South Carolina Real Estate Exam (State Portion Only)

A house was sold for $150,000, with the buyers assuming a $40,000 mortgage. How much will the deed recording fees cost? A) $407.00 B) $148.00 C) $555.00 D) $97.30

A) $407.00 [NOTE: Deed recording fees are $1.85 per $500 or $3.70 per $1,000 of AMOUNT PAID IN CASH. Since these buyers are only obtaining a $40,000 mortgage, they are putting down $110,000. So, (3.70)(110) = $407.00]

What type of tax relief is available under the South Carolina Homestead Act for a person who is over the age of 65? A) $50,000 reduction in tax-appraised value B) None, unless the person is also 100 percent disabled C) A change in assessment ratio from six to four percent D) A $50,000 reduction on tax-assessed value

A) $50,000 reduction in tax-appraised value (NOTE: Anybody can request this who is over the age of 65, 100% disabled, or totally blind)

A rental property has been appraised at $92,500. If the millage rate is 127 mills, what are the property taxes? A) $704.85 B) $469.90 C) $1,174.75 D) $1,957.91

A) $704.85 [NOTE: ($92,500 appraisal)(6% assessment rate on rental property) = $5,550 assessed value. Then, ($5,550 assessed value)(0.127 mill rate) = $704.85 annual tax]

A salesperson must complete which of the following courses to renew his or her license? A) 10 hours of continuing education biennially which must include 4 hours of mandated topics B) 18 hours of home study C) Three 12-hour classes for listing, buying, and ethics D) There are no mandatory requirements

A) 10 hours of continuing education biennially which must include 4 hours of mandated topics

In South Carolina, the age of legal competence is _____. A) 18 B) 19 C) 20 D) 21

A) 18

A housing discrimination charge must be filed with the South Carolina Human Affairs Commission within _____. A) 180 days B) 1 year C) 2 years D) 30 days

A) 180 days (NOTE: 6 months)

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%

A) 4%

CHECKS received as earnest money for a contract of sale must be deposited in a trust account by the broker-in-charge within _____. A) 48 hours of ratification, excluding Saturdays, Sundays, and bank holidays B) 48 hours of receipt, excluding Saturdays, Sundays, and bank holidays C) 24 hours of ratification D) 24 hours of receipt

A) 48 hours of ratification, excluding Saturdays, Sundays, and bank holidays (NOTE: Ratification = pending contract)

In South Carolina, the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of the scheduled due date? A) 5 days B) 7 days C) 10 days D) 30 days

A) 5 days

Which of the following people can legally enter into listing agreements, advertise, and act as an agent in real estate transactions? A) A licensed broker-in-charge B) A licensed salesperson C) A licensed property manager D) A licensed appraiser

A) A licensed broker-in-charge

What is the penalty if an unlicensed person sells a relative's property for a fee? A) A maximum fine of $500, six months' imprisonment, or both B) None, because the unlicensed person is related to the seller C) A maximum fine of $1,000 and one year imprisonment D) Inability to apply for a real estate license for five years

A) A maximum fine of $500, six months' imprisonment, or both

Under what circumstances can a broker keep personal funds in an escrow account? A) A minimum amount to keep the account open B) No more than $250 to keep the account open C) Up to $500 to earn interest to pay service fees D) A broker may never commingle personal funds in an escrow account

A) A minimum amount to keep the account open

A real estate company has a property management division. In this situation, what are the regulations regarding escrow accounts? A) A minimum of one escrow account is required if security deposits are received B) Separate escrow accounts must be maintained for rental and sales transactions C) All rents may be placed in one escrow account and security deposits must be placed in another escrow account D) Security deposit money must be kept in one escrow account or rents must be paid directly to the landlord

A) A minimum of one escrow account is required if security deposits are received

If a broker establishes an account to hold money belonging to others, which of the following is correct? A) All checks, deposit slips, and bank statements must include the word "escrow" or "trust" as part of the accounting name B) Accounts must be labeled both "trust" and "escrow" C) The account cannot be in the same bank as the broker's personal checking account D) An individual account is required for each transaction

A) All checks, deposit slips, and bank statements must include the word "escrow" or "trust" as part of the accounting name

If engaged in real estate activities, which of the following persons are exempt from the real estate licensing program? A) Attorneys at law acting within their scope of duties for a client B) Appraisers C) Resident apartment managers D) Land auctioneers

A) Attorneys at law acting within their scope of duties for a client

When must a licensee take the post license sales course? A) Before receiving a salesman license B) Between the 1st and 12th month after the first sixty hours C) No sooner than 10 months after the first sixty hours D) Only one month prior to sitting for the sales exam

A) Before receiving a salesman license

_____ occurs if a tenant is forced to move due to the landlord's negligence. A) Constructive eviction B) Actual eviction C) Partial eviction D) Legal ejectment

A) Constructive eviction

How is a broker's commission determined in a real estate sales transaction? A) It must be stated in the listing agreement, buyer agency agreement, or other compensation agreement and is negotiated between the broker and seller B) It is determined according to the standard rates set by agreement of local real estate Board or the South Carolina Real Estate Commission C) If under dispute, it will be determined through mediation by the South Carolina Real Estate Commission D) It must be paid with cash or a cashier's check upon closing

A) It must be stated in the listing agreement, buyer agency agreement, or other compensation agreement and is negotiated between the broker and seller

A real estate salesperson has been working with buyers. After helping them negotiate for their dream home, the buyers ask the salesperson is she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this lender? A) No, this would be a violation of RESPA B) Yes, if the salesperson and the buyers have previously entered into a written buyer agency agreement C) Yes, if the salesperson discloses the referral fees to the sellers D) Yes, if the lender offers the best interest rates and terms available in the market

A) No, this would be a violation of RESPA (NOTE: RESPA = Real Estate Settlement Procedures Act)

A broker presents the brokerage relationships disclosure form to a buyer who chooses to become a client but never signs a buyer agency agreement. Two weeks later the buyer signs a buyer agency agreement with another broker and purchases property. What can the first broker do about getting a commission? A) Nothing since the buyer never signed a written agreement with the first broker B) Sue the second broker for interfering with a client relationship C) Sue the buyer for commission earned D) File a complaint with the South Carolina Real Estate Commission

A) Nothing since the buyer never signed a written agreement with the first broker

In South Carolina, which of the following would need to be a licensed real estate broker? A) Person who employs fewer than three agents B) Licensed attorney acting under a power of attorney to convey real estate C) Owner of a duplex D) Partnership selling a building owned by the partners

A) Person who employs fewer than three agents

The body that regulates the activities of time-share sales in South Carolina is the South Carolina _____. A) Real Estate Commission B) Human Affairs Commission C) Time-share Commission D) Attorney General's Office

A) Real Estate Commission

An individual wants to sell her own house. Which of the following statements is true? A) She does not need a real estate license to sell her house herself B) In South Carolina, anyone who sells real property must first have a real estate license issued by the real estate commission C) The individual may obtain a temporary real estate license in order to legally sell her house D) She may sell her house without obtaining a real estate license only if she is a licensed attorney

A) She does not need a real estate license to sell her house herself

A licensee who allows his or her license to expire has how long to reinstate the license before it is cancelled? A) Six months B) Up to 30 days C) No more than 365 days D) 48 hours, excluding Saturdays, Sundays, and bank holidays

A) Six months

What is a salesperson's relationship to his broker's client? A) Sub-agent B) Employee C) Independent contractor D) Principal

A) Sub-agent

Real Estate Sales Contracts for beachfront property located seaward of the setback line must contain a disclosure. The disclosure must give which of the following information? A) The property is or may be affected by the baseline, setback line, and the seaward corners of the house B) The property is or may be dangerous during storms C) The baseline and setback lines will not affect the property if construction begins within 30 days D) The contract may not be legal if a house is built seaward of the setback line

A) The property is or may be affected by the baseline, setback line, and the seaward corners of the house

After an offer is accepted, the seller finds out that the broker was the undisclosed agent for the buyer as well as the agent for the seller. Which of the following statements is true? A) The seller can withdraw without obligation to the broker or the buyer B) The seller can withdraw, but is subject to liquidated damages C) The seller can withdraw only with concurrence of the buyer D) The seller is subject to specific performance if he or she refuses to sell

A) The seller can withdraw without obligation to the broker or the buyer

A licensed salesperson may hold a concurrent license with more than one South Carolina broker under which of the following circumstances? A) Under no circumstances B) With the permission of his or her sales manager C) With the written consent of the brokers being represented D) With the permission of the South Carolina Real Estate Commission

A) Under no circumstances

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

A) With application, his/her appraised value will be reduced by $50,000

A buyer broker delivers an offer to purchase and an earnest money CHECK to the listing broker-in-charge. The sellers of the property will not be able to see the offer for a week. When must the listing broker-in-charge deposit the earnest money check into the escrow account? A) Within 48 hours after written acceptance of an offer, excluding Saturdays, Sundays, and bank holidays B) Within 48 hours for receipt C) Within 24 hours of ratification, excluding Saturdays, Sundays, and bank holidays D) Within 24 hours of receipt

A) Within 48 hours after written acceptance of an offer, excluding Saturdays, Sundays, and bank holidays

A buyer is interested in seeing a house listed with XYZ Realty but does not wish to enter into an agency relationship. A salesperson from LMN Realty can show the buyer the house if _____. A) XYZ Realty obtains the seller's consent B) XYZ Realty obtains LMN Realty's consent C) the buyer verbally agrees to buyer agency D) This cannot occur

A) XYZ Realty obtains the seller's consent

All of the following appear in a written listing agreement EXCEPT _____. A) a provision requiring the seller to notify the agent of cancellation after expiration B) an adequate description of the property being sold C) the time duration of the listing D) the proposed sales price of the property

A) a provision requiring the seller to notify the agent of cancellation after expiration

An agency contract may be terminated by _____. A) acts of the parties B) a change in the principal's marital status C) police power D) power of attorney

A) acts of the parties

A relationship, whereby one, called the principal, authorizes another, called an agent, to represent the principal in business relations with third parties, is known as _____. A) agency B) brokerage C) apparent D) authority

A) agency

A seller has indicated that a broker will receive a bonus if the property is sold "in house." That is _____. A) an incentive for the brokers' company to sell the house B) illegal in South Carolina to have variable commission structures C) only permissible if seller prohibits cooperation by buyers brokers D) A requirement for the multiple listing service (MLS)

A) an incentive for the brokers' company to sell the house (NOTE: An incentive to sell faster)

Commissions earned by a broker in a real estate sales transaction _____. A) are determined by agreement of the broker and his or her principal B) may be shared with an unlicensed person, provided that such person aided the broker in bringing the buyer and seller together C) must be paid by the seller in each transaction D) are based on a schedule of commission rates set by the South Carolina Real Estate Commission

A) are determined by agreement of the broker and his or her principal

In South Carolina, application for any real estate license must _____. A) be completed by the applicant and processed by the Commission before taking the written exam B) contain a picture of the applicant C) be made before May 31 of each year D) be accompanied by a sworn statement attesting to the applicant's character

A) be completed by the applicant and processed by the Commission before taking the written exam

A person licensed as a property manager may _____. A) be licensed with a broker-in-charge or a property manager-in-charge B) only be licensed with a property manager-in-charge C) work for both a broker-in-charge and a property manager-in-charge D) be licensed with one property manager-in-charge during the week and a different property manager-in-charge on the weekends

A) be licensed with a broker-in-charge or a property manager-in-charge

A real estate licensee must give the South Carolina Disclosure of Real Estate Brokerage Relationships form to prospective purchasers _____. A) before they are shown any properties B) at an open house C) at the closing table D) after an offer to purchase is prepared

A) before they are shown any properties

For a South Carolina licensee to remain on inactive status, _____. A) biennial renewal fees must be paid to the South Carolina Real Estate Commission B) eight hours of continuing education must be satisfied every two years C) the licensee must reactivate his/her license after two years D) must not do anything until license is renewed as active

A) biennial renewal fees must be paid to the South Carolina Real Estate Commission (NOTE: No CE hours need to be satisfied while on inactive status. A licensee can remain on inactive status indefinitely, but must pay inactive fees biennially)

South Carolina license law requires that the _____. A) broker keep all information that the seller has provided confidential unless that information is required to be disclosed by law B) broker disclose everything that the seller tells him or her C) broker disclose all information that might affect the sale even though the buyer does not ask for it D) seller disclose all facts that might affect the sale

A) broker keep all information that the seller has provided confidential unless that information is required to be disclosed by law

Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof. Under these facts the buyer _____. A) can sue the seller in the appropriate court, depending upon the amount of money involved, and can sue the broker for nondisclosure required by license law B) cannot sue the broker under the license law C) can sue the seller and the buyer under license law D) cannot do anything because the leaking roof could have been discovered by inspection

A) can sue the seller in the appropriate court, depending upon the amount of money involved, and can sue the broker for nondisclosure required by license law

The concept indicating that a "buyer should beware" when purchasing real estate is: _____. A) caveat emptor B) lis pendens C) pur autre vie D) fiduciary

A) caveat emptor

Disclosed dual or designated agency would most likely occur in a(n) _____. A) company which represents both buyer and sellers in the same transaction B) company which only practices buyer agency. C) cooperative sale situation. D) It would not occur because it is prohibited by South Carolina law

A) company which represents both buyer and sellers in the same transaction

A tenant vacated the property because the landlord refused to fix the hot water heater. This is called _____. A) constructive eviction B) actual eviction C) partial eviction D) legal ejectment

A) constructive eviction

A broker does not have enough personal funds to pay the rent for the office space and writes a check from the escrow account to cover the funds. This practice is _____. A) conversion and is always illegal B) commingling and is always illegal C) conversion and is sometimes permissible depending on the circumstances D) commingling and a common business practice

A) conversion and is always illegal (NOTE: Conversion = converting someone else's money out of an escrow account for personal use)

Listing a seller's property allows a broker to do all of the following EXCEPT _____. A) disclose the seller's reason for selling to a buyer customer B) list properties in the same neighborhood at higher prices C) work with buyers interested in other properties D) comply with the seller's request not to allow property to be shown to unqualified buyers

