Real estate

How long must a brokerage maintain records of agency agreements, sales contracts, and South Carolina agency disclosure forms?

5 years

When is it legal to disburse trust funds? Select from the below scenarios. A transaction has been consummated. A rental agreement has been signed. Earnest money has been offered. A BIC or PMIC has placed trust funds into a trust accoun

A transaction has been consummated.

In context of a contract, what is a condition? the current status of a contract that can be anywhere from inception to fully executed the result of a party's performance of contractual obligations any action, deed, or event, excluding the passing of a deadline, that affects a party's duty to perform any contractual deadline that affects a party's duty to perform

any action, deed, or event, excluding the passing of a deadline, that affects a party's duty to perform

agency type section

contains first mention of client choice to provide advance consent to dual or designated agency. describes single agency, dual agency, and designated agency

There is a dispute about who receives what trust funds. What should the BIC do?

hold the money in the trust account until the dispute is resolved

Oral agreements to buy real estate are: enforceable and binding non-binding and not executory non-binding and executory binding and executory

non-binding and not executory

Condition precedent

refers to an action, deed, or event that must come about prior to the duty to perform.

Trust account records should show where, to whom, and for what purpose funds have been received and disbursed. What else, if anything, should they show?

when funds have been received and disbursed

According to the last section of the South Carolina agency disclosure form, which focuses on consumer choice, if a consumer chooses to enter into a single agency relationship, they still have one more choice to make. What would that choice be?

whether or not any such single agency representation agreement will contain advance consent to dual agency or designated agency

A PMIC receives a security deposit as certified funds. When does the PMIC need to deposit it?

within 48 hours of receipt

Which of the following is TRUE? A counteroffer is considered a rejection of the original offer. A seller must make a counteroffer if the original offer is within 10% of the listing price. Counteroffers don't have to be made in writing as long as the original offer was in writing. An agent does not need their client's permission to submit a counteroffer.

A counteroffer is considered a rejection of the original offer.

In regards to agency relationships, which of the following IS TRUE about revocation and renunciation? A principal can revoke in every instance without liability. A principal revokes and an agent renounces. An agent can renounce in every instance without liability. A principal renounces and an agent revokes.

A principal revokes and an agent renounces.

multiple offer situation

A______ _____ _____ occurs when more than one party submits an offer on a single property. There could be two people, or, in some hot markets, more than 10 people all trying to buy the same home. Not everyone can win the bidding war, and the sellers are not about to set up a timeshare. So, who gets the privilege of buying the place, and what goes into the selection process?

Contracts can be modified by the use of addenda and amendments. Which of the following statements is correct regarding their use? Amendments are for introducing new information while addenda are used for the change of existing information. Amendments can be used for either the addition of new information or the change of existing information. Addenda are for introducing new information while amendments are used for the change of existing information. Addenda can be used for either the addition of new information or the change of existing information.

Addenda are for introducing new information while amendments are used for the change of existing information.

Which of the following is TRUE about the statute of limitations? Statute of limitations are state-level laws only. All claims must be filed prior to the statutory deadline or the legal right to press a claim is barred. A legitimate complaint for a performance failure related to a valid contract will be considered even if the statute of limitations has expired. Statute of limitations are federal-level laws only.

All claims must be filed prior to the statutory deadline or the legal right to press a claim is barred.

Which of the following is NOT true about about offer revocation? An offer can be withdrawn any time prior to the proper communication of the offer's acceptance. An offer can be revoked after the acceptance of the offer but before the signing of the contract. Once the offeror has been notified of an offer's acceptance, the right to revoke the offer has passed. An offer can be revoked prior to a stated deadline for acceptance of the offer.

An offer can be revoked after the acceptance of the offer but before the signing of the contract.

Ralph, an unlicensed assistant who works for the buyer's agent, is talking to the listing agent. Ralph negotiates his agent's commission split with the listing agent. Evaluate the situation.

An unlicensed assistant is not allowed to negotiate commission splits on behalf of the licensee they work for.

Which of the following scenarios constitutes acceptance of an offer? Jon agrees to the seller's terms and offers to buy the property contingent on his being able to get financing. Beto agrees to the terms and conditions of the buyer's counteroffer. Sue offers to buy the property for $10,000 less than the asking price. Ralph agrees to the buyers' request to include the refrigerator, washer, and dryer if the buyers will increase their offer by $1,000.

Beto agrees to the terms and conditions of the buyer's counteroffer.

