Real Estate Practice Final - State

Gwendolyn qualifies for the South Carolina homestead exemption. Her property is valued at $175,000. Up to what amount of her property's value is exempt from property taxation?

$50,000 The homestead exemption allows up to $50,000 of the property's value to be exempt from property taxes.

In South Carolina, smoke detectors are required in residential dwellings with how many units?

1 to 2 units

What's the minimum age requirement to qualify for a broker license in South Carolina?

21

Under South Carolina law, the landlord can begin the eviction process after the tenant is how many days late with rent?

5 days In South Carolina, if the rent is five days late, the landlord may terminate the rental agreement, provided the landlord has provided prior written notice reserving this right. Such prior notice may be provided at any time prior to the five days, even at the beginning of the lease.

How can time terminate agency?

Agency terminates when the time specified in the agreement elapses.

South Carolina licensee Barbara is house hunting in Columbia, and this time, it's for a house of her own. At what point must she first let the sellers know that she is a licensee?

At her first substantive contact with them

Salvatore, a South Carolina licensee, is drafting a billboard advertisement. Which of the following pieces of information must be included? Brokerage firm address Brokerage firm name Brokerage firm phone number Licensee phone number

Brokerage firm name

Which South Carolina licensees are allowed to work independently, without being supervised?

Brokers-in-charge

What term describes a situation in which a broker uses client trust funds without the client's permission?

Conversion Conversion is when a broker spends client trust funds on personal items.

As soon as a South Carolina offer or counter-offer is accepted, the licensee must promptly deliver ______.

Copies of the fully signed offer to purchase to each party to the transaction

South Carolina broker-in-charge Malcom submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.

Demonstrating untrustworthiness or incompetency to act as a real estate professional

Which of the following is an example of commingling? Depositing client funds into a broker trust fund Depositing trust funds into a general business account Giving trust funds to your broker Using client funds for your personal expenses

Depositing trust funds into a general business account Commingling is mixing trust funds with non-trust funds. Using those funds would be conversion, another serious violation.

What's the name of the document that explains agency relationships and must be provided to consumers at the first practical opportunity?

Disclosure of Real Estate Brokerage Relationships

Amanda helps her neighbor sell his South Carolina home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______. Doesn't need a real estate license Must have a broker license Must have at least an associate broker license Must have at least a salesperson license

Doesn't need a real estate license Remember that compensation is one factor in the requirement for licensure.

According to South Carolina's Residential Landlord and Tenant Act, what's the largest amount a landlord can require for a security deposit?

There's no limit

Jamie wants to establish an agency relationship with a South Carolina broker. How can this be done?

Through a written agreement

To receive a new South Carolina real estate license after the original was revoked, an applicant must provide proof of competence to practice real estate, a good reputation for honesty and fairness, and ________.

Trustworthiness

Which of the following must be included in a buyer agency agreement? An automatic renewal clause A two-year termination Standardized real estate commission The licensee's duties and responsibilities to the buyer

The licensee's duties and responsibilities to the buyer

Which of the following items is part of a South Carolina agency agreement? Closing date Description of services to be performed Financing contingency Sale price

Description of services to be performed

Which of these duties is outside the scope of the South Carolina Real Estate Commission? Determining commission splits between licensees Determining license qualifications and requirements Holding hearings on possible license law violations Promulgating regulations

Determining commission splits between licensees

How often are salesperson and broker licenses in South Carolina renewed?

Every two years

Jermaine holds a salesperson license in South Carolina. How often must he renew his license?

Every two years

What best describes a net listing in South Carolina?

The seller specifies a price desired for the property and agrees to pay the broker any amount received more than that price.

Which of the following is generally true about net listings? The listing agent is guaranteed at least some commission. They don't include compensation for the buyer's agent. They often involve a conflict of interest. They're legal in all 50 states

They often involve a conflict of interest.

What purpose does the South Carolina Real Estate Commission serve?

To regulate the real estate industry to protect the public's interest when involved in real estate transactions.

Which South Carolina legislation laid the ground rules for creating binding contracts electronically?

Uniform Electronic Transactions Act

Both federal and South Carolina state law consider real estate contracts that have been transmitted and signed electronically to be ______.