A) disclose the seller's reason for selling to a buyer customer

A licensee is commingling trust funds by depositing _____. A) earnest money received from a client's properties in the agency's business account B) earnest money and rent received from a client's various properties in the same escrow/trust account C) rent received from the licensee's own properties in a personal trust account D) tenant's security deposits received from various client' properties in the same escrow/trust account

A) earnest money received from a client's properties in the agency's business account

A(n) _____ listing is a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker, REGARDLESS of whether the property is sold through the efforts of the listing broker, the seller, or anyone else. A) exclusive right-to-sell B) exclusive agency C) open D) net

A) exclusive right-to-sell

A licensee may have a license revoked if the licensee _____. A) fails to promptly submit all offers and counteroffers in a real estate transaction B) fails to mention a murder on a property to a potential buyer C) pays a clerk to type up contracts D) fails to inform the tenant that the name of the apartment complex has changed

A) fails to promptly submit all offers and counteroffers in a real estate transaction

One who is in a position of trust and confidence with respect to another is known as a/an _____. A) fiduciary B) independent contractor C) servant D) broker

A) fiduciary

A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, "I am the listing agent for this property so I'm very familiar with it. Please sign this disclosure indicating you understand." Under these circumstances, the salesperson _____. A) has failed to properly follow South Carolina regulations regarding agency relationship B) has properly disclosed his or her agency relationship with the seller C) is in violation of South Carolina regulations because the listing belongs to the broker D) has created a dual agency, which is a violation of South Carolina regulations

A) has failed to properly follow South Carolina regulations regarding agency relationship (NOTE: They did not review the disclosure brochure)

In order for a broker to open his own company in South Carolina, he must _____. A) have a physical location B) have a business sign inside his place of business C) maintain at least one escrow account within South Carolina D) hire at least one independent contractor

A) have a physical location

A common law agency created by the ACTS of the principal and agent is called a/an _____. A) implied agency B) sensible agency C) statutory agency D) express agency

A) implied agency

All of the following are exempt from the provisions of the South Carolina License Act EXCEPT a(n) _____. A) individual who receives compensation for procuring prospective buyers or renters of real estate B) individual who is employed as a resident maintenance person C) property owner who sells or leases his or her own property D) resident lessee who works as an office secretary two days a week

A) individual who receives compensation for procuring prospective buyers or renters of real estate

In any real estate sales transaction that a broker negotiates, the broker is not required to _____. A) inform the buyer of his or her personal opinion of the condition of the seller's title to the property B) make sure that the written purchase and sale agreement includes all the terms of the parties' agreement C) make sure that the closing statement is accurate and that a copy of it is delivered to both buyer and seller D) keep copies of all documents involved in the transaction in his or her files for five years after the year in which the transaction was closed

A) inform the buyer of his or her personal opinion of the condition of the seller's title to the property

Mark, a licensed broker, procures a ready, willing, and able buyer for his seller principal. The seller accepts the buyer's offer in writing, then experiences a change of heart and withdraws the acceptance. In this situation, Mark _____. A) is entitled to collect a commission B) is out of luck because the transaction was never completed C) may sue the buyer D) may retain the deposit as commission

A) is entitled to collect a commission (NOTE: The broker earned the commission since the seller accepted the offer. The broker may sue the seller for the commission)

Dual agency is _____. A) legal in South Carolina if both parties give their written informed consent B) impossible to achieve C) outlawed by South Carolina license law D) outlawed by the South Carolina legislature

A) legal in South Carolina if both parties give their written informed consent

The South Carolina Real Estate Commission requires a broker-in-charge to _____. A) maintain back-up copies for computerized trust accounts B) deposit all cash earnest money into an escrow account within 24 hours of receipt C) instruct only employees on the proper handling of trust funds D) utilize one central trust account with multiple offices

A) maintain back-up copies for computerized trust accounts

Every South Carolina real estate office is required to _____. A) maintain escrow account records for five years B) keep transaction records for three years C) display signage at the office location D) employ at least one salesperson

A) maintain escrow account records for five years

The South Carolina Real Estate Commission has the authority to _____. A) make and enforce the rules by which all real estate licenses must abide B) compose the examination questions on the state exam C) administer the exams given at the testing sites D) enact the laws that govern real estate licenses

A) make and enforce the rules by which all real estate licenses must abide

Upon revocation or suspension order by the South Carolina Real Estate Commission, the broker _____. A) may appeal the decision to an administrative law judge B) may request a review by the South Carolina Attorney General C) should know that the Commission's order is final D) may apply for a salesman's license

A) may appeal the decision to an administrative law judge

An agent's license renewal fee has been returned for insufficient funds. The South Carolina Real Estate Commission _____. A) may take disciplinary action against the licensee B) must allow the licensee a grace period of 30 days to pay the fee C) may require the broker-in-charge to pay the renewal fee D) must cancel the license immediately

A) may take disciplinary action against the licensee

All of the following statements regarding the South Carolina Real Estate Commission are true EXCEPT that _____. A) members of the commission are selected by the state association of REALTORS® B) the commission makes and enforces the rules by which all real estate licensees must abide C) the examinations that must be taken by all applicants for real estate licensing are administered by an independent testing company, not the commission D) The operation of the commission's activities is administered by an official specifically hired for that purpose

A) members of the commission are selected by the state association of REALTORS®

An arrangement by which a group of brokers agree to share their exclusive right to sell or exclusive agency listings is called a/an _____. A) multiple listing B) net listing C) open listing D) exclusive right-to-sell listing

A) multiple listing

Buyer-brokerage agreements in South Carolina _____. A) must be in writing to be enforceable B) must be on specific forms C) are not regulated under the license laws D) are illegal

A) must be in writing to be enforceable

In the event that a licensee failed to renew her license, _____. A) no more real estate activity will be legal except transactions in which she is the principal B) no commissions may be collected on the transactions she has not closed before her license expired C) her license will be cancelled on September 30th D) as of September 1st, she will be fined $75

A) no more real estate activity will be legal except transactions in which she is the principal

An offer has been accepted on a ten-acre parcel when the listing broker learns that a buyer has been buying land in the area at a much higher price. The broker should _____. A) notify the seller of the facts B) recommend that the seller breach the contract C) do nothing because the seller is obligated to convey D) do nothing because the agency has been completed upon procurement of the buyer

A) notify the seller of the facts

If a licensee pays the renewal fee but has not fulfilled the mandatory continuing education, the South Carolina Real Estate Commission will _____. A) place the license on inactive status until the education requirements are completed B) not renew the license and send the fee back to the licensee C) renew the license but levy a fine of $25 per month until the education requirements are satisfied D) renew the license with a grace period of 30 days to satisfy the education requirement

A) place the license on inactive status until the education requirements are completed

A WRITTEN INSTRUMENT authorizing a person to act for another to the extent indicated in the instrument is called _____. A) power of attorney B) a listing contract C) a permission to act slip D) an employment agreement

A) power of attorney

Placing a company "For Sale" sign on a property is _____. A) prohibited without a signed listing agreement B) at the discretion of the broker C) required by the multiple-listing service D) customary after the listing has been mailed to an out-of-town seller for signature

A) prohibited without a signed listing agreement

The Realty Company entered into agency agreements with both a seller and a buyer. The buyer and the seller have signed the consent to dual agency form. The salesperson with the Realty Company who has been working with the buyer may _____. A) provide comparable market data to the seller, after providing to the buyer, who requested this data, with the same information B) disclose the buyer's financial qualifications to the seller C) tell the buyer that the seller will accept less than the listing price D) inform the seller that the buyer will pay more than the offering price

A) provide comparable market data to the seller, after providing to the buyer, who requested this data, with the same information

Which of the obligations of a principal to an agent is not automatic and must be agreed upon? A) reimbursement B) opportunity C) good conduct D) good faith

A) reimbursement

During the period of an exclusive right-to-sell listing, if the principal no longer wishes to be represented by the broker, the principal may _____. A) revoke the agency created by the listing contract but may be liable for damages B) revoke the listing contract and not be liable for damages C) not revoke the agency because an exclusive right-to-sell listing is an irrevocable contract D) be forced to sell the property in accordance with terms of the listing

A) revoke the agency created by the listing contract but may be liable for damages

If offered a listing by a seller on the condition that the property may not be shown to members of a certain religious sect, a broker _____. A) should refuse the listing B) may accept the listing and ignore the seller's condition C) must accept the listing based on fiduciary capacity D) accept the listing, but advise the seller that a discrimination clause rules out advertising the house in a multiple listing service

A) should refuse the listing

One authorized to conduct a single transaction or series of transactions NOT INVOLVING an ongoing relationship is a _____. A) special agent B) disclosed agent C) necessary agent D) general agent

A) special agent

The relationship between the broker-in-charge and the client in a listing would be that of _____. A) special agent B) general agent C) ostensible agent D) implied agent

A) special agent

The broker employed by either a seller or buyer may employ others to assist in meeting the obligations to the broker's principal. Those so employed are called _____. A) sub-agents of the broker B) special agents of the broker C) fiduciary D) attorney-in-fact

A) sub-agents of the broker

The South Carolina Real Estate Commission is empowered to _____. A) suspend, revoke, and/or fine a licensee for infractions B) fine and imprison a licensee for infraction C) initiate an investigation of a licensee within 180 days D) pass laws governing license activities

A) suspend, revoke, and/or fine a licensee for infractions

An agent shows a house knowing the house has substantial termite damage. The agent must disclose this information to the buyer because _____. A) termite damage constitutes a material fact B) termite damage may become a stigma surrounding the property C) an agent must disclose all facts concerning the property D) it is required by the South Carolina Consumer Protection Code

A) termite damage constitutes a material fact

A referral fee for a cooperative sale may be paid to a licensee in another state as long as _____. A) the out-of-state licensee does not conduct, in this state, a brokerage service for which a fee, compensation, or commission is paid B) the amount is under $1,000 C) the out-of-state licensee negotiated the sale in South Carolina D) this arrangement is prohibited under the South Carolina licensing laws

A) the out-of-state licensee does not conduct, in this state, a brokerage service for which a fee, compensation, or commission is paid (NOTE: Essentially, the out-of-state licensee cannot conduct any negotiations in South Carolina)

After the lease terminates, the tenant is entitled to the return of his security deposit _____. A) within 30 days B) within three weeks C) unless the property has been transferred to a new owner D) with no deduction withheld

A) within 30 days

Two brokers from different companies are talking with an agent from a third company about possibly reducing commission rates in the city. This discussion _____. A) would be a violation of anti-trust laws B) should be reported to the Real Estate Commission C) would be allowable, since it is desirable to standardize commission rates D) would be a violation of the Consumer Protection Code

A) would be a violation of anti-trust laws

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

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]

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

B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) = $600 annual tax]

With the Smoke Detector Law, how long does a landlord have to repair/replace a broken smoke detector in his rental? A) 14 days B) 15 days C) 30 days D) 45 days

B) 15 days

How many days constitute abandonment in South Carolina? A) 30 days absence B) 15 days unexplained absence with non-payment of rent C) 10 days unexplained absence with non-payment of rent D) 45 days absence

B) 15 days unexplained absence with non-payment of rent

If the property taxes on an owner-occupied house are $1,200 per year, what millage rate was used for a property appraised at $150,000? A) 133 mills B) 200 mills C) 125 mills D) 480 mills

B) 200 mills [NOTE: ($150,000 appraisal)(4% assessment rate on owner-occupied property) = $6,000 assessed value. Since the annual tax is $1,200, the millage rate is ($1,200 annual tax/$6,000 assessed value) = 0.200]

In South Carolina, a reduction in real property taxes for a personal residence may be available to all but which of the following individuals? A) 78-year old retiree B) 26-year old single parent C) 34-year old visually impaired person D) 41-year old disabled veteran

B) 26-year old single parent (NOTE: Anybody can request a reduction on tax-appraised value for their personal residence who is over the age of 65, 100% disabled, or totally blind)

In South Carolina, if a landlord wants to terminate a month-to-month tenancy, how much notice must the tenant receive? A) 7 days B) 30 days C) 60 days D) No notice

B) 30 days (NOTE: A week-to-week tenancy would only require a seven day notice; the notice must be equal to the periodic rental)

CASH received as earnest money for a contract of sale must be deposited in a trust account by the broker-in-charge within _____. A) 48 hours of ratification, excluding Saturdays, Sundays, and bank holidays B) 48 hours of receipt, excluding Saturdays, Sundays, and bank holidays C) 24 hours of ratification D) 24 hours of receipt

B) 48 hours of receipt, excluding Saturdays, Sundays, and bank holidays (NOTE: Receipt, not ratification)

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%

B) 6%

The South Carolina Real Estate Commission has set guidelines for the agency and agency disclosure form. A broker wishes to develop the guidelines. Which of the following is true? A) A broker may set office guidelines for agency disclosure which are less stringent than the real estate commission's, as long as they are in writing. B) A broker must ensure that each pertinent buyer and seller is given a copy of the South Carolina Disclosure of Real Estate Brokerage Relationships form C) The office policy must identify a minimum of three types of agency relationships that the company will practice D) The office policy must include the required cooperative commission structure

B) A broker must ensure that each pertinent buyer and seller is given a copy of the South Carolina Disclosure of Real Estate Brokerage Relationships form

Under South Carolina law, which of the following is granted a partial exemption from continuing education requirements for license renewal? A) A licensee who has been in the real estate business for 20 years B) A licensee who has been in the real estate business for 25 years C) A licensee in a referral company D) A licensee who wishes to change from inactive to active status

B) A licensee who has been in the real estate business for 25 years

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

B) Although the federal law allows it, SC law does not allow a pre-payment penalty on ARMs

Under which of the following listing agreements may the owner of listed property sell the real estate without having to pay the listing broker a commission in South Carolina? A) An exclusive right-to-sell listing B) An exclusive agency listing C) A multiple listing D) A net listing

