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SOUTH CAROLINA REAL ESTATE SALESPERSON
AND BROKER LICENSING EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2025
- What is the primary purpose of the South Carolina Real Estate Commission? A. Enforce local zoning codes B. Protect the public interest C. Determine property values D. Set mortgage rates The Commission regulates real estate licenses and enforces licensing law to protect the public interest.
- How many members are on the South Carolina Real Estate Commission? A. 5 B. 7 C. 10
D. 12
The Commission is composed of 10 members: 7 licensees from congressional districts, 2 at-large members, and 1 public member.
- A real estate salesperson may lawfully receive compensation from: A. The client B. Another licensed salesperson C. Their employing broker D. The lender Salespersons must be paid by their sponsoring broker only—not directly from clients or other agents.
- Which of the following would terminate an agency relationship by operation of law? A. Completion of purpose B. Mutual agreement C. Client dissatisfaction D. Death of the principal An agency is terminated by law if the principal or agent dies or becomes legally incapacitated.
- What is required to obtain a real estate license in South Carolina? A. U.S. citizenship B. Completion of 120 hours of training C. Be at least 18 years old and complete 90 hours of approved education
D. Immediately State law requires trust funds to be deposited within 48 hours of receipt (excluding weekends/holidays).
- What is commingling? A. Acting as a dual agent without consent B. Misrepresenting the condition of a property C. Mixing client funds with personal or business funds D. Practicing without a license Commingling is illegal and occurs when a licensee mixes client funds with their own.
- What does the term "client" mean in South Carolina real estate law? A. Someone who attends an open house B. A person who has entered into an agency agreement C. Any buyer or seller D. A party working with a licensee A client is someone who has entered into a formal agency relationship with a licensee.
- Which of the following is a fiduciary duty owed by an agent to a client? A. Compensation B. Loyalty
C. Disclosure of commission D. Independent judgment Loyalty is a fiduciary duty owed by agents to their clients, requiring the agent to act in the client’s best interest.
- A designated agency relationship allows: A. Agents from competing brokerages to work with the same client B. Different agents in the same firm to represent opposing clients in a transaction C. Agents to act without client consent D. Brokers to avoid liability Designated agency permits different agents in the same firm to represent buyer and seller, with consent.
- What must be included in a listing agreement? A. Buyer’s credit report B. Definite expiration date C. Loan terms D. Attorney's fees Listing agreements in SC must include a definite expiration date to be valid.
- The South Carolina Real Estate Commission requires licensees to renew their license: A. Monthly B. Biennially in odd years
Brokers-in-charge must supervise and ensure compliance with laws and regulations.
- What type of listing allows the seller to list the property with multiple brokers? A. Exclusive agency B. Net listing C. Open listing D. Exclusive right-to-sell An open listing allows multiple brokers; only the one who brings the buyer gets paid.
- In SC, how long must transaction records be kept? A. 1 year B. 3 years C. 5 years D. 7 years South Carolina requires that real estate transaction records be retained for 5 years.
- Which type of deed provides the most protection to the buyer? A. Bargain and sale deed B. Quitclaim deed C. General warranty deed D. Special warranty deed
A general warranty deed gives the buyer the most protection because it covers the entire history of title.
- What is a latent defect? A. An obvious defect B. A cosmetic issue C. A hidden defect not discoverable by reasonable inspection D. A zoning violation Latent defects are hidden and not easily observable. They must be disclosed by sellers and agents.
- A real estate agent may advertise a listed property only with: A. Seller approval B. Commission approval C. Written permission of the property owner D. Approval of the buyer Advertising without written consent is a violation of SC license law.
- Which of the following actions would violate the Fair Housing Act? A. Refusing to show a home to a family with children B. Refusing to show a home to a convicted felon C. Refusing to rent to a smoker D. Refusing to rent to someone with poor credit
Licensees must complete 10 hours of CE every renewal period, including core and elective topics.
- The law of agency defines the relationship between: A. Agent and client B. Buyer and seller C. Broker and Commission D. Landlord and tenant Agency law governs the legal relationship between a licensee (agent) and a client.
- When a licensee changes brokerages, they must notify the Commission within: A. 24 hours B. 3 days C. 15 days D. 30 days Licensees have 15 days to notify the Commission of a change in employing broker.
