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South Carolina Exam Prep Questions and
answers 2025
In SC, real estate license law is administered by the a. SC Human Affairs Commission b. SC Real Estate Commission c. SC Association of REALTORS d. Department of Housing and Urban Development - CORRECT ANSWER-b. SC Real Estate Commission
The SC Real Estate Commission has the authority to a. make and enforce the rules by which all real estate licenses must abide b. compose the exam questions on the state exam c. administer the exams given at the testing sites d. enact the laws that govern real estate licenses - CORRECT ANSWER-a. make and enforce the rules by which all real estate licenses must abide
The SC Real Estate commission may investigate a licensee for all the following reasons except: a. its own initiative b. a written complaint submitted by an agent about a cooperative commission arrangement c. the director has reason to believe that a licensee is unfit to practice d. a written complaint submitted by a disgruntled customer - CORRECT ANSWER-b. a written complaint submitted by an agent about a cooperative commission arrangement
In SC, which of the following would need to be a licensed real estate broker? a. person who employs fewer than 3 agents b. licensed attorney acting under a power of attorney to convey real estate c. owner of a duplex d. partnership selling a building owned by the partners - CORRECT ANSWER-a. a person who employs fewer than 3 agents
A real estate license is required for all the following activities EXCEPT: a. managing real estate b. reselling a personal mobile home c. selling real estate d. collecting rent for the use of real estate - CORRECT ANSWER-b. reselling a personal mobile home
If engaged in real estate activities, which of the following persons are exempt from the real estate licensing program? a. attorneys at law if within scope of duties for a client b. appraisers c. resident apartment managers d. land auctioneers - CORRECT ANSWER-a. attorneys at law, if within scope of duties for a client
The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is: a. violating the license law b. required to have a brokers license c. required to have a salesperson license d. exempt from real estate licensing requirements - CORRECT ANSWER-d. exempt from real estate licensing requirements
In SC, application for any real estate license must a. be completed before taking any written exam b. contain a picture of the applicant c. be made before May 31st of each year d. be accompanied by a sworn statement attesting to the applicant's character - CORRECT ANSWER-a. be completed before the written exam
In SC, the following are requirements for obtaining a broker's license EXCEPT a. having successfully completed 150 hours of approved real estate courses b. being at least 21 years of age c. having been actively engaged as a licensed salesperson for at least 5 years d. being of good moral character - CORRECT ANSWER-c. having been actively engaged as a licensed salesperson for at least 5 years
3 weeks before N begins his real estate pre-license class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer is accepted while N is taking the class and closes the day before N passes the examination and receives his salesperson license. The neighbor refuses to pay N the agreed upon commission. Can N sue to recover payment? a. Yes because N was formally enrolled in a course of study intended to result in a real estate license at the time the offer was procured and accepted, the commission agreement is binding b. No, in SC, a real estate salesperson must have permanent office in which his or her license Is displayed in order to collect commission from seller. c. Yes, while the statute of frauds forbids recovery on an oral commission contract under these facts d. No, state law prohibits lawsuits to collect commissions unless injured party is a licensed salesperson - CORRECT ANSWER-d. No, state law prohibits lawsuits to collect commissions unless injured party is a licensed salesperson and the license was in effect before the agreement was reached
Regarding licensing and duties of personal real estate assistants in SC, they a. must be licensed b. may insert factual information into form contracts under the employing broker's supervision and approval c. may show houses for their supervising broker d. must be unlicensed individuals; licensees must be either salespeople or associate brokers - CORRECT ANSWER-b. may insert factual information into form contracts under the employing broker's supervision and approval
All of the following are true about nonresident licensees EXCEPT that they must a. be licensed as a broker or salesperson in some state b. be licensed under a broker-in-charge with a SC license c. take all education course requirements in SC d. notify the commission in writing within 60 days of becoming a SC resident - CORRECT ANSWER-c. take all education course requirements in SC
A nonresident license applicant must file with the SC RE Commission an a. certificate of specific performance b. irrevocable consent to suits and actions c. copy of his or her birth certificate d. corpus delicti - CORRECT ANSWER-b. irrevocable consent to suits and actions
All of the following statements regarding the SC RE Commission are true EXCEPT that: a. member of the commission are selected by the state association of REALTORS b. the commission makes and enforces the rules by which all real estate licensees must abide c. the examinations that must be taken by all applicants for real estate licensing are administered by an independent testing company, not the commission. d. the operation of the commission's activities is administered by an official specifically hired for that purpose - CORRECT ANSWER-a. member of the commission are selected by the state association of REALTORS
The on-site property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position the on-site manager a. is exempt from licensing requirements b. must have a broker's license c. must have a real estate or property manager licensed. d. may negotiate but not sign leases without a license - CORRECT ANSWER-c. must have a real estate or property manager licensed.
