Practice Questions #1
1. Jenna has a buyer client who is interested in the listing of another associated licensee in her same
brokerage. If the buyer client desires to make an offer on the other licensee’s listing, Jenna will need
both buyer and seller to sign:
a. either a dual or designated agency consent agreement, depending on the office
policy of the brokerage
b. a compensation agreement
c. a transaction broker agreement
d. a multiple buyer client form
2. The buyer wants to view properties along the coast but is undecided as to which location she actually
wants to purchase. She has requested showings in several coastal towns over the next two weeks. Since
she is undecided and has no relationship with any licensees in the area, she is reluctant to sign any
documents. In this situation, each of the licensees will be treating her as a
a. client
b. customer
c. dual agency client
d. designated agency client
3. The potential seller does not need assistance with showing or negotiating his property. He does not
want to sign a full service listing agreement, but desires to have the licensee market the property
through various sources. In addition, if the seller gets a contract on the property, he would like for the
licensee provide transaction management from contracting to closing. The licensee would more than
likely provide this service as a(n)
a. buyer agent
b. dual agent
c. designated agent
d. transaction broker
4. The BIC of XYZ lists and sells and is in competition with her associated licensees. She personally listed
a parcel of land. She has an associated licensee who has a buyer customer looking for land. If the buyer
customer of her associated licensee is interested in purchasing the land, the end result would be
a. seller agency with buyer agency
b. seller agency with transaction brokerage
c. dual agency on the part of the BIC
d. designated agency as there are two licensees involved
5. The BIC of the listing agency has an office policy of cooperating with and compensating outside buyer
agents only. A licensee from another company is working as a transaction broker. In this case
a. no fee has been offered to a cooperating agent with a customer
b. no fee has been offered to a cooperating agent with a client
c. no fee has been offered to a dual agent
d. no fee has been offered to a designated agent
6. The seller would like to buy a marketing package from the brokerage and would like to have
consultation on pricing. However, the seller does not want representation. If the seller is to be
committed to the brokerage for a fee for service as a customer, the appropriate document to use would
be
a. exclusive right to represent listing agreement
b. exclusive agency listing agreement
c. transaction brokerage agreement
d. dual agency consent agreement
7. The property manager would like to be compensated by the owner if the current tenant renews her
lease. In this situation, the property management agreement
a. must state this somewhere in the agreement
b. must state this on the first page of the agreement
c. must state this right before the signature line of the owner
d. must state this on the first page of the agreement in underlined capital letters
8. Jeff spent significant time getting a property management agreement for a commercial building and
would like to have an automatic renewal for three more years upon expiration. In this case
a. an automatic renewal is illegal
b. a separate document must be used
c. a clause must be inserted that will allow either party to cancel with 30 day’s notice
d. the agreement can only be cancelled with “cause” due to break by the property
manager
9. The property manager would like to be compensated if the current tenant he found for the owner
decides to purchase the property. In this case
a. a separate listing agreement must be used
b. the clause can be inserted into the property management agreement
c. this is an agreement that can be made orally
d. this is a term that can be included in the lease agreement
10. To be enforceable, a property management agreement must contain the following terms or clauses
a. the identification of the property, the length of the agreement, and how the PMIC
will split the fee with associated licensees
b. the length of the property management agreement, an automatic renewal clause,
and the compensation to be paid to the PMIC
c. identification of the property, compensation to the brokerage, and terms of an
acceptable lease
d. identification of the property, compensation to the brokerage if the property is sold
during the terms of the lease, the length of the agreement
11. A sale that the purchaser will receive the right to use a unit week as opposed to using a specific unit
would fall under
a. a vacation time share lease
b. a vacation time share option
c. a vacation time share ownership plan
d. a freehold lease plan
12. The purchaser of a vacation time share ownership plan has the right to expect the use of
a. the unit week that was purchased but not in a specific unit
b. the unit week that was purchased for a specific unit
c. any week where there is vacancy in the project
d. any week where there is vacancy in any project under the same ownership
13. The buyer has the right to think about whether or not they want to go through with the sale of the
timeshare ownership plan. If they decide not to go through with the purchase, they will