Valid and enforceable

Which of the following individuals meets the experience requirement for a real estate broker's license in South Carolina? Amelia was an unlicensed property management company employee for one year, an unlicensed assistant at a real estate brokerage for one year, and has been licensed as a real estate salesperson for one year. Clayton has been a real estate salesperson for two years and is in the process of taking broker courses. Georgina has been an active salesperson for the last three years. Rolando received her real estate salesperson license last year and has completed 150 hours of real estate courses.

Georgina has been an active salesperson for the last three years.

Which of the following is true of team advertising in South Carolina? It must include the brokerage firm name, but not the team name. It must include the team name and brokerage firm name. It must include the team name, but not the brokerage firm name. It's prohibited.

It must include the team name and brokerage firm name.

What is true about a South Carolina broker-in-charge's license, if an affiliated licensee commits a violation?

It's in jeopardy if it can be shown the broker-in-charge failed to supervise the licensee.

Kenny is buying Josie's South Carolina property, which is listed with broker Ariel. Who are the parties to the listing agreement?

Josie and Ariel

Stanley and Julie are partnering up to form a team within their South Carolina real estate firm. Which of the following would be an appropriate name for their team? Just Say Sold, LLC Just Say Sold Partners Just Say Sold Real Estate Partners Just Say Sold Realty

Just Say Sold Partners

Kacey sold her house in South Carolina. At closing she provided an affidavit confirming that the home had functioning smoke detectors installed. A couple weeks after closing, the buyer discovered that the smoke detectors don't work. What's Kacey's liability in this situation?

Kacey isn't liable after closing has occurred. Buyers can inspect the property for smoke detector functionality before closing. At closing, sellers provide an affidavit stating smoke detectors are installed and functional. After closing, sellers are no longer liable for functionality.

What status would a South Carolina real estate license be in if the expiration date just passed and the licensee hasn't renewed it?

Lapsed A license is lapsed if it was not renewed before its expiration date. Licenses are inactive when lapsed.

Which of these scenarios could be seen as a real estate violation in South Carolina? Before showing a buyer customer her listing, Mitchell reviewed the agency disclosure form with the buyers and told them she represents the sellers. Henry provided a customer with a copy of the signed agency disclosure form. Isabelle stored a signed agency disclosure form in a safe but accessible location in the broker's office. Mandy didn't disclose to potential buyers that she was showing her own listing, so she is representing the seller.

Mandy didn't disclose to potential buyers that she was showing her own listing, so she is representing the seller.

Davina has engaged Sean as her real estate agent to sell her property. According to South Carolina statute, what does Sean owe Davina? Marketing Davina's property to seek a ready, willing, and able buyer Performing an inspection to uncover any defects with Davina's property Purchasing Davina's property if a buyer is not found by the end of the agreement period Sharing any and all details requested by a buyer

Marketing Davina's property to seek a ready, willing, and able buyer

Stacey's South Carolina home has been sold as a result of foreclosure proceedings. Does she need to provide the purchaser with a property disclosure statement?

No, transfers resulting from foreclosure sale are exempt.

Ned's listing agreement expires on November 5. What does he need to do to terminate this agreement?

Nothing. It automatically expires on November 5.

Jan is a real estate salesperson in South Carolina. She recently moved to a new home, both personally and professionally. The office she works at moved to a new location, which happens to be a few miles away from the new house Jan bought. What does she need to do?

Notify the commission within 30 days of changes to her residential and business address. Changes to physical residential address, mailing address, business address, email address, and phone number must be updated with the commission within 30 days. Failure to do so can result in disciplinary action.

Frank is representing Jonathan in the sale of his South Carolina home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation?

Obtain dual agency consent from all parties.

What state agency is responsible for protecting critical coastal areas in South Carolina?

Ocean & Coastal Resource Management (OCRM) The Ocean & Coastal Resource Management (OCRM) regulates critical areas in the state through the Coastal Zone Management Program.

When the client or the agent dies, agency terminates by ______.

Operation of law

Which one of the following is an example of how agency can be terminated by an act of the agent? Renunciation The agent dies The agent files bankruptcy The client dies

Renunciation If an agent renounces the representation agreement before the expiration date, agency terminates by an action.