B) An exclusive agency listing

What type of disclosure statement is required by the Coastal Zone Management Act? A) A disclosure statement is required to be given within 30 days after the contract to purchase is signed that lets the buyer know where the setback line is located B) Any contract of sale that takes place after 30 days have passed since setback lines have been adopted must disclose any property that is wholly or partly seaward of the setback line C) After the adoption of setback lines by the authorities, real estate brokers have 30 days to notify all buyers about these lines D) After 30 days have passed since the adoption of setback lines, every contract for the sale of land must contain a disclosure statement which includes the locations of the setback lines and the 40-year erosion rates

B) Any contract of sale that takes place after 30 days have passed since setback lines have been adopted must disclose any property that is wholly or partly seaward of the setback line

A broker is convicted on May 1 of possession and distribution of a controlled substance. Both the crime and conviction took place out of state. On June 15, the broker calls the South Carolina Real Estate Commission and leaves a message informing them of the conviction. Based on these facts, which of the following are true? A) The broker has properly informed the real estate commission within 60 days after the conviction, and the broker's license may be renewed B) Both the conviction and the broker's failure to notify the real estate commission within ten days violate real estate commission regulations C) Because the conviction did not occur in the state, it is not evidence of unworthy conduct D) The conviction is evidence of both improper dealing and fraud

B) Both the conviction and the broker's failure to notify the real estate commission within ten days violate real estate commission regulations

The Coastal Tidelines and Wetlands Act allows which of the following? A) The rebuilding of seawalls that have been destroyed seaward of the baseline B) Civic clubs to adopt a mile of beachfront C) Wooden walkways over the dunes no wider than eight feet to be built without a permit D) Private fishing piers

B) Civic clubs to adopt a mile of beachfront (NOTE: This is the "adopt-a-beach" program)

What is the term in the South Carolina license law that is used to mean a principal? A) Master B) Client C) Fiduciary D) Attorney-in-fact

B) Client

What obligations does a broker have to a buyer who wishes to purchase beach property? A) None, unless the buyer is a client not a customer B) Disclose the existence of the South Carolina Coastal Zone Management Act and its possible impact on the property C) None, as only property that borders marshland is impacted D) None, unless the purchaser plans to build a deck on the property

B) Disclose the existence of the South Carolina Coastal Zone Management Act and its possible impact on the property

What legal recourse does an individual have if discriminated against in South Carolina? A) File a complaint within 30 days to the South Carolina Real estate Commission B) File a complaint within 180 days to the South Carolina Human Affairs Commission C) Contact the South Carolina Attorney General's office within 10 days D) Request a hearing with the administrative law judge within 30 days.

B) File a complaint within 180 days to the South Carolina Human Affairs Commission

The broker-in-charge of a real estate company becomes mentally incapacitated. What is the status of the company? A) It must discontinue all business until a new broker-in-charge is found B) It may continue to operate under an associate licensee for up to six months with commission approval C) It may continue to operate with an associated licensee as broker-in-charge up to 90 days D) It may not solicit any new business until a new broker-in-charge is found

B) It may continue to operate under an associate licensee for up to six months with commission approval

What happens if a broker's license is revoked? A) The broker reverts back to salesman status B) It must be revoked for at least one year C) The broker must reapply for license after one year D) The broker must demonstrate trustworthiness to the Commission

B) It must be revoked for at least one year

What date do real estate salespersons' licenses expire? A) On the licensee's birthday every two years B) June 30 every two years C) December 31 every two years D) June 30 every odd-numbered year

B) June 30 every two years

K, a licensed broker from Georgia, has a friend, M, in South Carolina who decided to sell his house. K gave M's agent in South Carolina the name of a buyer who purchased the house. After the settlement, M's agent gave K a referral fee. What circumstance makes this legal? A) The referral fee is $500 or less B) K did not come into South Carolina and help with the sale C) The fee was paid in cash D) K's continuing education hours have been met

B) K did not come into South Carolina and help with the sale

South Carolina requires that some documents be retained by the broker-in-charge for a definite period of time. Which of the following must be retained? A) Closing statements for three years B) Leases for five years C) Fair housing policy for one year D) Independent contractor contracts for ten years

B) Leases for five years (NOTE: ALL the following forms must be retained for a minimum of 5 years: leases, agency statements, closing statements, transaction brokerage forms, options, and residential property disclosure forms)

An agent owes certain fiduciary duties to the agent's principal. Which one of the following is one of those duties? A) Moral obligations to the principal B) Must obey ethical and legal instructions C) Must reasonably maintain the principal's property D) Ensure that trust funds are deposited into the proper operating account

B) Must obey ethical and legal instructions

An owner says "I want to get $50,000 out of this property and you can have anything over that amount as your commission." What would we call this arrangement? A) Open listing B) Net listing C) Exclusive right to sell D) Exclusive agency listing

B) Net listing (NOTE: These are illegal in SC)

Regarding listing agreements in South Carolina, which of the following could result in the suspension or revocation of a person's real estate license? A) A specified commission rate B) No specific termination date C) No broker protection clause D) A specific termination date

B) No specific termination date

A North Carolina buyer purchases a time-share unit in South Carolina. Two days later the buyer wishes to rescind the sales. What penalties may result? A) Forfeiture of first year's payment B) None, the purchaser is allowed five days' right of rescission, not including holidays or weekends C) No penalty because the purchaser lives in another state D) Forfeiture of deposit anytime after 48 hours of sale

B) None, the purchaser is allowed five days' right of rescission, not including holidays or weekends

A registration of each time-share sold must be filed with the South Carolina _____. A) Attorney's General Office B) Real Estate Commission C) Human Affairs Commission D) Homebuilders Association

B) Real Estate Commission

What obligation does a tenant have regarding the maintenance of smoke detectors in a single-family rental unit? A) None; maintenance of smoke detectors is a landlord's responsibility B) Replace batteries when necessary C) Call the fire department for a biannual inspection D) Replace a malfunctioning smoke detector within 30 days

B) Replace batteries when necessary

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

B) Residential mortgage loans of $150,000 or less

In South Carolina, real estate license law is administered by the _____. A) South Carolina Human Affairs Commission B) South Carolina Real Estate Commission C) South Carolina Association of REALTORS® D) Department of Housing and Urban Development

B) South Carolina Real Estate Commission

By what authority does the state of South Carolina require a person to have a real estate license to practice real estate? A) Commission power B) State statute C) Governmental authority D) State constitution

B) State statute

Broker Tom has a listing on property owned by seller Steve. Which of the following should Broker Tom NOT disclose to buyer Bob? A) Tom has seen evidence of termites B) Steve may take less than the listing price C) The building has structural defects D) Zoning makes the present use non-conforming

B) Steve may take less than the listing price

Before a dock can be built on the coast of South Carolina, the owner must obtain a permit from which organization? A) The Corp of Engineers B) The Office of Ocean and Coastal Resource Management C) The Coastal Council D) The State Development Board

B) The Office of Ocean and Coastal Resource Management

A landlord has a "no pets" policy in his apartment building. If a visually impaired person wants to rent an apartment from the landlord, but owns a guide dog, which of the following statements is true? A) If the landlord's "no pets" policy is applied uniformly, in a nondiscriminatory manner, it may be legally applied to the guide dog as well B) The South Carolina Fair housing Act specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the owner's "no pets" policy C) Under the south Carolina Fair Housing Act, the landlord may not discriminate against the visually impaired person on the basis of a "no pets" policy, but the landlord may require the dog to weigh no more than 30 pounds D) The South Carolina Fair housing Act does not address the issue of the visually impaired and guide dogs

B) The South Carolina Fair housing Act specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the owner's "no pets" policy

An agent has a listing from a seller. The agent's niece informs the agent that she is interested in looking at the listed property. Regarding disclosure, what is the correct procedure for the listing agent? A) The agent must advise both the seller and the agent's niece that a dual agency will most likely be created and that he will provide them with equal representation B) The agent should advise the seller and the agent's niece that a dual agency will most likely be created and that he will provide them with limited representation C) The agent should tell the niece that he cannot show her the property because he is the selling agent D) The agent should tell the seller that he can no longer represent the seller because he is now obliged to represent his niece

B) The agent should advise the seller and the agent's niece that a dual agency will most likely be created and that he will provide them with limited representation (NOTE: "Limited," meaning "dual agency")

Twenty years ago, a homeowner obtained a 30-year mortgage loan to purchase a home. The interest rate on the loan was 9.275 percent. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which of the following statement is true in South Carolina? A) The homeowner's lender is entitled by statute to charge the homeowner a prepayment penalty equal to one year's interest on the current balance of the loan B) The homeowner's lender is permitted by South Carolina statute to charge the homeowner a prepayment penalty on loans of more than $150,000 C) South Carolina does not take an official statutory position on the issue of prepayment penalties D) If the homeowner's loan was greater than $100,000, the lender may charge a prepayment penalty under South Carolina law

B) The homeowner's lender is permitted by South Carolina statute to charge the homeowner a prepayment penalty on loans of more than $150,000 (NOTE: When the buyer was obtaining their loan, they would have had to agree to this prepayment penalty in the original note)

What are the procedures that a salesperson must follow when the licensee decides to terminate his or her affiliation with the employing broker? A) Give the broker an official letter of termination that he or she can send to the South Carolina Real Estate Commission B) The licensee immediately shall notify the South Carolina Real Estate Commission by completion of the proper form C) Return all customer lists to the employing broker D) Return his or her license, along with a letter of termination, to the South Carolina Real Estate Commission

B) The licensee immediately shall notify the South Carolina Real Estate Commission by completion of the proper form

A seller listed his house for sale with a broker on February 1. The listing agreement was to last five months. In April, the seller decided that the house was no longer for sale. Which of the following statements is true? A) The seller has cancelled the agreement and there are no penalties B) The seller has withdrawn the broker's authority to sell the property and may be subject to a penalty C) The seller is required by law to leave his house on the market until June D) The South Carolina Real Estate Commission will decide if the seller's action is justifiable

B) The seller has withdrawn the broker's authority to sell the property and may be subject to a penalty (NOTE: The South Carolina Real Estate Commission will not be involved in determining seller expenses)

Why are requirements for continuing education mandated by the South Carolina Legislature? A) To decrease liability for brokers B) To protect the public's interest C) To provide additional training for agents D) To comply with Federal Statutes

B) To protect the public's interest

What obligations does the Smoke Detector Law impose on a landlord in a duplex? A) None; only single-family rentals are impacted by smoke detector regulations B) To provide and maintain smoke detectors C) To advise the tenant to provide their own smoke detectors D) To repair a malfunctioning smoke detector within 30 days

B) To provide and maintain smoke detectors (This law applies to both single family and duplex rentals)

ABC Real Estate Company is handling a sales transaction where both the seller and the buyer are not represented but are entitled to limited confidentiality. What type of brokerage is this in South Carolina? A) Undisclosed dual agency B) Transaction brokerage C) Limited dual agency D) Limited designated agency

B) Transaction brokerage

How long must a landlord wait before he can raise rent to reflect a substantial increase in property taxes? A) Never, because this is illegal B) Until the lease expires C) Six months D) Four months

B) Until the lease expires (NOTE: The landlord cannot change the rental amount in the middle of a lease)

Which of the following facts may a listing broker properly disclose to a prospective purchaser without permission? A) Why the seller must conclude a sale B) What is wrong with the property C) What the owner actually will accept D) What the owner originally paid

B) What is wrong with the property

When should a buyer's earnest money personal CHECK be deposited in the broker's trust account? A) Upon acceptance by both parties to the contract B) Within 48 hours of acceptance of an offer to purchase C) Within 48 hours after receipt D) On or before the next banking day after receipt

B) Within 48 hours of acceptance of an offer to purchase

A buyer has indicated that she wishes to remain a customer in the pending real estate transaction. Does the sales agent owe this buyer any duties? A) No, because the buyer is owed nothing as a customer B) Yes, the buyer is owed fairness, honesty, and accurate information in all dealings C) Yes, the buyer is owed confidentiality and accountability D) Yes, the buyer is owed care and loyalty

B) Yes, the buyer is owed fairness, honesty, and accurate information in all dealings

All of the following provisions are included in the South Carolina Real Estate Commission's rules regarding listing agreements EXCEPT _____. A) a listing agreement must state the exact fee the broker will earn B) a listing agreement must be accompanied by a qualified expert's report of the property's condition C) a listing agreement must be in writing and signed by both broker and seller D) the seller must receive a true copy of the listing agreement after signing it

B) a listing agreement must be accompanied by a qualified expert's report of the property's condition

The South Carolina Real Estate Commission requires all of the following for maintaining a trust account EXCEPT _____. A) a running balance maintained for each entry B) a monthly reconciliation for each entry C) the check number for each deposit received D) the payee for each deposit received

B) a monthly reconciliation for each entry (NOTE: A monthly reconciliation catches any unusual transactions which might be caused by fraud or accounting errors)

The South Carolina Real Estate Commission may investigate a licensee for all the following reasons EXCEPT _____. A) its own initiative B) a written complaint submitted by an agent about a commission dispute between two companies C) the director has reason to believe that a licensee is unfit to practice D) a written complaint submitted by a disgruntled customer

B) a written complaint submitted by an agent about a commission dispute between two companies

One employed by and under the control of another known as the principal, to represent such principal in business dealings with third parties is known as a/an _____. A) servant B) agent C) independent contractor D) client

B) agent

A listing broker has received a written offer to purchase from a sales broker. The seller counteroffers, changing some of the terms. In this situation, _____. A) all changes to the original offer need only to be initialed by the seller B) all changes to the original offer need to be initialed and dated by both parties C) an entirely new written offer must be submitted D) negotiations can be verbal because the original contract is in writing

B) all changes to the original offer need to be initialed and dated by both parties

The three practices forbidden by the Sherman and Clayton Acts are price fixing, allocation of customers, and _____. A) taking net listings B) allocation of markets C) blockbusting D) unlimited profit taking

B) allocation of markets

An exclusive agency listing _____. A) can employ more than one broker as the agent for the sale of the property B) allows the owner to sell by his/her own efforts and not pay a commission C) is the most popular listing type in South Carolina D) offers the greatest protection to the broker

