SC Exam Prep Flashcards
1
Q
A relationship, whereby one, called the principal, authorizes another, called the agent, to
represent the principal in business relations with third parties, is known as
a. agency.
c. apparent.
b. brokerage
d. authority
A
a. agency
This defines agency
2
Q
One employed by and under the control of another known as the principal, to represent such
principal in business dealings with third parties is known as a/an
a. servant.
b. agent
c. independent contractor.
d. client
A
b. agent
This defines agent
3
Q
In an agency relationship, the one who employs another to represent him or her in legal and or
business dealings with third persons is called an
a. agent.
b. attorney-in-fact.
c. customer.
d. principal.
A
d. principal.
This defines principal (client)
4
Q
The brokerage firm employed by either a seller or buyer may employ associated licensees to
assist in meeting the obligations to the brokerage fit’s principal client. Those so employed
may be called
a. subagents of the brokerage firm.
c. fiduciaries,
b. special agents of the brokerage firm.
d. attorney-in-fact.
A
a. subagents of the brokerage firm.
5
Q
The person(s) with whom a brokerage firm is working under a transaction brokerage agreement is a
a. client.
b. customer.
c. fiduciary.
d. principal.
A
b. customer.
6
Q
One who is in a position of trust and confidence with respect to another is known as a/an
a. fiduciary.
b. independent contractor.
c. servant.
d. broker.
A
a. fiduciary.
7
Q
A competent person who is authorized by another to act in his/her place as an agent is known
as a/an
a. attorney-at-law.
b. master.
c. servant.
d. attorney-in-fact.
A
d. attorney-in-fact.
8
Q
A written instrument authorizing a person to act for another to the extent indicated in the instrument is called
a. power of attorney.
b. a listing contract.
c. a permission to act slip.
d. an employment agreement.
A
a. power of attorney.
9
Q
An agency that is voluntarily created through a contractual agreement between the principal/client and the agent is known as a/an
a. implied agency,
b. sensible agency.
c. statutory agency.
d. express agency.
A
d. express agency.
10
Q
A common law agency created by the conduct and acts of the principal and agent is called
a. implied agency.
b. sensible agency.
c. statutory agency.
d. express agency.
A
a. implied agency.
11
Q
An agent, while working within the scope of his/her authority, binds his/her principal. The authority granted by a seller to a broker is expressed in the
a. buyer’s broker agreement.
b. listing agreement.
c. management contract.
d. option contract.
A
b. listing agreement.
12
Q
A type of authority that is voluntarily and explicitly set forth as instructions by the principal in the agency agreement is called
a. implied authority.
b. necessary authority.
c. express authority.
d. statutory authority.
A
c. express authority.
13
Q
Authority exercised by an agent which is in accord with usual or traditional practices is called
a. express authority.
b. traditional authority.
c. statutory authority.
d. implied authority.
A
d. implied authority.
14
Q
One is authorized to conduct a series of transactions involving an ongoing relationship such as
a salesperson or broker employed by a broker-in-charge is
a. special agent.
b. disclosed agent.
c. necessary agent.
d. general agent.
A
d. general agent.
15
Q
One authorized to conduct a single transaction or a series of transactions not involving an ongoing relationship is
a. special agent.
b. undisclosed agent.
c, general agent.
d. statutory agent.
A
a. special agent.
16
Q
An agent disclosed to the customer that he/she represents a client and he/she also disclosed the client’s identity. What type of principal is the client?
a. undisclosed principal
b. disclosed principal
c. partially disclosed principal
d. general principal
A
b. disclosed principal
17
Q
Which of the obligations of a principal to an agent is not automatic and must be agreed upon?
a. reimbursement
b. opportunity
c. good conduct
d. good faith
A
a. reimbursement
18
Q
There are eight situations by which an agency can be terminated by operation of the law. Which is best for the agent?
a. lapse of time
b. performance
c. change of law
d. destruction of subject matter
A
b. performance
19
Q
Broker Tom has a listing on property owned by seller Steve. Which of the following should broker Tom NOT disclose to buyer Bob?
a. Tom has seen evidence of termites.
b. Steve may take less than the listing price.
c. The building has structural defects.
d. Zoning makes the present use non-conforming
A
b. Steve may take less than the listing price.
20
Q
Which of the following is correct concerning a listing broker’s obligations and
responsibilities to the seller?
a. The broker may buy the seller’s property and sell it to a prospect at a profit as long as the
profit is 6% or less.
b. The broker may relieve herself of any fiduciary responsibilities as long as they have been
delegated to any qualified agents that are licensed with her company.
c. The broker is obligated to obey all of the seller’s lawful instructions, even those with which she personally disagrees.
d. The broker has the implied authority to reject unreasonable offers to the principal,
A
c. The broker is obligated to obey all of the seller’s lawful instructions, even those with which she personally disagrees.
