REAL ESTATE U SOUTH CAROLINA EXAM
STUDY QUESTIONS WITH CORRECT
ANSWERS ALREADY GRADED A+
1. Residential properties are typically valued using the...? - ANSWER sales
comparison approach
2. Obtaining a license by fraud, deceit, dishonesty, or substantial
misrepresentation can result in significant disciplinary action. What else can
it include? - ANSWER A revocation of their license.
3. When a municipality issues a tax bill what do they use to establish the base
value? - ANSWER They base the value on the best use of the property
4. What can the borrower purchase upfront to reduce the interest rate on their
mortgage? - ANSWER Discount points
5. If the annual property taxes were paid prior to the closing date, the buyer
will receive a ..............at closing. - ANSWER debit
6. What does Article 3 of the Landlord and Tenant Act say about landlords
making deductions from a tenant's security deposit? - ANSWER The Act
states that landlords can deduct damages and unpaid rent from the deposit,
that any deductions must be itemized, and documentation must be given to
the tenant.
7. Who has the duty of good faith and compensation to the agent? - ANSWER
The principal.
,8. If the seller already paid the annual property taxes prior to closing, the seller
will receive a ............at closing. - ANSWER credit
9. In some states, a single person is allowed to serve the best interests of the
buyer and the seller at the same time. What is the name of this arrangement?
- ANSWER Dual agency
10.If you're planning to join a professional organization, how should you treat
its Code of Ethics? - ANSWER Even though you are not bound to follow
the association's code, you should make every effort to comply.
11.The final step in reaching a market value after the appraisal process is
known as...? - ANSWER reconciliation
12.What is one of the most significant differences between loan pre-
qualification and loan pre-approval? - ANSWER Lenders request and verify
more information to issue a loan pre-approval than a loan pre-qualification.
13.A new subdivision is located within blocks of a previous sanitary landfill.
The buyers are concerned about the possibility of hazardous waste
contamination so their real estate agent tells them...? - ANSWER They can
hire a qualified environmental professional to run an Environmental Site
Assessment.
14.Specific performance is an example of a/an...? - ANSWER Essential
element of a valid contract
15.What are some examples of hard construction costs that can affect real estate
values? - ANSWER . The availability of financing Construction materials,
purchase of land, and labor costs
,16.Under the NAR Code of Ethics, how can agents both cooperate and compete
at the same time? - ANSWER By being honest and respectful of all parties
while still advocating for themselves.
17.A licensee is only licensed to one BIC or PMIC. What does he or she need to
be represented by a different one? - ANSWER Getting a letter from the
seller or property owner.
18.Which of the following is addressed in a municipalities comprehensive plan?
- ANSWER All of the answer choices provided are correct
19.Marketable title usually means what...? - ANSWER That property title is
free of all claims and encumbrances
20.The only exception to putting money that isn't escrow funds into the escrow
account is when what is being paid? - ANSWER Money that personally
belongs to the broker.
21.Annie holds fee simple absolute title to her home. She wants to take out a
mortgage on the property. Does she have the right to do so? - ANSWER
Yes
22.What happens to the deed after title is transferred to the buyer? - ANSWER
It gets recorded
23.South Carolina broker Craig Jenkins is selling his own home. He discloses
this fact in his marketing materials for the house, and at his first substantive
contact with interested buyers. Should Craig disclose this fact anywhere
else?
, -No. Craig has fulfilled his duties of disclosure.
-Yes. He must complete a Licensee-Seller Disclosure form, and have any
prospective buyers sign it before submitting an offer.
-Yes. He must complete the Licensee-Seller Disclosure form (and have the
seller sign it) and disclose it on page one of any purchase offers he receives.
-Yes. He must disclose this on page one of any purchase offers he receives. -
ANSWER Yes. He must disclose this on page one of any purchase offers he
receives.
**This disclosure must be written in bold, underlined, capital letters on the first
page of all real estate purchase contracts Craig uses in personal transactions.
24.Carlos wants a real estate broker to help him sell his lake house. He expects
top-notch, full services. How can he get this?
-Sign a buyer representation agreement.
-Sign a Disclosure of Real Estate Brokerage Relationships.
-Sign a listing agreement.
-Sign a transaction brokerage agreement. - ANSWER Sign a listing agreement.
**To become a seller client, Carlos must sign the appropriate agency agreement
with the broker. Only a listing agreement establishes an agent-seller client
relationship.
25.Raquel's license was revoked by the South Carolina Real Estate Commission
three years ago. She'd like to apply for a new license. What does she need to
do?
-Anyone who had a real estate license revoked can never apply for a new
license.
-Nothing, after the revocation period has ended her license will be
automatically reinstated, assuming she's kept up with renewal requirements
over the last three years.
