Free Real Estate Associate — State-Specific Portion (South Carolina Real Estate Laws and Real Estate Commission Rules) Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Real Estate Associate — State-Specific Portion (South Carolina Real Estate Laws and Real Estate Commission Rules) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1What is the statutory purpose of the South Carolina Real Estate Commission?

   1. A. To regulate the industry to protect the public in real estate transactions
   2. B. To resolve commission-split disputes between licensees
   3. C. To set private brokerage commission rates
   4. D. To guarantee the profitability of licensed firms

   Answer: A

   Explanation: Section 40-57-10 states: "The purpose of this commission is to regulate the real estate industry so as to protect the public's interest when involved in real estate transactions."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-10

2. 2Before advertising another person's South Carolina real estate, what must a licensee generally obtain?

   1. A. A verbal authorization from the owner
   2. B. A property-condition report
   3. C. A closing attorney's approval
   4. D. A written listing agreement between the owner and the licensee's firm

   Answer: D

   Explanation: Section 40-57-135(E)(1) prohibits such advertising "without first obtaining a written listing agreement between the property owner and the real estate brokerage firm with whom the licensee is associated."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-135(E)(1)

3. 3Which relationship is expressly permissible for a South Carolina real estate brokerage firm?

   1. A. Undisclosed dual agency
   2. B. Oral implied agency
   3. C. Unwritten subagency
   4. D. Designated agency

   Answer: D

   Explanation: Section 40-57-350(A) lists permissible relationships, including "designated agency."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-350(A)(4)

4. 4For a personal-purpose mortgage loan, whose preference must the creditor ascertain before closing regarding legal counsel?

   1. A. The borrower's
   2. B. The seller's
   3. C. The listing firm's
   4. D. The title insurer's

   Answer: A

   Explanation: Section 37-10-102(a) provides: "The creditor must ascertain prior to closing the preference of the borrower as to the legal counsel" employed for the closing transaction.

   Reference: Code of Laws - Title 37 - Chapter 10- - CONSUMER PROTECTION CODE — Section 37-10-102(a)

5. 5Who must supervise a South Carolina real estate closing?

   1. A. A licensed real estate associate
   2. B. A certified appraiser
   3. C. A registered home inspector
   4. D. A licensed South Carolina attorney

   Answer: D

   Explanation: Section 26-2-210 preserves "the South Carolina law that requires a licensed South Carolina attorney to supervise a closing."

   Reference: Code of Laws - Title 26 - Chapter 2- - NOTARIES PUBLIC AND ACKNOWLEDGMENTS — Section 26-2-210

6. 6Two South Carolina licensees ask the Real Estate Commission to decide their dispute over division of a commission. What may the Commission do?

   1. A. Order an equal split after a hearing
   2. B. Decline to resolve the payment or division dispute
   3. C. Set the split according to the listing agreement
   4. D. Refer the split automatically to the Department of Revenue

   Answer: B

   Explanation: Section 40-57-60(B) provides: "The commission may not be involved in a resolution of disputes between licensees over the payment or division of a commission or fee."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-60(B)

7. 7A licensee outside the listing firm wants to advertise the listed property. What is required?

   1. A. Written authorization from the listing firm and clear acknowledgment of that firm
   2. B. Verbal permission from any supervised licensee
   3. C. Only the seller's email consent
   4. D. A new listing agreement with the seller

   Answer: A

   Explanation: Section 40-57-135(E)(1) permits it only with "written authorization from the listing brokerage firm" and requires acknowledgment of that firm "in the advertisement in a clear and conspicuous way."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-135(E)(1)

8. 8Which duty does a South Carolina brokerage firm owe a client under an agency agreement?

   1. A. Loyalty
   2. B. Guaranteeing a future resale profit
   3. C. Discovering every latent defect
   4. D. Resolving the client's legal disputes

   Answer: A

   Explanation: Section 40-57-350(A) states that the firm is bound by duties including "loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting."

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — Section 40-57-350(A)

9. 9If a creditor uses written notice to request a mortgage borrower's counsel preference, by when must it be delivered or mailed?

   1. A. No later than one business day after application
   2. B. No later than three business days after the application is received or prepared
   3. C. No later than seven calendar days before closing
   4. D. At least ten business days before closing

   Answer: B

   Explanation: Section 37-10-102(a)(2) requires notice "delivered or mailed no later than three business days after the application is received or prepared."

   Reference: Code of Laws - Title 37 - Chapter 10- - CONSUMER PROTECTION CODE — Section 37-10-102(a)(2)

10. 10Before a deed may generally be recorded in South Carolina, what must occur?

    1. A. It must be acknowledged or proved by a statutorily authorized method
    2. B. It must be approved by the Real Estate Commission
    3. C. It must be accompanied by a property inspection
    4. D. It must be signed by the listing broker

    Answer: A

    Explanation: Section 30-5-30 states: "before any deed or other instrument in writing can be recorded in this State, it must be acknowledged or proved" by an authorized method.

    Reference: Code of Laws - Title 30 - Chapter 5- - PUBLIC RECORDS — Section 30-5-30