21
Q
Broker Joyce received a full price offer on some property she had listed. The offer is contingent on the owner financing 90% of the price. Joyce feels the offer is unacceptable because the buyer has defaulted on other loans in the past, but she does not mention this to her client. Did Joyce meet her fiduciary duties?
a. Yes, because she delivered the offer regardless of her feelings about it.
b. No, because she may be able to get a better deal later.
c. Yes, since she did find a buyer who was willing to pay full price.
d. No, because she withheld relevant facts from her client.
A
d. No, because she withheld relevant facts from her client.
(Full disclosure is a fiduciary duty)
22
Q
After listing a house for sale, a broker incurs $37 in advertising expense and $17 in taxi fares
for prospects interested in the property. For which expense should the seller reimburse the
broker?
a. only advertising expenses, as taxi fares are not a normal expense of a listing broker
b. advertising expenses and transportation costs incurred in an attempt to market the listed
property
c. expenses are never reimbursed to a broker by a seller as part of a listing agreement
d. only those expenses agreed upon by the seller and the broker as part of the listing agreement.
A
d. only those expenses agreed upon by the seller and the broker as part of the listing agreement.
23
Q
A broker took an exclusive listing contract on a seller’s home. The seller told the broker the roof leaked, but the broker made no notation on the listing. Later, a buyer made an offer on the property that the seller accepted. The broker lied when the buyer made his/her offer; telling him/her the roof was in good condition. After the buyer took possession, he/she discovered the truth during the first rain. Responsibility for the misrepresentation rests with
a. the broker only.
b. the seller only,
c. both the broker and the seller.
d, after possession, caveat emptor applies.
A
c. both the broker and the seller.
24
Q
During the period of an exclusive right-to-sell listing, if the principal no longer wishes to be
represented by the brokerage firm, the principal may
a. revoke the agency created by the listing contract but may be liable for damages,
b. revoke the listing contract and not be liable for damages.
c. not revoke the agency because an exclusive right-to-sell listing is an irrevocable contract.
d. be forced to sell the property in accordance with the terms of the listing.
A
c. not revoke the agency because an exclusive right-to-sell listing is an irrevocable contract.
25
Three of the five permissible brokerage relationships in South Carolina are
a. transaction agency, disclosed dual agency and seller agency.
b. seller agency, buyer agency and transaction brokerage.
c. seller agency, single agency, and undisclosed dual agency.
d. buyer agency, cooperative subagency and transaction brokerage
b. seller agency, buyer agency and transaction brokerage.
(The five types allowed in SC are; seller agency, buyer agency, designated agency, disclosed dual agency and transaction brokerage)
26
In South Carolina, when must a licensee provide a meaningful explanation of agent, relationships to a buyer or a seller?
a. any time before the offer is presented
b. prior to writing the offer for a buyer
c. prior to asking the buyer his name and telephone number
d. at the first practical opportunity at which the licensee and the buyer or seller has substantive contact
d. at the first practical opportunity at which the licensee and the buyer or seller has
substantive contact
27
What term in the SC license law replaced the common law term, principal?
a. master
b. client
c. fiduciary
d. attorney-in-fact
b. client
28
In South Carolina, which of these duties of an agent to a principal continues after the agency relationship has been terminated?
a. full disclosure
b. loyalty
c. obedience
d. confidentiality
d. confidentiality
29
What is a common law 'third party' called in the SC license law?
a. master
b. client
c. fiduciary
d. customer
d. customer
30
When creating an agency relationship in SC between a real estate brokerage firm and a seller what is required?
a. there must be an agreement for the seller to pay a commission
b. the seller must have a clear title to the property
c. the seller and the brokerage firm must have a written agency agreement
d. the seller and the brokerage firm must agree to a 180-day listing
c. the seller and the brokerage firm must have a written agency agreement
31
A requirement for a non-resident to be eligible to receive a SC license is that they
a. not maintain a place of business within the state.
b. reside in a state which grants reciprocity with SC.
c. be licensed with a broker-in-charge licensed by SC.
d. are a non-resident for only 4 months of the year.
c. be licensed with a broker-in-charge licensed by SC.
32
An unlicensed person negotiated the sale of real estate. The real estate commission is payable to
a. the broker.
b. the salesperson.
c. no one.
d. an escrow holder.
c. no one.
33
Before taking the South Carolina real estate sales examination, every applicant shall furnish
evidence satisfactory to the Real Estate Commission of: successful completion of sixty
classroom hours,
a. attain the age of 21 years and be a high school graduate or equivalent.
b. attain the age of 18 years and be a high school graduate or equivalent.
c. attain the age of 18 years and be a resident of this state.
d. attain the age of 21 years and be a resident of this state.
b. attain the age of 18 years and be a high school graduate or equivalent.