B) allows the owner to sell by his/her own efforts and not pay a commission

An open listing _____. A) must have an automatic renewal clause B) allows the owner to sell by his/her own efforts without payment of a commission C) is a form of multiple listing D) must contain a legal description of property

B) allows the owner to sell by his/her own efforts without payment of a commission

A broker's failure to include the name of the company in the advertising of a listing would be _____. A) acceptable if he gave the name of each listing agent B) an example of a blind ad C) legal, if the principal requested it that way D) against the South Carolina Realtor's Code of Ethics

B) an example of a blind ad

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) any amount agreed to by the parties

A brokerage's relationship with a buyer client or customer must be determined _____. A) any time after a purchase and sale agreement is executed by the parties B) at the time of the first substantial contact C) no later than the time a purchase and sale agreement is prepared D) no later than closing

B) at the time of the first substantial contact (NOTE: This question is asking when to sign the agency disclosure form, which should be at the time of first substantial contact)

Before taking the South Carolina real estate sales examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of successful completion of sixty classroom hours, _____. A) attain the age 21, and be a high school graduate B) attain the age of 18, and be a high school graduate C) attain the age of 18, and be a resident of this state D) attain the age of 21, and be a resident of this state

B) attain the age of 18, and be a high school graduate

The requirements for a non-resident to be eligible to receive a South Carolina license is that he/she _____. A) maintain a place of business within South Carolina B) be licensed with a broker-in-charge who has a South Carolina license C) reside in a state which offers reciprocity to South Carolina D) execute a South Carolina extradition writ

B) be licensed with a broker-in-charge who has a South Carolina license

A buyer becomes a client of a broker at the time the _____. A) agency disclosure form is given to the buyer seeking representation B) buyer agency agreement is signed by both the buyer and the broker C) buyer divulges confidential information D) broker shows the houses to the buyer

B) buyer agency agreement is signed by both the buyer and the broker

The listing agreement with a seller has expired, and the seller lists with a different brokerage firm. Jim, the original listing agent, now has a buyer interested in the seller's property. Based on this information, Jim _____. A) is a dual agent B) cannot disclose to the buyer offers received on the seller's property while it was listed with him C) cannot disclose to the buyer information about the physical condition of the property D) cannot represent the buyer

B) cannot disclose to the buyer offers received on the seller's property while it was listed with him (NOTE: Confidential information, such as offers received, must remain confidential forever)

The principal is usually referred to as the: A) customer B) client C) sub-agent D) agent

B) client

An agent received a cash deposit for a principle's property. The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For this action, the agent was found guilty of _____. A) conversion B) commingling C) dual agency D) secret profit

B) commingling

As a condition of salesperson licensure, an applicant must _____. A) pass the state licensing exam within three years of the provisional licensing course B) complete 60 hours of classroom instruction in fundamentals of real estate principles and 30 hours of classroom instruction of advanced real estate principles within five years before the application, unless exempt by the Commission C) be at least 21 years of age. D) complete 60 hours of classroom instruction in fundamentals of real estate principles and 30 hours of classroom instruction of advanced real estate principles within five years before the application

B) complete 60 hours of classroom instruction in fundamentals of real estate principles and 30 hours of classroom instruction of advanced real estate principles within five years before the application, unless exempt by the Commission (NOTE: Exemptions may include if somebody received a Bachelor of Law or Bachelor of Real Estate degree)

The person with whom the broker is working without an agency contract to accomplish the real estate transaction should be called _____. A) client B) customer C) master D) servant

B) customer

A broker-in-charge received an earnest money deposit from a buyer. Under South Carolina law, the BIC should _____. A) open a special, separate escrow account that contains funds for this transaction B) deposit the money in an existing escrow account in which all earnest money received from buyers may be held at the same time C) immediately (or by the next business day) commingle the funds by depositing the earnest money received from buyers D) hold the earnest money deposit in a secure place in the broker's real estate brokerage office until the closing date

B) deposit the money in an existing escrow account in which all earnest money received from buyers may be held at the same time

In South Carolina, a broker may have his or her license suspended or revoked for all of the following actions EXCEPT _____. A) being declared mentally incompetent B) depositing earnest money into the firm's escrow account C) paying a commission to an unlicensed person D) coercing a purchaser to choose a particular insurance agent

B) depositing earnest money into the firm's escrow account

An agent disclosed to the customer that he represents a client and he also disclosed the client's identity. What type of principal is this? A) undisclosed principal B) disclosed principal C) partially disclosed principal D) general principal

B) disclosed principal

Under the South Carolina Consumer Protection Code, a purchaser may _____. A) choose his or her own real estate agents B) elect to use the family attorney for the closing C) refuse to pay a prepayment penalty on a $200,000 loan D) pay a maximum $600 fee when assuming a loan

B) elect to use the family attorney for the closing (NOTE: The South Carolina CPC allows the borrower to choose his own attorney)

A(n) _____ listing is a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker if the property is sold through the efforts of ANY real estate broker. A) exclusive right-to-sell B) exclusive agency C) open D) net

B) exclusive agency

The relationship of trust and confidence between an agent and his principal is that of _____. A) attorney B) fiduciary C) subagent D) trustee

B) fiduciary

If a South Carolina real estate licensee guarantees to a buyer that he will make a profit upon resale of a property in the future, he should know that _____. A) he is doing the buyer a favor B) he is not allowed to do this by South Carolina license law C) he must be a broker and have five years of experience D) he should also give the buyer legal advice

B) he is not allowed to do this by South Carolina license law

Under the South Carolina Coastal Zone Management Act, a permit is required for all of the following in the impacted area EXCEPT _____. A) length of a dock B) height of a house C) addition of a pool D) construction of a golf course

B) height of a house

A South Carolina real estate salesperson may lawfully collect compensation from _____. A) either a buyer or a seller B) his or her employing broker only C) any party to the transaction or the party's representative D) a licensed real estate broker only

B) his or her employing broker only

The purpose of the South Carolina Disclosure of Real Estate Brokerage Relationships form in South Carolina is to _____. A) establish an agency relationship with a client B) inform the consumer of the types of agency and non-agency representation available in real estate transactions C) avoid discrimination under the South Carolina Fair Housing Law D) provide proof of representation to the other party in a transaction

B) inform the consumer of the types of agency and non-agency representation available in real estate transactions

Consent to disclosed designated agency _____. A) can be withheld by either party before a specific transaction B) involves both the buyer and seller client having an assigned agent to individually represent each client fully C) is not permitted in South Carolina D) is a blanket authorization for all transactions

B) involves both the buyer and seller client having an assigned agent to individually represent each client fully

A nonresident license applicant must file with the South Carolina Real Estate Commission a(n) _____. A) certificate of specific performance B) irrevocable consent to suits and actions C) copy of his or her birth certificate D) UB-40 form

B) irrevocable consent to suits and actions

A broker signs a listing agreement with a seller. The agreement contains the following clause: "If the property has not been sold after three months from the date of the signing, the agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, the agreement _____. A) is legal under South Carolina law because it contains a reference to a specific limit B) is illegal in South Carolina C) automatically receives a statutory six-month listing period to this open listing in South Carolina D) is legal under South Carolina law because the list periods are for less than six months each

B) is illegal in South Carolina (NOTE: Listings must contain a definite termination date and rollover extensions are not permitted)

Once an applicant has successfully completed the 60-hour pre-licensing course and the 30-hour advanced topics course, a(n) _____. A) exam must be taken, and if not passed, retaken within one year of application B) license must be applied for within one year after passing the exam C) Post-licensing course of 45 hours must be completed within one year of licensure D) broker-in-charge must sponsor an applicant prior to applicant taking the licensing exam

B) license must be applied for within one year after passing the exam

An agent, while working within the scope of her authority, binds her principal. The authority granted by a seller to a broker is expressed in the _____. A) buyer's broker agreement B) listing agreement C) management contract D) option contract

B) listing agreement

The South Carolina Residential Landlord-Tenant Act applies to _____. A) real estate licensees only B) managers of townhouses C) warehouse leasing agents D) a purchaser renting until closing

B) managers of townhouses (NOTE: This Act governs anyone who manages residential rental property; NOT commercial property OR a buyer who rents until closing)

Earnest money on a ratified contract _____. A) must be deposited into the listing broker's trust account B) may earn interest C) must be deposited by the broker into an escrow account immediately D) should be disbursed to the seller as a down payment

B) may earn interest (NOTE: The money may be deposited in either the listing or selling broker's trust account)

Regarding licensing and duties of personal real estate assistants in South Carolina, they _____. A) must be licensed B) may insert factual information into form contracts under the employing broker's supervision and approval C) may show houses for their supervising broker D) must be unlicensed individuals

B) may insert factual information into form contracts under the employing broker's supervision and approval

A cooperating agent _____. A) always works for the buyer B) may work for the seller C) does not receive a commission, but rather is paid a flat fee based on his/her acts D) normally works as a dual agent

B) may work for the seller

A purchaser's funds held by an agent _____. A) should be commingled with the agent's funds B) must be kept in a trust account C) must never be put in an interest bearing account D) should be deposited within 72 hours of acceptance of the contract of sale

B) must be kept in a trust account

A broker's own interests would be in conflict with the principal's interests if the broker took a/an _____. A) open listing B) net listing C) exclusive right-to-sell listing D) buyer agency agreement

B) net listing (NOTE: This is why net listings are illegal in SC)

A salesperson represents a seller who will not agree to dual or designated agency. When prospective buyers ask to look at the property, the salesperson must _____. A) tell them that they must first enter into a buyer representation agreement with another licensee B) not show them the property unless they are customers C) inform them, in writing, that the salesperson represents the seller's interests D) show them the property without making any disclosures about the salesperson's relationship with the seller, because such disclosure would be a violation of the salesperson's fiduciary duties

B) not show them the property unless they are customers (NOTE: Because this way, the agent does not have to act in either buyer or seller's best interests)

A builder who desires to employ a salesperson to sell houses for him on a commission basis must _____. A) have the salesperson obtain a salesperson's license B) obtain a broker-in-charge license C) notify the Commission of the contract between the builder and the salesperson D) pay the salesperson less than the usual commission

B) obtain a broker-in-charge license (NOTE: The BUILDER must obtain the BOC license; not the salesperson)

An owner employing more than one broker at a time has given a/an _____. A) unilateral listing B) open listing C) net listing D) multiple listing

B) open listing

An employment agreement whereby the property owner hires one or more agents, agrees to compensate only the agent who produces a buyer, and reserves the right to sell by himself and pay no agents is called a/an _____. A) net listing. B) open listing. C) exclusive right to sell. D) exclusive agency

B) open listing.

There are several situations by which an agency can be terminated. Which is best for the agent? A) lapse of time B) performance C) change of law D) destruction of the home or building

B) performance

Money received by a broker for rent on a property must be _____. A) placed in the broker's operating account B) placed in an escrow account or an operating account depending upon how the agent is hired C) disbursed to the landlord within 10 days after receipt D) retained by the broker in an escrow account for a minimum of 30 days until clearance of the deposit

B) placed in an escrow account or an operating account depending upon how the agent is hired (NOTE: The money belongs to the landlord; not the broker)

Brokers must be very careful of the statements they make. They are however, allowed to make statements of opinion as long as there is no intent to deceive. This is called _____. A) probability B) puffing C) prospectus D) proxy

B) puffing

Malfunctioning smoke detectors in a duplex in South Carolina must be _____. A) reported to the landlord within 30 days B) repaired by the landlord 15 days after notice is received C) replaced by tenant at tenant's expense D) reported to the local fire department immediately

B) repaired by the landlord 15 days after notice is received

All exclusive right-to-sell listings _____. A) must have a dollar amount for commission B) require payment of a commission to the agent if the property is sold C) must have a legal description of the property D) must have a "time is of the essence" clause

B) require payment of a commission to the agent if the property is sold

A real estate license is required for all the following activities EXCEPT _____. A) managing real estate B) reselling a personal mobile home C) selling real estate D) collecting rent for the use of real estate

B) reselling a personal mobile home

Four of the permissible agency relationships in South Carolina are _____. A) designated agency, disclosed dual agency, transaction brokerage, and seller agency B) seller agency, buyer agency, disclosed dual agency, and designated agency C) seller agency, single agency, disclosed dual agency, and transaction brokerage D) buyer agency, disclosed dual agency, designated agency, and transaction agency

B) seller agency, buyer agency, disclosed dual agency, and designated agency

Which of the following is true in order for a property manager to become a property manager-in-charge? The applicant must complete _____. A) ten hours of continuing education biennially B) seven hours of instruction in property management accounting and record keeping C) seven hours of continuing education biennially D) thirty hours of mandatory continuing education

B) seven hours of instruction in property management accounting and record keeping (NOTE: Regular property managers are NOT required to take this course)

The South Carolina Real Estate Commission is comprised of _____. A) seven members of the South Carolina Association of REALTORS® B) ten members, seven of whom are from each congressional district C) ten staff members of Labor, Licensing, and Regulations D) real estate brokers appointed by the governor

B) ten members, seven of whom are from each congressional district (NOTE: Two others are appointed by the governor and are not in real estate, and the 10th is chosen by members of the commission)

When a licensed broker-in-charge has a change of office name, address, email address, or telephone number, _____. A) notification must be made electronically B) the BIC must notify the South Carolina Real Estate Commission in writing within ten days C) a new license will always be issued D) the broker's new address must be approved by the Commission

B) the BIC must notify the South Carolina Real Estate Commission in writing within ten days

Regulatory authority over the South Carolina Coastal Zone Management Act has been given to _____. A) the South Carolina Legislative B) the South Carolina Department of Health and Environment Control--Office of Ocean and Coastal Resource Management (DHEC-OCRM) C) the South Carolina Coastal Council D) the Coastal Zone Management Appellate Panel

B) the South Carolina Department of Health and Environment Control--Office of Ocean and Coastal Resource Management (DHEC-OCRM)

A broker entered into a listing agreement with a seller. Another broker, who has been working with a buyer, learns of the property through the MLS. The second, cooperating broker could represent _____. A) the seller as an agent or as a customer in transaction brokerage B) the buyer as an agent, assist the buyer as a customer, or assist the buyer as a customer in transaction brokerage C) the buyer as a dual agent D) neither the buyer nor the seller

B) the buyer as an agent, assist the buyer as a customer, or assist the buyer as a customer in transaction brokerage

All of the following agreements must be in writing EXCEPT a(n) _____. A) exclusive-agency listing B) three month lease C) exclusive-right-to-sell agreement D) multiple listing

B) three month lease (NOTE: A lease of less than one year does not have to be written to be enforceable)

In order to be licensed as a broker in South Carolina, a salesman should have served under the instruction and guidance of a licensed real estate broker-in-charge for _____. A) six months B) three years C) four years D) five years

B) three years

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 _____. A) has reached age 65, is blind, or declared permanently disabled by an agency authorized to make such a declaration 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 C) during the tax year of the exemption, the homeowner turned 65, or was certified legally blind, or was declared permanently disabled before the following December 31 D) is legally blind as certified by a licensed ophthalmologist registered with the South Carolina Commission for the Blind and is the widow of a man who was 78 when he died

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

Regarding the South Carolina Real Estate Rejection Form, this form is for use _____. A) when a real estate purchase offer is rejected by the seller B) when a real estate purchase offer is rejected by the seller without a counter-offer C) whenever a buyer submits more than one offer on the same property D) whenever the seller is presented with an offer that does not meet the list price

B) when a real estate purchase offer is rejected by the seller without a counter-offer

An owner gave an exclusive right-to-sell listing to broker "L", an exclusive agency listing to broker "M", and an open listing to broker "N". Broker "N" sold the house and collected a commission while the other listings were still in effect. Which of the following statements is correct? A) "L" and "M" are both entitled to a split of the commission from "N" B) "L" and "M" are entitled to a second commission to be split between them C) "L" and "M" are each entitled to a full commission D) Only "N" is entitled to a full commission

C) "L" and "M" are each entitled to a full commission

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

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.

