SC Property Management Exam (2026 Update) Actual Exam
2026/2027: Complete Exam-Style Questions with Detailed Rationales
| 100% Verified | Pass Guaranteed – A+ Graded
Total questions: 50 multiple-choice, single best answer
Recommended time: 90 minutes
Difficulty distribution: Easy (20%), Moderate (65%), Difficult (15%)
Passing threshold: 70% (35 correct)
Exam Questions
Domain 1: South Carolina Property Management Law & Regulations
(Questions 1–10)
1. A property manager-in-charge in Greenville, SC, receives $15,000 in security deposits
from new tenants at a 24-unit apartment complex. According to SC Real Estate License
Law, where must these funds be deposited within the required timeframe?
A. In the property management company's general operating account for immediate
access to maintenance expenses
B. In a demand deposit account at an insured financial institution in South Carolina,
designated to include the word "trust" or "escrow" in the account name
,C. In the broker-in-charge's personal savings account at a national bank with branches
in Greenville
D. In a money market account at any financial institution, as long as the property
manager maintains a separate ledger
Correct answer: B
Rationale: Under § 40-57-136(A)(1), a property manager-in-charge must establish and
maintain a trust account that is a demand deposit account designated and titled to
include the word "trust" or "escrow" in the name of the real estate brokerage firm,
located in an insured financial institution authorized to conduct business in South
Carolina. Option A is incorrect because commingling trust funds with operating funds is
prohibited (§ 40-57-350). Option C is incorrect because personal accounts are
prohibited and the account must be in the firm's name. Option D is incorrect because
money market accounts are not demand deposit accounts as required by statute.
2. A licensed property manager in Columbia is found to have used $5,000 from a trust
account to cover personal expenses, intending to repay the amount when commissions
were received. Under SC law, this conduct constitutes:
A. Commingling, which is a misdemeanor punishable by a fine only
B. Conversion, which is a breach of trust and a crime as provided by law
C. An accounting error, which requires only restitution to the client
D. A civil breach of contract, remedied by payment of interest to the landlord
Correct answer: B
,Rationale: § 40-57-30(12) defines conversion as "to use trust funds for a purpose other
than the purpose for which they are held" and explicitly states that "Conversion is a
breach of trust and is a crime as provided by law." While commingling (Option A) is also
prohibited, the facts describe using funds for personal purposes, which is conversion.
Option C understates the severity—conversion is criminal, not merely an accounting
error. Option D is incorrect because conversion involves criminal penalties beyond civil
interest payments.
3. A broker-in-charge in Charleston fails to report to the SC Real Estate Commission, in
writing by certified mail within ten days, that one of her supervised property managers
was convicted of a crime involving moral turpitude. This failure violates:
A. § 40-57-350(B)(10), which requires reporting of criminal convictions within ten days
B. § 40-57-350(B)(11), which addresses failure to account for trust funds
C. § 40-57-135(A)(3), which requires adequate supervision of licensees
D. § 27-40-910, which addresses landlord retaliation against tenants
Correct answer: A
Rationale: § 40-57-350(B)(10) explicitly states that grounds for disciplinary action
include when a licensee "fails to report to the commission in writing by certified mail,
within ten days, notice of conviction of a crime provided in item (9)." Option B addresses
trust fund accounting, not criminal convictions. Option C addresses supervision
generally but does not specify the ten-day reporting requirement. Option D is from the
Residential Landlord-Tenant Act and is irrelevant to broker-in-charge reporting duties.
, 4. A property manager in Myrtle Beach has been managing a 40-unit beachfront
condominium for three years. The broker-in-charge requests that the property manager
complete all trust account reconciliations for the past 18 months. Under SC law, how
long must trust account records be maintained?
A. One year from the date of the transaction
B. Three years from the date of the transaction
C. Five years from the date of the transaction
D. Seven years from the date of the transaction
Correct answer: B
Rationale: SC Real Estate Commission regulations and § 40-57-136 require that
brokers-in-charge and property managers-in-charge maintain accurate and complete
records for real estate trust accounts for a minimum of three years. This applies to all
transaction records, reconciliations, and backup copies. Option A is insufficient. Options
C and D exceed the statutory minimum but are not required by SC law.
5. A property manager-in-charge in Spartanburg advertises a rental property on a
popular social media platform. According to the 2026 updates to SC Real Estate
License Law, which advertising requirement must be met?
