Real Estate Exam

A broker in charge must notify the commission of changes to office name, address, email, or phone number within how many days?

10

How many members make up the South Carolina Real Estate Commission?

10

The commission's "final ruling" isn't always final. Licensees have the option to appeal the decision, but they must initiate the process within a certain time frame. Within how many days must this occur?

30 days

Julie (BIC) has an emergency appendectomy, so her second-in-command, Steven, a broker with the firm, has stepped up to act as broker-in-charge. How long can Steven do this?

6 months

How many members of the South Carolina Real Estate Commission are active real estate professionals?

8

In which of these scenarios would the consumer need a South Carolina real estate license? A. 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. B. Mickey is selling his own home and isn't using the services of a listing agent. C. Peter is helping his sister Kristen secure a lease on a new apartment and will not be compensated in any way. D. Ronald is acting as executor of his uncle's estate, which includes selling the property his uncle owned.

A

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? A. A replacement will be appointed by the governor. B. A replacement will be elected by a majority of members of the house and senate districts located in Stormy's congressional district. C. Stormy can decide her replacement. D. The remaining commission members will elect a replacement.

A

The South Carolina Real Estate Commission can issue fines as a disciplinary action for a license law violation. How much can these fines be? A. Between $500 and $5,000 for each violation B. Up to $10,000 C. Up to $5,000 D. Up to $500 for each violation

A

Which statement is true about licensing authorities? A. Each state has its own licensing authority. B. Each state has the exact same requirements for licensure. C. Enforcement is conducted at a national level. D. The National Association of REALTORS® enforces licensing laws nationally.

A

Nathan assisted with the purchase of a commercial building in South Carolina that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation? A. He received less than a $1,000 commission for the transaction. B. Nathan is an employee of a government agency whose official duties include real estate transactions. C. The building was purchased by Nathan's church. D. The commercial building was valued at less than half-a-million dollars.

B

What's the chief function of licensing laws? A. Create career paths for real estate professionals B. Ensure that consumers are protected C. Generate funding for professional education and research D. Grow the economy through a pipeline of professionals

B

A member of a real estate team is designing an advertisement. What information must be included?

Both team name and firm name

A licensee responsible for the actions of associated licensees and real estate trust accounts

Broker-in-charge

After having second thoughts, Penny decided to cancel her listing agreement with Oscar, a South Carolina broker-in-charge. Penny would still like to compensate Nathan, the associated licensee who was working closely with her, for the services he provided. Can she do this? A. No, Nathan can only be compensated if the transaction closes. B. No, there's no written agreement in place entitling Nathan to receive payment. C. Yes, but payment must go through Nathan's broker, Oscar. D. Yes, Penny can compensate Nathan directly.

C

Ann is a South Carolina licensee. Which of the following statements most accurately describes her need to disclose that she's a principal to a real estate transaction? A. She doesn't need to disclose when she's a principal to the transaction, regardless of circumstances. B. She must disclose she's a principal after the property has been on the market for 30 days. C. She must disclose she's a principal to the transaction if the sales price is more than $200,000. D. She must disclose whenever she's a principal to the transaction.

D

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? A. Approval from the commission to run the ad B. A seller-completed residential property condition disclosure form C. A signed agency disclosure D. A signed listing agreement

D

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? A. He can imply to others that he's Katie's real estate agent. B. He can negotiate the purchase a new property for Katie. C. He can negotiate the sale of Katie's old house. D. He can search real estate websites and resources to find available homes in the area.

