license, pass exam - Broker Must be at least 21, credit worthy, high...

South Carolina Real Estate Laws Flashcards BrokerMust be at least 21, credit worthy, high school or GED, 150 hours education, 3 years experience with salesman's license, pass exam Account DesignationMust be separate account from company's general operating account Activities requiring a licenseReal estate broker, salesman or property manager Undisputed FundsFunds are disbursed without any dispute between parties as to who will receive the funds; is authorized in writing agreement signed by both parties to the disbursement of funds.A seller wants to give a $500 bonus to the selling agent.Can the licensee accept it?a. Yes if the buyer agreesb. No, because bonuses are illegalc. No, he must turn it over to the broker in charged. You must have 5 years real estate experience

• No, he must turn it over to the broker in charge

Regulated activitiesAdvertise compensation, unlicensed persons, cooperating brokers

The purpose of the real estate commission is to:a.

Establish laws to protect the publicb. Establish and maintain ethical conduct standardsc. Protect the public from unqualified salespeopled. Keeping up with licensing standards through continuing education

• Protect the public from unqualified salespeople

Unlicensed employeesMaintenance, clerical, or administrative, collection of rents payable to owner, showing rental units, furnishing published information, providing apps & forms ComminglingBIC/Property Manager In Charge cannot commingle transaction money with their own SC law requires which of the following to be licensed?a. An auctioneer who auctions farm landb. The owner of a 30-unit apartment buildingc. An employee of the State Housing Authorityd. A man who has been appointed the trustee of an estate

• An auctioneer who auctions farm land

An agent received a cash deposit for a principal's property.The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For

this action, the agent was found guilty of:a. Fraudb.

Conversionc. Dual agencyd. Commingling

• Commingling

The real estate commission is responsible for:a. jail termsb.

Levying finesc. Enacting lawsd. Determining commissions rates

• Levying fines

Police PowerHow the SCREC administers & enforces laws Prohibited activities unlicensed employees Discuss, negotiate or explain contract, listing, buyer agency, lease agreement, or other real estate documents, vary or deviate from rental price, approve apps or leases, conduct an open house, show real property Legislature/legal authoritySC Dept. of Labor Licensing and Regulation LLR A buyer's earnest money was placed in the broker's escrow account when a purchase offer was received. The owner gave a counteroffer, but the buyer refused it and has requested return of her deposit. The seller has requested

that the deposit be turned over to him. The broker should:a.

File a suite to get his shareb. Return the deposit to the buyerc. Keep the deposit in the escrow accountd. Give the deposit to the broker's principal

• Return the deposit to the buyer

Which of the following is legal?a. Misrepresentationb.Failing to disclose a psychological stigmac. Failing to disclose to a prospective buyer that you are the owner of a piece of propertyd. Not disclosing that the roof leaks because your seller client asked you not to

• Failing to disclose a psychological stigma

REC audits/paper trailPosted information on checks, deposits, receipts, etc, must be understandable to the next person reviewing them who may not have the benefit of being familiar with the records Property ManagementBIC/PMIC must appropriate assignment of funds SalesmanMust be 18, credit worthy, high school or GED, 60 hours of classroom instruction, pass exam, additional 30 hours of post license education Property ManagerMust be at least 18 years old, credit worthy, high school or GED, and 30 hours of education, pass exam Disclosure dutiesMeaningful explanation of types of agency, disclosure form, latent defects, stigmatized properties PurposeProtect the public by administering and enforcing laws made by legislature Exemptions of licenseSelling, leasing, or renting your own property, attorney at law involved in representation of client, state agencies acting within scope of their official duties, court appointed receivers Listings & Buyer's Representation Agreements 1. Description of duties/services performed2. How compensation is earned & amount to be paid3. How compensation will be divided among cooperating brokers4.The term of the agency relationship, stating the beginning and ending dates5. Signatures of all parties6. Type of the agency (ie, exclusive right to sell/exclusive agency/buyers agency) created7. A copy of the listing or buyers representation agreement must be given to the seller or buyer at the time of signing8. A buyer's representation

agreement must provide range for property of interest to the buyer and a listing agreement must state the price of the listed property

In order to be licensed:a. You must be a citizen of the USb.

You have to live in SCc. You must be employed by a broker in charged. You must have 5 years real estate experience

• You must be employed by a broker in charge

Earnest Money, Security or advanced rental depositsMust be deposited within 48 hours of receipt, excluding Saturdays, Sundays, and holidays Which of the following is legal?a. Selling your mother's property for a fee as an unlicensed assistantb.

Representing two different real estate companies in South Carolinac. Moving to the US from Canada as legal alien and applying for real estate licensed. Advertising property under your own name because you want to get credit for the listing

• Moving to the US from Canada as legal alien and

applying for real estate license