Which of the following is an example of reality of consent? Tina and Tony purchasing a car by signing a contract that lists the wrong VIN number for the vehicle Bob buying Sue's motorcycle "as-is" because she doesn't really know its true condition Tommy pressuring Candi into leasing his apartment because "something" might happen to her cat if she doesn't Ralph selling a forged 1904 World's Fair stamp as though it were an original

Bob buying Sue's motorcycle "as-is" because she doesn't really know its true condition

If a buyer is in the process of countering an offer, the seller cannot sell the property to anyone else. True False

False, While buyers are countering, license holders should let them know that the property is still available and the seller is free to sell it to someone else.

90 days

How many days does SCREC have to render a decision to a charged licensee?

100 hours of training; 150 days for investigation

How many hours of training do investigators need for a SCREC investigation? Also, how many days can the investigation last, from receipt of complaint?

communication of acceptance

If a seller wants to accept an offer, the main thing they need to do is communicate their acceptance to the buyer. The offeror's reception of notice of acceptance is often called delivery. Acceptance needs to be unconditional, unambiguous, and not change any part of the offer.

A sales contract must:

Include the names of the parties involved Identify the subject property Be signed by the parties bound by the contract Contain evidence of intent to convey ownership interest Contain the terms of the sale State the purchase price Typically, sales contracts will also include: Mortgage details The deposit amount When and where the closing of the transaction will take place Inclusions and exclusions (what is included in the sale of the property) A section regarding inspection Acceptance procedures and deadlines Property disclosures

Which of these statements about unenforceable contracts is inaccurate? It has (or had) the potential of being a valid contract. It can be fulfilled if both parties are willing. Its enforcement is barred by some attribute of the contract or technicality of law. It can be completed if both parties are compelled.

It can be completed if both parties are compelled.

Which of the following statements about the statute of frauds is incorrect? It has to do with a statutory time limit of enforcement of agreement terms. It applies to contracts involving the conveyance of real property. It is a state-level law. It says that certain contracts must be in writing to be enforceable.

It has to do with a statutory time limit of enforcement of agreement terms.

What is the advantage of using a binder to submit an offer? It simplifies the offer process, so a full contract doesn't need to be drawn up for every offer. A seller can modify the information in a binder. An attorney never needs to get involved in the transaction. It contains more details than a final sales contract.

It simplifies the offer process, so a full contract doesn't need to be drawn up for every offer.

Which of the following does not meet the definition of an express contract? Julie obtains a loan from her bank to finance her home improvement plans. Mr. Shelton calls Peter on the phone and offers him $25 to haul away the debris from his yard. Derrick signs a three-year modeling contract offered him by a Hollywood talent agency. Jeremy sits down for a shoe shine on the town square over lunch.

Jeremy sits down for a shoe shine on the town square over lunch.

Yes, because their contract has all the elements of a valid contract.

Jim and Rita, two adults, enter into a contract promising that Jim will feed Rita's cats three times a week for two weeks, in exchange for $100. They write a contract, both read it, and sign it. Is this a valid contract? Why or why not?

a fine of $500 and six months of imprisonment

Mario does not renew his South Carolina real estate license, but continues to engage in the practice of real estate. A judge imposes the maximum sentence, which is:

Of the below, which is an acceptable team name? Mariposa Team Horseradish Realty Persimmon Real Estate Tudor Realtors

Mariposa Team

Offer Termination

Offers can be terminated in a number of ways — not all of them negative. We went through that big ol' list in the previous level: acceptance, counteroffer, rejection, expiration, revocation, death or mental incapacity, destruction, or improper acceptance. The best way for an offer to terminate is through its acceptance, which gives birth to a contract!

These are the formulas that can help you solve for different parts of a commission, whether you are looking for the commission total, the commission percentage, or the sales price.

Part ÷ Percentage = Total Total x Percentage = Part Part ÷ Total = Percentage

SCREC finds that a BIC is vicariously liable for an associated licensee's error. What does this mean?

The BIC is held responsible for the licensee's error.

rWhat does it mean if an offer includes an escalation clause? The buyer will automatically increase their offer price by a certain increment if the seller receives a better offer on the same property. The buyer is stating that they have submitted their highest and best offer, and that any counteroffers made by the seller will be rejected. The buyer is stating that they are willing to pay the seller's closing costs up to a certain maximum amount to secure acceptance of the offer. The buyer will automatically lower their offer price by a certain increment if the seller doesn't accept the offer within a specified number of days.