34
In the event that a licensee failed to renew her license,
a. no more real estate activity will be legal except transactions in which she is the principal.
b. no commissions may be collected on the transactions she has not closed before her license expired.
c. her license will be canceled on September 30th.
d, as of September 1st, she will be fined $75.
a. no more real estate activity will be legal except transactions in which she is the principal.
35
When should a buyer's earnest money personal check be deposited in the trust account of the
brokerage?
a, upon acceptance of both parties of the contract
b. within 48 hours of acceptance of an offer to purchase
c. within 48 hours after receipt
d. on or before the next banking day after receipt
b. within 48 hours of acceptance of an offer to purchase
36
A real estate salesperson in SC wrote an ad for her new listing: "Spacious executive brick
home with a great view of the mountains and priced to sell at only $625,000, Call 271-9732.
What is wrong with this ad?
a. It is offensive to certain groups,
b. It is in violation of the Fair Housing Act as amended in 1989.
c. It is in violation of Regulation Z.
d. It does not contain the name of the real estate company.
d. It does not contain the name of the real estate company.
37
The SC Real Estate Commission has the power to
a. act as an advisory board to the Governor.
b, create the standards for the employees of the SC Real Estate Commission.
c, suspend a license, fine and impose jail sentences of up to 6 months.
d. conduct disciplinary hearings and decide the punishment of those found guilty.,
d. conduct disciplinary hearings and decide the punishment of those found guilty.,
38
When a salesperson receives a personal check as an earnest money deposit he must
a. place it in his own trust account.
b. place it in the broker's general account.
c. give it to his broker no later than the following business day,
d. place it in the salesperson's special account.
c. give it to his broker no later than the following business day,
39
A very difficult sale results in a dispute between brokers *A" and *B' about earned commission. Broker "A" feels that the bonus offered should have been paid to him as a procuring cause and complains to the Real Estate Commission. Which is correct?
a. He must submit his complaint in writing.
b. Bonuses are always paid to the selling agent only.
c. Both brokers will have to appear at a hearing before Commission members.
d. Commission disputes are not under the jurisdiction of the Real Estate Commission.
d. Commission disputes are not under the jurisdiction of the Real Estate Commission.
40
By what authority does the state of South Carolina require a person to have a real estate
license to practice real estate?
a. Commission power
b. State statute
c. Govemmental authority
d. State Constitution
b. State statute
41
The real estate license law is an example of
a. good legislation.
b. big government.
c. police power.
d. protectionism.
c. police power.
42
The purpose of the real estate license law is to
a. provide revenue for the state.
b. protect the people who are selling real estate.
c. increase employment opportunities for salespersons.
d. protect the public when involved in real estate transactions,
d. protect the public when involved in real estate transactions,
43
J was found guilty of acting as a broker and an undisclosed principal in the same transaction. The decision of the Commission was to revoke J's license. What is the minimum time J must wait following revocation of his license, to be eligible for a new license?
a. six months
b. nine months
c. three years
d. two year
c. three years
44
K, a licensed salesperson from Alabama, has a friend, M, in South Carolina who has listed
his house for sale. K gave M's agent the name of a buyer who purchased the house. After
the settlement, M's agent gave K's brokerage firm a referral fee. How is this legal?
a. The referral fee is $500 or less.
b. K did not come into SC and help with the sale.
c. The fee was paid in cash.
d. K's continuing education hours have been met.
b. K did not come into SC and help with the sale.
45
Why are the requirements for continuing education mandated by the state?
a. To decrease liability for brokers
b. To protect the public's interest
c. To provide additional training for agents
d. To comply with Federal Statutes
b. To protect the public's interest
46
Copies of all closing statements of transactions handled by a broker must be kept on file in his office for a period of
a. three years.
b. one year.
c. five years.
d. two years
c. five years.
47
An agent received a cash deposit for a principal's property. The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For this action, the agent was found guilty of
a. conversion.
b. commingling.
c. dual agency.
d. secret profit.
b. commingling.
48
If a South Carolina Real Estate licensee guarantees a buyer a future profit, he should know
that
a. he is doing the buyer a favor.
b. he is not allowed to do this by South Carolina license law.
c. he must be a broker and five years of experience.
d. he should also give the buyer legal advice.
b. he is not allowed to do this by South Carolina license law.
49
A real estate license may be revoked upon proof of the licensee
a. charging more than the usual rate of commission.
b. having a dispute between a broker and a salesperson as to commission.
c. refusing to accept a listing.
d. violating a buyer's right to choose an attorney or insurance agent.
d. violating a buyer's right to choose an attorney or insurance agent.
