South Carolina Real Estate Exam (State Portion Only) ||
correct answers 100%.
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 correct answers D) borrower
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 correct answers D) 1% of the loan or $400,
whichever is less
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 correct answers B) Residential mortgage
loans of $150,000 or less
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% correct answers C) 6%
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 correct answers B) any amount agreed to by the parties
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 correct answers B) Although the federal law allows it, SC law does not allow a pre-
payment penalty on ARMs
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% correct answers A) 4%
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% correct answers B) 6%
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 correct answers A) With
application, his/her appraised value will be reduced by $50,000
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 correct answers B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) = $600
annual tax]
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 correct answers 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 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 correct answers 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]
"Ad valorem" tax refers to _____.
A) surtax
B) state sales tax
C) a tax according to value
D) a tax on property transfer correct answers C) a tax according to value
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 correct answers
B) was declared totally and permanently disabled by an agency authorized to make such a
correct answers 100%.
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 correct answers D) borrower
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 correct answers D) 1% of the loan or $400,
whichever is less
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 correct answers B) Residential mortgage
loans of $150,000 or less
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% correct answers C) 6%
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 correct answers B) any amount agreed to by the parties
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 correct answers B) Although the federal law allows it, SC law does not allow a pre-
payment penalty on ARMs
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% correct answers A) 4%
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% correct answers B) 6%
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 correct answers A) With
application, his/her appraised value will be reduced by $50,000
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 correct answers B) $600 [NOTE: ($3,000 assessed value)(0.200 mill rate) = $600
annual tax]
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 correct answers 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 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 correct answers 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]
"Ad valorem" tax refers to _____.
A) surtax
B) state sales tax
C) a tax according to value
D) a tax on property transfer correct answers C) a tax according to value
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 correct answers
B) was declared totally and permanently disabled by an agency authorized to make such a
