SC REAL ESTATE SALES PERSON
EXAM - NATIONAL PORTION ONLY
QUESTIONS & DETAILED ANSWERS
ALL PASSED
Sondra thinks the new business contract she's signed with her business partner is valid.
Both parties are legally competent, the purpose is a business transaction so it's a legal
purpose, an offer was made and accepted, and a fee has been negotiated and
documented. Which essential element of a valid contract has Sondra not yet
considered? - CORRECT ANSWER Whether the consent was voluntary.
Tawna agrees to sell her small plot of land to Morris for $5,000 cash. They don't write
up a contract, but otherwise all the necessary elements for a valid contract are in place.
What's the status of this contract? - CORRECT ANSWER It's valid but not enforceable
Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks
prior to turning 18, which is the age of majority in their state. Debra found out about his
age prior to the closing but honored the contract and they closed on the condo a month
after Ken's birthday. What was the status of the contract when Ken and Debra entered
into it? - CORRECT ANSWER Voidable
What's the meaning of "good faith" in relation to contract law? - CORRECT ANSWER
The parties agree that they'll execute the contract to the best of their ability and without
any fraud or misrepresentation.
Jerry and Lewis have entered into a sales contract. They're about three weeks into the
transaction, with several terms of the agreement yet to be met. What type of contract do
Jerry and Lewis have? - CORRECT ANSWER Executory, A valid contract that is in
progress is an executory contract, which means that one or more terms of the
agreement remain undone.
Breanna signs a contract offering to purchase Kathy's home for $150,000. Kathy replies,
"No way," but offers to sell it to her for $200,000. Breanna agrees to these terms and
they add their signatures. Which of the following statements is correct? - CORRECT
ANSWER Breanna accepted the offer Kathy made. Kathy's offer to sell the home is a
counter offer, and when Breanna agrees to the terms of the counter, it constitutes
acceptance.
Kenneth enters into a contract to sell his home to Valerie, who puts down a $5,000
earnest money deposit. At the last minute, Valerie backs out of the deal. Kenneth keeps
, the earnest deposit. This is an example of ______. - CORRECT ANSWER Accepting
Liquidated Damages. "Liquidated damages provide a specific compensation amount in
the event of a breach. That's the correct answer.
Seller Gina feels awful that Martha, who was going to buy Gina's property, lost her job.
Gina decides to ______ Martha from her obligation to pay earnest money, so that
money is returned to Martha. - CORRECT ANSWER Release. (when one party wants
out and the other agrees to release that party from any obligations)
You're explaining to your client that using electronic documents and signatures
simplifies the homebuying process. Your client is skeptical about these signatures. You
describe the Uniform Electronic Transactions Act (UETA) and tell your client that
______. - CORRECT ANSWER State Laws take Precedence over UETA
The ____________ is an attempt to standardize acceptance of electronic documents
and signatures, but state laws govern the use of these electronic items, and will take
precedence of the UETA. - CORRECT ANSWER UETA
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
Desmond a commission. What type of contract do Desmond and the Harpers have? -
CORRECT ANSWER Bilateral
A contract involving two parties who both make a promise to the other party in
exchange for consideration is a ______ contract. - CORRECT ANSWER Bilateral
Related to the legal description of land, what's a monument? - CORRECT ANSWER A
permanent land marker sometimes used in legal descriptions.
Debra's listing agent, Raj, just called to tell her that he'd received an offer on her house
and an earnest money check for $4,500. "I'm on my way over to go through the offer
with you. I think you'll like it!" Debra's excited, and she knows exactly what she wants to
spend that $4,500 on. What's wrong with Debra's thought process? - CORRECT
ANSWER The earnest money doesn't belong to Debra. It will be held in an escrow
account.
Sherman, who owns property in a life estate, neglects the property, significantly
diminishing its value. This is called ______. - CORRECT ANSWER An act of waste
Which statement correctly identifies a federal fair housing law and what it addresses? -
CORRECT ANSWER Title VIII of the Civil Rights Act of 1968 prohibits housing
discrimination based on race, color, national origin, and religion.
