Section #4: Property Managment in SC

Question 1

The South Carolina Residential Landlord and Tenant Act applies to:

a. multifamily dwellings only.
b. single-family dwellings only.
c. commercial properties.
d. single- and multifamily dwellings.

Answer 1

d. single- and multifamily dwellings.

Question 2

The purpose of the South Carolina Residential Landlord and Tenant Act is to:

a. allow owners to get a higher return on investment from their rentals.
b. upgrade the quality of the residential rental real estate.
c. explain when trust funds should be deposited in property management transactions.
d. explain how trust funds are disbursed in property management transactions.

Answer 2

b. upgrade the quality of the residential rental real estate.

Question 3

A landlord may enter a leased property under the following conditions:

a. at will since the landlord owns the property.
b. at reasonable times with eight hours’ notice.
c. immediately in case of emergency.
d. with written 72-hour notice.

Answer 3

c. immediately in case of emergency.

Question 4

A landlord does not maintain the heating system for the property and it becomes uninhabitable and the tenant is forced to move. This is an example of:

a. actual eviction.
b. constructive eviction.
c. abandonment.
d. ejection.

Answer 4

b. constructive eviction.

Question 5

After the lease agreement has expired, the landlord must return the security deposit of the tenant within:

a. one week of termination.
b. three days of termination.
c. 30 days of termination.
d. six months after repairs are made.

Answer 5

c. 30 days of termination.

Question 6

The following would be considered essential services to be provided to every tenant:

a. heat and air conditioning.
b. electricity and heat.
c. electricity and air conditioning.
d. cable TV .

Answer 6

b. electricity and heat.

Question 7

If a licensee owns personal rental property on which he/she holds a security deposit:

a. the security deposit must be deposited into the brokerage’s trust account.

b. the security deposit may be deposited into the licensee’s rental property general
account.

c. the security deposit must be deposited into a personal trust account so designated.

d. the security deposit can be spent in advance as long as it is applied to the last
month’s rent.

Answer 7

c. the security deposit must be deposited into a personal trust account so designated.

Question 8

Rents collected in a property management transaction must be deposited:

a. within 48 hours of receipt.
b. as soon as possible.
c. by the end of the rental period.
d. within 10 business days.

Answer 8

a. within 48 hours of receipt.

Question 9

A property manager collected rent on behalf of the owner. The payment was made by check. The owner’s portion of the funds were distributed in a timely manner as were the funds due to the brokerage for the management of the property. The tenant’s check bounced. The PMIC/BIC can be found guilty of:

a. commingling funds.
b. conversion of funds.
c. abandonment of funds.
d. nothing, as no violation has occurred unless the PMIC/BIC knew in advance that the check would not clear.

Answer 9

b. conversion of funds.

Question 10

A tenant who used the property for a daycare center when it was leased as a residential dwelling would:

a. automatically void his/her lease due to unlawful use.
b. be allowed to void the lease if the landlord did not grant a use certificate.
c. make his/her lease voidable at the discretion of the landlord.
d. have full rights if within zoning regulations.

Answer 10

c. make his/her lease voidable at the discretion of the landlord.

Question 11

A landlord has been unable to contact the tenant and the rent is more than 15 days past due. The tenant is said to have _________________________ the property.

a. converted.
b. abandoned.
c. evicted.
d. eradicated.

Answer 11

b. abandoned.

Question 12

The licensed property manager wants to list the property for sale but does not hold a real estate license. In this case:

a. the property manager can list the property for sale.
b. the property manager can refer the property to a salesperson and receive a referral fee.
c. the property manager can switch to a salesperson’s license for this transaction.
d. the property manager cannot list the property for sale and cannot receive a referral fee.

Answer 12

d. the property manager cannot list the property for sale and cannot receive a referral fee.

Question 13

The person with a property manager’s license wishes to work as a rental agent at the coast during the summer and in the mountains in the winter, so she will need to hang her license with more than one brokerage. In this instance, the licensee:

a. must be licensed under both PMIC’s at the same time.
b. must transfer her license to the other PMIC when she moves from the beach to the mountains for work.
c. can work under two brokerages as long as one has a BIC and the other has a PMIC.
d. can work under two brokerages as long as one has a BIC.

Answer 13

b. must transfer her license to the other PMIC when she moves from the beach to the mountains for work.

Question 14

It has been reported to the landlord that there is a strong gas smell coming from one of the apartments. In this case, the property manager may enter the apartment:

a. at any time, as this is an emergency.
b. only between the hours of 8 a.m. and 8 p.m.
c. only with the tenant’s expressed permission.
d. only with the fire department present.

Answer 14

a. at any time, as this is an emergency.

