SC Real Estate Exam Practice With Complete Solution

Darryl owns a property in a critical coastal area in South Carolina. What obligation does he have? - Answer Darryl must disclose that the property lies in a critical area and is subject to limitations. South Carolina licensee Joseph tells his client that a property is zoned as residential, even though he knows it's zoned as commercial. This violation is an example of ______. - Answer Making a substantial and willful misrepresentation Erin is purchasing a new house in South Carolina for $160,000. She's financing 90% of the sales price. What does the Consumer Protection Code permit in terms of prepayment penalties? - Answer A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less. Which of these is a tenant obligation in South Carolina? - Answer Allow the landlord access when a periodic service or critical repair is needed When are designated agents permitted to disclose confidential information to their broker? - Answer When the designated agent is seeking advice or assistance for the client's benefit Which of the following is an example of commingling? - Answer Depositing trust funds into a general business account To receive a new South Carolina real estate license after the original was revoked, an applicant must provide proof of competence to practice real estate, a good reputation for honesty and fairness, and ________. - Answer Trustworthiness In South Carolina, smoke detectors are required in residential dwellings with how many units? - Answer One to two units In which of these scenarios would the consumer need a South Carolina real estate license? - Answer Jessie is negotiating the purchase a new home for a friend moving into town. Her friend will compensate her 2% of the sale price for her time and effort. Mathew is a South Carolina salesperson representing a seller on behalf of his broker-in-charge, Lanie. Kendra is a salesperson representing a buyer on behalf of her broker-in-charge, Janelle. Mathew's listing agreement provides for compensation to the buyer's agent in the transaction. Who will Kendra receive her compensation from? - Answer Janelle Alfred, a South Carolina licensee, received trust funds from a client on Monday. When must he deliver the funds to his broker-in-charge? - Answer By end of day Tuesday Which of these would NOT be considered first substantive contact with a customer? - Answer Engaging in small talk about the weather and the desire to buy property Time share sales are regulated by ______. - Answer The South Carolina Real Estate Commission Which one of the following is NOT an example of how agency terminates by operation of law? - Answer Mutual agreement to terminate What's true of the agency relationship in transaction brokerage? - Answer No agency relationship is created in transaction brokerage. Which of these South Carolina real estate license holders is considered to have an active license? - Answer Claudia, a salesperson who is lawfully representing clients in real estate transactions. Which one of the following is an example of how agency can be terminated by an act of the agent? - Answer Renunciation Dolcita is an unlicensed assistant for the Ace Team at Acme Realty in South Carolina. Which of the following best describes how Dolcita can be compensated for her work? - Answer Hourly, salaried, or per activity Wendell once held a real estate license in South Carolina. After some mishandling of trust funds, he's prohibited from practicing real estate for the next three years, after which he can apply for a new license. Which term best describes his current license status? - Answer Revoked Which of the following is an example of conversion? - Answer A broker uses client trust funds without the client's permission. How many members of the South Carolina Real Estate Commission are active real estate professionals? - Answer Eight What's a buyer representation agreement? - Answer A legal document that formalizes the working relationship between the agent and buyer client What must a consumer do to initiate an investigation into possible fair housing violations in the state of South Carolina? - Answer Submit a written complaint to the Human Affairs Commission When a South Carolina licensee is involved in a personal real estate transaction, which of the following must she disclose to the other parties to the transaction? - Answer Her licensed status Georgina is selling her South Carolina home to Stanley at a price of $250,000. Stanley is financing 80% of the purchase. How much will the transfer fees be? - Answer $925 How many members of the South Carolina Real Estate Commission aren't active real estate professionals? - Answer Two Jamie wants to establish an agency relationship with a South Carolina broker. How can this be done? - Answer Through a written agreement Candice is a real estate salesperson in South Carolina. She's got a new listing and is ready to advertise it for sale. What must she have first so she can do this? - Answer A signed listing agreement In order for a South Carolina resident to qualify for the homestead exemption, they must own their property as either complete fee simple or ______. - Answer Life estate According to South Carolina law, buyers and sellers are defined as customers if they ______. - Answer Choose not to establish an agency relationship with a broker Chloe's South Carolina real estate license expired 10 months ago. What's its status? - Answer Canceled How can time terminate agency? - Answer Agency terminates when the time specified in the agreement elapses. Andrew, a South Carolina licensee, represents a buyer who's interested in a home that a seller client of Andrew's has on the market. Both clients have already given their consent to consider dual agency representation. Before proceeding with representing both parties, what must Andrew do? - Answer Have both parties confirm their agreement with the dual agency relationship by signing a dual agency agreement. Jim is a listing agent in South Carolina. What offers must he present to his client, and when? - Answer He must present all offers as soon as practicable. How many members make up the South Carolina Real Estate Commission? - Answer 10 Which of the following tasks is an unlicensed assistant in South Carolina permitted to perform? - Answer Write advertisements for broker-in-charge approval. Which of these scenarios could be seen as a real estate violation in South Carolina? - Answer Mandy didn't disclose to potential buyers that she was showing her own listing, so she is representing the seller. A person performing real estate activities in South Carolina under the judgment or order of a court, such as a trustee in a bankruptcy, is ______. - Answer Not required to have a real estate license Marco is a South Carolina salesperson associated with Movin' On Up Realty in Spartanburg. He and his family own a few single-family rental properties in the area. Marco just