All of the following are exempt from the provisions of the South Carolina license Act EXCEPT a. individual who receives compensation for procuring prospective buyers or renters of real estate b. individual who is employed as a resident maintenance person c. property owner who sells or leases his or her own property
d. resident lessee who works as an office secretary two days a week. - CORRECT ANSWER-a. individual who receives compensation for procuring prospective buyers or renters of real estate
An individual wants to sell her own house. Which of the following statements is true? a. she does not need a real estate license to sell her house herself b. In South Carolina anyone who sells real property must first have a real estate license issued by the real estate commission c. the individual may obtain a temporary real estate license in order to legally sell her house. d. she may sell her house without obtaining a real estate license only if she is a licensed attorney - CORRECT ANSWER-a. she does not need a real estate license to sell her house herself
Which of the following is a requirement to obtain a real estate salesperson's license in South Carolina? a. successful completion of 12 credit hr. of real estate law, investments, finance, and appraisal b. an associate degree or certificate in real estate from an accredited college, university, or proprietary school c. United States and South Carolina citizenship d. Successful completion of a state approved real estate course of 60 classroom hours - CORRECT ANSWER-d. Successful completion of a state approved real estate course of 60 classroom hours
South Carolina real estate licenses a. are granted in perpetuity b. expire on the licensee's birthday c. expire annually on June 30 d. expire biennially on June 30 - CORRECT ANSWER-d. expire biennially on June 30
A person must be licensed as a real estate broker o salesperson if that person is a. selling his or her house b. buying a house for his or her personal use c. engaging in the real estate business d. constructing houses - CORRECT ANSWER-c. engaging in the real estate business
Under South Carolina law, which of the following needs to be licensed? a. owner of a 30-unit apartment building b. an employee of the state housing authority c. a man who has been appointed the trustee of an estate d. an auctioneer who auctions farm land - CORRECT ANSWER-d. an auctioneer who auctions farm land
Under South Carolina law, which of the following is exempt from continuing education requirements for license renewal? a. licensee who is 65 and has been in the real estate business for 20 years. b. licensee who is 65 and has been in the real estate business for 25 years. c. licensee in a referral company
b. must have been licensed as a broker for a minimum of 5 years c. may be a broker-in-charge of more than one office with commission approval d. may be broker-in-charge of two offices within a 50 mile radius without commission approval - CORRECT ANSWER-c. may be a broker-in-charge of more than one office with commission approval
A licensee with a provisional license must fulfill the post-licensing education requirements a. within 15 month of the initial provisional licensing test b. not until at least 12 months after having received the provisional license c. anytime within 12 months of receiving a provisional license d. never, if the licensee wishes to remain a provisional licensee - CORRECT ANSWER- c. anytime within 12 months of receiving a provisional license
The broker-in-charge of a real estate company becomes mentally incapacitated. What is the status of the company? a. it must discontinue all business until a new broker-in-charge is found b. it may continue to operate under an associated licensee for up to 6 months with commission approval c. it may continue to operate with an associated licensee as broker-in-charge up to 90 days d. it may not solicit any new business until the new broker-in-charge is found - CORRECT ANSWER-b. it may continue to operate under an associated licensee for up to 6 months with commission approval
Which of the following is true of mandatory continuing education? a. eight hours are due every year b. two hours of core hours are due biennially c. it is required of every real estate licensee d. it is required to maintain inactive status - CORRECT ANSWER-b. two hours of core hours are due biennially
Leases and management agreements must be maintained by a broker-in-charge a. forever b. for 3 years c. for 5 years d. until audited by the commission - CORRECT ANSWER-c. for 5 years
If a licensee pays the renewal fee but has not fulfilled the mandatory continuing education, South Carolina Real Estate Commission will a. place the license on inactive status until the education requirements are completed b. not renew the license an send the fee back to the licensee c. renew the license but levy a fine of $25 per month until the education requirements are satisfied d. renew the license with a grace period of 30 days to satisfy the education requirement - CORRECT ANSWER-a. place the license on inactive status until the education requirements are completed
The South Carolina Real Estate Commission is comprised of
a. 6 members of the South Carolina Association of REALTORS b. nine members, six of whom are from each congressional district c. nine staff members of Labor, Licensing, and Regulations d. real estate broker appointed by the governor - CORRECT ANSWER-b. nine members, six of whom are from each congressional district
A real estate licensee who wishes to also become a property manager a. may also apply for a property manager's license b. must first acquire a broker's license c. must attend a 30-hour property management course d. may manage property with a real estate license with approval of the broker-in- charge. - CORRECT ANSWER-d. may manage property with a real estate license with approval of the broker-in-charge.