D

Victor is interested in obtaining a real estate salesperson license in South Carolina. He's reviewing the eligibility requirements for the license and researching schools that offer pre-licensing education. Which entity determines these? A. Department of Labor, Licensing, and Regulation (LLR) B. Division of Professional and Occupational Licensing C. South Carolina Association of REALTORS® D. South Carolina Real Estate Commission

D

What is the South Carolina Real Estate Commission authorized to do? A. License appraisers and home inspectors B. Regulate advertising of small home businesses C. Require minimum daily work hours for all licensees D. Set requirements and standards of conduct for real estate licensees, as well as enforce South Carolina's real estate laws

D

Which entity conducts an investigation when a complaint is filed against a South Carolina licensee? A. South Carolina Attorney General's Office B. South Carolina House and Senate C. South Carolina Human Affairs Commission D. South Carolina Real Estate Commission

D

After the commission completes its investigation, which three are possible recommendations?

Dismissal, Consent agreement offer, hearing

Amanda helps her neighbor sell his South Carolina home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.

Doesn't need a real estate license

T or F: Every two years, members elect a chairperson and vice-chairperson

False

T or F: If members vacate their position before their term is up, they must designate a successor

False

Let's say Travis decides to take on some duties that only licensees should perform. What two maximum penalties would apply?

Fines up to $50,000, Up to 18 months in jail

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?

Janelle

A company engaged in activities related to real estate transactions

Real estate brokerage firm

Activities related to property management or real estate sales, purchases, exchanges, and leases

Real estate brokerage services

T or F: Members serve one four-year term

True

T or F: The South Carolina Real Estate Commission is an office of the Division of Professional and Occupational Licensing, which is part of the Department of Labor, Licensing, and Regulation

True

When is a South Carolina real estate license required?

When performing real estate activities for others, for compensation of any kind

Licensees who are supervised by a broker-in-charge

associated licensees

150 hours of education

broker

A licensee who meets education, examination, and experience requirements and performs real estate activities for a commission

broker

Three years as an active licensee within the last five years

broker

One member who is an active real estate professional

commission members elect

Associated licensees must disclose certain items. Sort these based on whether or not they're something associated licensees must disclose. (disclose or not to disclose?) Interest in purchasing a property listed by themselves or their firm

disclose

Associated licensees must disclose certain items. Sort these based on whether or not they're something associated licensees must disclose. (disclose or not to disclose?) License status when selling their own home

disclose

Exempt or not exempt? Tamra is a salesperson who completed a broker course during the renewal period

exempt

T or F: Professional associations determine which activities are affected by state licensing laws

false

T or F: Real estate professionals are licensed at the federal level

false

T or F? Abe completed 14 hours of continuing education. He can roll over the extra four hours to the next renewal period.

false

T or F? Advertisements must include the licensee's full name and address.

false

T or F? Gerald has a broker license. Every two years, he must complete 10 hours of continuing education, with four of those hours on mandated topics and four hours on advanced topics.

false

T or F? Jemma didn't receive a reminder that her license was up for renewal, so she qualifies for a six-month extension.

false

T or F? Licensees must obtain either written or verbal acceptance of offers.

false

T or F? Sellers must disclose whether their property is considered stigmatized.

false

T or F? Team advertisements may include either the team name or the firm name.

false

T or F? The real estate commission sets requirements on commission rates, amounts, and payment terms

false

T or F? Unlicensed assistants can receive commissions from the sale of a property

false

It's vital that licensees properly handle trust funds. The broker-in-charge must ensure licensees understand the requirements related to trust funds. We've just made you broker-in-charge. Which of the following would be a direction you could give to an associated licensee? (good direction or not a good direction?) "Deliver trust funds received to me, as broker-in-charge, by the next business day."

good direction

Two members who are not active real estate professionals

governor appoints

Seven members who are active real estate professionals

house and senate elect

Possible Disciplinary Actions, action can be taken, yes or no? Jail time

no

Power/duty, yes or no? determine commission splits

no

It's vital that licensees properly handle trust funds. The broker-in-charge must ensure licensees understand the requirements related to trust funds. We've just made you broker-in-charge. Which of the following would be a direction you could give to an associated licensee? (good direction or not a good direction?) "Deposit trust funds from personal transactions or rentals in the firm's trust account."

