, the parties agree in the sales contract to a repair
procedure unless what document is attached?
-Amendment to Repair Procedure
-Due Diligence Addendum
-Seller Disclosure Statement
-Waiver of Repair Procedure - ANSWERS-Due Diligence Addendum
Without a buyer agency agreement in place, which party does the
agent who's assisting the buyer represent?
-No one
-The agent
-The buyer
-The seller - ANSWERS-The seller
**Operating expenses can be deducted from rental income, and
therefore provide a tax shelter that makes investing more attractive.
Hiram plans to do a 1031 tax-deferred exchange. He just sold his
property. How many days does he have to close on a new property?
-180
-30
-45
-60 - ANSWERS-180
, Denise is the listing agent on a property that's next to a lake. When
advertising the property for sale, she describes it as "waterfront." Is
this okay?
-No, she didn't mention how much frontage the property has on the
lake.
-No, the word "waterfront" is misleading.
-Yes, as long as she includes a photo.
-Yes, the house sits next to the lake. - ANSWERS-Yes, the house sits
next to the lake.
**Using "waterfront" to describe this property is acceptable. Now, if
the only water in sight was a small man-made pond the sellers put in
... that'd be a different story.
Earnest money in South Carolina must be deposited using _________.
-Any legal tender
-Cash or money order
-Wired funds or a certified check
-Wired funds or a money order - ANSWERS-Any legal tender
**Earnest money in South Carolina can be paid using a personal
check, cash, or through other means.
The IRS will only allow _______ of passive losses to be deducted
against active taxable income.
-2000
-3000
-4000
