SC Real Estate Final Exam Prep Exam #1
questions and solutions
A buyer, contacts a real estate office because she is interested in relocating to the area and
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
would like some help finding a house. Which of the following actions requires an agency
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agreement between the buyer and the real estate office?
vc vc vc vc vc vc vc vc vc
A:The real estate office gives the buyer printouts of houses that meet her specifications.
vc vc vc vc vc vc vc vc vc vc vc vc vc
B: The real estate office works with the buyer to prequalify her for a mortgage.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
C: The real estate office provides the buyer with current rates and terms for mortgages.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: The real estate office explains the different types of agency relationships that can exist
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
between buyer and broker. - answersThe real estate office works with the buyer to prequalify
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
her for a mortgage.
vc vc vc vc
In order to prequalify the buyer, the real estate office must receive confidential information, so
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
this action requires that an agency relationship be established. Providing other types of
vc vc vc vc vc vc vc vc vc vc vc vc vc
information such as listing details and current mortgage rates does not require an agency
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
relationship.
vc
A property's seller does not wish to have a subagency or disclosed dual agency relationship for
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the transaction. Prospective buyers ask the licensee representing the seller to show them the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
seller's house. May the licensee show the property to the buyers under these circumstances?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: Yes, as long as the buyers agree in writing to not having any representation.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
B: Yes, but Kate must inform the buyers in writing that she represents the seller's best interests.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
C: Yes, as long as the buyers first enter a buyer representation agreement with another
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
licensee.
vc
D: No, because the seller opposes a disclosed dual agency or subagency relationship and Kate
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
cannot show the property to the buyers without engendering such a relationship. - answersYes,
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
as long as the buyers agree in writing to not having any representation.
vc vc vc vc vc vc vc vc vc vc vc vc vc
In this situation the buyers must agree, in writing, to no representation before Kate can show
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
them the seller's property.
vc vc vc vc
A provisional broker advertises in the local paper as "Eric Rose, Real Estate Salesperson - Let
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
me help you find a new home!" What else MUST he include in his advertisement?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: His real estate license number
vc vc vc vc vc
B: The expiration date of his real estate license
vc vc vc vc vc vc vc vc
C: The name of his employing broker
vc vc vc vc vc vc
D: His cell phone number and email address - answersThe name of his employing broker
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A licensed provisional broker MUST include the name of the employing broker in all advertising.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A realty company has agency agreements with both a buyer and a seller. The buyer would like to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
make an offer on the seller's property. Under what circumstances, if any, is this permitted?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: This is only allowable if both parties give their consent to the dual agency.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
B: This is only allowable if the seller has agreed to pay the commission.
vc vc vc vc vc vc vc vc vc vc vc vc vc
, C: Since both parties have signed agency agreements, this is allowable.
vc vc vc vc vc vc vc vc vc vc
D: Dual agency is never allowable in the state of South Carolina. - answersThis is only allowable
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
if both parties give their consent to the dual agency.
vc vc vc vc vc vc vc vc vc vc
If both the seller and buyer give informed written consent to the dual agency, the realty company
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
may represent both parties regardless of who pays the commission.
vc vc vc vc vc vc vc vc vc vc
A salesperson's company has just received a listing that her sister would like to make an offer on
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the bungalow. What should the salesperson do?
vc vc vc vc vc vc vc
A: Tell the seller that the prospective buyer is related to the agent
vc vc vc vc vc vc vc vc vc vc vc vc
B: Refer her sister to another licensee for representation
vc vc vc vc vc vc vc vc
C: Counsel her sister to make an offer on a house listed with another company
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: Represent her sister in the transaction because family relationship need not be disclosed to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the seller as long as the sister signs an agency agreement - answersTell the seller that the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
prospective buyer is related to the agent
vc vc vc vc vc vc vc
A broker is representing the seller in the sale of his home. When prospective buyers call about
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
seeing the property the broker must do which of the following?
vc vc vc vc vc vc vc vc vc vc vc
A: The broker must insist up front that all prospective buyers sign a waiver form before he can
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
show them the home.