50
The __________ establishes an agency relationship between the property owner as principal
(client) and the brokerage as an agent.
a. listing agreement
b. personal services agreement
c sales contract
d. buyer's representation agreement
a. listing agreement
51
The listing agreement does which of the following?
a. Creates an agency relationship between the listing salesperson and the property owner
b. Obligates the seller to sell if a full-price offer is received
C. Employs a real estate brokerage to represent a buyer
d. Creates an agency relationship between the listing brokerage and the property owner
d. Creates an agency relationship between the listing brokerage and the property owner
52
A brokerage agreement whereby the property owner hires one or more brokerages agrees to
compensate only the one brokerage that produces a buyer, and reserves the right to sell by
himself and pay no agents is called
a. net listing.
b. open listing.
c. exclusive right to sell.
d. exclusive agency.
b. open listing.
53
A brokerage agreement whereby only one brokerage is hired by the owner, but the owner can sell his/her own property without incurring obligations to pay a commission, is called
a. net listing.
b. open listing
c. exclusive right to sell.
d. exclusive agency.
d. exclusive agency.
54
A brokerage agreement that obligates the property owner to pay the commission to the listing
brokerage regardless of who made the sale is known as
a. open listing.
b. exclusive agency.
c. exclusive right to sell.
d. net listing.
c. exclusive right to sell.
55
An owner says "I want to get S50,000 out of this property, and you can have anything over that amount as your commission." What would we call this arrangement?
a. open listing
b. net listing
c. exclusive right to sell
d. exclusive agency
b. net listing
(Illegal in SC)
56
A salesperson was told his/her brokerage's commission was too high. He responded by saying that everyone charges about the same. Which law may this have violated?
a. Federal obscenity laws
b. SC unfair trade laws
c. Federal antitrust laws
d. SC license law
c. Federal antitrust laws
57
The three practices that are forbidden by the Sherman and Clayton Acts are price-fixing,
allocation of customers and
a. taking net listings.
b. allocation of markets.
c. blockbusting.
d. allocation of deed stamps.
b. allocation of markets.
58
A listing contract creates an agency relationship and it may be terminated by
a. death of listing salesperson.
b. failure to sell the property in 90 days.
c. expiration of the term.
d. listing with another agency.
c. expiration of the term.
59
A brokerage firm earned a commission from the sale of a parcel of the property when the firm is
a. a listing brokerage on the property that was sold.
b. the procuring cause… the reason the property was sold.
c. managed by a licensed broker-in-charge at the time the property was sold.
d. managed by a licensed broker-in-charge, had a valid listing and the property was sold.
d. managed by a licensed broker-in-charge, had a valid listing and the property was sold.
60
The owner received a full-price all cash offer from the buyer. The terms of the exclusive right to sell listing gave the owner the right to take a purchase money mortgage for 80% of the purchase price at 7-1/2% for 20 years. Which of the following statements is true?
a. The owner may refuse this offer and owe the brokerage the full commission.
b. The owner may refuse this offer and owe the brokerage nothing.
c. The buyer may sue for specific performance.
d. The brokerage may sue for the full commission.
b. The owner may refuse this offer and owe the brokerage nothing.
61
The _______ is given as evidence of the debt, and the _______ as collateral.
is given to pledge the real property
a. mortgage deed, promissory note
b. mortgage, junior mortgage
c. promissory note, mortgage deed
d. hypothecation, lien
c. promissory note, mortgage deed
62
The ________ relate(s) to a provision in a note which calls for immediate full payment of the outstanding balance upon the happening of a specified event. There are two types of these. One is ______ , and the other is _______, Which means the transfer of title.
a. prepayment privileges, on or before, within
b. acceleration clause, upon default, upon alienation
c. full payment clause, assumption of, subject to
d. acceleration clause, upon alienation, upon default
b. acceleration clause, upon default, upon alienation
63
There are two parties to a mortgage loan. The one that gets the loan and gives the mortgage as security is the _________ and the one that gives the loan and takes the mortgage as collateral is
the _________.
a. mortgage, mortgagor.
b. trustor, trustee.
c. trustee, Trustor.
d. mortgagor, mortgagee.
d. mortgagor, mortgagee.
(Words that end in "or" get the money and the ones that end in "ee" give the money)
64
The process of pledging something as a security without giving up possession is called
a. subordination.
b. subrogation.
c. hypothecation.
d. redemption.
c. hypothecation.
65
Mortgages normally take priority based on the
a. date they were signed.
b. time and date of recordation.
c. amount of loan in which larger loans are recognized first.
d. type of property since mortgages on improved properties are recognized first.
b. time and date of recordation.
