PSI Services LLC South Carolina Real Estate
2026/2027 | South Carolina PSI Real Estate Associate
& Broker License Exam Study Guide & Practice
Questions | South Carolina Real Estate State &
National Exam Prep, Licensing Law, Brokerage
Relationships, Agency, Contracts, Property Ownership,
Finance, Valuation, Real Estate Math, South Carolina
Regulations & Detailed Rationales
Question 1: Under South Carolina Real Estate Commission
regulations, what is the maximum allowable fee that may be
charged when a borrower assumes an existing mortgage loan?
A. 1% of the loan balance or $400, whichever is greater
B. 1% of the loan balance or $400, whichever is less
C. $500 flat fee regardless of loan amount
D. 2% of the loan balance with no dollar cap
CORRECT ANSWER: B. 1% of the loan balance or $400, whichever
is less
Rationale: South Carolina law specifically limits assumption fees on
mortgage loans to the lesser of 1% of the loan amount or $400, protecting
borrowers from excessive charges when taking over an existing mortgage
obligation.
Question 2: A licensee in South Carolina places their license on
inactive status. Which of the following activities is that licensee
permitted to perform while holding inactive status?
A. Negotiate purchase agreements on behalf of clients
B. List properties for sale under a broker-in-charge
C. Practice real estate brokerage as defined by statute
D. None of the above activities are permitted
CORRECT ANSWER: D. None of the above activities are permitted
Rationale: South Carolina Code Section 40-57-110 expressly prohibits
inactive licensees from practicing real estate brokerage as defined in the
chapter. An inactive license does not authorize any brokerage activities.
Question 3: What is the required experience for a broker license
applicant in South Carolina following the 2024 Real Estate Practice
Act updates?
,A. Three years of active South Carolina salesperson licensure within the
past five years
B. Five years of active South Carolina associate licensure within the past
seven years
C. Two years of active licensure in any jurisdiction with no time limitation
D. Four years of active licensure with a bachelor's degree in real estate
CORRECT ANSWER: B. Five years of active South Carolina
associate licensure within the past seven years
Rationale: The 2024 amendments to the Real Estate Practice Act increased
the broker experience requirement. Applicants applying on or after May 21,
2024, must demonstrate five years of active South Carolina associate
licensure within the preceding seven years, up from the prior three-year
requirement.
Question 4: A South Carolina licensee is engaged as a transaction
broker for a customer. Which of the following actions may the
licensee perform for that customer?
A. Advocate for the customer's position in negotiations
B. Process paperwork and provide ministerial acts
C. Recommend specific contract terms favorable to the customer
D. Represent the customer's interests exclusively
CORRECT ANSWER: B. Process paperwork and provide ministerial
acts
Rationale: In a transaction broker relationship, the licensee provides limited
services to the customer without advocating for either party. Ministerial
acts such as processing paperwork are permitted, but advocacy, negotiation
on the customer's behalf, and exclusive representation are not.
Question 5: Under South Carolina law, how long must a residential
mortgage loan be to qualify for statutory protection against
prepayment penalties?
A. $100,000 or less
B. $150,000 or less
C. $200,000 or less
D. Any amount for owner-occupied properties
CORRECT ANSWER: B. $150,000 or less
,Rationale: South Carolina law prohibits prepayment penalties on residential
mortgage loans of $150,000 or less, providing consumer protection for
borrowers with smaller residential loans.
Question 6: A South Carolina real estate salesperson has just
received an earnest money deposit from a buyer. According to the
license law, what is the salesperson's immediate obligation
regarding these funds?
A. Deposit the funds into a personal savings account for safekeeping
B. Deliver the funds to the broker-in-charge or the broker's designated trust
account
C. Hold the funds personally until closing
D. Forward the funds directly to the seller
CORRECT ANSWER: B. Deliver the funds to the broker-in-charge or
the broker's designated trust account
Rationale: Earnest money and other trust funds must be handled according
to South Carolina trust account requirements. The salesperson must
promptly deliver such funds to the broker-in-charge or the brokerage's
designated trust account.