vc vc vc vc
B: The broker must not show the home to any prospective buyers who have not signed a buyer's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agency agreement.
vc vc
C: The broker must tell the prospective buyers that he represents the seller's interest in the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
property being sold.
vc vc vc
D: The broker is under no obligation to inform prospective buyers of his status as the seller's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agent. - answersThe broker must tell the prospective buyers that he represents the seller's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
interest in the property being sold.
vc vc vc vc vc vc
At what point in proceedings is a client relationship between broker and buyer formalized?
vc vc vc vc vc vc vc vc vc vc vc vc vc
A: When the broker shows prospective properties to the buyer
vc vc vc vc vc vc vc vc vc
B: When the buyer shares confidential information, such as financial portfolio details
vc vc vc vc vc vc vc vc vc vc vc
C: When the buyer and broker both sign an agency agreement
vc vc vc vc vc vc vc vc vc vc
D: When the buyer seeking representation signs an agency disclosure form - answersWhen the
vc vc vc vc vc vc vc vc vc vc vc vc vc
buyer and broker both sign an agency agreement
vc vc vc vc vc vc vc vc
A applicant for a salespersons license has an adverse items on his credit report. Is he required to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
divulge this information during his application?
vc vc vc vc vc vc
A: No, credit reports and credit scores are private and confidential.
vc vc vc vc vc vc vc vc vc vc
B: Yes, an applicant with adverse items on a credit report must reveal that fact on their
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
application.
vc
C: No, as long as the adverse items are were added to the credit report over 1 year ago.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: No, as long as their credit score is still over 550. - answersYes, an applicant with adverse
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
items on a credit report must reveal that fact on their application.
vc vc vc vc vc vc vc vc vc vc vc vc
Any applicant who has adverse items on a credit report must reveal that fact on their application.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
The Commission may review the application and then conduct an investigation before an
vc vc vc vc vc vc vc vc vc vc vc vc vc
examination can be scheduled
vc vc vc vc
A broker had his broker's license revoked for conviction on drug charges. How soon may a new
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
license be issued to him?
vc vc vc vc vc
questions and solutions
A buyer, contacts a real estate office because she is interested in relocating to the area and
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
would like some help finding a house. Which of the following actions requires an agency
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agreement between the buyer and the real estate office?
vc vc vc vc vc vc vc vc vc
A:The real estate office gives the buyer printouts of houses that meet her specifications.
vc vc vc vc vc vc vc vc vc vc vc vc vc
B: The real estate office works with the buyer to prequalify her for a mortgage.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
C: The real estate office provides the buyer with current rates and terms for mortgages.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: The real estate office explains the different types of agency relationships that can exist
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
between buyer and broker. - answersThe real estate office works with the buyer to prequalify
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
her for a mortgage.
vc vc vc vc
In order to prequalify the buyer, the real estate office must receive confidential information, so
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
this action requires that an agency relationship be established. Providing other types of
vc vc vc vc vc vc vc vc vc vc vc vc vc
information such as listing details and current mortgage rates does not require an agency
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
relationship.
vc
A property's seller does not wish to have a subagency or disclosed dual agency relationship for
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the transaction. Prospective buyers ask the licensee representing the seller to show them the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
seller's house. May the licensee show the property to the buyers under these circumstances?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: Yes, as long as the buyers agree in writing to not having any representation.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
B: Yes, but Kate must inform the buyers in writing that she represents the seller's best interests.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
C: Yes, as long as the buyers first enter a buyer representation agreement with another
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
licensee.
vc
D: No, because the seller opposes a disclosed dual agency or subagency relationship and Kate
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
cannot show the property to the buyers without engendering such a relationship. - answersYes,
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
as long as the buyers agree in writing to not having any representation.
vc vc vc vc vc vc vc vc vc vc vc vc vc
In this situation the buyers must agree, in writing, to no representation before Kate can show
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
them the seller's property.