66
A _________ can make an exception to the normal method of prioritizing mortgage loans.
a. subrogation clause
b. subliminal clause
c. subordination clause
d. security priority clause
c. subordination clause
67
A right to redeem one's property after default and before foreclosure is called ________, and the
right to redeem it after the foreclosure sale is ___________.
a. right to redemption, equity of redemption.
b. equity of redemption, right of redemption.
c. right of equity, equity of right.
d. equity of right, right of equity.
b. equity of redemption, right of redemption.
68
Periodic payments which include principal and interest that pay off the principal amount of the loan by the maturity date is a/an
a. straight term mortgage loan.
b. partially amortized mortgage loan.
c. fully amortized mortgage loan.
d. installment mortgage loan.
c. fully amortized mortgage loan.
69
Periodic payments which include principal and interest that will not completely pay off the principal amount of the loan by the maturity date is a/an
a. fully amortized mortgage loan.
b. straight term mortgage loan
c. partially amortized mortgage loan.
d. adjustable-rate mortgage loan.
c. partially amortized mortgage loan.
70
A mortgage loan that may be increased from time to time, not to exceed the amount of the original loan commitment is called a/an
a. purchase money mortgage.
b. open-end mortgage loan.
c. open mortgage loan.
d. straight term mortgage loan.
b. open-end mortgage loan.
71
A mortgage loan that is considered by many to have the most risk to the lender, and is characterized by advances in the loan to the borrower as progress is made toward the completion of a new building, is Known as a/an
a. demand mortgage loan.
b. open-end loan.
c. progress money mortgage.
d. construction loan.
d. construction loan.
72
Mortgage interest, depending on the contract, may be paid in advance or in arrears, on a fixed rate or an adjustable rate. Two components of interest rates on adjustable-rate mortgages are
a. discount and origination fee.
b. index rate and margin.
c. interest rate and T-bills.
d. cost of funds and interest rate.
b. index rate and margin.
73
A mortgage loan that includes both the house and the furniture would be a/an
a. package mortgage.
b. wraparound mortgage.
c. blanket mortgage.
d. demand mortgage.
a. package mortgage.
74
A mortgage loan that places a lien on more than one parcel of land is a/an
a. package mortgage.
b. wraparound mortgage.
c. blanket mortgage.
d. purchase money mortgage.
c. blanket mortgage.
75
A mortgage given by the buyer to the seller to pay for all or part of the sales price of the property is called a/an
a. open mortgage loan.
b. purchase money mortgage loan.
c. demand mortgage loan.
d. wraparound mortgage loan
b. purchase money mortgage loan.
76
A mortgage loan that is not insured by the Federal Housing Administration nor guaranteed by
the Veterans Administration is called a/an loan.
a. third party
b. construction
c. conventional
d. adjustable
c. conventional
77
A government-insured loan is
a. FHA.
b. VA.
c. conventional.
d. private.
a. FHA.
78
A government-guaranteed loan is
a. FHA.
b. VA.
c. conventional.
d. private.
b. VA.
79
Conventional loans normally may not exceed 80% of value. If a conventional loan does exceed 80%, it must be
a. FHA.
b. VA.
c. conventional.
d. privately insured.
d. privately insured.
80
A method of financing whereby the seller retains title while the purchaser has possession of
the property is known as a/an
a. purchase money mortgage.
b. installment land contract.
c. wraparound mortgage.
d. sale lease-back.
b. installment land contract.
81
In order to raise capital and or to convert the cost of occupancy from mortgage interest to
rent, an owner-occupant may enter into a/an
a. non-taxable exchange of real property.
b. installment land contract.
c. lease with option to purchase.
d. sale and lease back.
d. sale and lease back.
82
In a sale and leaseback transaction, the original real estate owner selling the property to an
investor becomes the
a. lessor.
b. lessee.
c. mortgagor.
d. vendee.
b. lessee.
83
A financing arrangement whereby a buyer agrees to make the seller's payments on the existing mortgage note is called a/an
a. lease with option.
b. ground lease.
c. mortgage takeover.
d. land contract.
c. mortgage takeover.
84
A second mortgage which includes the existing first mortgage note is called a/an
a. wraparound mortgage.
b. bond for title.
c. collateral loan.
d. like-kind exchange.
a. wraparound mortgage.
85
In a mortgage takeover "subject to the mortgage," the __________ in case of foreclosure.
a. buyer is liable for deficiency
b. buyer is not liable for deficiency
c. seller is not liable for deficiency
d. the burden of deficiency must be determined by the court
b. buyer is not liable for deficiency
86
Assumption of a mortgage occurs when the
a. seller promises the lender to remain liable even though the buyer will start making the payments.
b. buyer agrees to be liable to the lender for the loan payments.
c. buyer makes an agreement with the seller that the seller will take the property back if the buyer can t pay.
d. seller is always relieved of any liability whatsoever for deficiency in the event of death.
b. buyer agrees to be liable to the lender for the loan payments.