Cash received as earnest money for a contract of sale must be deposited in a trust account by the broker-in-charge a. 48 hrs of ratification, excluding sat., Sun., and bank holidays b. 48 hrs of receipt, excluding Saturdays, Sundays, and bank holidays c. 24 hrs of ratification d. 24 hours of receipt - CORRECT ANSWER-b. 48 hrs of receipt, excluding Saturdays, Sundays, and bank holidays
A buyer broker delivers an offer to purchase and an earnest money check to the listing broker. The seller of the property will not be able to see the offer for a week. When must listing broker deposit the earnest money check into the escrow account? a. 48 hrs of ratification, excluding sat., Sun., and bank holidays b. 48 hrs of receipt, excluding weekend c. 24 hrs of ratification d. 24 hours of receipt - CORRECT ANSWER-a. 48 hrs of ratification, excluding sat., Sun., and bank holidays
In South Carolina all the following would be grounds for revoking a broker's license EXCEPT a. being convicted of forgery in SC b. guaranteeing future profit from the resale property c. depositing escrow money into his or her personal checking account d. agreeing with a seller to accept a listing for more than the normal commission rate. - CORRECT ANSWER-d. agreeing with a seller to accept a listing for more than the normal commission rate.
The South Carolina Real Estate Commission has the power to revoke a salesperson's license if the salesperson a. attempts to represent a real estate broker other than his or her employer, after obtaining the employer's consent b. attempts to represent a buyer c. enters into an exclusive-listing contract d. deposits a buyer's down payment into his or her own bank account - CORRECT ANSWER-d. deposits a buyer's down payment into his or her own bank account
The seller told the broker that she wanted to clear $50,000, when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest. Which of the following is correct?
a. broker should have given the seller a better appraisal of the value of her house
b. broker's commission exceeds statutory and NAR guidelines
c. broker accepted an illegal net listing
d. as the seller's agent the broker had a duty to sell the house for as much as possible - CORRECT ANSWER-c. broker accepted an illegal net listing
In South Carolina real estate commissions are
a. set by the law
b. set by the South Carolina Real Estate Commission
c. determined by local groups of brokers
d. negotiable between the seller/buyer and broker - CORRECT ANSWER-d. negotiable between the seller/buyer and broker
Commissions earned by a broker in the real estate sales transaction
a. are determined by agreement of the broker and his principal
b. may be shared with an unlicensed person provided that such person aided the broker in bringing the buyer
c. must be paid by the seller in each transaction
d. are based on a schedule of commission rates set by the SCREC - CORRECT ANSWER-a. are determined by agreement of the broker and his principal
Personal checks for earnest money received by a broker on behalf of his or her principal must be deposited in escrow or trust acct. within
a. 24 hrs of receiving the offer
b. 48 hrs of receiving the offer
c. 5 working days of receiving the offer
d. 48 hrs. after acceptance of the offer - CORRECT ANSWER-d. 48 hrs. after acceptance of the offer
A broker received an earnest money deposit from a buyer. Under the South Carolina law, the broker should
a. open a special, separate escrow acct that contains funds for this transaction.
b. deposit the money in an exiting escrow account in which all earnest money received from buyers may beheld at the same time
c. immediately commingle the funds by depositing the earnest money received from buyers may be held at the same time
d. hold the earnest money deposit in a secure place in the broker's real estate brokerage office until the closing date - CORRECT ANSWER-b. deposit the money in an exiting escrow account in which all earnest money received from buyers may beheld at the same time
If a broker establishes an account to hold money belonging to others, which of the following is correct?
a. all checks, deposit slips, and bank stmt must include the word "escrow" or "trust" as a part of the name
b. accounts must be labeled both "trust" and "escrow"
c. acct cannot be in the same bank as the broker's personal checking acct.
