SOUTH CAROLINA REAL ESTATE ACTUAL EXAM

SOUTH CAROLINA REAL ESTATE (ACTUAL / ) EXAM

(STATE PORTION ONLY) QUESTIONS AND VERIFIED CORRECT

ANSWERS

In South Carolina, the age of legal competence is _____.

• 18
• 19
• 20
• 21 - ---Answers___A) 18

All of the following are protected classes under the South Carolina Fair housing Law EXCEPT _____.

• race
• handicap
• sexual preference
• national origin - ---Answers___C) sexual preference

A licensee may have a license revoked if the licensee _____.

• fails to promptly submit all offers and counteroffers in a

real estate transaction

• fails to mention a murder on a property to a potential buyer
• pays a clerk to type up contracts 1 / 4

• fails to inform the tenant that the name of the apartment

complex has changed - ---Answers___A) fails to promptly submit all offers and counteroffers in a real estate transaction

An agent's license renewal fee has been returned for insufficient funds. The South Carolina Real Estate Commission

_____.

• may take disciplinary action against the licensee
• must allow the licensee a grace period of 30 days to pay the

fee

• may require the broker-in-charge to pay the renewal fee
• must cancel the license immediately - ---Answers___A)

may take disciplinary action against the licensee

A seller has indicated that a broker will receive a bonus if the property is sold "in house." That is _____.

• an incentive for the brokers' company to sell the house
• illegal in South Carolina to have variable commission

structures

• only permissible if seller prohibits cooperation by buyers

brokers

• A requirement for the multiple listing service (MLS) - ---

Answers___A) an incentive for the brokers' company to sell the

house (NOTE: An incentive to sell faster)

Which of the following is true about interest earned on a purchaser's earnest deposit? 2 / 4

• The interest must be paid to the purchaser
• The interest must earn six percent per annum payable to

the purchaser

• It is illegal; all deposits must be on non-interest-bearing

accounts

• The broker may keep the interest earned on the deposit if

the purchaser has agreed in writing to waive her right to the interest - ---Answers___D) The broker may keep the interest earned on the deposit if the purchaser has agreed in writing to waive her right to the interest

When there has been a dispute between the buyer and the seller about the entitlement of earnest money, the _____.

• broker must immediately remit the funds to the South

Carolina Real Estate Commission

• seller, as owner of the funds, is entitled to the earnest

money

• broker may not disburse the funds to either party until the

dispute is resolved

• buyer, as payer of the funds, is entitled to the return of the

earnest money - ---Answers___C) broker may not disburse the funds to either party until the dispute is resolved

Earnest money disputes between parties may be resolved by all of the following EXCEPT _____.

• a written agreement signed by all parties directing the

disposition of the monies

• voluntary mediation 3 / 4

• court action
• broker arbitration - ---Answers___D) broker arbitration

(NOTE: Arbitration = resolution) (NOTE: SC licensing law allows for a written agreement, mediation, or court order to resolve an earnest money dispute)

Funds that are received by a broker for a principal must be kept in _____.

• individual escrow accounts
• a South Carolina bank
• a non-interest-bearing account
• a bank account specifically designated as either "trust" or

"escrow" - ---Answers___D) a bank account specifically designated as either "trust" or "escrow"

The South Carolina Real Estate Commission requires all of the following for maintaining a trust account EXCEPT _____.

• a running balance maintained for each entry
• a monthly reconciliation for each entry
• the check number for each deposit received
• the payee for each deposit received - ---Answers___B) a

monthly reconciliation for each entry (NOTE: A monthly

reconciliation catches any unusual transactions which might be caused by fraud or accounting errors)

Under what circumstances can a broker keep personal funds in an escrow account?

• / 4