Wendell once held a real estate license in South Carolina. After some mishandling of trust funds, he's prohibited from practicing real estate for the next three years, after which he can apply for a new license. Which term best describes his current license status?

Revoked Revoked describes when a license has been rescinded, usually as part of a disciplinary action. It requires the license holder to wait at least three years before applying for a new license.

Upon moving in, the tenant noticed a bad smell from the bathroom and black mold, and reported this to the landlord. What would be an appropriate response by the landlord?

Scheduling a plumber to fix the problem

What is the South Carolina Real Estate Commission authorized to do?

Set requirements and standards of conduct for real estate licensees, as well as enforce South Carolina's real estate laws

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

She must disclose whenever she's a principal to the transaction.

Myra's license has just been suspended by the South Carolina Real Estate Commission. May she continue to perform real estate activities?

She must discontinue real estate activities immediately. A suspended license is no license. She must cease licensed activities immediately.

Celine holds a salesperson's license in South Carolina. What can we reasonably assume about her? She has at least three years of experience. She isn't supervised by a broker-in-charge. She's at least 18. She's completed 60 hours of pre-licensing education.

She's at least 18.

Brent wants to work with a real estate broker as a buyer client. How can he do this?

Sign a buyer representation agreement.

If a brokerage firm changes its name, address, phone, or email, within how many days must the commission be notified?

10 days The broker-in-charge must notify the real estate commission of changes to name or contact information within 10 days.

Kathy Lee is up for her first renewal of her South Carolina salesperson license. How many hours of continuing education must she complete?

10 hours every 2 years

Joe is in violation of South Carolina's smoke detector laws because the detectors installed on his property don't work. Within how many days must he repair or replace the detectors?

15 days Offenders have 15 days to repair, replace, or install smoke detector. No property can be conveyed if functional detectors aren't installed.

In South Carolina, what's the pre-licensing education requirement for brokers?

150 hours of coursework

Jacqueline a broker-in-charge in South Carolina, is creating a policy manual for her new firm. She's working on the record keeping section of the manual. In it, she notes that transaction related records must be retained for at least ______ years.

5 years Contracts, forms, and other documents related to a real-estate transaction must be retained for at least five years.

A time share unit week usually consists of ______ consecutive calendar days.

7

Andrew is purchasing a property in South Carolina from a non-resident trust. What percentage of the seller's gain must be withheld?

7%

Xavier is purchasing a property in South Carolina from non-resident estate. What percentage of the seller's gain must be withheld?

7%

Which of the following statements is true regarding the termination date of agency agreements in South Carolina? A definite termination date must be included. No termination date is required. The agreement automatically terminates after six months. The termination date may not be extended.

A definite termination date must be included.

South Carolina licensee Alma is one busy octogenarian. In addition to her regular broker duties, she also owns and manages three four-family apartments. Today, she's walking a new tenant through a one-year lease agreement. Which of the following must be included on page one of this agreement? A disclosure regarding the tenant's right to service animals with the proper documentation A disclosure that anyone who smokes on the property will be evicted immediately A disclosure that she is a real estate licensee A disclosure that she owns multiple rental properties, including the addresses of the other properties

A disclosure that she is a real estate licensee

Which of the following advertising activities is considered illegal in South Carolina? A licensee including a link to the firm's homepage on electronic advertisements A licensee receiving written permission from a seller to advertise the seller's property A member of a real estate team including both the team name and firm name on an advertisement A person in the process of obtaining a real estate license advertising as a licensee

A person in the process of obtaining a real estate license advertising as a licensee

Erin is purchasing a new house in South Carolina for $160,000. She's financing 90% of the sales price. What does the Consumer Protection Code permit in terms of prepayment penalties?

A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less.

Which of the following South Carolina license holders has completed the necessary continuing education requirements for license renewal? A broker completed 10 hours of continuing education, and four of the hours were on advanced topics. A broker-in-charge completed 10 hours of continuing education; four of those hours were on mandated topics. A licensee completed 15 hours of continuing education, and three of those hours focused on mandated topics. A salesperson completed 10 hours of continuing education, with four of those hours on mandated topics.