STUDY QUESTIONS WITH CORRECT
ANSWERS ALREADY GRADED A+
1. Residential properties are typically valued using the...? - ANSWER sales
comparison approach
2. Obtaining a license by fraud, deceit, dishonesty, or substantial
misrepresentation can result in significant disciplinary action. What else can
it include? - ANSWER A revocation of their license.
3. When a municipality issues a tax bill what do they use to establish the base
value? - ANSWER They base the value on the best use of the property
4. What can the borrower purchase upfront to reduce the interest rate on their
mortgage? - ANSWER Discount points
5. If the annual property taxes were paid prior to the closing date, the buyer
will receive a ..............at closing. - ANSWER debit
6. What does Article 3 of the Landlord and Tenant Act say about landlords
making deductions from a tenant's security deposit? - ANSWER The Act
states that landlords can deduct damages and unpaid rent from the deposit,
that any deductions must be itemized, and documentation must be given to
the tenant.
7. Who has the duty of good faith and compensation to the agent? - ANSWER
The principal.
,8. If the seller already paid the annual property taxes prior to closing, the seller
will receive a ............at closing. - ANSWER credit
9. In some states, a single person is allowed to serve the best interests of the
buyer and the seller at the same time. What is the name of this arrangement?
- ANSWER Dual agency
10.If you're planning to join a professional organization, how should you treat
its Code of Ethics? - ANSWER Even though you are not bound to follow
the association's code, you should make every effort to comply.
11.The final step in reaching a market value after the appraisal process is
known as...? - ANSWER reconciliation
12.What is one of the most significant differences between loan pre-
qualification and loan pre-approval? - ANSWER Lenders request and verify
more information to issue a loan pre-approval than a loan pre-qualification.
13.A new subdivision is located within blocks of a previous sanitary landfill.
The buyers are concerned about the possibility of hazardous waste
contamination so their real estate agent tells them...? - ANSWER They can
hire a qualified environmental professional to run an Environmental Site
Assessment.
14.Specific performance is an example of a/an...? - ANSWER Essential
element of a valid contract
15.What are some examples of hard construction costs that can affect real estate
values? - ANSWER . The availability of financing Construction materials,
purchase of land, and labor costs
,16.Under the NAR Code of Ethics, how can agents both cooperate and compete
at the same time? - ANSWER By being honest and respectful of all parties
while still advocating for themselves.
17.A licensee is only licensed to one BIC or PMIC. What does he or she need to
be represented by a different one? - ANSWER Getting a letter from the
seller or property owner.
18.Which of the following is addressed in a municipalities comprehensive plan?
- ANSWER All of the answer choices provided are correct
19.Marketable title usually means what...? - ANSWER That property title is
free of all claims and encumbrances
20.The only exception to putting money that isn't escrow funds into the escrow
account is when what is being paid? - ANSWER Money that personally
belongs to the broker.
21.Annie holds fee simple absolute title to her home. She wants to take out a
mortgage on the property. Does she have the right to do so? - ANSWER
Yes
22.What happens to the deed after title is transferred to the buyer? - ANSWER
It gets recorded
23.South Carolina broker Craig Jenkins is selling his own home. He discloses
this fact in his marketing materials for the house, and at his first substantive
contact with interested buyers. Should Craig disclose this fact anywhere
else?
, -No. Craig has fulfilled his duties of disclosure.
-Yes. He must complete a Licensee-Seller Disclosure form, and have any
prospective buyers sign it before submitting an offer.
-Yes. He must complete the Licensee-Seller Disclosure form (and have the
seller sign it) and disclose it on page one of any purchase offers he receives.
-Yes. He must disclose this on page one of any purchase offers he receives. -
ANSWER Yes. He must disclose this on page one of any purchase offers he
receives.
**This disclosure must be written in bold, underlined, capital letters on the first
page of all real estate purchase contracts Craig uses in personal transactions.
24.Carlos wants a real estate broker to help him sell his lake house. He expects
top-notch, full services. How can he get this?
-Sign a buyer representation agreement.
-Sign a Disclosure of Real Estate Brokerage Relationships.
-Sign a listing agreement.
-Sign a transaction brokerage agreement. - ANSWER Sign a listing agreement.
**To become a seller client, Carlos must sign the appropriate agency agreement
with the broker. Only a listing agreement establishes an agent-seller client
relationship.
25.Raquel's license was revoked by the South Carolina Real Estate Commission
three years ago. She'd like to apply for a new license. What does she need to
do?
-Anyone who had a real estate license revoked can never apply for a new
license.
-Nothing, after the revocation period has ended her license will be
automatically reinstated, assuming she's kept up with renewal requirements
over the last three years.