A broker-in-charge fails to renew his or her license by June 30 but continues to engage in real estate transactions. What penalties could be incurred? A) None, because the license remains active if the renewal and penalties are all paid within six months B) An automatic hearing with the commission after 90 days with a possible $1,000 fine and/or six months' imprisonment upon conviction C) $500 fine and/or six months' imprisonment upon conviction D) None, if the broker-in-charge can prove that the renewal was not of malicious intent

C) $500 fine and/or six months' imprisonment upon conviction

A house was purchased for $203,000, cash. The deed recording fees (deed stamps) will cost _____. A) $407.00 B) $375.55 C) $751.10 D) $1,502.20

C) $751.10 [NOTE: Deed recording fees are $1.85 per $500 or $3.70 per $1,000. So, (3.70)(203) = $751.10]

If a tenant's whereabouts are unknown and the rent is unpaid, how many days must the landlord wait before declaring abandonment? A) 5 days B) 10 days C) 15 days D) 30 days

C) 15 days

Security deposits must be returned to the tenant within _____. A) 14 days B) 15 days C) 30 days D) 45 days

C) 30 days

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%

C) 6%

If a provision of the licensing law is violated, the licensee may be subject to which of the following? A) Minimum fine of $500 B) Hearing in front of an administrative law judge C) A fine of not less than $500 nor more than $5,000 for each violation D) Revocation of license for a minimum of six months

C) A fine of not less than $500 nor more than $5,000 for each violation (NOTE: AND revocation of license for a minimum of three years)

Which of the following is not among the powers of the South Carolina Real Estate Commission? A) Issuing licenses B) Conducting hearings C) Arbitrating commission disputes between licensees D) Revoking licenses

C) Arbitrating commission disputes between licensees

A tenant pays rent and a security deposit. What are the regulations regarding the deposit of these funds? A) The rent must be deposited into the general account and the security deposit is placed into the escrow account B) The rent must be deposited into one escrow account and the security deposit placed into another escrow account C) Both the rent and the security deposit can be deposited in the same escrow account D) The rent must be sent directly to the owner and the security deposit placed into the escrow account

C) Both the rent and the security deposit can be deposited in the same escrow account (NOTE: Both rent and security deposits must be placed in an escrow account but they don't have to be in the same account. They DO, however, have to each have proper ledger identification if they are in the same account)

A seller terminates a listing with a broker. What fiduciary responsibilities are required for the broker after this termination? A) None, as the listing did not expire, it was terminated B) All fiduciary duties are to be maintained until the date of the original expiration of the contract C) Confidentiality and accountability survive the contract D) Whatever the principal and agent agree to in writing

C) Confidentiality and accountability survive the contract

A listing agreement may be terminated for which of the following reasons? A) Change of seller's marital status B) Bankruptcy of the salesperson who listed the property C) Destruction of the premises D) Death of the salesperson who listed the property

C) Destruction of the premises

Under South Carolina law, what obligations does a broker have regarding the submission of offers to purchase? A) Continue to seek offers to purchase even if the property is subject to a contract of sale B) Determine which offers, as the principal's agent, the broker will present to the seller C) Ensure that changes or modifications are initialed and dated by the parties to the contract D) Deliver executed copies of written acceptance of offer to all parties within 72 hours

C) Ensure that changes or modifications are initialed and dated by the parties to the contract (NOTE: "Contract of sale" = under contract)

A real estate salesperson was told by a seller that her company's commission was too high. She responded by saying that "Everyone charges about the same." Her statement violated which of the following laws? A) Federal fair housing laws B) South Carolina unfair trade laws C) Federal anti-trust laws D) South Carolina license law

C) Federal anti-trust laws

A listing broker knows that the five-year projection for the town includes construction of a parkway that will border the property. What disclosure obligations does the broker have to make to prospective purchasers? A) None, unless the purchasers are clients B) None, as the listing broker need not discover the latent defect C) Full disclosure, as this is a material fact D) Full disclosure, only if asked by the prospective purchaser

C) Full disclosure, as this is a material fact

Arnold owns property in four counties in South Carolina and he wants to build a dock on each of his four properties. Which of these counties is affected by the Coastal Zone Management Act? A) Greenville B) Lexington C) Horry D) York

C) Horry

Which of the following statements made by a dual agent would violate the law of agency and South Carolina license laws? A) Informing the buyer of patent defects within the house B) Supplying the buyer with a list of real estate professionals (i.e. attorneys, home inspectors, etc.) C) Informing the buyer that the seller is getting a divorce and wants to sell the house D) Informing the seller that the buyer really likes the house and the neighborhood

C) Informing the buyer that the seller is getting a divorce and wants to sell the house

Regarding transaction brokerage in South Carolina, which of the following is a new entitlement for customers agreeing to this recent alternative to agency representation? A) 100% loyalty, unless waived in writing B) Obedience, unless waived in writing C) Limited confidentiality, unless waived in writing D) Advice and counsel regarding offers and counteroffers

C) Limited confidentiality, unless waived in writing (NOTE: But the customer still does not receive representation by a fiduciary relationship with the agent acting in their best interest)

Which of the following is correct regarding an applicant for broker-in-charge? A) Must be at least 25 years of age B) Must have been licensed as a salesperson for at least 5 years as a salesperson C) Must be at least 21 years of age D) May substitute the property manager-in-charge license for the broker-in-charge license

C) Must be at least 21 years of age (NOTE: They must have THREE CONSECUTIVE years active salesperson licensure within the last five years)

J was found guilty of acting as a broker and an undisclosed principal in the same transaction. The decision of the South Carolina Commission was to revoke J's license. What is the minimum time J must wait following revocation of his license, to be eligible for a new license? A) Six months B) Nine months C) One year D) Two years

C) One year

_____ would result from a tenant being able to use only part of a unit, and there should be rent abatement (AKA: reduction). A) Constructive eviction B) Actual eviction C) Partial eviction D) Legal ejectment

C) Partial eviction

The authorities and responsibilities of the LLR Real Estate Commission fall under which of the following? A) Consumer Protection Code B) Governmental Restructuring C) Police Power D) Securities and Exchange Commission

C) Police Power

In South Carolina, which of the following activities regarding security deposits may result in legal penalties to the landlord? A) Returning the security deposit within 15 days B) Charging a tenant with breaking a door lock C) Retaining the security deposit until the tenant gives a forwarding address D) Deducting unpaid rent from the security deposit

C) Retaining the security deposit until the tenant gives a forwarding address (NOTE: If no forwarding address is provided, the landlord must send the security deposit to the last known address)

The seller told the broker that she wanted to clear $50,000 when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest. Which of the following is correct? A) The broker should have given the seller a better appraisal of the value of her house B) The broker's commission exceeds statutory and NAR guidelines C) The broker accepted an illegal net listing D) As the seller's agent, the broker had a duty to sell the house for as much as possible

C) The broker accepted an illegal net listing

A broker manages three properties with different owners. One property is in need of emergency repairs, but there is not enough money in the management account to cover the cost. The broker borrows money from the escrow account of one of the other properties to make the repairs. Which of the following is true? A) The broker has acted properly by safeguarding the client's interest B) Such action is proper in the event of the emergency C) The broker is in violation of regulations for improperly handling escrow funds D) The broker must use personal funds for repairs if there is not enough money in the management account

C) The broker is in violation of regulations for improperly handling escrow funds (NOTE: It is illegal to use funds from one client to make repairs for another)

Which of the following is correct concerning a listing broker's obligations and responsibilities to the seller? A) The broker may buy the seller's property and sell it to a prospect at a profit as long as the profit is 6% less B) The broker may relieve herself of any fiduciary responsibilities as long as they have been delegated to any qualified agents that are licensed with her company C) The broker is obligated to obey all of the seller's lawful instructions, even those with which she personally disagrees D) The broker has the implied authority to reject unreasonable offers to the principal

C) The broker is obligated to obey all of the seller's lawful instructions, even those with which she personally disagrees (NOTE: As long as the seller's instructions are LAWFUL)

A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which of the following statements is true? A) If the listing salesperson and the selling salesperson are two different people, there is no problem B) The broker should refer the buyer to another broker to negotiate the sale C) The seller and buyer must be informed of the situation and agree to the broker's representing both of them D) The buyer should not have been shown the house by the broker

C) The seller and buyer must be informed of the situation and agree to the broker's representing both of them

When creating an agency relationship in South Carolina between a real estate company and a seller, what is required? A) There must be an agreement for the seller to pay a commission B) The seller must have a clear title to the property C) The seller and the company must have a written agency agreement D) The seller and the company must agree to a 180-day listing

C) The seller and the company must have a written agency agreement

A salesperson has been contacted on the phone by someone who has expressed an interest in some property. When must the agency disclosure form be presented to the potential buyer? A) Not until an offer to purchase is drawn up B) When the buyer indicates that he or she wishes representation C) When the salesperson first meets with the buyer after the phone call D) Not until the buyer divulges confidential information

C) When the salesperson first meets with the buyer after the phone call

Sam owns property in Beaufort County on the waterfront. He plans to develop a public golf course along the coastline. Some portions of the course will be seaward of the baseline. Is this permissible with a permit and if so, where must Sam submit his plan? A) Nothing will be allowed seaward of the baseline B) Yes, and Sam submits to the Coastal Zone Management Appellate Panel C) Yes, submit the plan to the Department of Health and Environmental Control D) No, but Sam may appeal the rules to the South Carolina Department of Natural Resources

C) Yes, submit the plan to the Department of Health and Environmental Control

Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized murder of an elderly woman, and three years ago, the site of an AIDS-related death. As the agent for the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B? A) You must disclose both the murder and the AIDS-related death. B) You are specifically prohibited by law from disclosing either event. C) You are specifically relieved of liability for nondisclosure of either by the South Carolina license law D) You do not need to disclose the murder, but you must disclose the AIDS-related death

C) You are specifically relieved of liability for nondisclosure of either by the South Carolina license law (NOTE: Both of these deaths are psychological stigmas which do not affect the physical condition of the condo)

"Ad valorem" tax refers to _____. A) surtax B) state sales tax C) a tax according to value D) a tax on property transfer

C) a tax according to value

Broker "A's" listing is due to expire in one week. A salesperson from broker "B" may proceed to solicit the seller for the listing _____. A) immediately. B) twenty-four hours prior to expiration C) after broker "A's" listing expires D) at any time with the seller's encouragement

C) after broker "A's" listing expires

All of the following are true about offers in South Carolina EXCEPT _____. A) offers need to be in writing B) all parties should receive copies of a ratified contract C) all terms, with the exception of a closing date, which is negotiable, are to be included in the offer D) any changes made during negotiation must be initialed and dated by all parties

C) all terms, with the exception of a closing date, which is negotiable, are to be included in the offer

There are two points of reference in regard to construction along South Carolina beaches. The primary reference which must be established first is the _____. A) landward side of the dune B) setback line C) baseline D) seaward corners of the lot with reference to the South Carolina State Plane Coordinate System

C) baseline

In a dual agency situation, a broker may collect a commission from both the seller and the buyer if _____. A) the broker holds a state license B) the buyer and the seller are related by blood or marriage C) both parties give their informed consent to the dual compensation D) both parties are represented by attorneys

C) both parties give their informed consent to the dual compensation

A broker took an exclusive listing contract on a seller's home. The seller told the broker the roof leaked, but the broker made no notation on the listing. Later, a buyer made an offer on the property that the seller accepted. The broker lied when the buyer made his offer, telling her the roof was in good condition. After the buyer took possession, she discovered the truth during the first rain. Responsibility for the misrepresentation rests with _____. A) the broker only B) the seller only C) both the broker and the seller D) After possession, caveat emptor applies

C) both the broker and the seller

If a seller makes a misrepresentation to the buyer, and the broker, having knowledge of such is silent, in the course of the transaction, _____. A) the broker is liable B) the broker has no liability C) both the seller and the broker are liable D) the seller cannot be involved

C) both the seller and the broker are liable

If a broker tells a lender that the sales price on a property is something above its actual sales price, the _____. A) broker has done nothing wrong as long as the appraisal substantiates this price B) buyer is likely to receive an interest rate break C) broker can be fined and lose his or her license D) buyer can receive a higher mortgage amount