vc vc vc vc
A provisional broker advertises in the local paper as "Eric Rose, Real Estate Salesperson - Let
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
me help you find a new home!" What else MUST he include in his advertisement?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: His real estate license number
vc vc vc vc vc
B: The expiration date of his real estate license
vc vc vc vc vc vc vc vc
C: The name of his employing broker
vc vc vc vc vc vc
D: His cell phone number and email address - answersThe name of his employing broker
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A licensed provisional broker MUST include the name of the employing broker in all advertising.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A realty company has agency agreements with both a buyer and a seller. The buyer would like to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
make an offer on the seller's property. Under what circumstances, if any, is this permitted?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
A: This is only allowable if both parties give their consent to the dual agency.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
B: This is only allowable if the seller has agreed to pay the commission.
vc vc vc vc vc vc vc vc vc vc vc vc vc
, C: Since both parties have signed agency agreements, this is allowable.
vc vc vc vc vc vc vc vc vc vc
D: Dual agency is never allowable in the state of South Carolina. - answersThis is only allowable
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
if both parties give their consent to the dual agency.
vc vc vc vc vc vc vc vc vc vc
If both the seller and buyer give informed written consent to the dual agency, the realty company
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
may represent both parties regardless of who pays the commission.
vc vc vc vc vc vc vc vc vc vc
A salesperson's company has just received a listing that her sister would like to make an offer on
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the bungalow. What should the salesperson do?
vc vc vc vc vc vc vc
A: Tell the seller that the prospective buyer is related to the agent
vc vc vc vc vc vc vc vc vc vc vc vc
B: Refer her sister to another licensee for representation
vc vc vc vc vc vc vc vc
C: Counsel her sister to make an offer on a house listed with another company
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: Represent her sister in the transaction because family relationship need not be disclosed to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
the seller as long as the sister signs an agency agreement - answersTell the seller that the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
prospective buyer is related to the agent
vc vc vc vc vc vc vc
A broker is representing the seller in the sale of his home. When prospective buyers call about
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
seeing the property the broker must do which of the following?
vc vc vc vc vc vc vc vc vc vc vc
A: The broker must insist up front that all prospective buyers sign a waiver form before he can
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
show them the home.
vc vc vc vc
B: The broker must not show the home to any prospective buyers who have not signed a buyer's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agency agreement.
vc vc
C: The broker must tell the prospective buyers that he represents the seller's interest in the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
property being sold.
vc vc vc
D: The broker is under no obligation to inform prospective buyers of his status as the seller's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
agent. - answersThe broker must tell the prospective buyers that he represents the seller's
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
interest in the property being sold.
vc vc vc vc vc vc
At what point in proceedings is a client relationship between broker and buyer formalized?
vc vc vc vc vc vc vc vc vc vc vc vc vc
A: When the broker shows prospective properties to the buyer
vc vc vc vc vc vc vc vc vc
B: When the buyer shares confidential information, such as financial portfolio details
vc vc vc vc vc vc vc vc vc vc vc
C: When the buyer and broker both sign an agency agreement
vc vc vc vc vc vc vc vc vc vc
D: When the buyer seeking representation signs an agency disclosure form - answersWhen the
vc vc vc vc vc vc vc vc vc vc vc vc vc
buyer and broker both sign an agency agreement
vc vc vc vc vc vc vc vc
A applicant for a salespersons license has an adverse items on his credit report. Is he required to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
divulge this information during his application?
vc vc vc vc vc vc
A: No, credit reports and credit scores are private and confidential.
vc vc vc vc vc vc vc vc vc vc
B: Yes, an applicant with adverse items on a credit report must reveal that fact on their
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
application.
vc
C: No, as long as the adverse items are were added to the credit report over 1 year ago.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
D: No, as long as their credit score is still over 550. - answersYes, an applicant with adverse
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
items on a credit report must reveal that fact on their application.
vc vc vc vc vc vc vc vc vc vc vc vc
Any applicant who has adverse items on a credit report must reveal that fact on their application.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
The Commission may review the application and then conduct an investigation before an
vc vc vc vc vc vc vc vc vc vc vc vc vc
examination can be scheduled
vc vc vc vc
A broker had his broker's license revoked for conviction on drug charges. How soon may a new
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
license be issued to him?
vc vc vc vc vc
