South Carolina CE Shop Real Estate Practice Exam

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• What is the SC Statute of Frauds requirement for real estate contracts?
• Sean represented Jamie as a buyer's agent. Jamie purchased a property that allowed cooperating agents to receive compensation of 2.5% of the sales price upon closing of the transaction. Sean hasn't been paid and the transaction closed six months ago. What can Sean do?
• Which date marks when the contract becomes effective?
• What is replacement cost in appraisal?
• Because real estate offers ______, investors can sometimes make a 100% return on their investment.
• Which statement about notices is true?
• Some price range categories fare better than others in certain markets. Which statement reflects this?
• What is a restrictive covenant and how does it affect property use?
• What is the purpose of truthful advertising in real estate?
• What is the purpose of an earnest money deposit in a real estate contract?
• What does due diligence in a real estate contract refer to?
• What is good funds?
• The coconut spill incident illustrates which type of risk?
• From a licensee's standpoint, what's the purpose of qualifying buyers before working with them?
• If non-housing debt increases to 420, what is the new maximum housing payment?
• What is the legal description's purpose in contracts?
• Which exemption to the 'every two years' rule concerning the capital gains exclusion allows a seller to claim a partial exclusion when the seller is forced to sell early?
• What is constructive eviction?
• In a closing statement, which statement best describes the proration of property taxes?
• When you're putting together a listing presentation, which of these is a key point to address?
• Which statement is true about the resolution process for broker commission disputes?
• In closing and settlement procedures, who is typically responsible for ensuring proper representation?
• Which statement about the federal gift tax is true?
• What elements are required for adverse possession?
• In real estate, what does the term 'title' primarily represent?
• In SC, which statement describes the agency representation in a dual agency arrangement?
• What is an easement by necessity?
• What is the calculation used to determine the estimated annual interest amount a borrower will pay on a loan?
• An easement by prescription is acquired how?
• Sales volume is defined as which of the following?
• In South Carolina, properties built before which year require lead-based paint disclosure?
• In the cost approach, what is added to replacement cost minus depreciation to estimate value?
• The effective date of a contract is used to determine which of the following?
• What is amortization?
• When contracted terms are scheduled to be completed after closing, what happens when the transaction closes?
• If broker commission is in dispute, the parties must resolve within how many days?
• Which entity is responsible for regulating real estate licensees and enforcing standards of practice in South Carolina?
• How is a license renewal typically completed in SC?
• How does a CMA differ from an appraisal?
• What made collateralized debt obligations (CDOs) attractive before the 2007 financial crisis?
• What does RESPA regulate?
• What does "highest and best use" mean in appraisal?
• What is the primary tax outcome of a 1031 like-kind exchange?
• What is the cost approach in appraisal?
• One hectare is equal to?
• In South Carolina real estate transactions, who must comply with income tax withholding requirements?
• Which entity is responsible for investigating complaints against licensees in SC real estate?
• Which hazard is commonly addressed in disclosures for older homes built before 1978?
• In handling an ethical situation, which statement best reflects proper practice for a licensee?
• Who completes the property condition disclosure statement and who is liable for its contents?
• In South Carolina, the parties agree in the sales contract to a repair procedure unless which document is attached?
• Deducting the costs of maintaining and operating an income property provides a(n) ______ that’s attractive to many real estate investors.
• Who typically pays the deed recording costs in a South Carolina transaction?
• What date is used for adjustments to closing costs between the parties to a South Carolina sales contract?
• During market analysis, adjustments are made to reflect differences between the subject property and the comparables. These adjustments are based on:
• Housing payment by housing ratio alone equals?
• Lead exposure is associated with which health effects?
• The risk that the required return on investor capital will not be met is called ______ risk.
• What’s the last step when handling ethical dilemmas?
• Which party's funds may be used to pay broker commissions at closing?
• Prepaid property taxes paid by the seller at closing are treated as what at closing?
• In South Carolina, what is true about net listings?
• During recording, which office time-stamps documents?
• Which statement is true regarding the Broker's Compensation section?
• Investors may be allowed to deduct operating expenses, real estate taxes, mortgage interest, and what else?
• Which document transfers ownership from the seller to the buyer at closing?
• In a triple-net lease, which cost is the tenant typically responsible for paying in addition to rent?