be asking to have the sales contract
a. terminated
b. rescinded
c. recorded
d. expunged
14. The buyer has changed her mind regarding the purchase of the unit week in a timeshare. In order to
not be bound by the sales contract, the purchaser must notify the seller
a. within 30 days
b. within 24 hours
c. within 5 days
d. within 48 hours
15. The buyer of a timeshare ownership plan signed her sales contract on Saturday, June 5. She has until
________________________ to change her mind and rescind the transaction.
a. Wednesday
b. Thursday
c. Friday
d. Saturday
16. Which agency has regulatory authority over Vacation Time Sharing Plan?
a. Securities and Exchange Commission
b. SC Real Estate Commission
c. Vacation Time Share Plan Commission
d. Recreation and Tourism Commission
17. When a purchaser states that they are purchasing a time share, they are actually purchasing a(n)
a. specific unit
b. vacation rental property
c. unit week
d. defeasible fee interest
18. Usury is the act of charging a
a. fixed rate of interest
b. adjustable rate of interest
c. variable rate of interest
d. interest in excess of that allowed by law
19. The maximum rate of interest allowable on a verbal contract is
a. 4%
b. 6%
c. 8%
d. 10%
20. On written contracts where the interest rate is expressed
a. there is no maximum rate of interest
b. the maximum rate of interest is 6%
c. the consumers cannot agree to an interest rate above 10/5
d. the Consumer Protection Code does not apply
21. The mortgage company is unwilling to make the loan unless the borrower uses the mortgage
company’s preferred attorney. This is a violation of
a. SC Real Estate License Law
b. SC Consumer Protection Code
c. SC Fair Housing Law
d. SC Homestead Exemption Act
22. A builder has said that they will pay $2000 of the purchaser’s closing costs if the purchaser will allow
the builder to select the closing attorney. In this case
a. the builder is in violation of SC Real Estate Law
b. the builder is in violation of SC Consumer Protection Code
c. the builder is in violation of SC Building Code
d. the builder is allowed to do this as the buyer has a choice of taking the offer or not
23. In SC, the debtor has the right to prepay the mortgage without penalty as long as
a. the property is held in defeasible fee estate
b. the property is held jointly and severally
c. the property is in a real estate trust
d. the loan balance is less than $240,000
24. For those who are qualified, the Homestead Exemption Act
a. relieves the homeowner of paying any real estate property tax
b. relieves the homeowner of paying deed recording fees
c. relieves the homeowner of paying taxes on the first $50,000 value of real property
d. relieves the owner of paying the first $50,000 in real property taxes
25. The homeowner who wants to apply for a Homestead Exemption does so by filing an application
with
a. the SC Tax Commission
b. the county auditor
c. the county tax assessor
d. the city tax assessor
26. To be eligible for the $50,000 reduction under the SC Homestead Exemption Act, the homeowner
must hold
a. a fee simple title
b. a life estate
c. a defeasible fee estate
d. a fee simple title or a life estate
27. To be eligible for the reduction under the SC Homestead Exemption Act, the homeowner must have
been a legal resident of SC for
a. at least one year
b. at least two years
c. at least three years
d. at least five years
28. If a property is owned jointly by husband and wife, the exemption under the Homestead Exemption
Act may be granted if
a. both qualify
b. either qualifies
c. they both are over 65
d. they both are disabled
29. John has purchased a new home in the same county as his previous residence. He received the
Homestead Exemption on his previous residence. In this case
a. the exemption will automatically transfer to the new residence
b. he must apply again for an exemption on the new residence
c. he cannot receive the exemption as he changed residences
d. he must wait one year before re-applying for the exemption
30. The Non-resident Withholding Act applies to those who
a. rent property in SC but have a primary residence in another state
b. own property in SC and have a primary residence in another state
c. sell property in SC but are primary residents in another state
d. rent property in SC and rent property in another state
31. Kevin is a resident of NC and owns property in Fort Mill, SC. He wants to sell the SC property for a
$100,000 net gain if he receives the $400,000 list price. In calculating his net on the SC
sale, he must take the SC non-resident withholding tax into account. He will probably
pay around
a. $28,000 at the closing
b. $7,000 at the closing
c. $30,000 at the closing
d. nothing at the closing as he is a NC resident—not SC
32. When calculating the Non-resident withholding tax, the tax is on
a. the contract price less any repairs
b. the contract price less repairs and initial cost
c. the contract price
d. the capital gain
33. The ___________________________ is required to withhold the non-resident withholding tax and
remit it to the SC Department of Revenue and Taxation.