C) broker can be fined and lose his or her license

When there has been a dispute between the buyer and the seller about the entitlement of earnest money, the _____. A) broker must immediately remit the funds to the South Carolina Real Estate Commission B) seller, as owner of the funds, is entitled to the earnest money C) broker may not disburse the funds to either party until the dispute is resolved D) buyer, as payer of the funds, is entitled to the return of the earnest money

C) broker may not disburse the funds to either party until the dispute is resolved

If a dispute arises between a buyer and seller about the disposition of the earnest money deposit, the _____. A) broker must remit the funds to his or her principal B) parties must agree to mediation C) broker must retain the funds in an escrow account until the dispute is resolved D) parties must appear before the South Carolina Real Estate Commission for arbitration

C) broker must retain the funds in an escrow account until the dispute is resolved

A licensee who wishes to manage condominiums _____. A) must have a broker's license B) must have a property management license C) can have a provisional real estate sales license D) can have a time-share license

C) can have a provisional real estate sales license (NOTE: Provisional license = 1yr license)

When a salesperson leaves a company, the broker-in-charge at that company needs to _____. A) contact the MLS service within ten days to change the address B) contact the South Carolina Real Estate Commission about the change immediately C) do nothing. This is a licensee obligation D) terminate all listing agreements that involve that salesperson

C) do nothing. This is a licensee obligation

A couple has signed a lease containing a provision to waive their rights to the interest earned from the security deposit. The provision is _____. A) unenforceable, thus making the lease invalid B) unenforceable, but the lease is still valid C) enforceable, because the couple agreed to the provision D) enforceable only up to a security deposit limit of $1,000

C) enforceable, because the couple agreed to the provision (NOTE: Interest earned on a security deposit DOES belong to the tenant, but the right an be waived in the lease)

A person must be licensed as a real estate broker or salesperson if that person is _____. A) selling his or her house B) buying a house for his or her personal use C) engaging in the real estate business D) constructing houses

C) engaging in the real estate business

A buyer prospect is interested in seeing a house listed with the real estate company, but does not wish to enter into a buyer agency agreement. A salesperson from the real estate company can show the buyer an in-house listing _____. A) if the salesperson obtains the seller's permission B) if the buyer verbally agrees to buyer agency C) even if the buyer remains a customer D) if the salesperson provides the buyer with a dual agency consent form

C) even if the buyer remains a customer (NOTE: The salesperson MUST indicate that the agency represents the seller)

An employment agreement that obligates the property owner to pay the commission to the listing broker regardless of who made the sale is known as a/an _____. A) net listing B) open listing C) exclusive right to sell D) exclusive agency listing

C) exclusive right to sell

A listing contract creates an agency relationship and it may be terminated by _____. A) death of the listing salesman B) failure to sell the property in 180 days C) expiration of the term D) listing with another real estate company

C) expiration of the term

A type of authority that is VOLUNTARILY AND EXPLICITLY set forth as instructions by the principal in the agency agreement is called _____. A) implied authority B) necessary authority C) express authority D) statutory authority

C) express authority

Copies of all closing statements of transactions handled by a broker must be kept on file in his office for a period of _____. A) three years B) one year C) five years D) two years

C) five years

Leases and management agreements must be maintained by a broker-in-charge _____. A) forever B) for three years C) for five years D) until audited by the commission

C) for five years

A broker who wishes to place a "For Sale" sign on a listed property must first _____. A) obtain the consent of the multiple listing service B) sell the property C) get permission from the owner D) get permission from the neighbors

C) get permission from the owner

A broker has a house listed and one of the sales agents has a buyer client who is interested in making an offer on the property. That sales agent must _____. A) refer the client to another real estate company to avoid problems B) tell the client that he must sign the designated agency form C) get prior consent from both buyer and seller to act as a disclosed dual agent D) let the seller know of the agency relationship with the buyer simply as a courtesy

C) get prior consent from both buyer and seller to act as a disclosed dual agent

When a salesperson receives a personal check as an earnest money deposit, he must _____. A) place it in his own trust account B) place it in the broker's general account C) give it to his broker immediately upon ratification of the contract D) place it in the salesman's special account

C) give it to his broker immediately upon ratification of the contract

A broker-in-charge's most important agency responsibility is to _____. A) obtain listings for his/her licensees B) maintain a competent staff C) handle client or customer monies properly D) protect the public

C) handle client/customer money properly

The best description of a special agent would be a person who _____. A) is an attorney B) is an accountant C) has limited authority D) has contractual authority

C) has limited authority

In South Carolina, the following are requirements for obtaining a broker's license EXCEPT _____. A) having successfully completed 150 hours of approved real estate courses B) being at least 21 years of age C) having been actively engaged as a licensed salesperson for at least five years D) complete the required criminal background check process

C) having been actively engaged as a licensed salesperson for at least five years (NOTE: They must have THREE CONSECUTIVE years active salesperson licensure within the last five years)

Listings based on a "net price" are _____. A) more profitable because no minimum is set on the amount of commission collectible B) legal in South Carolina as long as the seller agrees C) illegal in South Carolina at any time D) permission with approval of the commission

C) illegal in South Carolina at any time

A broker has obtained an offer to purchase a residence that is listed with his firm. After the buyers sign the purchase and sale agreement and the broker accepts their earnest money deposit, the broker must _____. A) deposit the earnest money in the broker's personal checking account for safekeeping until closing B) complete a second earnest money agreement form that states an exaggerated selling price and give the second form to the buyers to present to the lender so that they will be certain to obtain sufficient financing for their purchase C) immediately provide the buyers a copy of the agreement D) file the agreement in the broker's records and, when two or three other offers have been received for the property, present them all to the sellers, who then may choose the best offer

C) immediately provide the buyers a copy of the agreement

A newspaper advertisement by a broker is a/an _____. A) irrevocable (AKA: irreversible) offer B) revocable (AKA: reversible) offer C) invitation to negotiate D) firm offer

C) invitation to negotiate

A broker-in-charge's duties to the associated licensees include all of the following EXCEPT _____. A) reviewing all agency agreements B) instructing on trust funds C) maintaining daily contact with the licensees D) resolving licensee disputes which may arise during real estate transactions

C) maintaining daily contact with the licensees (NOTE: They need to maintain "reasonable and regular" contact with licensees)

In South Carolina, a broker-in-charge _____. A) must have at least 10% ownership interest in the company B) must have been licensed as a broker for a minimum of five years C) may be a broker-in-charge of more than one office with commission approval D) may be broker-in-charge of two offices within a 50-mile radius without commission approval

C) may be a broker-in-charge of more than one office with commission approval

A requirement for non-residents to be eligible to receive a South Carolina license is that they _____. A) not maintain a place of business within the state. B) reside in a state which grants reciprocity to South Carolina agents C) must be employed by a broker-in-charge licensed in South Carolina D) are non-residents for only 4 months of the year

C) must be employed by a broker-in-charge licensed in South Carolina

In South Carolina, an office/company policy _____. A) is not required in an office with fewer than two employees B) is only required in an office that practices disclosed dual agency C) must contain a policy on fair housing D) must contain a client arbitration clause

C) must contain a policy on fair housing

The salesperson's brother is interested in purchasing a home listed with the agent's company. The salesperson _____. A) should suggest that the brother purchase a house not listed with the company B) must refer the brother to another company C) must disclose the family relationship to the seller D) need not disclose the family relationship to the seller if the brother is a customer

C) must disclose the family relationship to the seller

The on-site property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position the on-site manager _____. A) is exempt from licensing requirements B) must have a broker's license C) must have a real estate or property manager's license D) may negotiate but not sign leases without a license

C) must have a real estate or property manager's license

When advertising real property, real estate licensees _____. A) may state only the licensee's box number or street address B) may simply give a telephone number to call for more information C) must indicate that the ads were placed in the name of a real estate company D) must identify the owner of the property

C) must indicate that the ads were placed in the name of a real estate company

An unlicensed salesman negotiated the sale of real estate. The commission is payable to _____. A) the broker B) the salesman C) no one D) an escrow holder

C) no one

A licensee on inactive status may _____. A) receive compensation for referrals B) work as a part-time assistant showing houses C) not conduct real estate activities D) work as a leasing agent at a property management company

C) not conduct real estate activities

A(n) _____ is a legal document which serves as an IOU from a borrower to a creditor (receiver). A) mortgage B) earnest money check C) note D) deposit

C) note

A buyer contacts a real estate office and indicates an interest in purchasing a home in the area. Without entering into a buyer agency relationship with the buyer, a salesperson from the real estate office can do all of the following EXCEPT _____. A) provide the buyer with information on properties for sale in the area B) give the buyer information on mortgage interest rates and terms C) offer advice regarding negotiation strategies with the seller D) explain to the buyer about buyer agency, seller agency, and dual agency

C) offer advice regarding negotiation strategies with the seller

In South Carolina, a buyer's agent may _____. A) convert the buyer to a customer, offering transaction brokerage instead B) not represent a buyer in a transaction in which the agent's company has the listing C) offer properties the client has interest in to other potential purchasers D) accommodate a client's request to steer buyer to neighborhoods comprised of certain ethnic groups

C) offer properties the client has interest in to other potential purchasers

A(n) _____ listing is a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker ONLY IF the property is sold through the efforts of the listing broker. A) exclusive right-to-sell B) exclusive agency C) open D) net

C) open

The "principal" is BEST described as the _____. A) seller B) customer C) person with whom the agent signs the contract of employment D) person who pays the agent

C) person with whom the agent signs the contract of employment

The real estate license law is an example of _____. A) good legislation B) big government C) police power D) protectionism

C) police power

An applicant for a salesperson license must fulfill the post-licensing education requirements _____. A) prior to taking the licensing exam B) within twelve months of obtaining a salesman license C) prior to obtaining a license D) within five years of taking the licensing exam

C) prior to obtaining a license

In South Carolina, presenting an offer to a seller and not disclosing that the buyer is a close relative is _____. A) permissible, although not good business practice B) acceptable if the buyer is not a client C) prohibited under the licensing laws D) determined by the local association of Realtors® guidelines

C) prohibited under the licensing laws

The purpose of continuing education is to _____. A) train more licensees B) bring in more revenue for the LLR Real Estate Commission C) protect the public D) enhance the professionalism of licensees

C) protect the public

A purchaser fails to qualify for a loan. In such an event, the earnest money funds would usually be _____. A) forfeited B) divided between the seller and the listing agent C) refunded to the purchaser D) resolved by court action

C) refunded to the purchaser (NOTE: If the buyer fails to qualify for a loan, the funds MUST be refunded to them)

All of the following are protected classes under the South Carolina Fair housing Law EXCEPT _____. A) race B) handicap C) sexual preference D) national origin

C) sexual preference

An applicant for a real estate license in South Carolina must _____. A) have completed at least two years of college B) be at least 21 years old C) submit to a national and state criminal background check D) show proof of passing the license examination any time up to six months prior to the application

C) submit to a national and state criminal background check (NOTE: The passing of license examination can take place up to ONE YEAR prior to applying for the license)

All of the following are true about nonresident licensees EXCEPT that they must _____. A) be licensed as a broker or salesperson in some state B) be licensed under a South Carolina broker-in-charge C) take all education course requirements in South Carolina D) notify the commission in writing within 30 days of becoming a South Carolina resident

C) take all education course requirements in South Carolina

A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclose _____. A) both facts B) the suicide, but not the foundation C) the cracked foundation, but not the suicide D) neither fact

C) the cracked foundation, but not the suicide

When a real estate agent successfully handles a transaction where the agent does NOT REPRESENT either the buyer or the seller and owes only limited duties to either one or both customers, this is known as _____. A) limited dual agency B) limited designated agency C) transaction brokerage D) transactional representation

C) transaction brokerage

For all sales transactions, the South Carolina Real Estate Commission requires that _____. A) a separate escrow account be maintained for each individual's money B) deposit slips be retained for three years C) trust funds shall remain in the trust account until consummation or termination of the transaction D) folio numbers be used for accounts

C) trust funds shall remain in the trust account until consummation or termination of the transaction

In the event that two rival brokers claim a commission under an open listing, the commission should go to the broker who _____. A) listed the property B) is the realtor C) was the procuring cause of the sale D) obtained the first offer

C) was the procuring cause of the sale

What does CPC stand for?