received a security deposit check from a new renter. Into which of these accounts is Marco permitted to deposit these funds? - Answer His personal trust account Joe is in violation of South Carolina's smoke detector laws because the detectors installed on his property don't work. Within how many days must he repair or replace the detectors? - Answer 15 days Which of these terms describes a situation in which a broker uses client trust funds without the client's permission? - Answer Conversion South Carolina licensee Victor has obtained his seller client's signature on an offer he just received. Victor faxes a copy of this agreement to the buyer's agent. Under South Carolina law, is this an appropriate way to communicate an accepted offer? - Answer Yes, this is an appropriate way to transmit the accepted offer. Tom is an unlicensed individual helping his sister Katie find a new house in return for a trip to Europe. Which of the following activities can Tom legally perform in South Carolina? - Answer He can search real estate websites and resources to find available homes in the area. Which of the following is a South Carolina licensee prohibited from doing when engaged as a dual agent? - Answer Negotiating to the advantage of either client Charlene is a South Carolina real estate licensee who has three other licensees working under her supervision. What type of license does Charlene hold? - Answer Broker-in-charge Which of the following is generally true about net listings? - Answer They often involve a conflict of interest. Brent wants to work with a real estate broker as a buyer client. How can he do this? - Answer Sign a buyer representation agreement. Where is a consumer complaint against a South Carolina licensee filed? - Answer With the South Carolina Real Estate Commission Phyllis is negotiating a vacation rental with a rental management company. Which of the following actions does NOT indicate acceptance of an agreement? - Answer An email asking the company to send over the contract and she'll sign it Which of these statements about duties is true if a South Carolina licensee is acting as a dual agent? - Answer Agency duties may be limited. If a client breaches a representation agreement, what may the client owe the agent after agency terminates? - Answer Payment of the agent's commission In addition to the South Carolina licensee's name, what other information must be included on advertisements? - Answer Firm's full name Percy and Maxwell have formed a team within their South Carolina real estate brokerage firm. They're drafting up some advertisements to help launch their team. What do they need to keep in mind when designing their marketing materials? - Answer Ads must include the team name and brokerage firm name. Which term best describes the duties a dual agent owes to both clients? - Answer Limited Which of the following statements is true of the required disclosure of real estate brokerage relationships information? - Answer It informs consumers about the relationships offered by a real estate brokerage firm. Which of the following items is part of a South Carolina agency agreement? - Answer Description of services to be performed What's the name of the document that explains agency relationships and must be provided to consumers at the first practical opportunity? - Answer Disclosure of Real Estate Brokerage Relationships Which of the following is a requirement of a broker-in-charge in South Carolina? - Answer Must have an ownership interest in the brokerage and be actively engaged in its management and operations What purpose does the South Carolina Real Estate Commission serve? - Answer To regulate the real estate industry to protect the public's interest when involved in real estate transactions. What is the South Carolina Real Estate Commission authorized to do? - Answer Set requirements and standards of conduct for real estate licensees, as well as enforce South Carolina's real estate laws Which entity conducts an investigation when a complaint is filed against a South Carolina licensee? - Answer South Carolina Real Estate Commission Alan, Jenna, and Randall have formed a team within their South Carolina brokerage. They've brainstormed a few options for their team name. Which of these would be permitted? - Answer AJR Group Dean qualifies for the homestead exemption in South Carolina. How long has he been a resident of the state? - Answer At least one year as of December 31 of the year before application In South Carolina, what's the pre-licensing education requirement for brokers? - Answer 150 hours of coursework After a tenant raised a concern about mold in the bathroom, the landlord retaliated against the tenant. The tenant may be able to recover up to ______________________. - Answer Three months' rent or triple damages, plus reasonable attorney fees How often are salesperson and broker licenses in South Carolina renewed? - Answer Every two years Which of these South Carolina transactions requires that property disclosures be provided to the buyer? - Answer A house for sale by owner Which of these lists includes all the protected classes recognized in South Carolina? - Answer Race, color, religion, sex, handicap, familial status, and national origin Stormy is an unlicensed individual serving on the South Carolina Real Estate Commission. She's decided to resign her position prior to the end of her term. How will her successor be decided? - Answer A replacement will be appointed by the governor. Two associated licensees in South Carolina have formed a team within their brokerage firm. Regarding their team name, which of these words or phrases would be appropriate to include? - Answer Group Up to what amount is exempted from property taxes for those who qualify for the state homestead exemption? - Answer $50,000 Which qualification is a personal assistant legally required to have if the licensee wants the assistant to help manage negotiations and other real estate activities in South Carolina? - Answer A real estate license South Carolina licensee Alma is one busy octogenarian. In addition to her regular broker duties, she also owns and manages three four-family apartments. Today, she's walking a new tenant through a one-year lease agreement. Which of the following must be included on page one of this agreement? - Answer A disclosure that she is a real estate licensee Broker-in-charge Amanda hires Jake to be an assistant at her South Carolina firm. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______. - Answer Be licensed Ryan has engaged Jaclyn as his real estate agent to purchase a property. According to South Carolina statute, what does Jaclyn owe Ryan? - Answer Seek a property at a price and terms acceptable to Ryan Myra's license has just been suspended by the South Carolina Real Estate Commission. May she continue to perform real estate activities? - Answer She must discontinue real estate activities immediately.