Free South Carolina Real Estate Broker State Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the South Carolina Real Estate Broker State Portion 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 interest in real estate transactions
   2. B. To set private brokerage commission rates
   3. C. To resolve all commission-split disputes between licensees
   4. D. To operate a statewide multiple listing service

   Answer: A

   Explanation: Section 40-57-10 makes public-interest protection through industry regulation the Commission's purpose; it does not set private rates or run an MLS. The controlling text states: “There is created the South Carolina Real Estate Commission under the administration of the Department of Labor, Licensing and Regulation. 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 — S.C. Code § 40-57-10

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

   1. A. A written listing agreement between the owner and the licensee's brokerage firm
   2. B. An oral authorization witnessed by another licensee
   3. C. A Commission-issued advertising permit
   4. D. A title insurance commitment

   Answer: A

   Explanation: Section 40-57-135(E)(1) generally requires a written listing agreement before a licensee advertises or markets another person's real property. The controlling text states: “(E)(1) A licensee may not advertise, market, or offer to conduct a real estate transaction involving real estate owned, in whole or in part, by another person without first obtaining a written listing agreement between the property owner and the real estate brokerage firm with whom the licensee is associated. However, the signature of the owner of real estate is not required for a sublease agreement involving real estate if the lease allows for subletting. Licensees not associated with the listing brokerage firm may advertise real estate owned, in whole or in part, by another person only if they have written authorization from the listing brokerage firm and acknowledge the listing brokerage firm in the advertisement in a clear and conspicuous way. Authorization may be contained and obtained from the owner through the listing agreement.”

   Reference: Code of Laws - Title 40 - Chapter 57- - PROFESSIONS AND OCCUPATIONS — S.C. Code § 40-57-135(E)(1)

3. 3Which is a permissible brokerage relationship under South Carolina law?

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

   Answer: A

   Explanation: Section 40-57-350(A) lists designated agency among the permissible relationships; dual agency must be disclosed and agency cannot be implied. The controlling text states: “(4) designated agency; or”

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

4. 4Under South Carolina's Consumer Protection Code, who chooses the attorney used to close a consumer credit real estate transaction?

   1. A. The creditor
   2. B. The borrower
   3. C. The brokerage firm
   4. D. The title insurer

   Answer: B

   Explanation: Section 37-10-102 gives the debtor the right to select legal counsel in a covered real estate credit transaction. The controlling text states: “(a) The creditor must ascertain prior to closing the preference of the borrower as to the legal counsel that is employed to represent the debtor in all matters of the transaction relating to the closing of the transaction and except in the case of a loan on property that is subject to the South Carolina Horizontal Property Act (Section 27-31-10, et seq.) the insurance agent to furnish required hazard and flood property insurance in connection with the mortgage and comply with such preference.”

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

5. 5A grantee assumes the seller's debt as part of the consideration for South Carolina realty. How is that debt treated when determining deed-fee value?

   1. A. Excluded as a preexisting-lien deduction
   2. B. Included as an assumption of debt
   3. C. Exempt as a nominal-value conveyance
   4. D. Assigned solely as the grantee's fee liability

   Answer: B

   Explanation: Section 12-24-30(A) includes assumption of debt among the forms of consideration counted as value. The controlling text states: “(A) For purposes of this chapter, the term "value" means the consideration paid or to be paid in money or money's worth for the realty including other realty, personal property, stocks, bonds, partnership interests, and other intangible property, the forgiveness or cancellation of a debt, the assumption of a debt, and the surrendering of a right. The fair market value of the consideration must be used in calculating the consideration paid in money's worth. Taxpayers may elect to use the fair market value of the realty being transferred in determining fair market value of the consideration under the provisions of this section. However, in the case of realty transferred between a corporation, a partnership, or other entity and its stockholder, partner, or owner, and in the case of realty transferred to a trust or as a distribution to a trust beneficiary, "value" means the realty's fair market value.”

   Reference: Code of Laws - Title 12 - Chapter 24- - TAXATION — S.C. Code § 12-24-30(A)

6. 6Which dispute is the South Carolina Real Estate Commission expressly barred from resolving?

   1. A. Whether an applicant meets education requirements
   2. B. How two licensees divide a commission or fee
   3. C. Whether a licensee violated advertising law
   4. D. Whether trust-account records comply with law

   Answer: B

   Explanation: Section 40-57-60(B) says the Commission may not resolve disputes between licensees over payment or division of a commission or fee. The controlling text states: “(B) 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 — S.C. Code § 40-57-60(B)

7. 7What identification must a South Carolina licensee clearly include when advertising real estate services?

   1. A. Only the licensee's personal name
   2. B. The full name of the supervising brokerage firm
   3. C. Only the Commission license number
   4. D. The local REALTOR association name

   Answer: B

   Explanation: Section 40-57-135(E)(2) requires clear identification of the full name of the brokerage firm that employs and supervises the licensee. The controlling text states: “(a) Identify the full name of the real estate brokerage firm with which the licensee is employed and supervised in accordance with regulations.”

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

8. 8What may a seller's agent do while representing a South Carolina seller?

   1. A. Conceal known material adverse transaction facts
   2. B. List competing properties for sale
   3. C. Disclose confidential motivations without consent
   4. D. Ignore written offers after the property is under contract

   Answer: B

   Explanation: Section 40-57-350(D) expressly permits a seller's agent to list competing properties and offer alternative properties to buyers. The controlling text states: “(D) A licensee acting as a seller's agent may offer alternative properties to prospective buyers. A licensee acting as a seller's agent also may list for sale competing properties.”

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

9. 9Before the periodic inflation adjustment required by subsection (B), what base individual homestead amount is stated in South Carolina Section 15-41-30(A)(1)(a)?

   1. A. $5,000
   2. B. $25,000
   3. C. $50,000
   4. D. $100,000

   Answer: C

   Explanation: Subsection (A)(1)(a) states a $50,000 base individual amount; subsection (B) separately requires periodic inflation adjustments to the statutory dollar amounts. The controlling text states: “The debtor's aggregate interest, not to exceed fifty thousand dollars in value” and “each dollar amount in subsection (A), items (1) through (14), immediately before July first, must be adjusted.”

   Reference: Code of Laws - Title 15 - Chapter 41- - CIVIL REMEDIES AND PROCEDURES — S.C. Code § 15-41-30(A)(1)(a), (B)

10. 10Which South Carolina deed is exempt from the deed recording fee based solely on the transferred realty's value?

    1. A. A deed conveying value of $500
    2. B. A deed conveying value of $250
    3. C. A deed conveying value of $100 or less
    4. D. A deed conveying value of $1,000

    Answer: C

    Explanation: Section 12-24-40(1) exempts deeds transferring realty whose statutory value is one hundred dollars or less. The controlling text states: “(1) transferring realty in which the value of the realty, as defined in Section 12-24-30, is equal to or less than one hundred dollars;”

    Reference: Code of Laws - Title 12 - Chapter 24- - TAXATION — S.C. Code § 12-24-40(1)