Question 7: What is the maximum interest rate that may be
charged in South Carolina on a loan agreement that is not in
writing?
A. 3%
B. 4%
C. 6%
D. 12%
CORRECT ANSWER: C. 6%
Rationale: South Carolina law limits interest on oral loan agreements to 6%.
For written agreements, parties may agree to any lawful rate.
Question 8: A South Carolina licensee is involved in a personal real
estate transaction. What must the licensee disclose to the other
parties?
A. The licensee's licensed status
B. The licensee's commission split arrangement
, C. The licensee's years of experience
D. The licensee's personal financial information
CORRECT ANSWER: A. The licensee's licensed status
Rationale: South Carolina law requires that a licensee clearly reveal their
license status in any personal transaction involving the purchase, sale,
exchange, rental, or lease of real estate.
Question 9: Which of the following tasks may an unlicensed
assistant perform in South Carolina?
A. Interpret contract information for a client
B. Negotiate commission amounts with clients
C. Write advertisements for broker-in-charge approval
D. Show property to prospective buyers
CORRECT ANSWER: C. Write advertisements for broker-in-charge
approval
Rationale: Unlicensed assistants in South Carolina may perform
administrative tasks such as drafting advertisements, provided the broker-
in-charge reviews and approves the final product. Tasks requiring a license
include interpreting contracts, negotiating, and showing property.
Question 10: What is the assessment ratio for residential owner-
occupied property in South Carolina?
A. 4%
B. 6%
C. 9.5%
D. 10.5%
CORRECT ANSWER: A. 4%
Rationale: South Carolina law establishes a 4% assessment ratio for
residential owner-occupied properties. The assessment ratio for rental and
non-owner-occupied property is 6%.
Question 11: A South Carolina property owner over age 65 may
receive what homestead exemption benefit?
A. Appraised value reduced by $50,000 with application
B. Assessed value reduced by $20,000 with application
2026/2027 | South Carolina PSI Real Estate Associate
& Broker License Exam Study Guide & Practice
Questions | South Carolina Real Estate State &
National Exam Prep, Licensing Law, Brokerage
Relationships, Agency, Contracts, Property Ownership,
Finance, Valuation, Real Estate Math, South Carolina
Regulations & Detailed Rationales
Question 1: Under South Carolina Real Estate Commission
regulations, what is the maximum allowable fee that may be
charged when a borrower assumes an existing mortgage loan?
A. 1% of the loan balance or $400, whichever is greater
B. 1% of the loan balance or $400, whichever is less
C. $500 flat fee regardless of loan amount
D. 2% of the loan balance with no dollar cap
CORRECT ANSWER: B. 1% of the loan balance or $400, whichever
is less
Rationale: South Carolina law specifically limits assumption fees on
mortgage loans to the lesser of 1% of the loan amount or $400, protecting
borrowers from excessive charges when taking over an existing mortgage
obligation.
Question 2: A licensee in South Carolina places their license on
inactive status. Which of the following activities is that licensee
permitted to perform while holding inactive status?
A. Negotiate purchase agreements on behalf of clients
B. List properties for sale under a broker-in-charge
C. Practice real estate brokerage as defined by statute
D. None of the above activities are permitted
CORRECT ANSWER: D. None of the above activities are permitted
Rationale: South Carolina Code Section 40-57-110 expressly prohibits
inactive licensees from practicing real estate brokerage as defined in the
chapter. An inactive license does not authorize any brokerage activities.
Question 3: What is the required experience for a broker license
applicant in South Carolina following the 2024 Real Estate Practice
Act updates?
