State Practice Exam - Tricky!

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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

A prepayment penalty isn't permitted on any loans.

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

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

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

A prepayment penalty isn't permitted on any loans.

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

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

A prepayment penalty is permitted if the APR on Erin's loan is 2% more than rates on conventional mortgages.
A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less.
If a broker-in-charge becomes medically incapacitated or dies, an associated licensee may act as the broker-in-charge for up to ______ months.
6 months
Myra's license was suspended by the South Carolina Real Estate Commission. How many days does she have to appeal its decision?
30 days
The South Carolina Real Estate Commission can issue fines as a disciplinary action for a license law violation. How much can these fines be?
between $500 and $5,000 for each violation
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
30 days
Immediately
Seven days
10 days

The broker-in-charge must notify the real estate commission of changes to name or contact information within 10 days.
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
Be paid in cash
Receive no more than $4,000 in a single month
Report the income on his taxes
Be licensed

Basing compensation on closed transactions would be compensating an unlicensed person for activities requiring a license, and it would be illegal.
What is the South Carolina Real Estate Commission authorized to do?

License appraisers and home inspectors

Regulate advertising of small home businesses

Require minimum daily work hours for all licensees

Set requirements and standards of conduct for real estate licensees, as well as enforce South Carolina's real estate laws
Set requirements and standards of conduct for real estate licensees, as well as enforce South Carolina's real estate laws
South Carolina broker Craig Jenkins is selling his own home. He discloses this fact in his marketing materials for the house, and at his first substantive contact with interested buyers. Should Craig disclose this fact anywhere else?

No. Craig has fulfilled his duties of disclosure.

Yes. He must complete a Licensee-Seller Disclosure form, and have any prospective buyers sign it before submitting an offer.

Yes. He must complete the Licensee-Seller Disclosure form (and have the seller sign it) and disclose it on page one of any purchase offers he receives.

Yes. He must disclose this on page one of any purchase offers he receives.
Yes. He must disclose this on page one of any purchase offers he receives.

This disclosure must be written in bold, underlined, capital letters on the first page of all real estate purchase contracts Craig uses in personal transactions.
Chloe's South Carolina real estate license expired 10 months ago. What's its status?

Active
Canceled
Lapsed
Revoked
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.