Consumer Protection Code

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

D) 1% of the loan or $400, whichever is less

There are _____ members on the Real Estate Commission, each with a term of _____ years. A) 9; 4 B) 7; 4 C) 9; 3 D) 10; 4

D) 10; 4

How many counties in South Carolina does the Coastal Zone Management Act affect? A) 46 B) 24 C) 16 D) 8

D) 8

What is meant by the term "adopt-a-beach"? A) Organizations may volunteer to keep up to one mile of beach free of beer, thong bathing suits, and loud music B) Since the action of high tides and storms tend to take a heavy toll on the beach dune system, those who are interested in adopting up to one mile of beach can erect sand fences to help the rebuilding of dunes C) At certain times of the year, the demands upon the lands and waters of our coastal zone have resulted in loss of marine resources. Those who are so inclined may adopt up to one mile of beach to patrol during these heavy tourist seasons D) A private civic organization or industry may adopt up to one mile of the beach for the purpose of keeping it free of litter

D) A private civic organization or industry may adopt up to one mile of the beach for the purpose of keeping it free of litter

Which situations best describe transaction brokerage in South Carolina? A) A transaction where the buyer and seller are customers represented fully by the real estate company B) A transaction where the buyer and seller are clients represented fully by the real estate company C) A transaction where the buyer is the client and the seller is a customer fully represented by the real estate company D) A transaction where the buyer and seller are customers, or where the seller is a client and the buyer is a customer, or where the buyer is a client and the seller is the customer

D) A transaction where the buyer and seller are customers, or where the seller is a client and the buyer is a customer, or where the buyer is a client and the seller is the customer (NOTE: Buyer and seller do not BOTH have to be customers for it to be transaction brokerage; only one has to be)

Several weeks after closing, an associate broker received a thank-you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. In this situation, which of the following is true? A) The associate broker may accept the bonus because he is licensed as an associate broker B) Accepting the money is allowed if more than 30 days have lapsed since the closing C) The associate broker may accept the money if his broker permits him to do so D) Accepting the money is a violation of South Carolina Real Estate Commission regulations

D) Accepting the money is a violation of South Carolina Real Estate Commission regulations

In South Carolina, an aggrieved party could report evidence of racial discrimination concerning Fair Housing to _____. A) the US attorney B) HUD C) the South Carolina Human Affairs Commission D) All of the above

D) All of the above [NOTE: The South Carolina Human Affairs Commission is most common, though. Complaint must be filed within 180 days (6 months), whereas HUD gives you 12 months to file]

Which of the following statements is true? A) All leases must be in writing regardless of term B) A 15-month oral lease is enforceable C) A lease less than 6 months would have to be in writing D) An 11-month oral lease is enforceable

D) An 11-month oral lease is enforceable (NOTE: A lease of less than one year does not have to be written to be enforceable)

Under South Carolina law, which of the following needs to be licensed? A) The owner of a 30-unit apartment building B) An employee of the State Housing Authority C) A man who has been appointed the trustee of an estate D) An auctioneer who auctions farm land

D) An auctioneer who auctions farm land

Which of the following are not necessary for a listing broker to be entitled to a commission? A) A signed listing or compensation agreement B) A ready, willing, and able buyer C) A legally competent seller D) Any contract of sale between the seller and the purchaser

D) Any contract of sale between the seller and the purchaser

In South Carolina, when must a licensee provide a meaningful explanation of agency relationships to a buyer or a seller? A) Anytime before the offer is presented B) Prior to writing the offer for a buyer C) Prior to asking the buyer his name and telephone number D) At the first practical opportunity at which the licensee and the buyer or seller has substantive contact

D) At the first practical opportunity at which the licensee and the buyer or seller has substantive contact

How can a legal real estate sales transaction be established if both the buyer and seller in the transaction are customers? A) South Carolina license law does not allow this type of non-representation B) By signing the appropriate listing and buyer agency agreements C) Both the buyer and seller must agree to forfeit all traditional fiduciary and agency duties D) Both the buyer and the seller must agree to transaction brokerage and sign the appropriate forms, including the compensation agreement, which identifies the amount of compensation to the responsible party/parties

D) Both the buyer and the seller must agree to transaction brokerage and sign the appropriate forms, including the compensation agreement, which identifies the amount of compensation to the responsible party/parties

A very difficult sale results in a dispute between broker "A" and "B" about earned commission. Broker "A" feels that the bonus offered should have been paid to him as a procuring cause and complains to the Real Estate Commission. Which is correct? A) He must submit his complaint in writing B) Bonuses are always paid to the selling agent only C) Both brokers will have to appear at a hearing before the South Carolina Real Estate Commission members D) Commission disputes are not under the jurisdiction of the South Carolina Real Estate Commission

D) Commission disputes are not under the jurisdiction of the South Carolina Real Estate Commission

In South Carolina, which of these duties of an agent to a principal always continues after the agency relationship has been terminated? A) Full disclosure B) Loyalty C) Obedience D) Confidentiality

D) Confidentiality

Which of the following is true regarding the SC Coastal Zone Management Act? A) The setback line is landward of the baseline and no structure may be built landward of the setback line B) Construction of wooden walkways no wider than seven feet is allowed seaward of the baseline without a permit C) Construction of new habitable structures will not be allowed seaward of the baseline D) Construction of new erosion control devices will not be allowed seaward of the baseline

D) Construction of new erosion control devices will not be allowed seaward of the baseline

The listing contract does which of the following? A) Creates an agency relationship between the listing salesman and the property owner B) Obligates the seller to sell if a full price offer is received C) Employs a real estate company to represent a buyer D) Creates an agency relationship between the listing company and the property owner

D) Creates an agency relationship between the listing company and the property owner

What is a common-law 'third party' called in the South Carolina license law? A) Master B) Client C) Fiduciary D) Customer

D) Customer

If a salesperson receives an earnest money CHECK, what must he/she do with it? A) Deposit it within 48 hours of receipt B) Give it to the broker-in-charge to deposit within 48 hours C) Give it to the broker-in-charge within 48 hours of acceptance of the offer D) Give it to the broker in charge after the contract has been ratified

D) Give it to the broker in charge after the contract has been ratified (NOTE: To then be deposited within 48 hours of ratification)

Which of the following actions is legal and not a violation of license law? A) Encouraging a seller to reject an offer because the prospective buyer is a Methodist B) Placing a "For Sale" sign on a property without permission of the seller C) Delaying a closing until a commission is agreed upon D) Having the buyer client pay the commission

D) Having the buyer client pay the commission

Broker Sleazy Ed purchased his own listing because he knew of a purchaser who would pay more than the listing price. Which of the following statements is true of the broker? A) He may never purchase one of his own listings B) He has done nothing wrong if he did not misrepresent the property's value C) He acted properly if he disclosed that the offer was his D) He is liable to the owner for the profit made

D) He is liable to the owner for the profit made

A person who believes that he or she has been illegally discriminated against may file a complaint with the South Carolina _____. A) Association of REALTORS® B) Attorney General C) Real Estate Commission D) Human Affairs Commission or HUD depending upon the date of the alleged discrimination

D) Human Affairs Commission or HUD depending upon the date of the alleged discrimination (NOTE: A discrimination charge must be filed with the Human Affairs Commission within 180 days)

In South Carolina, when may an agent divulge client confidential information? A) Never under any circumstances B) When a relationship with a client is limited C) In a disclosed dual agency situation D) If the confidential information is required by law to be disclosed

D) If the confidential information is required by law to be disclosed

A real estate salesman in South Carolina wrote an ad for her new listing, "Spacious executive brick home with great view of the mountains priced to sell at only $625,000. Call 271-9732." What is wrong with this ad? A) It is offensive to certain groups B) It is a violation of the Fair Housing Act as amended in 1989 C) It is a violation of Regulation Z D) It does not contain the name of the real estate company

D) It does not contain the name of the real estate company

Which of the following statements is true of a broker's authority? A) It includes everything necessary to bring about a sale B) It includes all acts of the broker so long as they are in the owner's best interest C) It is regarded as a general agency D) It includes only that authority which is granted or implied

D) It includes only that authority which is granted or implied

Broker Joyce received a full priced offer on some property she had listed. The offer is contingent on the owner financing 90% of the price. Joyce feels the offer is unacceptable because the buyer has defaulted on other loans in the past, but she does not mention this to her client. Did Joyce meet her fiduciary duties? A) Yes, because she delivered the offer regardless of her feelings about it B) No, because she may be able to get a better deal later C) Yes, since she did find a buyer who was willing to pay full price D) No, because she withheld relevant facts from her client

D) No, because she withheld relevant facts from her client

Three weeks before N begins his real estate pre-license class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer is accepted while N is taking the class and closes the day before N passes the examination and receives his salesperson's license. The neighbor refuses to pay N the agreed upon commission. Can N sue to recover payment? A) Yes, because N was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding B) No, in South Carolina, a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from a seller C) Yes, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, South Carolina law permits enforcement of an oral commission contract under these facts D) No, state law prohibits lawsuits to collect commissions unless the injured party is a licensed salesperson and the license was in effect before the agreement was reached

D) No, state law prohibits lawsuits to collect commissions unless the injured party is a licensed salesperson and the license was in effect before the agreement was reached

After listing a house for sale, a broker incurs $37 in advertising expense and $17 in taxi fares for prospects interested in the property. For which expenses should the seller reimburse the broker? A) Only advertising expenses, as taxi fares are not a normal expense of a listing broker B) Advertisings expenses and transportation cost incurred in an attempt to market the listed property C) Expenses are never reimbursed to a broker by a seller as part of a listing agreement D) Only those expenses agreed upon by the seller and the broker as part of the listing agreement

D) Only those expenses agreed upon by the seller and the broker as part of the listing agreement

In South Carolina, an unlicensed real estate assistant may perform which of the following activities? A) Show property for sale B) Hold an open house C) Explain simple contract documents to prospective buyers D) Prepare and distribute promotional materials for the real estate company

D) Prepare and distribute promotional materials for the real estate company

A seller has a ratified contract of sale and is expecting to close on June 24. The listing broker receives an offer on the same property on June 15 that is higher than the ratified contract. What should the broker do? A) Reject the offer and return it to the buyer B) Suggest the seller terminate the contract of sale and accept the second higher offer C) Wait and not present the offer unless the contract of sale does not close on June 24 D) Present the offer to the seller

D) Present the offer to the seller (NOTE: The seller could accept the offer as a "back up" with offeror approval)

A broker has obtained a listing agreement with Mr. Jones. Later, a salesperson from the broker's firm finds a ready, willing, and able buyer for Mr. Jones' property. What is the relationship that the salesperson has with the seller? A) Dual agent B) Buyer's agent C) Buyer's sub-agent D) Seller's sub-agent

D) Seller's sub-agent

Which of the following is a requirement to obtain a real estate salesperson's license in South Carolina? A) Successful completion of 12 credit hours of real estate law, investments, finance, and appraisal B) An associate degree or certificate in real estate from an accredited college, university, or proprietary school C) United States and South Carolina citizenship D) Successful completion of a state approved real estate course of 90 classroom hours

D) Successful completion of a state approved real estate course of 90 classroom hours

Which are among the operating requirements of a real estate team? A) The team may freely advertise that they are acting as an independent entity B) Terms such as "realty," "real estate," and "realtors" may be included in the team name C) Teams cannot act as dual agents unless all team members agree to the agency D) Team advertising must contain the team name and the full name of the real estate brokerage firm displayed in a conspicuous way

D) Team advertising must contain the team name and the full name of the real estate brokerage firm displayed in a conspicuous way

Before any time share units can be marketed and sold, all plans regarding the time share project must be approved by _____. A) HUD B) The South Carolina Time Share Advisory Board C) The South Carolina Time Share Commission D) The South Carolina Real Estate Commission

D) The South Carolina Real Estate Commission

Which of the following is true about interest earned on a purchaser's earnest deposit? A) The interest must be paid to the purchaser B) The interest must earn six percent per annum payable to the purchaser C) It is illegal; all deposits must be on non-interest-bearing accounts D) The broker may keep the interest earned on the deposit if the purchaser has agreed in writing to waive her right to the interest

D) The broker may keep the interest earned on the deposit if the purchaser has agreed in writing to waive her right to the interest

How must a landlord handle a security deposit? A) They can be used only for residential units B) Landlords must pay tenants interest on their security deposits C) At the end of the lease, the landlord cannot apply the security deposit to rent owed by the tenant D) The landlord must return the security deposit, minus damages, to the tenant within 30 days of the termination of the lease

D) The landlord must return the security deposit, minus damages, to the tenant within 30 days of the termination of the lease

Which of the following is not allowed to be practiced in South Carolina? A) Single Agency B) Designated Agency C) Dual Agency D) Undisclosed Dual Agency

D) Undisclosed Dual Agency

A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? A) No, because the real estate company would then be a dual agent B) Yes, as long as the seller agrees to sign the offer C) Yes, if the seller has agreed to pay the commission D) Yes, if both the buyer and the seller give their written consent to either dual or designated agency

D) Yes, if both the buyer and the seller give their written consent to either dual or designated agency

A broker intends to open a branch office in a neighboring town. The broker applies for a branch office license, giving a name that clearly identifies its relationship with his main office. The broker names a licensed real estate salesperson as the branch office manager. Under these facts, could the broker receive approval for the branch office? A) Yes, the broker has fully complied with the requirements of the license law B) No, under the license law, brokers cannot have branch offices in more than one municipality C) Yes, by naming the salesperson as the branch's manager, the broker is in compliance with the requirement that a broker may be in direct operational control of only one office or branch D) Yes, if the real estate commission approves the broker being broker-in-charge of two offices

D) Yes, if the real estate commission approves the broker being broker-in-charge of two offices (NOTE: Each office must have a broker-in-charge, not a salesperson in charge of the branch)

Funds that are received by a broker for a principal must be kept in _____. A) individual escrow accounts B) a South Carolina bank C) a non-interest-bearing account D) a bank account specifically designated as either "trust" or "escrow"

D) a bank account specifically designated as either "trust" or "escrow"

A buyer who chooses not to be represented in a transaction is _____ A) not permitted under the South Carolina licensing law B) a customer who has a financial obligation to an agent C) not required to receive the agency disclosure form D) a customer who can later become a client

D) a customer who can later become a client

The South Carolina Fair Housing Law provides protection from discrimination for all of the following EXCEPT _____. A) sex B) religion C) national origin D) age

D) age

In South Carolina, all of the following would be grounds for revoking a broker's license EXCEPT _____. A) being convicted of forgery in South Carolina B) guaranteeing future profit from the resale property C) depositing escrow money into his or her personal checking account D) agreeing with a seller to accept a listing for more than the normal commission rate

D) agreeing with a seller to accept a listing for more than the normal commission rate

Confidentiality can be breached in all of the following situations EXCEPT when _____. A) the principal grants consent to disclose B) the local association of REALTORS® accuses an agent of wrongful conduct C) a court of law requires the information D) another client may benefit

D) another client may benefit

A competent person who is authorized by another to act in his PLACE AS AN AGENT is known as a/an _____. A) attorney-at-law B) master C) servant D) attorney-in-fact

D) attorney-in-fact

In South Carolina, licenses are renewed _____. A) annually, in the month issued B) every two years in the month of the licensee's birthday C) on June 30 of each even-numbered year D) biennially, on June 30

D) biennially, on June 30

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) borrower

The consent to dual agency form needs to be signed by _____. A) the seller at the time of listing B) both parties before closing C) the seller after the offer is presented D) both parties before an offer is submitted on behalf of the buyer client

D) both parties before an offer is submitted on behalf of the buyer client

The South Carolina Agency Disclosure Brochure should be presented to _____. A) the buyer only B) the seller only C) both the buyer and the seller at closing D) both the buyer and the seller early in the relationship