Question 15

It is time for the scheduled termite preventive to be applied to the exterior of the rental property. In this case, the property manager may enter the premises:

a. between 8 a.m. and 8 p.m.
b. only with the tenant’s expressed permission.
c. between 9 a.m. and 6 p.m. if stated in the rental agreement.
d. at will, as this is an emergency situation.

Answer 15

c. between 9 a.m. and 6 p.m. if stated in the rental agreement.

Question 16

A property manager wants to become the PMIC of a brokerage. The property manager will:

a. need to take an additional 30-hour licensing course.
b. need to become a broker.
c. need to have at least a year’s experience as a property manager.
d. need to take an additional seven-hour course.

Answer 16

d. need to take an additional seven-hour course.

Question 17

Amy holds a salesperson’s license but wants to add property management as an additional income stream. In this case:

a. her BIC must allow property management in office policy.
b. she can manage property outside her brokerage.
c. she must upgrade to a broker’s license.
d. she must find a PMIC and transfer her license.

Answer 17

a. her BIC must allow property management in office policy.

Question 18

When holding a security deposit on personal rental property, the licensee must:

a. keep the deposit in a personal trust account.
b. keep the deposit in the company operating account.
c. keep the deposit in her brokerage’s operating account.
d. keep the deposit for at least 30 days after the tenancy is terminated

Answer 18

a. keep the deposit in a personal trust account.

Question 19

A property manager wants to manage commercial as well as residential property. She must have:

a. a BIC supervising her.
b. a commercial broker’s license.
c. a commercial and residential broker’s license.
d. a PMIC that allows for commercial and residential property management.

Answer 19

d. a PMIC that allows for commercial and residential property management.

Question 20

Jane has her property manager’s license on inactive status but would like to assist her relatives in renting their beach house as a vacation rental. Jane:

a. can earn fees since the owner is her relative.
b. cannot earn fees as her license is on inactive status.
c. can earn fees if the agreement is with her PMIC.
d. can earn fees if the property management agreement is current.

Answer 20

b. cannot earn fees as her license is on inactive status.

Question 21

David did not renew his property manager’s license for more than three years. In this case:

a. his license is inactive.
b. his license is revoked.
c. his license is canceled.
d. his license can be brought current with continuing education.

Answer 21

c. his license is canceled.

Question 22

Frank is a property manager handling his employer’s rental homes. When the rent is received:

a. Frank can deposit it into his personal trust account.
b. Frank can deposit it into his employer’s operating account.
c. Frank must deposit the rent into a trust account.
d. Frank must deposit the rent into his broker’s trust account.

Answer 22

b. Frank can deposit it into his employer’s operating account.

Question 23

An unlicensed employee of a property manager can do the following:

a. collect rent, negotiate rental agreements and approve applications.
b. collect rent, show rental properties and provide applications.
c. furnish published information, receive applications, and negotiate leases.
d. administrative tasks, approve applications, and collect rent.

Answer 23

b. collect rent, show rental properties and provide applications.

Question 24

The primary goal of a property manager is:

a. to upgrade rental units.
b. to generate income for the owner and maintain the property.
c. to furnish information to consumers about rental housing in the area.
d. to provide applications and lease forms to consumers.

Answer 24

b. to generate income for the owner and maintain the property.

Question 25

The following are types of trust funds that must be kept separate and apart from company funds:

a. security deposits, entertainment deposits, and advance rents.
b. rents, cleaning deposits, and personal funds.
c. advance rents, security deposits, and expenses.
d. security deposits, advance rents, and company funds.

Answer 25

a. security deposits, entertainment deposits, and advance rents.

Question 26

How long does a salesperson have to remit trust funds in property management to the BIC?

a. Within 48 hours of receipt.
b. Within 24 hours of receipt.
c. By the next business day.
d. Immediately upon receipt.

Answer 26

c. By the next business day.

Question 27

Once the lease is signed. the BIC must deposit the security deposit:

a. within 24 hours
b. within 48 hours
c. within 72 hours
d. immediately

Answer 27

b. within 48 hours

Question 28

Two additional records are required of property management transactions when dealing with trust funds. They are:

a. owner’s ledger and company ledger.
b. owner’s ledger and tenant ledger.
c. tenant ledger and company ledger.
d. tenant ledger and trust account ledger.

Answer 28

b. owner’s ledger and tenant ledger.

Question 29

A lease may be terminated through:

a. expiration, death of the owner, and destruction of the property
b. expiration, foreclosure, and mutual agreement
c. unilateral consent
d. destruction of the property, foreclosure and unilateral desire

Answer 29

b. expiration, foreclosure, and mutual agreement

Question 30

If the property is sold during the term of the tenancy:

a. the tenancy is terminated
b. the tenancy is transferred with the sale
c. the owner is in breach of the lease agreement
d. the new owner is in breach of the lease agreement

Answer 30

b. the tenancy is transferred with the sale