Free Pre-licensing Course Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Pre-licensing Course Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1How many credible witnesses are required for the statutory South Carolina fee-simple conveyance form?

   1. A. At least 2
   2. B. At least 1
   3. C. At least 3
   4. D. At least 4

   Answer: A

   Explanation: Section 27-7-10 makes the statutory conveyance form effective when executed in the presence of and subscribed by two or more credible witnesses. The controlling text states: “The following form or purport of a release shall, to all intents and purposes, be valid and effectual to carry from one person to another or others the fee simple of any land or real estate if it shall be executed in the presence of and be subscribed by two or more credible witnesses:”

   Reference: Code of Laws - Title 27 - Chapter 7- - PROPERTY AND CONVEYANCES — S.C. Code § 27-7-10

2. 2What South Carolina property-tax assessment ratio generally applies to an owner-occupied legal residence?

   1. A. 2%
   2. B. 4%
   3. C. 6%
   4. D. 10.5%

   Answer: B

   Explanation: Section 12-43-220(c) generally assigns qualifying owner-occupied legal residences a four-percent assessment ratio. The controlling text states: “(c)(1) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, and additional dwellings located on the same property and occupied by immediate family members of the owner of the interest, are taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. However, if the person claiming the four percent assessment ratio resides in the mobile home or single family residence and only rents a portion of the mobile home or single family residence to another individual as a residence, the foregoing provision does not apply and the four percent assessment ratio must be applied to the entire mobile home or single family residence. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant.”

   Reference: Code of Laws - Title 12 - Chapter 43- - TAXATION — S.C. Code § 12-43-220(c)

3. 3When does South Carolina implement each regular countywide appraisal and equalization program?

   1. A. Every second year
   2. B. Every third year
   3. C. At every transfer
   4. D. In the fifth year after valuation is completed in the fourth year

   Answer: D

   Explanation: Section 12-43-217 provides for appraisal and equalization once every fifth year, with valuation completed by the end of the fourth year and implementation in the fifth. The controlling text states: “(A) Notwithstanding any other provision of law, once every fifth year each county or the State shall appraise and equalize those properties under its jurisdiction. Property valuation must be complete at the end of December of the fourth year and the county or State shall notify every taxpayer of any change in value or classification if the change is one thousand dollars or more. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values.”

   Reference: Code of Laws - Title 12 - Chapter 43- - TAXATION — S.C. Code § 12-43-217(A)

4. 4By when may a creditor mail the South Carolina borrower-preference notice after receiving or preparing a covered mortgage application?

   1. A. One business day
   2. B. Three business days
   3. C. Seven calendar days
   4. D. At closing

   Answer: B

   Explanation: Section 37-10-102(a)(2) permits compliance by delivering or mailing the written preference notice no later than three business days after the application is received or prepared. The controlling text states: “(2) providing written notice to the borrower of the preference information with the notice being delivered or mailed no later than three business days after the application is received or prepared. If a creditor uses a preference notice form substantially similar to a form distributed by the administrator, the form is in compliance with this section.”

   Reference: Code of Laws - Title 37 - Chapter 10- - CONSUMER PROTECTION CODE — S.C. Code § 37-10-102(a)(2)

5. 5What is South Carolina's deed recording fee rate?

   1. A. $1.00 per $1,000
   2. B. $1.85 per $500 or fraction of $500 of value
   3. C. $5.00 per deed regardless of value
   4. D. 1% of the sales price

   Answer: B

   Explanation: Section 12-24-10(A) imposes $1.85 for each $500, or fractional part of $500, of the realty's statutory value. The controlling text states: “(A) In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which land and improvements on the land, tenements, or other realty is transferred to another person. The fee is one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.”

   Reference: Code of Laws - Title 12 - Chapter 24- - TAXATION — S.C. Code § 12-24-10(A)

6. 6A firm prepares informed consent for representing adverse clients in one deal. Which identifying detail belongs in the form?

   1. A. Only the brokerage's commission split
   2. B. The specific transaction and the consenting parties
   3. C. Every property the buyer may consider
   4. D. The names of all unlicensed employees

   Answer: B

   Explanation: Section 40-57-350(I)(1) requires the dual-agency agreement to specify the transaction and name the parties. The controlling text states: “(I)(1) A real estate brokerage firm may act as a disclosed dual agent only with the prior informed and written consent of all parties. Consent is presumed to be informed if a party signs a completed copy of a dual agency agreement, promulgated by the commission. At the latest, the form must be signed by the buyer before writing an offer and by the seller before signing the sales contract. The agreement must specify the transaction, and must name the parties to the dual agency consent agreement, and must state that:”

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — S.C. Code § 40-57-350(I)(1)

7. 7Which required compensation clause specifically addresses the trigger and timing by which a South Carolina brokerage earns payment?

   1. A. The amount or calculation method
   2. B. How and when compensation is earned
   3. C. The division among participating brokers
   4. D. The refundability of money collected in advance

   Answer: B

   Explanation: Section 40-57-135(I)(2)(c) requires an explanation of how and when compensation is earned. The controlling text states: “(c) an explanation of how and when compensation is earned;”

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — S.C. Code § 40-57-135(I)(2)(c)

8. 8How does South Carolina law define licensee incompetency?

   1. A. Any transaction that fails to close
   2. B. Failure to demonstrate and apply the knowledge, skill, and care ordinarily possessed and exercised by comparable licensees
   3. C. Only a criminal conviction involving real estate
   4. D. Only repeated trust-account shortages

   Answer: B

   Explanation: Section 40-57-30 defines incompetency by departure from the knowledge, skill, and care ordinarily possessed and exercised by licensees of the same status. The controlling text states: “(20) "Incompetency" means the failure of a licensee to demonstrate and apply the knowledge, skill, and care that is ordinarily possessed and exercised by other licensees of the same licensure status and required by the generally accepted standards of the profession. Charges of incompetence may be based upon a single act of incompetence or upon a course of conduct or series of acts or omissions that extend over a period of time and that, taken as a whole, demonstrate incompetence.”

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — S.C. Code § 40-57-30(20)

9. 9Which deed wording conclusively creates a South Carolina real-estate joint tenancy with survivorship?

   1. A. As co-owners in equal shares
   2. B. As joint tenants with rights of survivorship, and not as tenants in common
   3. C. As tenants jointly
   4. D. As marital owners

   Answer: B

   Explanation: Section 27-7-40 treats the quoted statutory wording after the grantees' names as conclusively creating survivorship joint tenancy. The controlling text states: “(a) In addition to any other methods for the creation of a joint tenancy in real estate which may exist by law, whenever any deed of conveyance of real estate contains the names of the grantees followed by the words "as joint tenants with rights of survivorship, and not as tenants in common" the creation of a joint tenancy with rights of survivorship in the real estate is conclusively deemed to have been created. This joint tenancy includes, and is limited to, the following incidents of ownership:”

   Reference: Code of Laws - Title 27 - Chapter 7- - PROPERTY AND CONVEYANCES — S.C. Code § 27-7-40(a)

10. 10What assessment ratio generally applies to South Carolina real property not otherwise classified at a special ratio?

    1. A. 3%
    2. B. 4%
    3. C. 6%
    4. D. 8%

    Answer: C

    Explanation: Section 12-43-220(e) generally assesses other real property at six percent of fair market value. The controlling text states: “(e) All other real property not herein provided for shall be taxed on an assessment equal to six percent of the fair market value of such property.”

    Reference: Code of Laws - Title 12 - Chapter 43- - TAXATION — S.C. Code § 12-43-220(e)