87
The _____________ is comprised of lenders who supply funds directly to the borrower.
a. loan supply cartel
b. primary mortgage market
c. secondary mortgage market
d. mortgage fund group
b. primary mortgage market
88
The lenders who buy mortgage notes from the lenders who originate them are known as the
a. second mortgage group.
b. loan control supply group.
c. primary mortgage market.
d. secondary mortgage market.
d. secondary mortgage market.
89
Lauren's interest-only loan for $25,000.00, with an interest rate of 7 ½%, requires quarterly
interest payments. How much will the quarterly interest payment be?
a. $625.25
b. $468.75
c. $532.50
d. $156.25
b. $468.75
Loan balance $25,000 x annual rate 7.5% = $1,875 annual interest. Annual interest / 4 = Quarterly interest
90
The act that requires a credit bureau to give one the right to inspect information in his/her file
and correct any errors is known as
a. Equal Credit Opportunity Act.
b. Fair Credit Reporting Act.
c. Credit Protection Act.
d. Credit Act of National Fairness.
b. Fair Credit Reporting Act.
91
The act that requires that credit be extended without regard to sex, marital status, age, race,
color, religion, or national origin is called the
a. Equal Employment Opportunity Act.
b. Fair Credit Reporting Act.
c. Equal Opportunity in Housing Act.
d. Equal Credit Opportunity Act.
d. Equal Credit Opportunity Act.
92
The purpose of The Fair Credit Reporting Act is to
a. protect the public from having poor credit reported about them.
b. protect the public from the reporting, by credit agencies, of inaccurate information.
c. protect lenders from making bad loans by finding out in advance whether the borrower is
likely to repay the loan.
d. make certain that lenders treat buyers fairly whether they have a lot of credit or always pay cash.
b. protect the public from the reporting, by credit agencies, of inaccurate information.
93
Which of the following statements is FALSE regarding the Equal Credit Opportunity Act?
a. Creditors are restricted on an applicant's marital status to the terms married, unmarried,
separated or divorced.
b. The application form must be neutral as to sex,
c. The Act is implemented through Regulation B.
d. The Act applies to all consumer credit transactions, including loans on real estate.
a. Creditors are restricted on an applicant's marital status to the terms married, unmarried,
separated or divorced.
94
Title 12 of the National Consumer Credit Protection Act is also known as
a. The Lending Law of 1969
b. Regulation X,
c. The Truth-in-Lending Act.
d. The Credit Information Act.
c. The Truth-in-Lending Act. (Regulation Z)
95
Some refer to the Truth in Lending Act (TILA) as "Regulation Z" because that's the name of the regulation written to implement the act. What does the TILA require?
a. Lenders must make credit disclosures to borrowers for certain types of loans.
b. Lenders must not charge a higher fee than the regulations allow.
c. Borrowers must make certain disclosures to lenders,
d. Investment borrowers come under the act,
a. Lenders must make credit disclosures to borrowers for certain types of loans.
96
Regulation Z applies to
a. All creditors and all borrowers,
b. All creditors and all advertising,
c. Only creditors who regularly extend credit and only advertising promoting credit.
d. Only those who plan to advertise consumer credit.
c. Only creditors who regularly extend credit and only advertising promoting credit.
97
Regulation Z controls advertising seeking to promote credit. Which of the following
statements is true?
a. When general credit terms are given, all other details are required.
b. When "low down payment" is part of the advertisement, none of the other details of the
financing are required to be in the advertisement.
c. When "10% interest rate" is in the advertisement, no other financing details must be in it.
d. When "$500 down" is in the advertisement, then no other financing terms must be in it
b. When "low down payment" is part of the advertisement, none of the other details of the
financing are required to be in the advertisement.
98
What do the lenders who practice predatory lending depend on to be able to take advantage
of so many people?
a. The ignorance of low information borrowers who have had past credit problems
b. The willingness of real estate licensees to learn financing and explain the facts to buyers
c. Low-income households who meticulously maintain a high credit score
d. People who take credit counseling classes before they shop for a home loan
a. The ignorance of low information borrowers who have had past credit problems
99
In South Carolina, the law has a set assessment rate. What is the rate for a residential-owned-occupied property?
a. 4%
b. 6%
c. 9-1/2%
d. 10 1/2%
a. 4%
(6% is the corporation rate)
100
A person who is over 65 years of age may set a break on his/her Ad Valorem tax. What is the nature of this special treatment?
a. With application, his/her appraised value will be reduced by $50,000,
b. His/her aeved value will be reduced by $50,000,
c. With application, his/her ave wed value will be reduced by $20,000.
