South Carolina Real Estate Pre-
License Unit 1: Cumulative. Clearly
Illustrated Questions with Correct
Answers
1. CERCLA - ANSWER the Comprehensive Environmental Response,
Compensation, and Liability Act, aka the Superfund
2. certificate of occupancy (CO) - ANSWER legal document from a local
authority that authorizes a building to be occupied; issued after the building
has passed all required inspections
3. certificate of title - ANSWER a document prepared by a title attorney
detailing the chain of title and offering an opinion on the marketability of the
seller's title
4. chain of title - ANSWER the entire chronological record of a property's
ownership
5. chattel - ANSWER a commonly used term for personal property in the
world of real estate
,6. Civil Rights Act of 1866 - ANSWER the first law federal that began to
promise equal rights for all citizens regardless of race or color
7. Civil Rights Act of 1964 - ANSWER landmark federal legislation that
prohibited discrimination on the basis of race, color, religion, sex, and
national origin; fell short when it came to housing, as it only forbade
discrimination in publicly funded housing projects
8. Closing Disclosure - ANSWER also known as the closing statement, it is a
form used to itemize services and fees charged to the borrower by the lender
when applying for a real estate loan
9. cloud - ANSWER any claim to or encumbrance on the title to a property
which affects transferability
10.collateral - ANSWER property liened by a lender in order to assure
payment of the loan and protect the lender's investment
11.collusion - ANSWER an unlawful agreement between competitors to
monopolize a market, disadvantage other competitors, or otherwise
undertake activities in violation of fair trade laws
12.color of title - ANSWER a title transfer that is defective in a way that is
unknown to the new owner
13.commingling - ANSWER the act of mixing personal funds with a client's
funds
,14.common elements - ANSWER portions of a shared ownership property not
controlled by any one owner or tenant; examples include parking lots,
lobbies, fitness centers, elevators, etc.
15.community property - ANSWER a system of property co-ownership, most
commonly applied to married couples, which describes what is joint
property and what is individual property
16.comparable (comp) - ANSWER any property which has sold and is similar
enough in features, location, and proximity in time to inform the value of a
subject property
17.comparative market analysis (CMA) - ANSWER a report that compares the
prices of recently sold or listed homes ("comparables") in order to estimate
the market value of a similar property (the "subject property") located in the
same area
18.condominium - ANSWER property where each owner has a separate
interest in their own unit and undivided interest in the common areas
19.consideration - ANSWER something of value exchanged by the parties as
evidence of agreement to the terms of a contract
20.constructive eviction - ANSWER the termination of a lease in
circumstances in which the landlord defaults and acts, or fails to act, in such
a way that the premises become unusable
21.contingency - ANSWER a provision within a contract that makes
performance conditional upon the occurrence of a stated event
, 22.contract - ANSWER a legally enforceable and binding agreement between
parties wherein a promise to do or not do something is given in exchange for
valuable consideration
23.contract for deed - ANSWER a sales contract in which the buyer pays the
seller for the property in multiple installments for a predetermined length of
time, and the seller holds the title until the property has been fully paid for;
a.k.a. installment sales contract, land contract
24.contribution - ANSWER the amount of market value added to a property by
an addition or improvement to the property; not necessarily the same as the
cost of the improvement
25.conventional loan - ANSWER any loan that is neither insured by the
government nor guaranteed by the government
26.conversion - ANSWER changing real property to personal property, and
vice versa; also the illegal act of mixing a fiduciary's funds with an agent's
personal funds
27.conveyance - ANSWER an instrument that transfers a grantor's interest in
real property
28.cooperating brokerage - ANSWER an agency arrangement in which two
brokerages collaborate to achieve a real estate transaction for a specific piece
of property
29.corrective maintenance - ANSWER the repair of equipment after it has
broken
License Unit 1: Cumulative. Clearly
Illustrated Questions with Correct
Answers
1. CERCLA - ANSWER the Comprehensive Environmental Response,
Compensation, and Liability Act, aka the Superfund
2. certificate of occupancy (CO) - ANSWER legal document from a local
authority that authorizes a building to be occupied; issued after the building
has passed all required inspections
3. certificate of title - ANSWER a document prepared by a title attorney
detailing the chain of title and offering an opinion on the marketability of the
seller's title
4. chain of title - ANSWER the entire chronological record of a property's
ownership
5. chattel - ANSWER a commonly used term for personal property in the
world of real estate
,6. Civil Rights Act of 1866 - ANSWER the first law federal that began to
promise equal rights for all citizens regardless of race or color
7. Civil Rights Act of 1964 - ANSWER landmark federal legislation that
prohibited discrimination on the basis of race, color, religion, sex, and
national origin; fell short when it came to housing, as it only forbade
discrimination in publicly funded housing projects
8. Closing Disclosure - ANSWER also known as the closing statement, it is a
form used to itemize services and fees charged to the borrower by the lender
when applying for a real estate loan
9. cloud - ANSWER any claim to or encumbrance on the title to a property
which affects transferability
10.collateral - ANSWER property liened by a lender in order to assure
payment of the loan and protect the lender's investment
11.collusion - ANSWER an unlawful agreement between competitors to
monopolize a market, disadvantage other competitors, or otherwise
undertake activities in violation of fair trade laws
12.color of title - ANSWER a title transfer that is defective in a way that is
unknown to the new owner
13.commingling - ANSWER the act of mixing personal funds with a client's
funds
,14.common elements - ANSWER portions of a shared ownership property not
controlled by any one owner or tenant; examples include parking lots,
lobbies, fitness centers, elevators, etc.
15.community property - ANSWER a system of property co-ownership, most
commonly applied to married couples, which describes what is joint
property and what is individual property
16.comparable (comp) - ANSWER any property which has sold and is similar
enough in features, location, and proximity in time to inform the value of a
subject property
17.comparative market analysis (CMA) - ANSWER a report that compares the
prices of recently sold or listed homes ("comparables") in order to estimate
the market value of a similar property (the "subject property") located in the
same area
18.condominium - ANSWER property where each owner has a separate
interest in their own unit and undivided interest in the common areas
19.consideration - ANSWER something of value exchanged by the parties as
evidence of agreement to the terms of a contract
20.constructive eviction - ANSWER the termination of a lease in
circumstances in which the landlord defaults and acts, or fails to act, in such
a way that the premises become unusable
21.contingency - ANSWER a provision within a contract that makes
performance conditional upon the occurrence of a stated event
, 22.contract - ANSWER a legally enforceable and binding agreement between
parties wherein a promise to do or not do something is given in exchange for
valuable consideration
23.contract for deed - ANSWER a sales contract in which the buyer pays the
seller for the property in multiple installments for a predetermined length of
time, and the seller holds the title until the property has been fully paid for;
a.k.a. installment sales contract, land contract
24.contribution - ANSWER the amount of market value added to a property by
an addition or improvement to the property; not necessarily the same as the
cost of the improvement
25.conventional loan - ANSWER any loan that is neither insured by the
government nor guaranteed by the government
26.conversion - ANSWER changing real property to personal property, and
vice versa; also the illegal act of mixing a fiduciary's funds with an agent's
personal funds
27.conveyance - ANSWER an instrument that transfers a grantor's interest in
real property
28.cooperating brokerage - ANSWER an agency arrangement in which two
brokerages collaborate to achieve a real estate transaction for a specific piece
of property
29.corrective maintenance - ANSWER the repair of equipment after it has
broken
