Free South Carolina Real Estate Practice Exam

Q1.A fee simple estate differs from a life estate primarily in which characteristic?

• A.The duration and inheritability of the ownership interest
• B.The right to possess and use the property during the holder's lifetime
• C.The ability to lease the property to tenants
• D.The requirement to maintain the property in good condition

Q2.Under South Carolina law, what is the minimum number of years of active real estate salesperson experience generally required before a person may qualify to apply for a broker's license?

• A.One year
• B.Two years
• C.Three years
• D.Five years

Q3.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification

Q4.Elena's buyer is making an all-cash offer. The seller asks for proof of funds. What is an acceptable form of proof of funds?

• A.A letter from the buyer's employer confirming their annual salary
• B.A current bank or investment account statement showing liquid assets sufficient to close
• C.A pre-qualification letter from a mortgage lender
• D.An earnest money check made payable to the escrow company

Q5.South Carolina's Residential Property Condition Disclosure Act (SC Code § 27-50-10 et seq.) requires sellers to complete a disclosure statement. Which of the following transactions is EXEMPT from this disclosure requirement?

• A.A sale of a single-family home that has been owner-occupied for less than one year.
• B.A transfer of residential property between co-owners where no money changes hands.
• C.A sale of a newly constructed home being sold for the first time by a licensed residential builder.
• D.A sale of a condominium unit located in a complex with fewer than four units.

Q6.Under the federal Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited?

• A.Charging a loan origination fee
• B.Providing a Loan Estimate to the borrower
• C.Paying kickbacks or referral fees between settlement service providers
• D.Requiring title insurance on a federally related mortgage loan

Q7.A property was purchased for $420,000 with a 20% down payment. The buyer obtained a 30-year fixed-rate mortgage at 7.25% annual interest. Using the monthly payment factor of $6.83 per $1,000 of loan amount, what is the buyer's approximate monthly principal and interest payment?

• A.$2,294.88
• B.$2,868.60
• C.$2,296.48
• D.$2,582.20

Q8.Under South Carolina law, which statement about commission agreements is CORRECT?

• A.A salesperson may negotiate and collect a commission directly from a client, independent of the broker-in-charge
• B.An oral listing agreement is fully enforceable in South Carolina as long as there are witnesses
• C.A licensee must have a written listing agreement signed by the property owner before advertising or marketing the property
• D.Commission rates in South Carolina are set by the South Carolina Real Estate Commission at a standard percentage

Q9.Under RESPA, which of the following payments is explicitly prohibited when a federally related mortgage loan is involved?

• A.A lender charging an origination fee disclosed on the Loan Estimate
• B.A title company paying a referral fee to a real estate agent for sending business
• C.A broker charging a processing fee that is disclosed to all parties
• D.An escrow company charging a document preparation fee listed in the Closing Disclosure

Q10.What is the primary difference between a gross lease and a net lease?

• A.In a gross lease, the tenant pays all operating expenses; in a net lease, the landlord pays all expenses
• B.A gross lease is for residential property only; a net lease is for commercial property only
• C.In a gross lease, the landlord pays most operating expenses; in a net lease, the tenant pays some or all operating expenses
• D.A gross lease requires a security deposit; a net lease does not

Q11.A broker operating as a disclosed dual agent is assisting both the seller and buyer through a purchase negotiation. The seller asks the broker, 'Will the buyer accept $5,000 less than the listed price as a final number?' Under the broker's dual-agency obligations, which response is MOST legally and ethically correct?

• A.The broker must decline to speculate on the buyer's final acceptance price and explain that as a dual agent, she cannot disclose one party's confidential negotiating position to the other without that party's consent.
• B.The broker may answer honestly based on her professional judgment because dual agency permits full transparency between both principals.
• C.The broker should refer the seller to an attorney because dual agency requires the broker to withdraw from the transaction whenever a negotiating question arises.
• D.The broker may share the buyer's likely acceptance price because the dual-agency consent form signed by both parties constitutes a waiver of all confidentiality protections.

Q12.Under the Fair Housing Act, which of the following is NOT considered a protected class in housing discrimination cases?

• A.Sexual orientation
• B.National origin
• C.Familial status
• D.Religion

Q13.At a closing table, the settlement agent presents a wire transfer instruction sheet with bank routing information that differs slightly from the escrow company's letterhead. The buyer's broker is aware that wire fraud targeting real estate closings has increased dramatically. What is the broker's most prudent course of action?

• A.Proceed with closing as scheduled; wire fraud liability rests solely with the settlement agent.
• B.Verify the wire instructions by calling the settlement company at a phone number independently sourced—not from the suspicious document.
• C.Advise the buyer to send the funds via personal check instead to avoid any wiring risk.
• D.Request that the seller's broker verify the instructions since they represent the receiving party.

Q14.A listing broker's affiliated salesperson mistakenly fails to include a financing contingency deadline extension addendum in the closing package, and the transaction closes with an expired contingency date on record. Assuming the buyer later raises a contract enforceability issue, which of the following best describes the broker's potential liability exposure under general principal-agent law?

• A.The broker has no liability because licensed salespersons are independent contractors under IRS guidelines.
• B.The broker may be vicariously liable for the salesperson's errors committed within the scope of the employment relationship, regardless of independent contractor tax status.
• C.The broker's liability is limited to disciplinary action by the real estate commission and cannot extend to civil damages.
• D.The broker is only liable if the salesperson was acting outside of the written employment agreement.

Q15.A seller deliberately fails to disclose a known roof defect on the SPDS. After closing, the buyer discovers it and sues. What is the most likely legal theory?

• A.Strict liability — sellers are automatically liable for all undisclosed defects
• B.Fraudulent misrepresentation or concealment — the seller had knowledge and failed to disclose
• C.Breach of warranty — the SPDS operates as a warranty of property condition
• D.Negligence per se — any SPDS omission is automatically a statutory violation