The buyer will automatically increase their offer price by a certain increment if the seller receives a better offer on the same property.

If the courts see ambiguity in a contract, how will they typically respond? The courts will rule according to the strictest, most literal interpretation of the contract. The courts will apply the "reasonable person" standard and rule accordingly. The courts will rule that both parties have an equal responsibility to ensure ambiguity does not exist in the contract. The courts will interpret that ambiguity in favor of the party NOT responsible for the construction of the contract.

The courts will interpret that ambiguity in favor of the party NOT responsible for the construction of the contract.

The seller decides

The license holder cannot make decisions for their client, or sign/initial anything for the client.

hat happens when a contract is discharged by merger? The original contract is merged into a new agreement and the original agreement (and its terms) disappears. The original contract is merged into the new agreement only if the new agreement is wider in scope than the original. The original contract and the new agreement constitute two distinct but equal contracts that survive. The original contract can be merged into a new agreement, and the original agreement (with all its terms) survives.

The original contract is merged into a new agreement and the original agreement (and its terms) disappears.

What happens when a counteroffer is made? The original offer becomes null and void and the counteroffer becomes the new offer. The original offer remains active until the counteroffer is accepted. The counteroffer must be accepted. No further counteroffers can be made.

The original offer becomes null and void and the counteroffer becomes the new offer.

In regards to contracts lacking a legal element, which of the following IS TRUE? They do not always result in discharge. They always result in discharge. They are considered as having been created for an unlawful purpose. They have always been that way from inception.

They do not always result in discharge.

Gregory is an agent helping Miranda sell her home. Gregory advertises Miranda's home as "for sale by owner," as he thinks this will draw in more customers. Which of the following is true? This is an example of misrepresentation and is illegal. This is an example of misrepresentation and is legal. This is an example of puffing and is legal. This is an example of puffing and is illegal.

This is an example of misrepresentation and is illegal.

Which of the following is true about contracts? Valuable consideration is never exchanged for a promise to NOT do something. Valuable consideration is exchanged for a promise to either do or NOT do something. Consideration must be exchanged for that which is exactly equal in value. Consideration is not necessary for a contract.

Valuable consideration is exchanged for a promise to either do or NOT do something.

Of the below, what is a correctly titled trust account? Wood Hollows Funds Marble Realty Business Account Wellington Brokerage Escrow Account Moorehouse Brokerage Account

Wellington Brokerage Escrow Account

minimum $500; maximum $5,000

What is the minimum amount of a fine SCREC can impose? What is the maximum?

to resolve a dispute and to prevent a formal SCREC hearing

What is the purpose of a consent agreement?

Four responses

When a seller has received a buyer's offer, four responses are possible: total acceptance, counteroffer, no response, or rejection.

executory contract

When an offer or counteroffer becomes a contract, it becomes an _________ _____?. Agents frequently say the property is "pending."t. Agents frequently say the property is "pending."

Tim is a license holder. Does he need to reveal his license status when selling his own house? It depends on the situation. This is sometimes required. Yes, this is always required. No, this is never required. As long as he puts "for sale by owner," he has complied with the license law.

Yes, this is always required.

implied contract

a contract created by the actions of the parties rather then by express agreement

Executed Contract

a contract in which all terms and promises have been performed

Which of the following describes a contract possessing the essential element of lawful objective? a contract that adheres to the wishes of the parties without concern to state or federal laws a contract that focuses on adherence to federal laws rather than state laws a contract that adheres to both state and federal laws a contract that focuses on adherence to state laws rather than federal laws

a contract that adheres to both state and federal laws

executory

a contract that has not yet been fully performed

Which of the following is an example of an executory contract with a set end date? a rent-to-buy lease where the tenant can exercise an option to buy the property at the conclusion of the lease period a cable TV package subscription where the customer pays a monthly fee for access to programming an automatically renewing apartment lease contract where the tenant pays rent in exchange for living quarters an equipment lease where the user pays rent on the equipment being borrowed

a rent-to-buy lease where the tenant can exercise an option to buy the property at the conclusion of the lease period

bilateral

a two party contract containing an exchange of promises

unilateral

a two party contract where one party makes a promise

agreements that involve adults entering into contracts of their own free will

agreements that involve adults entering into contracts of their own free will agreements that are missing one or more essential elements of a valid contract agreements that involve adults entering into contracts of their own free will agreements that cannot be completed due to an operation of law or act of God agreements that require or involve an illegal act, fraud, misrepresentation, duress, or undue influence

