South Carolina Real Estate Exam (State Portion Only) Questions With Correct Answers

South Carolina Real Estate Exam (State
Portion Only) Questions With Correct
Answers
The |creditor |should |ascertain |the |preference |of |the |_____ |as |to |legal |counsel |relating |to
|closing |the |loan |and |insurance |agent.



A) |lender

B) |seller

C) |real |estate |agent

D) |borrower |- |CORRECT |ANSWER✔✔-D) |borrower



The |assumption |fee |when |assuming |a |loan |in |SC |may |not |exceed |_____.

A) |1% |of |the |loan |or |$400, |whichever |is |greater

B) |1/2% |of |the |loan

C) |$500

D) |1% |of |the |loan |or |$400, |whichever |is |less |- |CORRECT |ANSWER✔✔-D) |1% |of |the |loan |or
|$400, |whichever |is |less




Loans |that |can |be |prepaid |without |penalty |are |those |which |are |_____.

A) |$150,000 |or |less

B) |Residential |mortgage |loans |of |$150,000 |or |less

C) |Investment |mortgage |loans |of |$150,000 |or |less

D) |Commercial |mortgage |loans |of |$150,000 |or |less |- |CORRECT |ANSWER✔✔-B) |Residential
|mortgage |loans |of |$150,000 |or |less




No |greater |than |_____ |interest |can |be |charged |in |South |Carolina |on |loans |that |are |agreed |to
|orally.

,A) |3%

B) |4%

C) |6%

D) |12% |- |CORRECT |ANSWER✔✔-C) |6%



In |South |Carolina, |if |a |mortgage |loan |is |written, |the |amount |of |interest |that |can |be |charged |is
|_____.



A) |no |more |than |6%

B) |any |amount |agreed |to |by |the |parties

C) |no |more |than |18%

D) |not |covered |by |this |law |- |CORRECT |ANSWER✔✔-B) |any |amount |agreed |to |by |the |parties



Federal |law |allows |lenders |to |charge |a |pre-payment |penalty |on |adjustable |rate |mortgages.
|How |does |this |affect |borrowers |in |South |Carolina?



A) |Borrowers |in |South |Carolina |do |not |pay |a |pre-payment |penalty |on |loans |under |$150,000
|but |federal |law |takes |precedence |on |ARMs



B) |Although |the |federal |law |allows |it, |SC |law |does |not |allow |a |pre-payment |penalty |on |ARMs

C) |ARMs |do |not |have |a |pre-payment |penalty |as |long |as |the |mortgage |balance |does |not |exceed
|$150,000



D) |ARMs |do |not |have |a |pre-payment |penalty |as |long |as |the |mortgage |balance |does |not
|exceed |$250,000 |- |CORRECT |ANSWER✔✔-B) |Although |the |federal |law |allows |it, |SC |law |does
|not |allow |a |pre-payment |penalty |on |ARMs




In |South |Carolina, |the |law |has |set |an |assessment |rate. |What |is |the |rate |for |RESIDENTIAL
|OWNER-OCCUPIED |property?



A) |4%

B) |6%

C) |9 |1/2%

,D) |10 |1/2% |- |CORRECT |ANSWER✔✔-A) |4%



In |South |Carolina, |the |law |has |set |an |assessment |rate. |What |is |the |rate |for |RENTAL
|NONOWNER-OCCUPIED |property?



A) |4%

B) |6%

C) |9 |1/2%

D) |10 |1/2% |- |CORRECT |ANSWER✔✔-B) |6%



A |person |who |is |over |65 |years |of |age |may |get |a |break |on |his/her |Ad |Valorem |tax. |What |is |the
|nature |of |this |special |treatment?



A) |With |application, |his/her |appraised |value |will |be |reduced |by |$50,000

B) |His/her |assessed |value |will |be |reduced |by |$50,000

C) |With |application, |his/her |assessed |value |will |be |reduced |by |$20,000

D) |With |application, |his/her |appraised |value |will |be |reduced |by |$20,000 |- |CORRECT
ANSWER✔✔-A) |With |application, |his/her |appraised |value |will |be |reduced |by |$50,000
|




The |assessed |value |is |$3,000 |and |the |tax |is |based |on |200 |mills. |How |much |is |the |tax?

A) |$500

B) |$600

C) |$700

D) |$800 |- |CORRECT |ANSWER✔✔-B) |$600 |[NOTE: |($3,000 |assessed |value)(0.200 |mill |rate) |=
|$600 |annual |tax]




The |assessor's |appraisal |was |$67,900 |on |the |rental |house |owned |by |the |three |little |pigs. |They
|sold |it |and |had |a |closing |on |August |18. |What |was |the |amount |of |taxes |to |be |prorated |at


|closing |if |the |tax |rate |was |134 |mills, |the |assessment |rate |was |6%, |and |the |pigs |agreed |to |pay


|through |closing? |(Use |a |360 |day |year)

, A) |$300.75

B) |$325.75

C) |$345.75

D) |$365.75 |- |CORRECT |ANSWER✔✔-C) |$345.75 |[NOTE: |($67,900 |appraisal)(6% |assessment
|rate |on |rental |property) |= |$4,074 |assessed |value. |Then, |($4,074 |assessed |value)(0.134 |mill


|rate) |= |$545.916 |annual |tax. |Now |divide |$545.916 |by |360 |days |to |get |$1.51643/day. |Because


|they |closed |on |August |18th, |there |are |228 |days |from |January |1st |to |August |18th. |Therefore,


|($1.51643/day)(228 |days) |= |$345.75 |in |taxes.




A |property |was |assessed |for |tax |purposes |at |80% |of |its |$140,000 |purchase |price. |Using |a |tax
|rate |of |25.8 |mills, |what |will |the |annual |taxes |be |on |the |property?



A) |$3,612.50

B) |$2,889.60

C) |$2,800.70

D) |$2,064.80 |- |CORRECT |ANSWER✔✔-B) |$2,889.60 |[NOTE: |($140,000 |purchase |price)(0.80) |=
|$112,000 |assessed |value. |Then, |($112,000 |assessed |value)(0.0258 |mill |rate) |= |$2,889.60


|annual |tax]




"Ad |valorem" |tax |refers |to |_____.

A) |surtax

B) |state |sales |tax

C) |a |tax |according |to |value

D) |a |tax |on |property |transfer |- |CORRECT |ANSWER✔✔-C) |a |tax |according |to |value



In |South |Carolina, |a |person |qualifies |for |the |Homestead |Exemption |if |he/she |holds |a |fee
|simple |title |or |a |life |estate |and |as |of |December |31 |preceding |the |tax |year |of |the |exemption


|was |a |legal |resident |for |one |year |and |_____.



A) |has |reached |age |65, |is |blind, |or |declared |permanently |disabled |by |an |agency |authorized |to
|make |such |a |declaration