Real Estate Missed Questions Practice Exam

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Records related to a real estate transaction in South Carolina must be kept, and available upon commission request, for at least ______ years.
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Records related to a real estate transaction in South Carolina must be kept, and available upon commission request, for at least ______ years.
Five


Records must be retained for at least five years and must be accessible to inspectors or the commission upon request.
Kennedy is purchasing a property in South Carolina from a non-resident corporation. What percentage of the seller's gain must be withheld?
5%


*If the non-resident seller is a corporation, 5% must be withheld. If the seller is a non-resident individual, partnership, trust, or estate, 7% of the non-resident seller's recognized gain must be withheld.
Buyers in a transaction are owed duties from the seller's agent. Which of these are duties they can expect?
Honesty and actions performed within scope of expertise


*Agents owe other parties honesty and a commitment to performing only those actions that are within the scope of their expertise. The agent can't knowingly provide false or misleading information.
Which of the following individuals meets the experience requirement for a real estate broker's license in South Carolina?
Georgina has been an active salesperson for the last three years.



*Broker license applicants must have at least three years of experience engaged as an active salesperson within the last five years. These applicants must also complete 60 hours of additional education and pass an examination before applying.
Creekview Realty is expanding! Jamie, the broker-in-charge, outgrew the small office of her firm's beginnings and has moved to a larger space to better accommodate the firm's 15 associated licensees and employees. Within how many days does Jamie need to notify the commission of the new address?
10 days


*The broker-in-charge must notify the real estate commission of changes to name or contact information within 10 days.
Erin is purchasing a new house in South Carolina for $160,000. She's financing 90% of the sales price. What does the Consumer Protection Code permit in terms of prepayment penalties?
A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less.



*Prepayment penalties aren't permitted on loans of $150,000 or less. For other loans, a prepayment penalty may be charged if the loan's APR isn't more than 2% above the conventional mortgage rate and the penalty isn't more than 2% of the amount prepaid.
Which phrase from the following description should be edited to meet fair housing guidelines? "Nestled away in a neighborhood of gracious pre-war mansions, many now converted to offices, Bertrice Place, built in 2004, emulates its predecessors in scale, and to some extent in visual expression. The peaked roofline is Tudor in effect, capped by our ancestors' signature copper roofing. The handsome interiors are ample, not oversized, with 10-foot ceilings and high-quality features and finishes."
"Our ancestors' signature copper roofing"


*Whose ancestors? Implying that the ancestry of the builders is the same as the ancestry of desired buyers is a subtle but clear message of preference. You could say "capped by the copper roofing often used in pre-war buildings."
Jerome signed a contract to purchase a time share, but is now having second thoughts. How long after signing the contract can he rescind without penalty?
Five days


*Purchasers have five days (not including Sunday) from the date they sign the contract to notify the seller in writing that they wish to cancel.
Kathy Lee is up for her first renewal of her South Carolina salesperson license. How many hours of continuing education must she complete?
10 hours every two years


*Licenses are renewed every two years. During the renewal period, brokers and salespersons must complete 10 hours of continuing education.
According to South Carolina's Residential Landlord and Tenant Act, what's the largest amount a landlord can require for a security deposit?
There's no limit

*No limit is specified for security deposits, but one month's rent is common.
South Carolina licensee Alma is one busy octogenarian. In addition to her regular broker duties, she also owns and manages three four-family apartments. Today, she's walking a new tenant through a one-year lease agreement. Which of the following must be included on page one of this agreement?A disclosure that she is a real estate licensee *South Carolina licensees must disclose their licensed status when they're involved in a personal real estate transaction, including sales, rentals, exchanges, and auctions.How many members make up the South Carolina Real Estate Commission?10 *The commission has 10 members, who are either elected or appointed to their position.Which of these transaction types requires disclosure under the South Carolina Residential Property Disclosure Act?A lease with an option to purchase *Unless an exemption applies, a seller who's leasing property with an option to purchase must provide property condition disclosures.Which of the following statements about South Carolina listing agreements' term length is true?The term has a specified start and end date. *The listing agreement term has specific beginning and ending dates. Often it includes a specific end time, such as 11:59 p.m. or midnight.Xavier is purchasing a property in South Carolina from non-resident estate. What percentage of the seller's gain must be withheld?7% *If the seller is a non-resident individual, partnership, trust, or estate, 7% of the non-resident seller's recognized gain must be withheld.Stacey's South Carolina home has been sold as a result of foreclosure proceedings. Does she need to provide the purchaser with a property disclosure statement?No, transfers resulting from foreclosure sale are exempt. *Transfers resulting from a foreclosure sale are exempt from residential property condition disclosure requirements.Broker-in-charge Amanda hires Jake to be an assistant at her South Carolina firm. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______.Be licensed *Basing compensation on closed transactions would be compensating an unlicensed person for activities requiring a license, and it would be illegal.Kenny is buying Josie's South Carolina property, which is listed with broker Ariel. Who are the parties to the listing agreement?Josie and Ariel *The parties to the listing agreement are the listing broker and the seller.Chloe's South Carolina real estate license expired 10 months ago. What's its status?Canceled *A license is considered lapsed if it has passed the expiration date without renewal. After the last day of the sixth month has passed without renewal, the licensed is considered canceled.Which of the following must be included in a buyer agency agreement?The licensee's duties and responsibilities to the buyer *The licensee's duties and responsibilities to the buyer must be included in a buyer agency agreement.Wayne and Sandy are moving to a cabin they own in the country. They decide to sell their South Carolina home in the city to their son, Robbie, for an amount equal to what they currently owe on the mortgage. Does this transaction require the residential property condition disclosure statement?No, transfers to direct descendants of one or more of the transferors are exempt. *Robbie is a descendant of Wayne and Sandy (he's their son). This type of transfer or real property does not require the residential property condition disclosure statement.How many members of the South Carolina Real Estate Commission are active real estate professionals?Eight *Eight members are active real estate professionals. Seven are elected by state house and senate members, and one is elected by other commission members.To qualify for the homestead exemption in South Carolina, the owner must hold either a life estate or ______ to the residence.Complete fee simple *Residents must hold either complete fee simple or life estate to their primary residence, among other criteria.When a South Carolina licensee is involved in a personal real estate transaction, which of the following must she disclose to the other parties to the transaction?Her licensed status *All South Carolina real estate licensees must, by law, disclose their licensed status when they're involved in a personal real estate transaction, including sales, rentals, exchanges, and auctions.Joe is in violation of South Carolina's smoke detector laws because the detectors installed on his property don't work. Within how many days must he repair or replace the detectors?15 days Offenders have 15 days to repair, replace, or install smoke detector. No property can be conveyed if functional detectors aren't installed.