d. With application, his/her appraised value will be reduced by $20,000,
a. With application, his/her appraised value will be reduced by $50,000,
101
The assessed value is $3,000 and the tax is based on 200 mills, How much is the tax?
a. $500
b. $600
c. $700
d. $800
b. $600
($3,000 x .200 = $600)
102
The assessor's appraisal was $67,900 on the rental house owned by the three little pigs. They sold it and had a closing on August 18. What was the amount of taxes to be prorated at closing if the tax rate Was 134 mills, the assessment rate was 6% and the pigs agreed to pay through closing? (Use a 360-day year)
a. $300.75
b. $325.75
C. $345.75
d. $365.75
C. $345.75
$67,900 x 6% (rental assessment rate) = $4,074 assessed value
$4,074 x .134 = $545.916 Tax
$549.916 / 360 = 1.51643
Jan 1 through August 18 is 228 Days
228 x 1.51643 = $345.75
103
A property was assessed for tax purposes at 80 percent of its $140,000 purchase price. Using a tax rate of 25.8 mills, what will the annual taxes be on the property?
a. $3.612.50
b. $2,889.60
c. $2,800,70
d. $2,064.80
b. $2,889.60
$140,000 x 80% = $112,000 assessed value
$112,000 x 0.0258 = $2,889.60 Tax
104
"Ad valorem" tax refers to:
a. surtax
b. state sales tax
C. a tax according to value
d. a tax on property transfer
C. a tax according to value
105
In South Carolina, a person qualifies for the Homestead Exemption if he/she holds a fee
simple title or a life estate and as of December 31 preceding the tax year of the exemption
was a legal resident for one year and:
a. Has reached age 65, is blind or declared permanently disabled by an agency
authorized to make such a declaration.
b. As of December 31, preceding the tax year of the exemption, was declared totally and permanently disabled by an agency authorized to make such a declaration, or turned 65 or was legally blind as certified by a licensed ophthalmologist registered with the
South Carolina Commission for the Blind.
c. During the tax year of the exemption, the homeowner turned 65, or was certified
legally blind or was declared permanently disabled before the following December
31.
d. Is legally blind as certified by a licensed ophthalmologist registered with the South
Carolina Commission for the Blind and is the widow of a man who was 78 when he
died.
b. As of December 31, preceding the tax year of the exemption, was declared totally and
permanently disabled by an agency authorized to make such a declaration, or turned
65 or was legally blind as certified by a licensed ophthalmologist registered with the
South Carolina Commission for the Blind.
106
Rollback taxes apply to farmers if the agriculturally taxed property's use is changed to another use. How many years back do rollback taxes go?
a. One
b. Three
c. Five
d. Seven
c. Five
107
The deed recording fee is a tax on the transfer of real property that is based on the selling price. There are two taxing entities involved in this transaction, the State of South Carolina and the County where the property is located. The state has a recording fee of ___ per $500 and the county charges ___. These are often combined to be _____.
a. $1.30, $0.55 and $1.85
b. $1.00, $0.20 and $1.20
c. $2.00, $0.75 and $2.75
d. $0.50, $0.25 and $0.75
a. $1.30, $0.55 and $1.85
or $3.70 per $1,000
108
Concerning the Federal Fair Housing Law, which of the following is correct with respect to the definition of "protected class"
a. Any group that makes up less than 50% of the total population.
b. Any group or member of a group that can be identified by any other characteristic on
the basis of which discrimination is prohibited by a federal, state, or local fair housing
law.
C. Any group that shares a common trait regardless of numbers
D. Anyone who is not a white Anglo-Saxon Protestant male citizen of the United States
b. Any group or member of a group that can be identified by any other characteristic on
the basis of which discrimination is prohibited by a federal, state, or local fair housing
law.
109
After the Jones Vs. Mayer Co. case was heard by the Supreme Court, the interpretation of The Civil Rights Act of 1866 was that it was Wrong to discriminate because of
a. age.
b. race.
c. national origin.
d. religion.
b. race.
110
Exemptions from the 1968 Fair Housing Act, as amended, include all BUT which of the
following:
a. Any single-family home sold or rented by an owner.
b. Rental of rooms or apartments in which the owner is an occupant and there are no more than 5 families
c. Private clubs in which lodging is provided exclusively for members.
d. Church organizations in which lodging is provided exclusively for members.
b. Rental of rooms or apartments in which the owner is an occupant and there are no more than 5 families
(The rule is based on 4-family dwellings)
111
Anyone having a complaint under the Fair Housing Act of 1968 should make this complaint to:
a. U.S. Department of Housing and Urban Development.
b. Attorney General of South Carolina.
c. The LLR Real Estate Commission
d. The SC Housing Resource Board.
a. U.S. Department of Housing and Urban Development.