• Which instrument pledges property as security for a loan?
• What is novation?
• What does an escrow arrangement provide in a real estate transaction?
• What is required to transfer title by deed in SC?
• What does DTI stand for?
• Without a buyer agency agreement, which party does the agent representing the buyer represent?
• Which statement about the fiduciary duties implied by OLD CAR is true?
• In South Carolina, if a tenant abandons a lease early, which remedies might a landlord pursue?
• In a triple-net lease, which costs is the tenant typically responsible for?
• How is a mortgage used to secure a loan?
• In a South Carolina sales contract, Chip asks Jim to leave behind an air compressor; Jim agrees. When Chip moves in, the air compressor is gone. Which statement is true?
• In a 1031 like-kind exchange, the replacement property must be of what type to qualify?
• What distinguishes a fixed-rate mortgage from an adjustable-rate mortgage (ARM)?
• Which of the following is NOT an element of adverse possession?
• In a South Carolina real estate closing, which funds are considered good funds?
• What is a lien and how does it affect marketable title?
• What is meant by 'minimum ethical standards' in real estate practice?
• Building delays on a new construction may result in which of the following?
• Which scenario is an example of a reverse exchange?
• In South Carolina, what must a property seller who's not a resident of the state do?
• Which scenario illustrates involuntary conversion for capital gains purposes?
• A CMA is typically prepared by whom?
• What does RESPA stand for?
• In an installment sale, which statement about taxes is true?
• Which statement about closing costs on investment properties is true?
• Which of the following is a question a licensee can ask to determine if an ethical dilemma exists?
• Which of the following is a true statement about the seller's property condition disclosure statement in South Carolina?
• If a special assessment is assessed after closing, who is responsible to pay it?
• What term describes funds provided to demonstrate a buyer's serious intent in a real estate transaction?
• Why should a buyer ask their lender to re-write a pre-approval letter when their maximum loan amount exceeds their offer?
• If there is no agency agreement, the agent assisting the buyer represents which party?
• The current value of a property is $105,000. What was the original cost of the property if there has been a 30% loss in value?
• In calculating estate taxes, how are lifetime taxable gifts treated in relation to net value?
• Which market indicator is expressed as the number of months it takes to sell homes at the current rate of sales?
• Key contract deadlines are based on the date when which event occurs?
• Regarding fiduciary duties, when a licensee represents a seller, listing other properties for sale, including competing properties, is:
• Why might an open listing not be in a seller’s best interest?
• In a real estate transaction, when the broker receives notice, is that considered notice to the party itself?
• What is the difference between zoning and subdivision controls?
• The IRS will only allow _______ of passive losses to be deducted against active taxable income.
• Earnest money in South Carolina must be deposited using ________.
• Which statement about recording deeds in SC is true?
• If special assessments apply to a property, who is responsible for paying the assessment when it is assessed prior to closing?
• In SC, what does OLD CAR stand for in fiduciary duties owed to a client?
• If you've shown Suzie three properties, and she decides to put an offer in on one of them but hasn't signed an agency agreement with you, who do you represent?
• What is a habendum clause?
• Which statement accurately describes a trust account in real estate transactions?
• In market analysis, when adjusting prices for comparables, which comparable should be weighed most heavily?
• What does constructive notice mean in real estate?
• Which term is NOT another name for the purchase agreement, sale contract, or contract of purchase and sale?
• When representing a seller, which statement about listing other properties for sale is true?
• Recording a document makes it part of which public record?
• In a sales contract, why must the property's legal description be included if the street address is used?
• Which of the following is included in the special use submarket?
• What is the difference between an escrow and a trust account?
• Under Section _______ of the Internal Revenue Code, an investor in real property can sell that property, reinvest the proceeds in a 'like-kind' property, and defer paying capital gains taxes.
• Price levels are an indicator of _______.
• In South Carolina, who is liable for the accuracy of the property condition disclosure statement?
• The number of houses sold over a period of time is reflected in what?
• What is a quiet title action used for?
• Which factor is not typically considered in determining highest and best use?
• Which statement best describes a 1031 tax-deferred exchange?
• True or false: A home inspection is always recommended for new construction homes.
• How soon should earnest money be deposited into a broker's trust account after an offer is accepted in SC?