Seth owns a property on a small island with six other property owners. Recently, Seth
built a fishing pier along the water's edge; however, the pier is actually on his neighbor's
EXAM - NATIONAL PORTION ONLY
QUESTIONS & DETAILED ANSWERS
ALL PASSED
Sondra thinks the new business contract she's signed with her business partner is valid.
Both parties are legally competent, the purpose is a business transaction so it's a legal
purpose, an offer was made and accepted, and a fee has been negotiated and
documented. Which essential element of a valid contract has Sondra not yet
considered? - CORRECT ANSWER Whether the consent was voluntary.
Tawna agrees to sell her small plot of land to Morris for $5,000 cash. They don't write
up a contract, but otherwise all the necessary elements for a valid contract are in place.
What's the status of this contract? - CORRECT ANSWER It's valid but not enforceable
Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks
prior to turning 18, which is the age of majority in their state. Debra found out about his
age prior to the closing but honored the contract and they closed on the condo a month
after Ken's birthday. What was the status of the contract when Ken and Debra entered
into it? - CORRECT ANSWER Voidable
What's the meaning of "good faith" in relation to contract law? - CORRECT ANSWER
The parties agree that they'll execute the contract to the best of their ability and without
any fraud or misrepresentation.
Jerry and Lewis have entered into a sales contract. They're about three weeks into the
transaction, with several terms of the agreement yet to be met. What type of contract do
Jerry and Lewis have? - CORRECT ANSWER Executory, A valid contract that is in
progress is an executory contract, which means that one or more terms of the
agreement remain undone.
Breanna signs a contract offering to purchase Kathy's home for $150,000. Kathy replies,
"No way," but offers to sell it to her for $200,000. Breanna agrees to these terms and
they add their signatures. Which of the following statements is correct? - CORRECT
ANSWER Breanna accepted the offer Kathy made. Kathy's offer to sell the home is a
counter offer, and when Breanna agrees to the terms of the counter, it constitutes
acceptance.
Kenneth enters into a contract to sell his home to Valerie, who puts down a $5,000
earnest money deposit. At the last minute, Valerie backs out of the deal. Kenneth keeps
, the earnest deposit. This is an example of ______. - CORRECT ANSWER Accepting
Liquidated Damages. "Liquidated damages provide a specific compensation amount in
the event of a breach. That's the correct answer.
Seller Gina feels awful that Martha, who was going to buy Gina's property, lost her job.
Gina decides to ______ Martha from her obligation to pay earnest money, so that
money is returned to Martha. - CORRECT ANSWER Release. (when one party wants
out and the other agrees to release that party from any obligations)
You're explaining to your client that using electronic documents and signatures
simplifies the homebuying process. Your client is skeptical about these signatures. You
describe the Uniform Electronic Transactions Act (UETA) and tell your client that
______. - CORRECT ANSWER State Laws take Precedence over UETA
The ____________ is an attempt to standardize acceptance of electronic documents
and signatures, but state laws govern the use of these electronic items, and will take
precedence of the UETA. - CORRECT ANSWER UETA
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
Desmond a commission. What type of contract do Desmond and the Harpers have? -
CORRECT ANSWER Bilateral
A contract involving two parties who both make a promise to the other party in
exchange for consideration is a ______ contract. - CORRECT ANSWER Bilateral
Related to the legal description of land, what's a monument? - CORRECT ANSWER A
permanent land marker sometimes used in legal descriptions.
Debra's listing agent, Raj, just called to tell her that he'd received an offer on her house
and an earnest money check for $4,500. "I'm on my way over to go through the offer
with you. I think you'll like it!" Debra's excited, and she knows exactly what she wants to
spend that $4,500 on. What's wrong with Debra's thought process? - CORRECT
ANSWER The earnest money doesn't belong to Debra. It will be held in an escrow
account.
Sherman, who owns property in a life estate, neglects the property, significantly
diminishing its value. This is called ______. - CORRECT ANSWER An act of waste
Which statement correctly identifies a federal fair housing law and what it addresses? -
CORRECT ANSWER Title VIII of the Civil Rights Act of 1968 prohibits housing
discrimination based on race, color, national origin, and religion.
Seth owns a property on a small island with six other property owners. Recently, Seth
built a fishing pier along the water's edge; however, the pier is actually on his neighbor's