112
What penalties may be given by a HUD Administrative Law Judge for violation of The Fair Housing laws?
a. Actual damages, punitive damages, injunctive relief
b. Preventive relief, fines of $50,000-$100,000, actual damages
c. Actual damages, injunctive relief, fines of $10,000-$50,000
d. Actual damages, preventive relief, injunctive relief
c. Actual damages, injunctive relief, fines of $10,000-$50,000
113
To attempt to induce, for profit, any person to sell or rent any dwelling by making claims that persons of a particular race, color, religion, sex, or national origin, may be moving into the neighborhood, is
a. redlining
b. blockbusting
c. steering
d. discrimination
b. blockbusting
114
To represent to any person, because of race, color, religion, or national origin, that any dwelling is not available for inspection, sale, or rental, when such dwelling is, in fact,
a. redlining.
b. blockbusting.
c. steering.
d. discrimination.
c. steering.
115
A practice by some lending institutions which restricts the number of loans, or the loan-to-value ratio, or even lending any money in certain areas of a city, based on the racial makeup of the area, IS
a. redlining.
b. blockbusting
c. steering.
d. discrimination.
a. redlining.
116
A person who suffers racial discrimination by the owner who is exempted under the 1968
Fair Housing Law
a. has no recourse because of these exemptions.
b. may have a right to go to Federal Court and get an injunction under The Civil Rights Act of 1866.
c. may have a right to punitive damages directly.
d. has no recourse with HUD, but may bring a civil action and have the perpetrator thrown into prison.
b. may have a right to go to Federal Court and get an injunction under The Civil Rights Act of 1866.
117
Penalties for real estate companies who violate The Fair Housing Act, as amended in
1988, include which of the following?
a. First offense, $50,000; second offense, $100,000; third within 7 years, $150,000
b. First offense, $10,000; second within 7 years, $50,000; third within 10 year, $100,000
c. First offense, $10,000; second within 5 years, $25,000; third within 7 more years $50,000
d. First offense, $10,000; second within 5 years, $25,000; third within 7 years of first $50.000
d. First offense, $10,000; second within 5 years, $25,000; third within 7 years of first $50.000
118
All licensees must keep current residential address, mailing address, email and telephone number on file with the Commission. A licensee must notify the Commission of any changes within ____ days of a change in ANY of these.
a. 2 business days
b. 10 days
c. 15 days
d. 30 days
d. 30 days
Failure to comply may result in a suspension of the license
119
In SC, the fiscal year ends on June 30th. Any license that’s not renewed (biennially) by June 30th is _______. A license that has not renewed by the last day of the sixth month is ________.
a. Lapsed, Cancelled
b. Cancelled, Lapsed
c. Expired, Revoked
d. Lapsed, Revoked
a. Lapsed, Cancelled
120
In SC, the deed recording fee (some lawyers still call it deed stamps) is based on the sales price that will remain after closing. The deed recording fee is $______ per $1000
a. $2.80
b. $3.70
c. $6.00
d. $10.00
b. $3.70
121
What MUST be included on a buyers agreement?
a. Date of expiration
b. Broker In Charge’s full name
c. Office address of Licensee
d. Address for the Real Estate Commission for filing complaints
a. Date of expiration
122
Common Law requires what when dealing with customers?
Good faith
Full disclosure
Due care
Knowledge
Skill
123
The Real Estate Commission has the authority to settle disputes over commission payments between licensees and brokers. True or false?
False
124
What are the five requirements and procedures of the Real Estate Commission?
Pre-license Education
Mandatory Continuing Education
Testing Applicants
Supervision of Associated Licensees
Discipline Violators
125
How would the “Mill” rate of “332” mills be converted to decimal form?
a. 3.32
b. .00332
c. .332
d. 33.2
c. .332
126
What’s is the assessment rate for an owner-occupied residence?
a. 2%
b. 4%
c. 6%
d. 7-1/2%
b. 4%
127
What is the assessment rate for property relating to manufacturing and utilities?
a. 10-1/2%
b. 9-1/2%
c. 15%
d. 12%
a. 10-1/2%
128
What is the assessment rate for property used by transportation companies?
a. 18%
b. 8%
c. 9-1/2%
d. 9-1/4%
c. 9-1/2%
129
Who pays the deed recording fee?
a. The buyers agent
b. The sellers agent
c. The seller
d. The buyer
c. The seller (will appear as a DEBIT)
130
What must be included on a transaction broker agreement?
a. The brokers full name
b. A list of responsibilities to the customer
c. Personal information about the seller and buyer
d. The address where the transaction will occur
b. A list of responsibilities to the customer
131
What’s the assessment rate on all other property? (Commercial, rentals and apartments)
a. 2%
b. 4%
c. 6%
d. 8%
c. 6%
