SC Real Estate- State portion Study Guide Flashcards

SC Real Estate- State portion Study Guide Flashcards homestead exemption requirements-must own the property as a primary residence- must be a resident of SC for 1 year prior- must be 65 or disabled or legally blind- must report changes in ownership and occupancy status what must be done if if first substantive contact is over the phone or online?licensee must present an acknowledgment of Receipt of the South Carolina Disclosure of Real Estate Brokerage Relationships form, which is then signed by the customer and sent back to the firm ESIGN ActA federal law the ensures the effectiveness of contracts entered into electronically. It gives electronic signatures that the same impact and power as actual signatures for the purpose of contract law.purpose of HOAmaintain and optimize property values personal property tax rate10.5% of depreciated value SC Real Estate CommissionConsists of 10 elected and/or appointed members A landlord may enter premises without consent when- anytime incase of an emergency-between 9:00 am and

6:00 pm for regular maintenance- to evict, if accompanied

by the sheriff- if tenant has abandoned the premises age of majority-protects minors from entering into agreements that they lack knowledge or experience in.-the contract is voidable, meaning the minor can back out at any time, however the other party can not.predatory lendingis the practice of making loans to under-qualified buyers using deception, fraud and other dishonest means where is a real estate team allowed to conduct businessthey must operate wholly out of Commission established office location if a landlord fails to return a security deposit within 30 daysthe tenant has the right to collect 3X the amount of the deposit when a home is sold what happens to its assessed valueit is reset to market value How many days until after a LLR hearing will you receive an outcome 90 dayslicensee may appeal the decision to Administrative law who enforces the SC vacation time share act -enforced and administered by SCREC- violations are prosecuted by LLR does an agent have to disclose if the property has a stigmaonly if directly asked, an agent cannot misrepresent a property How to calculate property taxesassessed fair market value multiplied by 4%then multiplied

by mills leviedexample:$310,000 (assessed value) x

4%(tax rate) x 25mills(310000x.04)(.025)(12400)(.025)= $310 what day will your license be canceled if you do not re-apply in time December 31, after that you must re apply and re qualify

can an unlicensed person collect compensation if what the unlicensed person is performing is an activity that requires a license, then no, they cannot be compensated Timeshare right of rescission-5 day right of rescission, excluding sunday-must notify seller in writing of cancellation how long does a license last before having to renew2 years, expiring on June 30 of the year of expiration If a land lord fails to perform dutiesa tenant must give written notice identifying the breach- landlord has 14 days to cure issues after receipt- if a LL is acting in good faith to fix a problem that exceeds 14 days of repair, the tenant cannot terminate the lease what is required when an agent wants to buy a property that is listed with his or her employing broker in charge the BIC must ensure that written disclosure of agency is approved by and signed by all parties in the transaction How much money does the SCREC take from a renewal fee?$10this money goes goes in the Education and research fund.what is a stigmatized propertyany property that is not marketable for reasons unrelated to property condition or features can an unlicensed assistant negotiated compensation on an agents behalf?no, only the agent and BIC can negotiate compensation to be earned by the agent when operating under a trade or franchise name, what must be included in an advertisement the identity of the franchise or trade name holder examples of predatory lending- Basing a loan amount on a borrowers assets-encouraging refinancing and charging the borrower higher fees and points than the original loan.-concealing the true or total cost of the loan does a licensee who is selling their own personal property have to disclose that they are an agent yes, their agency must be disclosed in advertisements and upon first substantive contact can a licensee who is selling their own personal property keep earnest money in their employing brokers trust account no, it must be kept in a separate personal trust account a resident licensee moves statesa resident licensee who becomes a non resident must notify the commission with 30 days does a licensee have to disclose a known sex offender in the area no, it is not required. if asked you have to answer truthfully or if you don't know but are asked you can recommend contacting local law enforcement sex offender data base where can a licensee conduct businesstheir employing BIC branch office does an agent need to present offers that come in even if the property is under contract yes, an agent must present all offers no matter the situation Constructive EvictionActions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent.What do you need be licensed to do?-negotiate listings or any sale of real estate that is not personally owned-auctioning-solicit referrals to conduct real estate activities-Provide real estate advisory services-offers to or act as an agent in a transaction

what are some stigmas of a property- previously occupied by a person or people infected with HIV or AIDS-occupant died on the property-offsite hazards that do not affect the property how long must a BIC or PMIC keep key records of transactions

