South Carolina Real Estate Exam State Portion Only Flashcards

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SOUTH CAROLINA REAL ESTATE EXAM

STATE PORTION ONLY

• The assessor's appraisal was $67,900 on the rental house owned by the three

little pigs. They sold it and had a closing on August 18. What was the amount of taxes to be prorated at closing if the tax rate was 134 mills, the assessment rate was 6%, and the pigs agreed to pay through closing? (Use a 360 day year)

A) $300.75

B) $325.75

C) $345.75

D) $365.75

Correct Answer: C) $345.75 [NOTE: ($67,900 appraisal)(6% assessment rate on rental property) = $4,074 assessed value. Then, ($4,074 assessed value)(0.134 mill rate) = $545.916 annual tax. Now divide $545.916 by 360 days to get $1.51643/day. Because they closed on August 18th, there are 228 days from January 1st to August 18th. Therefore, ($1.51643/day)(228 days) = $345.75 in taxes.]

• A property was assessed for tax purposes at 80% of its $140,000 purchase

price. Using a tax rate of 25.8 mills, what will the annual taxes be on the property?

A) $3,612.50

B) $2,889.60

C) $2,800.70

D) $2,064.80

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Correct Answer: B) $2,889.60 [NOTE: ($140,000 purchase price)(0.80) = $112,000 assessed value. Then, ($112,000 assessed value)(0.0258 mill rate) = $2,889.60 annual tax]

• "Ad valorem" tax refers to _____.
• surtax
• state sales tax
• a tax according to value
• a tax on property transfer

Correct Answer: C) a tax according to value

• In South Carolina, a person qualifies for the Homestead Exemption if he/she

holds a fee simple title or a life estate and as of December 31 preceding the tax year of the exemption was a legal resident for one year and _____.

• has reached age 65, is blind, or declared permanently disabled by an agency

authorized to make such a declaration

• was declared totally and permanently disabled by an agency authorized to

make such a declaration, or turned 65, or was legally blind as certified by a licensed ophthalmologist registered with the South Carolina Commission for the Blind

• during the tax year of the exemption, the homeowner turned 65, or was

certified legally blind, or was declared permanently disabled before the following December 31

• is legally blind as certified by a licensed ophthalmologist registered with the

South Carolina Commission for the Blind and is the widow of a man who was 78 when he died

Correct Answer: B) was declared totally and permanently disabled by an agency

authorized to make such a declaration, or turned 65, or was legally blind as certified by a licensed ophthalmologist registered with the South Carolina Commission for the Blind

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• In the event that two rival brokers claim a commission under an open listing,

the commission should go to the broker who _____.

• listed the property
• is the realtor
• was the procuring cause of the sale
• obtained the first offer

Correct Answer: C) was the procuring cause of the sale

• Brokers must be very careful of the statements they make. They are however,

allowed to make statements of opinion as long as there is no intent to deceive.This is called _____.

• probability
• puffing
• prospectus
• proxy

Correct Answer: B) puffing

• Under which of the following listing agreements may the owner of listed

property sell the real estate without having to pay the listing broker a commission in South Carolina?

• An exclusive right-to-sell listing
• An exclusive agency listing
• A multiple listing
• A net listing

Correct Answer: B) An exclusive agency listing

• Which of the following people can legally enter into listing agreements,

advertise, and act as an agent in real estate transactions?

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• A licensed broker-in-charge
• A licensed salesperson
• A licensed property manager
• A licensed appraiser

Correct Answer: A) A licensed broker-in-charge

• A listing agreement may be terminated for which of the following reasons?
• Change of seller's marital status
• Bankruptcy of the salesperson who listed the property
• Destruction of the premises
• Death of the salesperson who listed the property

Correct Answer: C) Destruction of the premises

• Dual agency is _____.
• legal in South Carolina if both parties give their written informed consent
• impossible to achieve
• outlawed by South Carolina license law
• outlawed by the South Carolina legislature

Correct Answer: A) legal in South Carolina if both parties give their written

informed consent

• The relationship of trust and confidence between an agent and his principal

is that of _____.

• attorney
• fiduciary
• subagent
• trustee