Free South Carolina Real Estate Practice Exam

Q1.A South Carolina real estate salesperson places an advertisement for a listed property on social media. Under South Carolina law, what must the advertisement include?

• A.Only the salesperson's name and personal cell phone number
• B.The salesperson's name and the name of the brokerage firm with which the salesperson is affiliated
• C.The salesperson's license number and the broker-in-charge's home address
• D.The full legal description of the property and the listing price

Q2.Under the South Carolina Residential Property Condition Disclosure Act and S.C. Code Title 40, Chapter 57, which of the following duties is owed to a CLIENT but NOT to a CUSTOMER?

• A.Providing honest and accurate responses to questions about the property
• B.Disclosing all material adverse facts known about the property
• C.Promoting the client's best interests and maintaining loyalty
• D.Accounting for all monies received on behalf of the parties

Q3.In a government rectangular survey system, Section 16 in each township is typically:

• A.Designated as school land to support public education funding
• B.Reserved for railroad grants and transportation corridors
• C.Set aside for federal government administrative buildings
• D.Allocated for Native American tribal reservations

Q4.Under TRID (TILA-RESPA Integrated Disclosure) rules, how many business days before closing must a borrower receive the Closing Disclosure?

• A.One business day
• B.Two business days
• C.Three business days
• D.Five business days

Q5.A mortgage lender systematically charges Hispanic borrowers a 0.5% higher origination fee than similarly qualified non-Hispanic white borrowers, without any underwriting justification. Which federal law is PRIMARILY violated, and what legal theory applies?

• A.The Equal Credit Opportunity Act (ECOA) under a disparate treatment theory, because the lender is intentionally applying different pricing terms based on national origin.
• B.The Fair Housing Act under a disparate impact theory only, because pricing differences require statistical proof of unintentional harm to a protected class.
• C.The Truth in Lending Act (TILA) under Regulation Z, because the lender failed to disclose the higher origination fees in the Loan Estimate.
• D.RESPA Section 8, because the excess fee constitutes an unearned fee paid to a settlement service provider.

Q6.Aisha is a dual agent representing both buyer and seller with written consent from both. Which of the following is she still permitted to do?

• A.Negotiate aggressively on behalf of the buyer to get the lowest possible price
• B.Provide factual information about the property to both parties and facilitate the transaction
• C.Disclose the seller's minimum acceptable price to help the buyer make a strong offer
• D.Share the buyer's maximum price with the seller to help them counter effectively

Q7.A clerical employee receives a tenant's rent across the office counter. Which practice is required for the unlicensed clerical collection exception?

• A.Give the tenant a receipt
• B.Waive any disputed charge
• C.Deposit the rent into the employee's account
• D.Negotiate a payment plan

Q8.What must the compliance-monitoring system added in R4-28-1103(B) include?

• A.Automatic termination for every mistake.
• B.A progressive disciplinary policy for policy violations that also violate real-estate law or rules.
• C.A public complaint log.
• D.A ban on delegated review.

Q9.Under South Carolina law, how many members serve on the South Carolina Real Estate Commission, and which entity appoints them?

• A.Ten members appointed by the Governor, including eight licensees and two consumer members
• B.Seven members appointed by the Governor, including five licensees and two consumer members
• C.Nine members appointed by the Lieutenant Governor, including seven licensees and two consumer members
• D.Six members appointed by the SC Department of Labor, Licensing and Regulation, all of whom must be licensed brokers

Q10.A buyer's lender requires an impound (escrow) account for property taxes and insurance. Under RESPA, the maximum amount the lender may collect at closing as an initial escrow deposit is:

• A.6 months of estimated escrow payments
• B.3 months of estimated escrow payments
• C.2 months of estimated escrow payments plus amounts already due
• D.1 full year of estimated escrow payments

Q11.Under the South Carolina Residential Property Condition Disclosure Act (SC Code § 27-50-10 et seq.), which of the following sellers is EXEMPT from providing a Residential Property Condition Disclosure Statement?

• A.A seller who has lived in the home for less than one year
• B.A seller transferring property to a co-owner or family member by inheritance through an estate
• C.A seller who is relocating out of state
• D.A seller who is listing the property as 'as-is' in the MLS

Q12.Which statement best reflects IRS worker-classification guidance?

• A.One required meeting always creates employment.
• B.A contract label always controls.
• C.The relationship is fact-specific and considers behavioral and financial control and the type of relationship.
• D.Arizona supervision duties decide federal tax status.

Q13.According to South Carolina law, a broker-in-charge is REQUIRED to do which of the following regarding their affiliated salespersons?

• A.Allow each salesperson to operate a separate independent office under their own name
• B.Provide active supervision and oversight of all affiliated licensees' real estate activities
• C.Guarantee that all transactions closed by salespersons are profitable
• D.Personally attend every showing conducted by an affiliated salesperson

Q14.Which loan type requires the property to meet HUD Minimum Property Standards, potentially requiring seller repairs before the loan can close?

• A.FHA loans
• B.Conventional conforming loans
• C.VA loans only
• D.USDA Rural Development loans only

Q15.A South Carolina salesperson, while still affiliated with Broker A, begins showing properties and presenting offers on behalf of a buyer under an informal arrangement with Broker B, who agrees to share the commission. No written change of affiliation has been processed with the SCREC. Under S.C. Code Ann. § 40-57-710, which statement BEST describes the legal status of this arrangement?

• A.The arrangement is permissible provided both Broker A and Broker B sign a written cooperative agreement and the salesperson discloses the dual arrangement to all parties.
• B.The salesperson is acting in violation of South Carolina license law because a licensee may only be affiliated with one broker at a time, and any real estate activity must be conducted under the affiliated broker's supervision.
• C.The arrangement is lawful because South Carolina allows salespersons to independently contract with multiple brokers as long as commissions are split in writing.
• D.The arrangement is permissible as a referral arrangement because the salesperson is simply introducing buyers to Broker B without independently engaging in brokerage activities.