A. The advertisement must include the property manager's personal cell phone number
and home address
B. The advertisement must clearly identify the full name of the real estate brokerage
firm, and for electronic media, may include a link to the firm's homepage
2026/2027: Complete Exam-Style Questions with Detailed Rationales
| 100% Verified | Pass Guaranteed – A+ Graded
Total questions: 50 multiple-choice, single best answer
Recommended time: 90 minutes
Difficulty distribution: Easy (20%), Moderate (65%), Difficult (15%)
Passing threshold: 70% (35 correct)
Exam Questions
Domain 1: South Carolina Property Management Law & Regulations
(Questions 1–10)
1. A property manager-in-charge in Greenville, SC, receives $15,000 in security deposits
from new tenants at a 24-unit apartment complex. According to SC Real Estate License
Law, where must these funds be deposited within the required timeframe?
A. In the property management company's general operating account for immediate
access to maintenance expenses
B. In a demand deposit account at an insured financial institution in South Carolina,
designated to include the word "trust" or "escrow" in the account name
,C. In the broker-in-charge's personal savings account at a national bank with branches
in Greenville
D. In a money market account at any financial institution, as long as the property
manager maintains a separate ledger
Correct answer: B
Rationale: Under § 40-57-136(A)(1), a property manager-in-charge must establish and
maintain a trust account that is a demand deposit account designated and titled to
include the word "trust" or "escrow" in the name of the real estate brokerage firm,
located in an insured financial institution authorized to conduct business in South
Carolina. Option A is incorrect because commingling trust funds with operating funds is
prohibited (§ 40-57-350). Option C is incorrect because personal accounts are
prohibited and the account must be in the firm's name. Option D is incorrect because
money market accounts are not demand deposit accounts as required by statute.
2. A licensed property manager in Columbia is found to have used $5,000 from a trust
account to cover personal expenses, intending to repay the amount when commissions
were received. Under SC law, this conduct constitutes:
A. Commingling, which is a misdemeanor punishable by a fine only
B. Conversion, which is a breach of trust and a crime as provided by law
C. An accounting error, which requires only restitution to the client
D. A civil breach of contract, remedied by payment of interest to the landlord
Correct answer: B
,Rationale: § 40-57-30(12) defines conversion as "to use trust funds for a purpose other
than the purpose for which they are held" and explicitly states that "Conversion is a
breach of trust and is a crime as provided by law." While commingling (Option A) is also
prohibited, the facts describe using funds for personal purposes, which is conversion.
Option C understates the severity—conversion is criminal, not merely an accounting
error. Option D is incorrect because conversion involves criminal penalties beyond civil
interest payments.
3. A broker-in-charge in Charleston fails to report to the SC Real Estate Commission, in
writing by certified mail within ten days, that one of her supervised property managers
was convicted of a crime involving moral turpitude. This failure violates:
A. § 40-57-350(B)(10), which requires reporting of criminal convictions within ten days
B. § 40-57-350(B)(11), which addresses failure to account for trust funds
C. § 40-57-135(A)(3), which requires adequate supervision of licensees
D. § 27-40-910, which addresses landlord retaliation against tenants
Correct answer: A
Rationale: § 40-57-350(B)(10) explicitly states that grounds for disciplinary action
include when a licensee "fails to report to the commission in writing by certified mail,
within ten days, notice of conviction of a crime provided in item (9)." Option B addresses
trust fund accounting, not criminal convictions. Option C addresses supervision
generally but does not specify the ten-day reporting requirement. Option D is from the
Residential Landlord-Tenant Act and is irrelevant to broker-in-charge reporting duties.
, 4. A property manager in Myrtle Beach has been managing a 40-unit beachfront
condominium for three years. The broker-in-charge requests that the property manager
complete all trust account reconciliations for the past 18 months. Under SC law, how
long must trust account records be maintained?
A. One year from the date of the transaction
B. Three years from the date of the transaction
C. Five years from the date of the transaction
D. Seven years from the date of the transaction
Correct answer: B
Rationale: SC Real Estate Commission regulations and § 40-57-136 require that
brokers-in-charge and property managers-in-charge maintain accurate and complete
records for real estate trust accounts for a minimum of three years. This applies to all
transaction records, reconciliations, and backup copies. Option A is insufficient. Options
C and D exceed the statutory minimum but are not required by SC law.
5. A property manager-in-charge in Spartanburg advertises a rental property on a
popular social media platform. According to the 2026 updates to SC Real Estate
License Law, which advertising requirement must be met?
A. The advertisement must include the property manager's personal cell phone number
and home address
B. The advertisement must clearly identify the full name of the real estate brokerage
firm, and for electronic media, may include a link to the firm's homepage
