South Carolina Real Estate Exam
(State Portion Only) fully solved
already passed
D) borrower - correct answer ✔✔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
D) 1% of the loan or $400, whichever is less - correct answer ✔✔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
B) Residential mortgage loans of $150,000 or less - correct answer ✔✔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
C) 6% - correct answer ✔✔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%
B) any amount agreed to by the parties - correct answer ✔✔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
B) Although the federal law allows it, SC law does not allow a pre-payment penalty on ARMs -
correct answer ✔✔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
A) 4% - correct answer ✔✔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%
B) 6% - correct answer ✔✔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%
A) With application, his/her appraised value will be reduced by $50,000 - correct answer ✔✔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
B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) = $600 annual tax] - correct answer
✔✔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
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. - correct answer ✔✔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
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] - correct answer ✔✔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
C) a tax according to value - correct answer ✔✔"Ad valorem" tax refers to _____.
A) surtax
B) state sales tax
C) a tax according to value
D) a tax on property transfer
B) was declared totally and permanently disabled by an agency authorized to make such a
declaration, or turned 65, or was legally blind as certified by a licensed ophthalmologist
registered with the South Carolina Commission for the Blind - correct answer ✔✔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 _____.
(State Portion Only) fully solved
already passed
D) borrower - correct answer ✔✔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
D) 1% of the loan or $400, whichever is less - correct answer ✔✔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
B) Residential mortgage loans of $150,000 or less - correct answer ✔✔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
C) 6% - correct answer ✔✔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%
B) any amount agreed to by the parties - correct answer ✔✔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
B) Although the federal law allows it, SC law does not allow a pre-payment penalty on ARMs -
correct answer ✔✔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
A) 4% - correct answer ✔✔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%
B) 6% - correct answer ✔✔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%
A) With application, his/her appraised value will be reduced by $50,000 - correct answer ✔✔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
B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) = $600 annual tax] - correct answer
✔✔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
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. - correct answer ✔✔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
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] - correct answer ✔✔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
C) a tax according to value - correct answer ✔✔"Ad valorem" tax refers to _____.
A) surtax
B) state sales tax
C) a tax according to value
D) a tax on property transfer
B) was declared totally and permanently disabled by an agency authorized to make such a
declaration, or turned 65, or was legally blind as certified by a licensed ophthalmologist
registered with the South Carolina Commission for the Blind - correct answer ✔✔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 _____.