A salesperson completed 10 hours of continuing education, with four of those hours on mandated topics. Salespersons and brokers must take at least four of the 10 hours on mandated topics. A broker-in-charge must also complete four hours on advanced topics as part of their 10 hours.

Toby owns a single-family manufactured home in South Carolina that's occupied by a tenant. Is this property subject to South Carolina smoke detector laws?

Yes, all one- and two-family residential properties are subject to smoke detector laws in the state.

South Carolina transaction brokers are required to ______. Account for any trust funds given to them Avoid any ministerial acts that can be construed wrongly Do nothing—they aren't representing anyone Not get involved with disclosing material defects

Account for any trust funds given to them

Which of these statements about duties is true if a South Carolina licensee is acting as a dual agent? Agency duties may be limited. Clients receive the same duties whether the licensee is acting as a single agent or dual agent or not. Licensees are unable to maintain confidentiality. Licensees can disclose one client's willingness to pay or accept a price other than list price to the other party.

Agency duties may be limited. When acting as a dual agent, limited agency duties are owed.

Which of the following statements regarding electronic offers and counter-offers in South Carolina is true? Any electronic signatures, initials, handwritten or typewritten modifications on offers and counter-offers are considered valid and binding in South Carolina. Electronic signatures, initials, and modifications are only permitted on real estate purchase contracts in South Carolina. They may not be used for offers and counter-offers. Electronic signatures, initials, and modifications on offers and counter-offers are neither valid nor legally binding in South Carolina. Only electronic initials and modifications on offers and counter-offers are considered valid and binding in South Carolina. Electronic signatures are not acceptable.

Any electronic signatures, initials, handwritten or typewritten modifications on offers and counter-offers are considered valid and binding in South Carolina.

South Carolina licensee Victor has obtained his seller client's signature on an offer he just received. Victor faxes a copy of this agreement to the buyer's agent. Under South Carolina law, is this an appropriate way to communicate an accepted offer?

Yes, this is an appropriate way to transmit the accepted offer.

Broker-in-charge Amanda hires Jake to be an assistant at her South Carolina firm. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______.

Be licensed

In addition to the South Carolina licensee's name, what other information must be included on advertisements?

firm's full name

One of the criteria to qualify for homestead exemption in South Carolina is, by December 31 of the year prior to application, residents must be 65 years old, totally and permanently disabled, or ______.

legally blind

What duty does a listing agent in South Carolina owe to buyers? Confidentiality of information shared by the buyer Honest treatment Obedience Putting the buyer's interests ahead of their client's

Honest treatment One of the duties an agent owes a customer (and any other party they encounter related to the transaction) is honest treatment. Agents cannot lie to their client or anyone else involved in the transaction. This would be misrepresentation and would threaten the agent's license.

Dolcita is an unlicensed assistant for the Ace Team at Acme Realty in South Carolina. Which of the following best describes how Dolcita can be compensated for her work? As a percentage of team commission earned Hourly, salaried, or as a percentage of team commission earned Hourly, salaried, or per activity Hourly, salaried, per activity, per transaction closed, or as a percentage of team commission earned

Hourly, salaried, or per activity

Which of the following is a statutory duty an agent owes to seller clients? Disregard fair housing regulations. Negotiate a sale that meets the buyer's objectives. Receive and present all offers in a timely manner. Share confidential information shared by the seller with the buyer's agent.

Receive and present all offers in a timely manner.

Frank entered into a buyer representation agreement with Cassidy to act as his agent. Frank was under contract to purchase a property, but defaulted on his obligations and the sale fell through. Does he owe Cassidy any compensation?

Yes, Cassidy earned her compensation the moment Frank was under contract. Compensation is considered earned when the buyer is under contract. It's payable at closing or immediately if the buyer defaults.

According to South Carolina law, buyers and sellers are defined as customers if they ______.

Choose not to establish an agency relationship with a broker

What's the difference between commingling and conversion?

Commingling is mixing client funds with your own; conversion is using them. Commingling is mixing client funds with your own; conversion is using client funds for different purposes than was originally intended.

Daniel, a real estate licensee, has entered into a transaction brokerage agreement with Olivia, a buyer. What is Olivia's relationship to Daniel?

Customer

Hilda chose not to enter into an agency relationship with a broker to help her find and purchase a house. What types of services can she expect in return?