,A. Three years of active South Carolina salesperson licensure within the
past five years
B. Five years of active South Carolina associate licensure within the past
seven years
C. Two years of active licensure in any jurisdiction with no time limitation
D. Four years of active licensure with a bachelor's degree in real estate
CORRECT ANSWER: B. Five years of active South Carolina
associate licensure within the past seven years
Rationale: The 2024 amendments to the Real Estate Practice Act increased
the broker experience requirement. Applicants applying on or after May 21,
2024, must demonstrate five years of active South Carolina associate
licensure within the preceding seven years, up from the prior three-year
requirement.
Question 4: A South Carolina licensee is engaged as a transaction
broker for a customer. Which of the following actions may the
licensee perform for that customer?
A. Advocate for the customer's position in negotiations
B. Process paperwork and provide ministerial acts
C. Recommend specific contract terms favorable to the customer
D. Represent the customer's interests exclusively
CORRECT ANSWER: B. Process paperwork and provide ministerial
acts
Rationale: In a transaction broker relationship, the licensee provides limited
services to the customer without advocating for either party. Ministerial
acts such as processing paperwork are permitted, but advocacy, negotiation
on the customer's behalf, and exclusive representation are not.
Question 5: Under South Carolina law, how long must a residential
mortgage loan be to qualify for statutory protection against
prepayment penalties?
A. $100,000 or less
B. $150,000 or less
C. $200,000 or less
D. Any amount for owner-occupied properties
CORRECT ANSWER: B. $150,000 or less
,Rationale: South Carolina law prohibits prepayment penalties on residential
mortgage loans of $150,000 or less, providing consumer protection for
borrowers with smaller residential loans.
Question 6: A South Carolina real estate salesperson has just
received an earnest money deposit from a buyer. According to the
license law, what is the salesperson's immediate obligation
regarding these funds?
A. Deposit the funds into a personal savings account for safekeeping
B. Deliver the funds to the broker-in-charge or the broker's designated trust
account
C. Hold the funds personally until closing
D. Forward the funds directly to the seller
CORRECT ANSWER: B. Deliver the funds to the broker-in-charge or
the broker's designated trust account
Rationale: Earnest money and other trust funds must be handled according
to South Carolina trust account requirements. The salesperson must
promptly deliver such funds to the broker-in-charge or the brokerage's
designated trust account.
Question 7: What is the maximum interest rate that may be
charged in South Carolina on a loan agreement that is not in
writing?
A. 3%
B. 4%
C. 6%
D. 12%
CORRECT ANSWER: C. 6%
Rationale: South Carolina law limits interest on oral loan agreements to 6%.
For written agreements, parties may agree to any lawful rate.
Question 8: A South Carolina licensee is involved in a personal real
estate transaction. What must the licensee disclose to the other
parties?
A. The licensee's licensed status
B. The licensee's commission split arrangement
, C. The licensee's years of experience
D. The licensee's personal financial information
CORRECT ANSWER: A. The licensee's licensed status
Rationale: South Carolina law requires that a licensee clearly reveal their
license status in any personal transaction involving the purchase, sale,
exchange, rental, or lease of real estate.
Question 9: Which of the following tasks may an unlicensed
assistant perform in South Carolina?
A. Interpret contract information for a client
B. Negotiate commission amounts with clients
C. Write advertisements for broker-in-charge approval
D. Show property to prospective buyers
CORRECT ANSWER: C. Write advertisements for broker-in-charge
approval
Rationale: Unlicensed assistants in South Carolina may perform
administrative tasks such as drafting advertisements, provided the broker-
in-charge reviews and approves the final product. Tasks requiring a license
include interpreting contracts, negotiating, and showing property.
Question 10: What is the assessment ratio for residential owner-
occupied property in South Carolina?
A. 4%
B. 6%
C. 9.5%
D. 10.5%
CORRECT ANSWER: A. 4%
Rationale: South Carolina law establishes a 4% assessment ratio for
residential owner-occupied properties. The assessment ratio for rental and
non-owner-occupied property is 6%.
Question 11: A South Carolina property owner over age 65 may
receive what homestead exemption benefit?
A. Appraised value reduced by $50,000 with application
B. Assessed value reduced by $20,000 with application