not a good direction

Associated licensees must disclose certain items. Sort these based on whether or not they're something associated licensees must disclose. (disclose or not to disclose?) Number of transactions closed during the past 12 months

not to disclose

Obtaining a broker-in-charge license has some qualifications beyond those we saw for brokers. What's required? Must have an ownership interest in the company

required

Obtaining a broker-in-charge license has some qualifications beyond those we saw for brokers. What's required? Must be actively engaged in the management and operation of the company

required

90 hours of education

salesperson

A licensee who meets education and examination requirements and performs real estate activities for a commission

salesperson

Complaint Process Steps 1-8: Consumer files complaint with the real estate commission

step 1

Complaint Process Steps 1-8: Commission receives complaint and establishes jurisdiction

step 2

Complaint Process Steps 1-8: Commission investigates complaint to determine if license law was violated

step 3

Complaint Process Steps 1-8: Commission presents findings to the Investigative Review Committee (IRC)

step 4

Complaint Process Steps 1-8: IRC recommends a course of action (a. dismissal of complaint b. consent agreement c. hearing before the commission)

step 5

Complaint Process Steps 1-8: Complaint receives written notification of course of action

step 6

Complaint Process Steps 1-8: Commission holds hearing

step 7

Complaint Process Steps 1-8: Commission issues final ruling and any disciplinary actions

step 8

T or F: License laws often prescribe a standard of conduct for licensees

true

T or F: License laws protect the rights of buyers, sellers, tenants, and property owners

true

T or F? A consumer who doesn't hold a real estate license can't advertise as a real estate licensee

true

T or F? A real estate licensee must receive written permission from the owner to advertise a property for sale.

true

T or F? Associated licensees must promptly prepare and present all offers to a seller.

true

T or F? Associated licensees need to accurately complete any agreements and offer forms during a real estate transaction.

true

T or F? Carl just received his real estate license. He'll need to renew it every two years.

true

T or F? Carol, a licensee, must disclose if she's entered into an agency relationship with a party to the transaction.

true

T or F? Carsyn holds a salesperson license. She must complete 10 hours of continuing education every two years. Four of those hours must be on mandated topics.

true

T or F? It's been nine months since Anna's license expired. Her licensed has been canceled.

true

T or F? Licensees can receive compensation from more than one party if they have written consent from all parties

true

T or F? Licensees must ensure all transaction terms and conditions are included in the written offer and that any changes are committed to writing and are dated and initialed by all parties.

true

T or F? Listing and buyer representation agreements must include commission amounts or calculations, as well as payment terms

true

T or F? Sellers must disclose their property's condition to buyers.

true

T or F? Shem, a licensee, is helping his cousin, Matt, purchase a property, and will share in the ownership. Shem must disclose he's a principal to the transaction to all parties.

true

T or F? South Carolina licensees can pay a referral fee to a nonresident whose license isn't recognized in South Carolina

true

Possible Disciplinary Actions, action can be taken, yes or no? Fines

yes

Possible Disciplinary Actions, action can be taken, yes or no? Letter of caution

yes

Possible Disciplinary Actions, action can be taken, yes or no? License restriction, suspension, or revocation

yes

Possible Disciplinary Actions, action can be taken, yes or no? Public reprimand

yes

Possible Disciplinary Actions, action can be taken, yes or no? Recovery of court costs

yes

Power/duty, yes or no? Adopt a code of ethics

yes

Power/duty, yes or no? Approve continuing education courses

yes

Power/duty, yes or no? Determine if applicants are eligible for licensure

yes

Power/duty, yes or no? Disseminate regulations

yes

Power/duty, yes or no? Hold hearings related to license law violations

yes

Power/duty, yes or no? Issue disciplinary actions

yes

Power/duty, yes or no? Perform inspections

yes

Power/duty, yes or no? Review licensing applications

yes

Power/duty, yes or no? Set requirements for issuing and renewing licenses

yes

Power/duty, yes or no? Settle consumer complaints

yes