d. individual acct is required for each transaction - CORRECT ANSWER-a. all checks, deposit slips, and bank stmt must include the word "escrow" or "trust" as a part of the name
A broker manages three properties with different owners. One property is in need of emergency repairs, but there is not enough money in the mgnt acct to cover the cost. The broker borrows money from the escrow acct of one of the other properties to make the repairs. Which of the following is true?
a. broker has acted properly by safeguarding the clients interest
b. such action is proper in the event of emergency
c. broker is in violation of regulations for improperly handling escrow funds
d. broker must use personal funds for repairs if there is not enough money in the management account. - CORRECT ANSWER-c. broker is in violation of regulations for improperly handling escrow funds
All of the following appear in a written listing agreement EXCEPT
a. provision requiring the seller to notify the agent of cancellation after expiration
b. place advertisements in the local newspaper
c. cooperate with every real estate office wishing to participate In the marketing of the listed property
d. give the person or persons signing the listing a legible, signed, true, and correct copy. - CORRECT ANSWER-d. give the person or persons signing the listing a legible, signed, true, and correct copy.
A seller listed his house for sale with a broker on February1. The listing agreement was to last 5 months. In April, the seller decided that the house was no longer for sale. Which of the following statements is true?
a. seller has cancelled the agreement and there are no penalties
b. seller has withdrawn the broker's authority to sell the property and may be subject to a penalty
c. seller is required by law to leave his house on the market until June
d. South Carolina Real Estate Commission will decide if the seller's actions is justifiable - CORRECT ANSWER-b. seller has withdrawn the broker's authority to sell the property and may be subject to a penalty
A person who believes that he has been illegally discriminated against may file a complaint with South Carolina
a. Association of REALTORS
b. Attorney General
c. Real Estate Commission
d. Human Affairs Commission or HUD - CORRECT ANSWER-d. Human Affairs Commission or HUD
A housing discrimination charge must be filed with the South Carolina Human Affairs Commission within
a. 6 months
b. 1 year
c. 2 year
d. 30 days - CORRECT ANSWER-a. 6 months
A South Carolina real estate salesperson may lawfully collect compensation from
a. either a buyer or a seller
b. his or her employing broker only
c. any party to the transaction or the party's representative
d. a licenses real estate broker only - CORRECT ANSWER-b. his or her employing broker only
What are the procedures that a salesperson must follow when the salesperson decides to terminate his or her affiliation with the employing broker?
a. give the broker an official letter of termination that he send to the South Carolina Real Estate Commission
b. nothing, the broker is responsible for notifying the SCREC
c. return all customer lists to the employing broker
d. return his license, along with letter of termination, to the SCREC - CORRECT ANSWER-b. nothing, the broker is responsible for notifying the SCREC
A licensed salesperson may hold a concurrent license with more than South Carolina broker under which of the following circumstances?
a. under no circumstances
b. with permission of his sales mgr
c. with written consent of the brokers being represented
d. with the permission of the South Carolina Estate Commission - CORRECT ANSWER-a. under no circumstances
Several weeks after closing, an associate broker received a thank-you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. In this situation, which of the following is true?
a. associate broker may accept the bonus because he is licensed as an associate broker
b. accepting the money is allowed if more than 30 days have lapsed since the closing
c. the associate broker may accept the money if his broker permits him to do so
d. accepting the money is a violation of South Carolina Real Estate Commission regulations - CORRECT ANSWER-d. accepting the money is a violation of South Carolina Real Estate Commission regulations
When a licensed broker changes his or her place of business.
a. a new license will be issued by the board immediately
b. the broker must notify the South Carolina Real Estate Commission within ten days
c. a new license will be issued for full term
d. the broker's new address must be approved by the board. - CORRECT ANSWER-b. the broker must notify the South Carolina Real Estate Commission within ten days
In any real estate sales transaction that a broker negotiates, the broker is not required to
a. inform the buyer of his personal opinion of the condition of the seller's title to the property
b. make sure that the closing stmt is accurate and that a copy of it is delivered to both buyer and seller
c. make sure that the closing stmt is accurate and that a copy of it is delivered to both buyer and seller
d. keep copies of all documents involved in the transaction in his files for five years after the year in which the traction was closed. - CORRECT ANSWER-a. inform the buyer of his personal opinion of the condition of the seller's title to the property
Which of the following are not necessary for a listing broker to be entitled to a commission?
