Free South Carolina Real Estate Practice Exam Questions (June 2023) 40+

The Commission may take disciplinary action against any person who is guilty of guaranteeing future profits which may result from the resale of real property. This is misleading and is in the eyes of the commission fraudulent.

The ad does not contain the name of the real estate company. Remember, salespeople must have the name of their company in any advertising. All advertisements must include the name of the agency as well as the listing agent. If there is no mention of either in an advertisement, then it is assumed the property is being listed by an owner. Puffing is legal, directions and having their license number on the ad is not required.

Records must be maintained for a minimum of five years and the broker-in-charge or property manager-in-charge shall furnish a copy of the records to a representative of the commission upon request. Per South Carolina Code of Laws: 40-57-136

The South Carolina Coastal Zone Management Act impacts the following: coastal waters, tidelands, beaches, and dune systems. The system is established to protect the natural waters in South Carolina.

The seller and the brokerage firm must have a written agency agreement (all agency relationships in South Carolina must be written).

Unlike some states, in South Carolina there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

The South Carolina Real Estate Commission Education and Research Fund is supported by agent renewal fees. “The department may allocate up to ten dollars of each license renewal fee to the South Carolina Real Estate Commission Education and Research Fund which is established as a separate and distinct account within the Office of the State Treasurer.” Per South Carolina Code of Laws: 40-57-70

A borrower can prepay home loans at any time, without penalty but only if it is less than $150,000 via The Consumer Protection Code.

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions.

The real estate license categories in South Carolina are: Broker, Associate Broker, Salesperson, and Property Manager.

The South Carolina Real Estate Commission administers and enforces the laws of the state relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing South Carolina real estate law, while different parts of the government do other aspects like writing and creating laws.

The rate of property tax in South Carolina for a primary residence is 4% of the fair market value.

All individuals who hold an active South Carolina real estate license are required to complete Commission approved continuing education during each two year renewal period.

Under no circumstances can an unlicensed office personnel all of the following. “Doing real estate business” means doing any of the acts for which a license is required as defined by South Carolina law; and all of the following activities require a real estate license.

Any office for business other than the main office are referred to as Branch Offices.

South Carolina Landlords have to return security deposits to tenants within thirty days of the conclusion of their lease.

A net listing. Which is illegal in South Carolina. Net listings are illegal because it can create a conflict of interest between the agent and the seller. South Carolina requires both a price and commission rate or amount to be in the listing contract.

Almost none. Most agents and brokers are required to complete required continuing education. The big exception is individuals over the age of 65 with a minimum of 25 years of licensure prior to 2017. But individuals must have applied for exemption and have received special approval from the Commission. It's a pretty rare case. There are a few other cases listed under South Carolina Code of Laws: 40-57-340.

The South Carolina Fair Housing Law makes it illegal to discriminate in housing because of race, color, religion, sex, national origin, physical or mental handicaps, or familial status (families with children). The law applies to the sale, rental, and financing of residential housing, as well as applying different terms, conditions or privileges for sale or rental of residential housing. Apartments, houses, mobile homes, and vacant lots to be used for housing, are covered by the Fair Housing Law. Credit is not a protected class in South Carolina.

The South Carolina Real Estate Commission members serve for terms of 4 years. A commission member serves a term of four years and until his successor is elected or appointed and qualifies. Per South Carolina Code of Laws: 40-57-40

A broker in charge handles a real estate trust account while a regular broker does not. Here is the official definition: "Broker-in-charge" means a broker designated to have responsibility over the actions of all associated licensees and also has the responsibility and control over and liability for a real estate trust account. Per South Carolina Code of Laws: 40-57-30.

No, eviction and foreclosure notices cannot be delivered electronically in South Carolina.

In order for a South Carolina licensee to remain on inactive status, they must pay their applicable biennial fees. This can be helpful for many reasons. Maybe someone has a baby, and they want to take time off. Either way seeing a license being inactive is not always a bad thing and if needed, can be helpful for people who need a break.

Via South Carolina, license law, salespersons must present any client monies received, to their broker, within one business day. Per section 40-57-136.

South Carolina is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

The Real Estate Commission consists of ten members. “Seven members who are professionally engaged in the active practice of real estate, one elected from each congressional district by a majority of House members and senators representing the house and senate districts located within each congressional district; two members representing the public who are not professionally engaged in the practice of real estate, the elected and appointed members shall elect from the State at large one additional member who must be in the active practice of real estate.” Per South Carolina Code of Laws: 40-57-40

The South Carolina High-Cost and Consumer Home Loans Act was passed to help borrowers, by placing certain restrictions on lenders in an attempt to eliminate predatory lending. Per Title 37 Consumer Protection Code chapter 23 High-Cost and Consumer Home Loans. Read More Here

A property manager in charge handles a real estate trust account while a regular property manager does not. Here is the official definition: "Property manager-in-charge" means a property manager who is designated as having the responsibility over the actions of associated licensees and also the responsibility and control over and liability for real estate trust accounts. Per South Carolina Code of Laws: 40-57-30.

If a licensee pays their renewal fee but has not fulfilled their mandatory continuing education their license is put on inactive status until the education requirements are completed.

Real estate license law is administered by the The South Carolina Real Estate Commission. They handle pretty much every aspect of administering licensees for the state.

ALL South Carolina real estate agents wishing to purchase property must disclose their license status in the purchase agreement.

Dual agency is legal in South Carolina as long as there is written consent from all parties prior to entering into negotiations.

The South Carolina Real Estate Commission is composed of ten members, each of whom shall be appointed by the Governor. Per South Carolina Code of Laws: 40-57-40

The statute of frauds refers to the requirement that certain kinds of contracts be in writing, and signed. Every state has a statute that requires certain types of contracts to be in writing and signed by the party to be charged. The most common requirements are for contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.

Per South Carolina Code of Laws: 40-57-30 Conversion is defined as a mean to use trust funds for a purpose other than the purpose for which they are held. Conversion is a breach of trust and is a crime as provided by law.

Trust funds received by a broker-in-charge or property manager-in-charge must be deposited within forty-eight hours of receipt, excluding Saturday, Sunday, and bank holidays. Per South Carolina Code of Laws: 40-57-136

All individuals who hold an active South Carolina real estate license are required to complete Ten Hours of Commission approved continuing education during each renewal period.

Regarding real estate licenses reciprocity, South Carolina actually has agreements with all states with special conditions.

Under South Carolina License Law offering real estate or improvements as prizes in games of chance is a violation of license law.

Property managers are not allowed to prepare leases. Leases are legal instruments which a lawyer should prepare. All the other tasks Pete would be legally able to complete.