D) both the buyer and the seller early in the relationship

Earnest money disputes between parties may be resolved by all of the following EXCEPT _____. A) a written agreement signed by all parties directing the disposition of the monies B) voluntary mediation C) court action D) broker arbitration

D) broker arbitration (NOTE: Arbitration = resolution) (NOTE: SC licensing law allows for a written agreement, mediation, or court order to resolve an earnest money dispute)

The _____ establishes an agency relationship between the buyer as principal (client) and the broker as agent. A) listing contract B) personal services agreement C) sales contract D) buyer agency contract

D) buyer agency contract

A broker or salesperson may perform all of the following in preparation for the closing EXCEPT _____. A) maintain a time schedule and provide net data B) explain closing procedures to both buyer and seller and anticipate decision-making alternatives C) coordinate inspections and deliver documents and escrow monies to the appropriate attorney D) conduct any title searches that might be required

D) conduct any title searches that might be required

The South Carolina Real Estate Commission has the power to _____. A) act as an advisory board to the Governor B) create the standards for the employees of the South Carolina Real Estate Commission C) suspend a license, fine, and impose jail sentences of up to six months D) conduct disciplinary hearings and decide the punishment of those found guilty

D) conduct disciplinary hearings and decide the punishment of those found guilty

A classified ad is considered unlawful by the South Carolina Real Estate Commission when it _____. A) lists the name of the company but not the broker B) omits the address C) doesn't contain the equal housing opportunity logo D) contains a phone number but no additional information

D) contains a phone number but no additional information (NOTE: Fair housing violations are not handled by the Real Estate Commission)

Using funds that are received as earnest money to pay for the monthly building rent and utilities is _____. A) standard accounting procedure B) acceptable if reimbursed to a trust account within 30 days C) permitted if the office account is overdrawn D) conversion and illegal

D) conversion and illegal

A South Carolina broker-in-charge, without advising his principal, accepts a note as earnest money in a real estate transaction. The note is unpaid. The principal can _____. A) turn the broker in to the South Carolina attorney general B) bring legal action against the purchaser C) file a complaint with the Real Estate Commission D) demand restitution from the broker-in-charge

D) demand restitution from the broker-in-charge (NOTE: Restitution = Restore the money to the principal)

The South Carolina Real Estate Commission has the power to revoke a salesperson's license if the salesperson _____. A) attempts to represent a real estate broker other than his or her employing brokerage company B) attempts to represent a buyer C) enters into an exclusive-listing contract D) deposits a buyer's down payment into his or her own bank account

D) deposits a buyer's down payment into his or her own bank account

A broker-in-charge appoints one agent in his company to represent the seller and another agent to represent the buyer in the same transaction. This is known as a _____. A) disclosed dual agency B) bilateral agency C) dual sub-agency D) designated agency

D) designated agency

If the South Carolina Property Disclosure form is provided to the buyer, it _____. A) allows the buyer to terminate the sales contract B) is a valid reason to delay or interfere with the closing process C) creates a defect in title D) does not void the agreement, create a defect in title, or present a valid reason to interfere with the closing process

D) does not void the agreement, create a defect in title, or present a valid reason to interfere with the closing process

An employment agreement whereby only one broker is hired by the owner, but the owner may sell her own property without incurring obligations to pay a commission is called a/an _____. A) net listing B) open listing C) exclusive right to sell D) exclusive agency listing

D) exclusive agency listing

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is _____. A) violating the license law B) required to have a broker's license C) required to have a salesperson's license D) exempt from real estate licensing requirements

D) exempt from real estate licensing requirements

An agency which is voluntarily created through CONTRACTUAL AGREEMENT between the principal and the agent is known as a/an _____. A) implied agency B) statutory agency C) sensible agency D) express agency

D) express agency

After revocation of a license, a new license may be not be issued _____. A) for a period of two years B) until at least three members of the commission agree to reinstatement C) for a period of six months plus the affirmation of a majority of the real estate commission members D) for a period of three years from the date of revocation

D) for a period of three years from the date of revocation

Willful misrepresentation of a material fact which results in a person assenting (AKA: agreeing) to a contract, the performance of which results in damage, is _____. A) collusion B) duress C) gross misstatement of fact D) fraud

D) fraud (NOTE: Willful misrepresentation is always fraud!)

One authorized to conduct a series of transactions involving an ONGOING relationship such as a salesman or broker employed by a broker-in-charge is a _____. A) special agent B) disclosed agent C) necessary agent D) general agent

D) general agent

After the closing, a satisfied seller gives the listing salesperson a $500 bonus. Regarding the bonus, the salesperson should _____. A) split it with the employing broker-in-charge B) refuse to accept it C) deposit it into a trust or escrow account within 48 hours of receipt D) give it to the employing broker-in-charge for dispersal

D) give it to the employing broker-in-charge for dispersal

Upon obtaining a listing, a broker or licensed salesperson is obligated to _____. A) set up a listing file and issue it a number in compliance with the South Carolina Real Estate Commission B) place advertisements in the local newspapers C) cooperate with every real estate office wishing to participate in the marketing of the listed property D) give the person signing the listing a legible, signed, true, and correct copy

D) give the person signing the listing a legible, signed, true, and correct copy

To renew a license in South Carolina, a salesperson must _____. A) pay a fee of $80 biannually B) be fully participating in the real estate business during business hours C) have completed four hours of continuing education every year D) have completed ten hours of continuing education biennially

D) have completed ten hours of continuing education biennially

If a South Carolina salesman showing property on Sullivan's Island guarantees to a buyer client that she will surely make a profit upon resale of that property in five years, the salesman should know that _____. A) his actions demonstrate the fiduciary responsibility to give the client his judgement and expertise about properties B) he must have a Certified Residential Specialist designation C) he must be a real estate Counselor to give this kind of advice D) he cannot do this

D) he cannot do this

When a dispute arises between a buyer and a seller concerning the disposition of the earnest money, the broker must _____. A) return it to the buyer, as he is the originator of the funds B) give it to the seller, who is the broker's principal C) give it to the circuit court (interpleader) D) hold it in his trust account until such time as its disposition is determined

D) hold it in his trust account until such time as its disposition is determined

Authority exercised by an agent which is in accord with usual or TRADITIONAL PRACTICES is called _____. A) express authority B) traditional authority C) statutory authority D) implied authority

D) implied authority

The duties and powers of the South Carolina Real Estate Commission include all of the following EXCEPT _____. A) promulgating regulations to protect the public B) conducting disciplinary hearings C) determining standards for licensure D) imprisoning a licensee for major violations of law

D) imprisoning a licensee for major violations of law

A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wished to buy this property, the salesperson must _____. A) resign as the broker's agent and make an offer after the owner has retained another broker B) have some third party purchase the property on the salesperson's behalf so that the owner does not learn the true identity of the purchaser C) obtain permission from the South Carolina Real Estate Commission D) inform the owner in writing that the salesperson is a licensee of the listing company before making an offer and notify the seller of his right to pay no commission to the listing company

D) inform the owner in writing that the salesperson is a licensee of the listing company before making an offer and notify the seller of his right to pay no commission to the listing company

A real estate broker-in-charge _____. A) is always employed by the owner of the property B) may not act as an agent for the purchaser C) is usually considered a universal agent D) is usually considered a special agent

D) is usually considered a special agent

Both _____ are a result of tenant noncompliance. A) constructive eviction and actual eviction B) actual eviction and partial eviction C) partial eviction and legal ejectment D) legal ejectment and actual eviction

D) legal ejectment and actual eviction

A real estate licensee who wishes to also become a property manager _____. A) may also apply for a property manager's license B) must first acquire a broker's license C) must attend a 30-hour property management course D) may manage property with a real estate license with approval of the broker-in-charge

D) may manage property with a real estate license with approval of the broker-in-charge (NOTE: A dual license is not permitted in SC, meaning one license which allows a person to both sell RE and manage property)

A non-resident real estate agent seeking a South Carolina license _____. A) is exempt from any experience requirements B) is exempt from all real estate courses C) must own property in South Carolina D) must pass the state portion of the exam to qualify

D) must pass the state portion of the exam to qualify

In South Carolina, real estate commissions are _____. A) set by the law B) set by the South Carolina Real Estate Commission C) determined by local groups of brokers D) negotiable between the seller/buyer and broker

D) negotiable between the seller/buyer and broker

The primary requirement for a licensed broker to receive a commission is to _____. A) find a property B) find a seller C) advertise the property D) negotiate an offer and acceptance between the parties

D) negotiate an offer and acceptance between the parties

A(n) _____ listing is a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay the listing broker everything above their agreed-upon selling price. A) exclusive right-to-sell B) exclusive agency C) open D) net

D) net (NOTE: These are illegal in SC)

Personal checks for earnest money received by a licensee on behalf of his or her principal must be delivered to the broker-in-charge or property manager-in-charge _____. A) no later than 24 hours of receiving the offer B) within 48 hours of receiving the offer C) two working days of receiving the offer D) no later than the following business day

D) no later than the following business day

A property is listed by broker "A" at $192,500. The purchaser is required to put $30,000 down with the seller to finance the rest. Broker "A" brought the seller a full price cash offer that the owner rejected. "A" is entitled to _____. A) the full commission B) half the commission C) the commission split agreed upon D) nothing

D) nothing

A buyer agency agreement must contain all of the following EXCEPT _____. A) method of compensation B) explanation of compensation to participating brokers C) description of agent's duties D) notification of intent to cancel after expiration date

D) notification of intent to cancel after expiration date

In an agency relationship, the one who employs another to represent her in legal and/or business dealings with third persons is called a/an _____. A) agent B) attorney-in-fact C) customer D) principal

D) principal

The purpose of the real estate license law is to _____. A) provide revenue for the state B) protect the people who are selling real estate C) increase employment opportunities for salesmen D) protect the public when involved in real estate transactions

D) protect the public when involved in real estate transactions

Broker "M" told buyer "N" that a home was "in a great neighborhood". After purchasing the home, buyer "N" found out that there had been recent crimes in the area, and that values had been on a steady decline. The statement of broker "M" would be regarded as _____. A) concealment B) mutual mistake C) fraud D) puffing

D) puffing

You, the listing agent, receive an offer on a home you have listed, which refers to the sewer connection. You know that the property has a septic tank. You should _____. A) refuse the offer based on the inaccurate information B) give the offer to the seller and let him/her decide about disclosure of the septic tank C) give the offer to the seller and say nothing D) recommend that the seller make this change either in his/her acceptance or in the counteroffer and send it back

D) recommend that the seller make this change either in his acceptance or in the counteroffer, and send it back

Misrepresentation by a party to a contract differs from fraud as to the _____. A) consideration B) voidability of the agreement C) requirement of competency D) requirement of intent

D) requirement of intent (NOTE: This means misrepresentation is different than fraud because there has to be INTENT to misrepresent for it to be considered fraud)

Under South Carolina law, all of the following disclosures must be included in a listing contract EXCEPT _____. A) amount of compensation B) agent's duties C) compensation to cooperating brokers, if applicable D) seller's net return

D) seller's net return

A property is located in what has recently become a high crime area. Because of that situation, the agent should _____. A) not show the property at all B) tell prospective buyers that the agent does not like to show property in that area C) show properties in adjacent areas only D) show the prospective buyer properties in that area as well as similar properties in other locations

D) show the prospective buyer properties in that area as well as similar properties in other locations

The location of the baseline in the standard erosion zone is based on the location of _____. A) the sand dunes at high tide B) both the seaward lot corners and sand dunes C) the setback lines and erosion rates for 40 years D) the crest of the primary oceanfront sand dune

D) the crest of the primary oceanfront sand dune

Continuing education is required by the South Carolina Real Estate Commission _____. A) to enhance the real estate profession B) because it is a requirement of the National Association of REALTORS® C) to reduce errors and omissions insurance D) to protect the public

D) to protect the public

A real estate license may be revoked upon proof of the licensee _____. A) charging more than the usual rate of commission B) having a dispute between a broker and a salesperson as to commission C) refusing to accept a listing D) violating a buyer's right to choose an attorney or insurance agent

D) violating a buyer's right to choose an attorney or insurance agent

An agent has earned a commission from the sale of a parcel of property when the agent _____. A) has a listing on the property that was sold B) was the procuring cause of the sale C) had a real estate license at the time the property was sold D) was licensed, had a valid listing for the property, and the property was sold by the agent

D) was licensed, had a valid listing for the property, and the property was sold by the agent

T/F) Earnest money checks and cash both need to be deposited into a trust account within 48 hours of receipt.

False (CASH is deposited within 48 hours of RECEIPT, whereas CHECKS are deposited within 48 hours of contract RATIFICATION)

T/F) To obtain a broker or broker-in-charge license, an applicant must have been a licensed salesperson for any three of the last five years.

False (The three years MUST be consecutive)

T/F) A licensee who has completed the 60 hours of classroom instruction may NOT take the licensing exam before completing the 30 hours of advance instruction.

False (They CAN take the licensing exam, but the license cannot be obtained until the 30 hours of advance instruction is completed)

What is the primary similarity and primary difference between an open listing and exclusive agency listing?

In both an open listing and exclusive agency listing, the agent only gets paid if they contribute to the sale of the home. Otherwise, if the owner sells by his own efforts, he does not have to pay a commission. The primary difference between the two is in an open listing, the owner can use as many brokers as he wants. Whereas in an exclusive agency listing, the owner chooses only one broker.

What does LLR stand for?

Labor Licensing Regulation

The exaggeration of the good points of a property and the prospects for future rise in value is known as _____.

Puffing

T/F) An agent guaranteeing to a buyer that he will make a profit upon resale of a property in the future is one of the 24 license law violations.

True

T/F) An agent violating a buyer's right to choose an attorney or insurance agent is one of the 24 license law violations.

True

T/F) Coercion involves attempting to persuade a person to do something by using force or threats.

True

Mixing trust funds with personal or company funds is _____ (conversion/commingling).

commingling (NOTE: Think, "mixing/mingling")

List the eight counties affected by the South Carolina Coastal Zone Management Act.

1) Beaufort 2) Berkeley 3) Charleston 4) Colleton 5) Dorchester 6) Georgetown 7) Horry 8) Jasper