• Which method determines the actual maximum housing payment given both housing ratio and total DTI considerations?
• In the early 2000s, before the 2007 financial crisis, how would you characterize the real estate market?
• In South Carolina, is the sales contract the entire agreement, meaning outside side agreements cannot alter terms?
• To legally perform closing and settlement services in SC, which is required?
• What does the phrase "time is of the essence" signify in a contract?
• Which statement is true about how disputes regarding broker commissions are handled?
• In a listing presentation, which statement best explains who largely determines the price in a real estate sale?
• Static risks can be mitigated by what?
• Which item is NOT an alternative name for the sales contract?
• Which statement about CDOs before the crisis is true?
• What is Phoebe's maximum qualifying payment based on the total DTI alone?
• Physical possibility, financial feasibility, maximum profitability, and ______ are all considerations when determining highest and best use.
• Which of the following is a prepaid item that is credited to the seller at closing?
• Shelly's listing sold for $650,000. The total commission generated from the sale is 5%, of which Shelly's brokerage keeps half. Shelly has an agreement with her broker that she earns 90% of commission generated. How much will she be paid for this sale?
• In a transaction, a licensee suggested building a guest house without verifying codes. Under the NAR Code of Ethics, what is the most likely conclusion?
• What market indicator is expressed as the number of months it takes to sell homes at the current rate of sales?
• In a market analysis, which statement is true about comparables and adjustments?
• What is the difference between a mortgage and a promissory note?
• What are the primary forms of concurrent ownership?
• Who decides the amount of earnest money to be provided with a sales contract?
• Which situation would disqualify funds from being considered good funds at closing?
• Which scenario would most likely create an easement by prescription?
• When is earnest money typically released from the trust account?
• Pre-approval letters should state that which of the following has been verified?
• Whose signature is required on a deed to transfer title in SC?
• Under which submarket would an investment in public storage facilities fall?
• Hiram plans a 1031 tax-deferred exchange. How many days does he have to close on a new property?
• Which of the following describes the role of the South Carolina Real Estate Commission?
• What is the difference between a deed and title?
• Which practice best aligns with ethical marketing when a neighborhood undergoes demographic changes?
• What is a key difference between a contract amendment form and a notice form?
• Which type of deed provides the greatest protection to the grantee in SC?
• What type of agency relationship exists when a broker represents the seller as a client and the buyer as a customer in the same transaction?
• Gift tax may apply to which forms of property?
• What is a possible consequence if sellers know that a buyer has been approved for more than their offer amount?
• To qualify for the $25,000 active investor deduction, an investor must have an adjusted gross income of:
• If a seller can only accept certain types of financing, what is important for the agent to do?
• In SC, what form is used to disclose agency relationships to clients and customers?
• Proration of closing costs is calculated as of which date?
• What does LTV stand for and why is it important?
• What is the purpose of title insurance?
• What is the purpose of an escrow/trust account?
• Clem, a licensee, told his buyers of a new construction property that they wouldn't have to worry about a home inspection. Is this correct?
• Which of the following is not a form of concurrent ownership?
• When a neighborhood is undergoing demographic shift, what is the recommended practice?
• Investors who maintain strong relationships with local ____ will have a source of information about trends in commercial property values and net operating incomes.
• What is the difference between a fee simple absolute and a life estate?
• What are redlining and blockbusting, and why are they illegal?
• The ______ of real estate markets makes it impossible to generalize the impact events in other areas will have on real estate values.
• Which act is referenced in ethical marketing context?
• Why is neighborhood sales volume often a better indicator of market conditions than city-wide sales volume?
• Which appraisal approach uses comparison to recently sold similar properties?
• Which statement best describes how to study price levels in a market?
• Under what condition is it ethical for a licensee to receive compensation from more than one party in a real estate transaction?
• Why should you have a conversation about financing before signing the listing agreement?
• Which statement best describes an encumbrance on real property?
• A listing describes a property next to a lake as "waterfront." Is this acceptable?
• What is proration?
• What is the primary purpose of the South Carolina Real Estate License Law as administered by the SC Real Estate Commission?
• Which hazards are commonly addressed in disclosures?
• Amortization in real estate financing is best described as?
• Mark prepaid property taxes; what happens to the amount he prepaid and won’t benefit from when he sells?