Customer-level services

When a South Carolina licensee is involved in a personal real estate transaction, what must she disclose to the other parties to the transaction?

Her licensed status

What does a dual agency agreement do to the listing and buyer representation agreements a broker already has in place?

Modifies A dual agency agreement modifies any original listing and buyer representation agreements the broker has in place. It highlights what buyers and sellers should expect when agreeing to a dual agency relationship.

Which of the following is a requirement of a broker-in-charge in South Carolina? Must be at least 25 years old Must complete at least 180 hours of pre-licensing education Must have an ownership interest in the brokerage and be actively engaged in its management and operations Must have at least five years of real estate experience in the last seven years

Must have an ownership interest in the brokerage and be actively engaged in its management and operations

Which one of the following is NOT an example of how agency terminates by operation of law? Client bankruptcy Completion of a sale Expiration of the agreement Mutual agreement to terminate

Mutual agreement to terminate

What's true of the agency relationship in transaction brokerage? Designated agency is created in transaction brokerage. Dual agency is created in transaction brokerage. No agency relationship is created in transaction brokerage. Traditional agency is created in transaction brokerage.

No agency relationship is created in transaction brokerage.

Parker represents buyer clients, Mr. and Mrs. Malone, who have just made an offer on a house. Parker presents the offer to the seller's agent and says, "Just so you know, my clients are happy to come down a bit on that price." Has Parker done anything wrong, and if so, what?

Parker has violated the duty of confidentiality he owes his clients.

Carlisle works as Robin's unlicensed personal assistant in South Carolina. Which activity may Carlisle legally perform? Counseling clients on strategies Discussing terms Negotiating offers Placing an advertisement

Placing an advertisement

You're a South Carolina licensee engaged as a transaction broker for a customer in a real estate transaction. Which of these actions can you perform for that customer? Advocate for the customer. Negotiate an agreeable price. Process paperwork. Recommend terms.

Process paperwork.

List all the protected classes recognized in South Carolina.

Race, color, religion, sex, handicap, familial status, and national origin

Which of the following laws or acts does the South Carolina Human Affairs Commission specifically enforce? Age Discrimination in Employment Act Civil Rights Act Federal Fair Housing Act South Carolina Human Affairs Law

South Carolina Human Affairs Law The South Carolina Human Affairs Commission specifically enforces the South Carolina Human Affairs Law, as well as the South Carolina Fair Housing Law and the South Carolina Equal Enjoyment and Privileges to Public Accommodations Law to eliminate and prevent discrimination related to both employment and housing in the state.

Keven has violated the South Carolina Vacation Rental Act. From whom may he face disciplinary action?

South Carolina Real Estate Commission

Victor is interested in obtaining a real estate salesperson license in South Carolina. He's reviewing the eligibility requirements for the license and researching schools that offer pre-licensing education. Which entity determines these?

South Carolina Real Estate Commission

Which entity conducts an investigation when a complaint is filed against a South Carolina licensee?

South Carolina Real Estate Commission

Licensed residents of other states can apply for a license in South Carolina, but must pass the ______.

State portion of the licensing exam

What must a consumer do to initiate an investigation into possible fair housing violations in the state of South Carolina?

Submit a written complaint to the Human Affairs Commission

Sandy has a listing with Jason at Fairview Realty. When Sandy's fiancé loses his job, Sandy decides to take her house off the market. Jason agrees, and agency is ______. Postponed indefinitely Renounced by the agent Revoked by the client Terminated by mutual agreement

Terminated by mutual agreement

Time share sales are regulated by ______.

The South Carolina Real Estate Commission

Which organization promulgates the Real Estate Offer Rejection Form in South Carolina?

The South Carolina Real Estate Commission

What type of liability is a broker in charge in South Carolina subject to?

Vicarious A broker in charge is vicariously liable for the licensees he supervises. If a licensee performs an act that the broker in charge is unaware of, the broker in charge is held just as liable as the licensee who performed the act.

When are designated agents permitted to disclose confidential information to their broker?

When the designated agent is seeking advice or assistance for the client's benefit

When must a South Carolina licensee notify the commission of a felony conviction?

Within 10 days of notification of the conviction