SOUTH CAROLINA REAL ESTATE EXAM PRACTICE QUESTIONS

"Flipping" a consumer home loan means the making of a consumer home loan that refinances within how long an existing consumer home loan of the borrower when the new loan does not have a reasonable, tangible net benefit to the borrower? - answer-42 months A "blighted area" means an area that, - answer-in its present condition and use substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals or welfare. A buyer is viewing a home and asks the agent if any sex offenders live in the immediate area. How should the agent respond? - answer-educate the buyer on doing a search for sex offenders in the area A Certificate of Reasonable Value - answer-is issued once the appraisal has been completed on a property being purchased with a VA loan. a chattell mortgage - answer-is a mortgage that is secured by personal property. A conventional loan is a loan that is NOT issued by: - answer-The government A deed is a legal document that: - answer-conveys title to the property A development map that shows the location and sizes of lots and streets is known as a - answer-grid plan A general agent has full authority to: - answer-Bind the principal to all agreements A landlord is allowed to access the premises unannounced in which they own for: - answer-Only in case of emergency A lease that is often based on the Consumer Price Index and that allows for periodic increases in the rent is called a: - answer-graduated lease A licensed agent working under John, a broker, withdraws funds from John's broker trust account with John's permission. The agent is licensed but not bonded. This transaction would be: - answer-illegal A loan in which a person will pay approximately a quarter percent higher than a loan in which there is one "point" is called: - answer-no point loan A mortgage is also sometimes referred to as a: - answer-first trust deed A mortgage that can be taken over by the buyer when a home is sold, assuming the buyer qualifies, is called a(n): - answer-assumable mortgage A real estate investment trust, which is also a real estate syndicate, requires at least this many investors according to federal law? - answer-100 A recipient of a high cost loan on a property in South Carolina must - answer-receive counseling on the advisability of the loan A title search would show: - answer-clouds A warrant of ejectment may be issued, upon landlords application, after how much time has passed with the tenant being in violation of court orders? - answer-5 days According to the Do-Not-Call rules imposed by the FTC effective October 13, 2013, all sellers and telemarketers making pre-recorded telephone calls, auto-dialed calls, or text messages to residential or wireless numbers must have the: - answer-consumers written consent After getting the real estate salesperson license, how often must you take Continuing Education classes? - answer-10 hrs every 2 years An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage, is called: - answer-a seller-carry back An easement by prescription may establish: - answer-use of property An estate can best be described as: - answer-The sum total of all the real and personal property owned by an individual at the time of death Any encumbrance placed on a property without the owner's consent is considered: - answer-an involuntary lien Appurtenances are - answer-objects, rights, or interests that are incidental to the land and go with or pertain to the land. ARM= - answer-Stands for adjustable-rate mortgage and one in which the interest rate adjusts periodically based on an index Betty Broker presents an offer to her seller, but the terms are not acceptable to the seller. What form must Betty complete? - answer-an offer rejection form Cash or something that is easily turned into cash is called a: - answer-liquid asset Common law refers to: - answer-An unwritten body of law based on general custom in England and used in some states to a certain degree Disabled people are protected under Fair Housing law when renting in multi-family units. How many units must be in the construction, in order for the law to apply? - answer-4 Disposition (which can also be called alienation), refers to the disposal of something. - answer-In real estate it is a right of alienation to do this with real property. Does South Carolina have homestead laws? - answer-YES Earthquake zones, flood hazard areas, and fire hazard areas are all examples of: - answer-natural hazard areas he Residential Property Condition Disclosure form applies to transactions that involve no more than, how many units? - answer-4 Homeowner's association usually enforce - answer-CC&Rs How long does a South Carolina landlord have to return a security deposit to a tenant at the conslusion of a lease? - answer-30 days How long must a Broker in Charge or Property Manager in Charge retain their Trust Fund Account records? - answer-5 years how many acres are in a section? - answer-640 How many years must a full copy of a transaction file be held by a broker after closing? - answer-5 How many years of sales experience must a salesperson have in order to qualify to take the brokers exam? - answer-3 If a church, school, or hospital wishes to relocate to an area zoned exclusively for residential use, they could do so by: - answer-conditional use If a contract is written and parts are incomplete or ambiguous, what type of agreement takes preference: - answer-oral contract If a contract signed by two parties is bilateral but the contract is not executed, the contract is: - answer-executory If a loan goes to _______________, the lender must mail and record certain documents in case they have to foreclose on the property. - answer-collection If a person is obtaining a loan through the government (FHA and VA), which entity provides the funds for the government loan? - answer-ginnie mae If an agent acts in a way that prevents disclosure of something, this action is called: - answer-concealment If Betty has a mortgage and it becomes in default, the lender can demand payment by means of a clause in the contract called a(n): - answer-accelerated clause If Jonathan lists his property with Julian, a broker in his hometown, and subsequently is killed in a tragic car accident before the listing is sold or expired, what happens with the listing? - answer-it is terminated If Mary really wants to purchase John's house, and tells John's agent that she is willing to pay $560,000 for it instead of the list price of $540,000, John's agent should: - answer-Tell john If two parties are in escrow and one of the parties wants to terminate the escrow, what is needed? - answer-consent of the other party In a case in which the seller refuses to pay the broker a commission and the broker does not sue the seller, what can the sales agent do to receive the commission due to him/her? - answer-sue the broker In a lease-purchase, the tenant-buyer wants to purchase a property but does not have the down payment or ability to purchase the property outright. Which of these occurs with the rental payments? - answer-a portion of the rental payment will be applied to purchasing price In an area neighborhood that has a home in a dilapidated state that would require extensive remodeling to be compared to other homes in the area, what would this be an example of: - answer-incurable depreciation In the event that parties do not comply with the bulk sales law as outlined in the Uniform Commercial Code, the buyer is likely to be: - answer-the most injured Is SC a community property state? - answer-No Jeremy is a lender for a several loans. Once a year Jeremy performs a duty to make sure he is collecting the appropriate amount of money for the anticipated expenditures. This action that Jeremy takes is called a(n): - answer-escrow analysis Lenders will always order this before making a loan. - answer-an appraisal Liabilities, including long-term and short-term debt and any amounts owed to others, is best known as a person's: - answer-financial obligations May eviction and foreclosure notices be delivered electronically in South Carolina? - answer-NO Mortgage "discount" points only apply if which of the following conditions are met? - answer-The interest rate on the mortgage loan has been lowered by 1% for each point charged. Mortgage loans with fluctuating rates are termed as - answer-ARM PITI = - answer-Principle, Interest, Taxes, and Insurance Real property where all the owners own the property, common areas, and building together but with the exception of the interior of the unit to which they have title is called: - answer-a condominuim Salespersons must present any client monies received, to their broker, within - answer-1 business day Standing trees would be considered: - answer-real property The act of using property to secure a loan while at the same time retaining the use and benefit of the property is called - answer-hypothecation The amount per $1,000 used to calculate taxes on property is the - answer-milliage rate The broker's loan statement must include (among other things) estimated costs including - answer-escrow, title, appraisal, notary, recording, and credit investigations. The common name of the hazardous-waste cleanup fund established by the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) is - answer-superfund The FHA uses what to pay lenders, within the limits, resulting from foreclosure? - answer-Mutual Mortgage Insurance The fund set aside for replacement of common property in a condominium, PUD or cooperative project is called a: - answer-Replacement reserve fund The height of most ceilings in a single family home is: - answer-8 ft The net spendable income generated by an investment is referred to as - answer-Cash flow the process of obtaining a new loan - answer-loan origination