An executed contract is a contract in which: only one party is obligated to perform all terms have been put in writing all terms have been fulfilled by all parties all terms are inferred by the actions of the parties

all terms have been fulfilled by all parties

What is a blind ad?

an ad in which a license holder attempts to promote or solicit real estate activity without disclosing the fact that they are a license holder

Which of the following would be considered a legally competent party to a contract? a minor not incapacitated in any manner an intoxicated adult a minor under the influence of drugs an adult not incapacitated in any manner

an adult not incapacitated in any manner

Amendments

are considered to be correcting or improving the existing contract document. Parties to the contract must date and sign (or initial) any addenda or amendment created.

Bilateral contracts

are typically the contracts of choice for the business world. The primary example would be the sale of a good or service. A real estate sales contract

Tim, a salesperson, receives trust funds. When does he need to deliver it to his BIC?

by the next business day

Condition concurrent

describes a scenario where one condition must occur simultaneously with another.

Condition subsequent

describes an action, deed, or event that brings about an end to something else.

Which of the following is NOT one of the elements contained in a properly constructed contingency contract? how to satisfy the contingency contingency performance deadlines liable parties for associated costs documented legal precedent for the contingency

documented legal precedent for the contingency

Pam, a license holder, works for a brokerage. She must carry out her responsibilities when and how the broker-in-charge says. Pam is an: office manager assistant salesperson employee independent contractor

employee

intro selection

explains that agency relationships are entered into at the broker level. explains that the form is mandated by the state

Express contract

explicity stated and agreed upon terms and conditions

Natalie, a salesperson, is preparing a purchase contract for a client. This means that she: writes the contract and then gets her broker's approval fills in the blanks of a contract prepared by legal counsel fills in the blanks of a contract written by her broker writes the contract

fills in the blanks of a contract prepared by legal counsel

How long does a BIC or PMIC need to keep required records?

five years

To describe a contract as "executory" is to: describe its nature or purpose identify its stage of existence indicate it can be terminated define it as performance-based

identify its stage of existence

A condition not explicitly stated in the contract but presumed by law to be part of the agreement is known as a(n): implied condition express condition explicit condition presumed condition

implied condition

escalation clause

is a clause in an offer stating that the buyer will automatically increase their offer price by a certain increment if the seller receives a better offer on the same property. An offer that includes an escalation clause will state an offering price just like any other offer. This is the price that the seller can accept or counter if there are no other, more attractive offers. The escalation clause only kicks in if there is at least one better offer on the table. In such a case, the offer with the escalation clause automatically raises its offer above the competing offer's price.

Counteroffer

is a contract proposal submitted in response to a previous offer, modifying the terms of the original offer.is considered a rejection of the original offer, meaning the original offer dies with the submission of one.... it can be accepted, rejected, ignored, or countered again. It can also expire and terminate in all the ways that an offer can terminate. basically a new offer! must be in writing. Sometimes the parties insist on trying to work out the details orally and then later finalizing it in writing. The problem with that is that people tend to forget what they said. If you are ever conveying what your client or the other agent told you orally, remember to always follow up with "subject to written confirmation." Without written confirmation, no one is locked into the offer. If the seller has already sent a ____________ to a prospective buyer and then receives another offer that is even better, they should withdraw the first counter before answering the new offer.

Binder

is a preliminary agreement for the sale of a property secured by a valuable deposit from the potential buyer. It binds the seller to a good faith agreement to sell the subject property, provided that a sales contract meeting the conditions determined is executed within the prescribed period. A binder may also be called a letter of intent (LOI). The advantage is that this way, a buyer doesn't have to get a lawyer to draw up a contract every time they want to make an offer. Instead, they can just whip out a binder. A binder is usually only one page long and looks like an abbreviated contract.Binders aren't customary in all areas, though. Depending on where you work, it may be more customary for contracts to be filled out when an offer is made, rather than to present a binder.

Back-Up Contract

is exactly what it sounds like: a contract that can serve as Plan B if the original contract falls through for some reason. When a seller receives multiple offers, they may choose to accept one offer and accept their second choice as a backup offer. Also, an offer may be in the back-up position not because it's inferior to the primary offer, but because it came along after the primary offer was signed and finalized.

constructive condition

is one that is imposed by the courts to further the interests of justice in a contract. Similar to an implied condition. is not explicitly stated in the contract, but, on the other hand, neither is there necessarily an implied agreement to the condition by the parties — which is why the court intervenes. Will be imposed by the courts if a literal interpretation of the contract would be unjust.