a. a signed listing agreement
b. a ready willing and able buyer
c. a legally competent seller
d. a contract of sale between the seller and the purchaser - CORRECT ANSWER-d. a contract of sale between the seller and the purchaser
Every SC RE office is required to
a. maintain escrow account records for 5 years
b. keep transaction records for 3 years
c. display signage at office location
d. employ at least one salesperson - CORRECT ANSWER-a. maintain escrow account records for 5 years
A broker is convicted May 1st of possession and distribution of a controlled substance and it took place out of state. On June 15th the broker calls the SC RE commission and leaves a message informing them of the incident. Based on these facts, what is true?
a. The broker has properly informed the real estate commission w/in 60 days after the conviction, and the brokers license may be renewed
b. Both the conviction and the brokers failure to notify the real estate commission w/in 10 days violate real estate commissions regulations
c. Because the conviction did not occur in the state it is not evidence of unworthy conduct
d. the conviction is evidence of both improper dealing and fraud - CORRECT ANSWER-b. Both the conviction and the brokers failure to notify the real estate commission w/in 10 days violate real estate commissions regulations
How is a broker's commission determined in a real estate transaction?
a. It must be stated in the listing agreement and is negotiated b/w the broker and the seller
b. It is determined according to the standard rates set by agreement of local RE brokers
c. If under dispute, it will be determined through arbitration by the south carolina real estate commission
d. It must be paid with cash or a cashiers check upon closing - CORRECT ANSWER-a. It must be stated in the listing agreement and is negotiated b/w the broker and the seller
A broker has obtained an offer to purchase a residence that is listed with his firm. After the buyers sign a purchase and sale agreement and the broker accepts their earnest money deposit, the broker must:
a. Deposit the earnest money in the broker's personal checking account for safe keeping until closing
b. Complete a second earnest money agreement form that states an exaggerated selling price and give the second form to the buyers to present to the lender so that they will be certain to obtain sufficient financing for their purchase
c. Immediately provide the buyers with a copy of the agreement as a receipt for their deposit
b. handicap
c. sexual preference
d. national origin - CORRECT ANSWER-c. sexual orientation
A licensee may have a license revoked if the licensee
a. has been arrested for drugs
b. fails to mention a murder on a property to a potential buyer
c. pays a clerk to type up contracts
d. fails to inform the tenant that the security deposit will be held by the owner of the property, not the management company - CORRECT ANSWER-d. fails to inform the tenant that the security deposit will be held by the owner of the property, not the management company
An agent's license renewal fee has been returned for insufficient funds. The SC real estate commission
a. may take disciplinary action against the licensee
b. must allow the licensee a grace period of 30 days to pay the fee
c. may require the broker-in-charge to pay the renewal fee
d. must cancel the license immediately - CORRECT ANSWER-a. may take disciplinary action against the licensee
A seller has indicated that a broker will receive a bonus if the property is sold "in house." That is
a. an incentive for the brokers' company to sell the house
b. illegal in SC to have variable commission structures
c. only permissible if seller prohibits cooperation by buyers brokers
d. a requirement for the MLS - CORRECT ANSWER-a. an incentive for the brokers' company to sell the house
Which of the following is true about interest earned on a purchaser's earnest deposit?
a. the interest must be paid to the purchaser
b. the interest must earn 6% per annum payable to the purchaser
c. It is illegal; all deposits must be on non-interest-bearing accounts
d. the broker may keep the interest earned on the deposit if the purchaser has agreed in writing - CORRECT ANSWER-d. the broker may keep the interest earned on the deposit if the purchaser has agreed in writing
When there has been a dispute between the buyer and the seller about the entitlement of earnest money, the
a. broker must immediately remit the funds to the South Carolina RE
b. seller, as owner of the funds, is entitled to the earnest money
c. broker may not disburse the funds to either party until the dispute is resolved
d. buyer, as payer of the funds, is entitled to the return of the earnest money - CORRECT ANSWER-c. broker may not disburse the funds to either party until the dispute is resolved
Earnest money disputes between parties may be resolved by all the following except:
a. a written agreement signed by all parties directing the disposition of the monies
b. voluntary mediation
c. court action
d. broker arbitration - CORRECT ANSWER-d. broker arbitration
Funds that are received by a broker for a principal must be kept in:
a. individual escrow accounts
b. a SC bank
c. a non-interest-bearing account
d. a bank account specifically designated as either "trust" or "escrow" - CORRECT ANSWER-d. a bank account specifically designated as either "trust" or "escrow"
The SC RE commission requires all of the following for maintaining a trust acct. except
a. a running balance maintained for each entry
b. a monthly reconciliation for each entry
c. the check number for each deposit received