• years

SC Statute of Frauds-A state statute under which certain types of contracts must be in writing to be enforceable.-are not to be performed within a year-involve conveyance of real property requirements for team advertising-they must advertise that they are directly connected to a brokerage firm-may not generally imply that they are a separate entity from their employing brokerage firm-can NOT use the terms realty or real estate in their team name Brody is buying a home in SC from a seller who lives out of state, what is he legally required to do?withhold 7% of the sellers gain Maximum APR allowed8.75% commercial property tax rate6% of fair market value Coastal Zone Management ActProtect quality of the coastal environment. The OCRM (Ocean and Coastal Resource Management) is part of the SC DEHEC (Department of Health and Environmental Control) what happens if you fail to complete CEyour license will deactivate and you may renew by completing CE and paying fees exemptions to CE-sales person who takes a broker course-inactive licensee-nonresident licensee completing CE from their home state-licensees with 25+ years must still complete the 4 hour core course-licensee who has had all CE requirements waved by the commission- active duty military how many hours of continuing education is required and how often -10 hours of CE, every 2 yearsthis includes a 4 hour mandatory core courses-a BIC must complete an additional

• hours in advanced real estate topics

trust fund disputes- Funds must remain in the account until resolved-Can resolve disputes via agreement signed by principles, by court action, or by voluntary mediation a listing agreement must include-amount of compensation to be earned-when and how compensation is earned-how co op commission splits will work who is required for the closing processan attorney must be used to close or supervise the closing what is substantive contactit is any conversation with a customer or client which discusses-selling or buying motives-financial qualifications-confidential information penalties for violation of time share act - First offense is a fine of less than $5000-Second offense is a fine less than $5000 and or up to 6 months jail- third offense is no more than $5000 and or imprisonment of up to 5 years

HOAformed by developer, governed by CC&R bylaws and a board of directors when must a licensee deliver trust funds received no later that the following business day after the day of receipt.Trust account requirementsMust contain "trust" or "escrow" in the account

nameAccount name must specify account's purpose (ex:

"earnest money escrow"Account must be in broker (or employing broker's) name, as well as the name of any applicable organization (LLC, partnership, etc.)Accounts must be established at FDIC-insured institution how many days of non use is a unit considered abandoned-15 days after rent payment default, or immediately if utilities to the property have been shut off- if abandoned, a LL may dispose of tenants belongings closing cost/prorations30 day/ 12 month method example:an annual tax bill is 1800. closing on April 10th.what is the sellers share of taxes?1. $1800/12= $150 per month2. $150/30= $5.003. ($150x3)+ ($5.00x10) = $500the seller will have to pay $500 in taxes for the time that he or she lived in the residence.how many days after non payment of rent after due date can a LL evict a tenant

• days after due date

LLR investigationsConcluded within 150 daysLLR members must have at least 100 hours of training what must always be included in advertisements the name of the real estate firm brokerage when must a licensee present the South Carolina Disclosure of Real Estate Brokerage Relationships form -upon substantive contact-in the listing agreement HOA rulescannot conflict with CC&R rules exemptions from licensure-owner selling their own property-attorney representing a client-government employees performing official dutiesregistered foresters if sale is incidental to sale of timber on the property-court appointed receivers and trustees acting within scope of duties SC Real estate commission power and duties -Determine standards for education and education providers.-Recommend legislation to protect the public.-Determine conditions for license renewal.- Conduct disciplinary hearings and decide disciplinary action.can a resident broker pay compensation to an out of state broker yes void contracts-missing one or more essential element-require an illegal or impossible act-contain a material mistake- cannot be completed due to an operation of law or act of god-lacks proper consideration who chooses the closing attorneythe borrower, never the lender or seller can a broker pay a finders fee or referral fee to an unlicensed person in a transaction yes, a broker can pay an unlicensed person for a referral who is a party in the transaction