a. closing attorney
b. buyer
c. seller
d. title company
34. The warehouse is owned by a Texas corporation and recently sold for a capital gain of $200,000. The
non-resident withholding tax is
a. $14,000
b. $24,000
c. $10,000
d. 0 as it was owned by a Texas corporation
35. Sara is the owner of a property in SC that she would like to sell for a capital gain of around $300,000.
She is a resident of Florida. At the closing, ___________ will be withheld for nonresident withholding tax.
a. $30,000
b. $21,000
c. $15,000
d. 0 if she files taxes in Florida
36. James is a Florida resident who owned property in South Carolina. At the close of the sale, the
closing attorney withheld $28,000 from the sale as non-resident withholding. How
much was his capital gain on the sale of the property?
a. $280,000
b. $300,000
c. $400,000
d. $500,000
37. Another name for the Coastal Zone Management Act is
a. Beachfront Management Act
b. Oceanic Management Act
c. Beachfront Reparation Act
d. Coastal Renourishment Act
38. The Coastal Zone Management Act is implemented by
a. SC Coastal Resource Commission
b. SC Department of Health and Environmental Control
c. SC Real Estate Commission
d. SC Department of Labor, Licensing and Regulation
39. Failure to let a purchaser know that a property is subject to the Coastal Zone Management Act can
result in
a. a fine of $100,000
b. a fine of $25,000 per occurrence
c. a fine of up to $10,000
d. a fine of up to $10,000 and 12 months imprisonment
40. The Coastal Zone Management Act requires
a. full disclosure to the intended purchaser that the property lies within the protected
zone
b. mitigation by the purchaser
c. full disclosure to the intended purchaser that the property is subject to flooding
d. mitigation by the current owner
41. The coastal zone refers to all coastal waters and submerged lands plus all property in
a. Horry and Charleston counties
b. York and Spartanburg counties
c. Lexington and Richland counties
d. Florence county
42. The purpose of the Coastal Zone Management Act is to
a. protect property owner’s right to build within the zone
b. protect the dunes along the coast
c. protect property value along the coast
d. protect an endangered species
43. SC Fair Housing Law was put into place to
a. prevent fair housing violations by members of the Human Affairs Commission
b. prevent fair housing violations by property owners and real estate brokers
c. prevent duplication of federal fair housing laws
d. prevent discrimination in the rental of dwellings
44. The protected classes covered in SC Fair Housing Law
a. reflect federal law
b. include sexual orientation
c. include gender identity
d. include marital status and age
45. Some housing in SC is exempt from federal law. The exemption includes
a. owners who sell without a real estate agent
b. owners who live in the property at the time of the sale
c. housing for the elderly
d. housing for the handicapped
46. The following are protected classes in South Carolina
a. age, nationality, and race
b. race, color, and marital status
c. national origin, family status, and age
d. national origin, family status, and sex
47. Eleanor is a member of a protected class because of her nationality. She has a low credit score and
poor references from her former landlord. She is denied housing and wants to file a
complaint with the SC Human Affairs Commission. In this case
a. she is not allowed to file a complaint based on discriminatory behavior because she
has bad credit and references
b. she is not allowed to file a complaint based on discriminatory behavior because she
was denied housing based on her nationality
c. she can file a complaint if the basis of the denial was her nationality
d. she can file a complaint if the basis of the denial was her credit history
48. Property taxes in SC are based on the property value and are called
a. residence taxes
b. ad valorem taxes
c. assessment-based taxes
d. value-based taxes
49. Actual taxes paid on property in SC is based on these three factors:
a. appraised value, assessment rate, value
b. value, assessment, right of survivorship
c. millage rate, assessment rate, and appraised value
d. millage rate, type of ownership, and value
50. All properties in SC are assessed at
a. 6%
b. 4%
c. 8%
d. 10%
51. A property owner who uses a property as a primary residence may have the assessment rate on that
particular property reduced from 6% to
a. 5%
b. 4%
c. 2%
d. 0 taxes
52. If the use of the property changes from primary residence to rental/investment, the tax rate
a. stays the same if changed within one year of purchase
b. stays the same if the use changed within 24 months of purchase
c. changes as well
d. changes only if the primary residence was taxed at 6% prior to the sale
53. The millage rate is
a. the amount charged for tax on investment properties
b. the assessment rate
c. the “tax rate” of either 4 or 6%
d. the amount charged by cities and counties for providing services