Consent Agreement

is the second of the three IRC recommendation options listed above. It truly represents a middle ground of the recommendations in that it does not dismiss the validity of the complaint but does allow the licensee the opportunity to accept the Commission's findings of fact and the proposed actions to resolve the matter without having to go through a hearing or judicial review. can include such things as: Public reprimand of license Civil penalties (fees) Mandatory education Restitution to parties injured Waiver of right to a hearing and/or judicial review

Revocation

is the termination of an agreement by the person who granted it, such as when a principal terminates an agency relationship or withdraws an offer. An offer can be withdrawn any time prior to the proper communication of the offer's acceptance — even if a previously stated deadline for acceptance has yet to expire. But once the offeror has been notified of an offer's acceptance, the right to revoke the offer has passed.

client section

lists the OLDCAR fiduciary duties. describes the purpose and contents of listing agreements and buyer agreements

customer selection

lists the duties owed to all customers. explains what is provided with transaction brokerage

An agent must give the sponsoring broker their full: loyalty understanding attention commission

loyalty

is generally thought of as a mutual agreement of the parties to replace an existing contract with a new one. The existing contract is canceled or discharged, and the new one is entered into. can also be used to describe an agreement to substitute one party for another in a new contractwithout necessarily changing the other terms and conditions of the original agreement. Again, the substituting of parties happens in conjunction with the creation of a completely new contract. Novation is used primarily to terminate a contract when there is no intent to enter into a new one.

novation

In what type of contract can a party potentially be exempted due to death or incapacity from their contractual obligations? oral contracts valid contracts bilateral contracts personal services contracts

personal services contracts

Tim, the seller, decides to reject Bethany's offer to buy his house, as he is deep into negotiations with another possible buyer. He does not want to counter Bethany's offer. What should Tim's agent do? email a rejection to Bethany counter Bethany's offer, as it's always best to counter, if even the seller has no intention of pursuing that buyer present the Real Estate Offer Rejection Form to Bethany or her agent verbally tell Bethany or her agent that the seller has rejected her offer

present the Real Estate Offer Rejection Form to Bethany or her agent

In a bilateral contract, what kind of obligations are created? double obligations reciprocal obligations unenforceable obligations solitary obligations

reciprocal obligations

Lisa is a buyer's agent. She and her buyer are in a multiple offer situation. She wants to help her buyer navigate this stressful time. She should do all of the below EXCEPT: help the buyer pick a good lender and try to limit financial contingencies get on the listing agent's good side and take advantage of open houses use escalation clauses wisely remind the listing agent that legal action can be taken if they don't disclose every detail of the multiple offers

remind the listing agent that legal action can be taken if they don't disclose every detail of the multiple offers

A commission is commonly a percentage of the:

sales price

Of the below, what is a MANDATED topic for South Carolina real estate policy manuals?

scope of services provided to clients and customers

consideration

something valuable that each party exchanges to demonstrate that they agree to the contract's terms.

A brokerage is moving across town. Who notifies SCREC about the move, and how long do they have?

the BIC, within 10 days of the move

Also known as mutual assent, offer and acceptance is:

the fully agreed-upon exchange of promises by the parties

What is puffing?

the making of exaggerated claims (technically opinions) in order to achieve a sale or some other objective

Who makes the decision on whether or not to accept an offer from a buyer? the seller the agent It's a joint decision between the seller and agent. the broker

the seller

The doctrine of laches is most similar to: the statute of frauds the statute of consent the statute of contracts the statute of limitations

the statute of limitations

The statute of limitations is only concerned with: amount of damages sought degree of misrepresentation whether a written contract exists the statutory deadline

the statutory deadline

Team advertising MUST include: the team name, the full name of the brokerage, and the name of the supervising broker the team name and the full name of the brokerage the full name of the brokerage the team name

the team name and the full name of the brokerage

Anne posts "Lost Dog: $50 Reward" flyers on telephone poles all over town in hopes that someone will see Buttons, her very naughty and wayward chihuahua. What kind of contract has Anne created? unenforceable unilateral bilateral void

unilateral

Talia is a broker-in-charge for a principal office. She'd like to also be the BIC for the three branch offices. Can she do that?

yes, as long as she acknowledges in writing that she can fully assume all responsibilities