Real Estate - Prep Edge SC1 & SC2

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. A prepayment penalty isn't permitted on any loans.

B. A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less.

C. A prepayment penalty is permitted but can't be more than 2% of the prepaid amount.

D. A prepayment penalty is permitted if the APR on Erin's loan is 2% more than rates on conventional mortgages.

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B. 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.

Georgina is selling her South Carolina home to Stanley at a price of $250,000. Stanley is financing 80% of the purchase. How much will the transfer fees be?

$925

Transfer fees can be assessed on real property sales at a rate of $1.85 per $500 of the sales price.
In other words, $250,000 ÷ $500 = 500 × $1.85 = $925.

Dean qualifies for the homestead exemption in South Carolina. How long has he been a resident of the state?

At least one year as of December 31 of the year before application

Homestead exemption applicants must have been a South Carolina resident for at least one year on or before December 31 of the year prior to applying for exemption. In other words, if Dean is applying for homestead exemption starting in 2020, this means that on December 31, 2019 he must have been a South Carolina resident for at least one year. Keep in mind that residency isn't the only factor that qualifies someone for homestead exemption. The applicant must also have fee simple or life estate ownership of their primary residence and either be at least 65 years of age, 100% disabled, or legally blind.

Gwendolyn qualifies for the South Carolina homestead exemption. Her property is valued at $175,000. Up to what amount of her property's value is exempt from property taxation?

$50,000

The Homestead Exemption Law provides South Carolina residents with some relief on their tax bills. For those who qualify, the first $50,000 of their property's value is exempt from property taxation. So for Gwendolyn, whose property is valued at $175,000, only $125,000 of the property's value may be subject to property taxes. $50,000 of the value is exempt from these taxes.

After being evicted for late payment, under South Carolina law what action might the landlord legally take if the tenant left belongings behind?

The landlord can place the tenant's belongings on the curb and have them removed by the local trash haulers 48 hours after eviction.

Which of these would be considered a lawful tenant complaint against a landlord about a health and safety issue?

A. An unheated breezeway in the common area
B. A fire hazard the tenant caused
C. An allergy to a neighboring tenant's cooking smells
D. A pest intrusion

D. A pest intrusion

Tenants may not make a complaint against a landlord for an unsafe issue the tenant caused or for nuisances, such as an unheated breezeway (a breezeway is an outdoor, roofed passageway, such as a covered walkway between the building and a parking area) or smells emanating from neighbor's units. A pest intrusion can be a health or safety issue that should be reported to the landlord.