- A net listing: A. Is the most common in SC B. Pays the agent a set commission C. Can result in a conflict of interest D. Is required in dual agency
Net listings are discouraged and can create conflicts of interest as the agent may prioritize profit over client’s interest.
- An offer becomes a contract when: A. The buyer signs it B. The seller receives it C. The offer is signed and communicated to the other party D. The home appraises Mutual acceptance and communication of acceptance create a binding contract.
- What is an option contract? A. A listing agreement B. A unilateral contract giving one party the right to buy within a set period C. A lease agreement D. A purchase and sale agreement An option gives the buyer the right—but not obligation—to buy during a specific time.
- Which of the following is not a protected class under the federal Fair Housing Act? A. Race B. Religion C. Marital status
D. Lying about property value Steering is an illegal practice of influencing buyer location based on discriminatory motives.
- Which of the following would be considered personal property? A. Trees in the yard B. A freestanding refrigerator C. Built-in dishwasher D. Ceiling fan Personal property is movable; fixtures like ceiling fans and built-ins are real property.
- In SC, earnest money must be deposited into a trust account within: A. 24 hours B. 3 days C. 48 hours (excluding weekends/holidays) D. 5 days Trust funds must be deposited within 48 hours after receipt (excluding weekends and holidays).
- An exclusive right-to-sell listing means: A. The seller may find a buyer and pay no commission B. The listing broker gets commission regardless of who sells the property
C. Multiple brokers share the listing D. The listing expires automatically In this listing, the broker is entitled to a commission no matter who finds the buyer.
- The most common method used to describe property in SC is: A. Government survey B. Street address C. Metes and bounds D. Informal reference South Carolina frequently uses the metes and bounds system for legal descriptions.
- A lease for a period of one year or more must be: A. Verbal B. In writing to be enforceable C. Recorded D. Notarized Under the Statute of Frauds, leases over one year must be in writing.
- A valid deed must: A. Be signed by the buyer B. Include a sales contract C. Be delivered and accepted
- If a license is revoked, the licensee may not reapply for how long? A. 6 months B. 1 year C. 2 years D. 5 years SC law requires at least one year to pass before a revoked licensee may reapply.
- The term “constructive eviction” refers to: A. The landlord’s actions making the premises uninhabitable B. A legal court order C. Tenant breaking the lease D. Foreclosure Constructive eviction occurs when a landlord fails to maintain the property, forcing the tenant to leave.
- What is the maximum amount of money the SC Real Estate Commission can award from the Recovery Fund per transaction? A. $5, B. $10, C. $15, D. $25, The maximum payout per transaction is $10,000, with an overall cap of $50,000 per licensee.
- Which is a fixture? A. Area rug B. Built-in microwave C. Portable fan D. Stackable washer A fixture is a permanently attached item that becomes part of the real estate.
- A dual agent must obtain: A. Written informed consent from both parties B. Verbal permission C. Broker approval D. Lender approval Dual agency is legal in SC only with written informed consent from both client parties.
- An agency relationship is typically created by: A. Occupancy B. Open house attendance C. Written agreement D. Broker advertisement An agency is established when the parties agree to the relationship, typically in writing.
- A broker who places client money into a personal account is guilty of: A. Misrepresentation B. Commingling C. Puffing D. Concealment Mixing client funds with personal or business funds is illegal and considered commingling.
- When is the buyer considered to have equitable title? A. At closing B. After contract acceptance but before delivery of deed C. Upon first showing D. When earnest money is paid Equitable title is the right to obtain full ownership once the legal title transfers, and arises when a purchase agreement is signed.
- Which of the following is NOT a valid way to terminate a listing agreement? A. Death of the seller B. Offer from a buyer C. Mutual agreement D. Expiration A buyer's offer does not terminate a listing—it may lead to a contract, but the listing remains until one of the terminating events occurs.
- Which of the following is an example of police power? A. Condemnation B. Deed restriction C. Zoning regulations D. Easements Police power includes the government's right to regulate land use through zoning, building codes, etc.
- If a broker represents both buyer and seller with written consent, this is: A. Illegal in SC B. Implied agency C. Dual agency D. Designated agency Dual agency is legal with written, informed consent from both parties.
- A metes and bounds description uses: A. Lot and block numbers B. Distances and directions C. Government survey lines D. Zip codes Metes and bounds use measurements and compass directions to define property boundaries.
- A counteroffer: A. Accepts all terms
