Sign South Carolina Permission Slip Safe

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welcome to the south carolina real estate practice exam this test has 60 questions that will help you prepare for your state exam real estate express is an accredited online school that has everything to jump start your real estate career packages are available starting with the required pre-licensing course to everything needed to help you succeed as a real estate professional a link to real estate express is below in the description time to get started and good luck question one how much time is given to pass the south carolina salesperson exam a 2 hours b 3 hours c 4 hours d 5 hours the correct answer is b 3 hours you'll have 120 minutes to answer the 80 national questions about general real estate topics and 60 minutes to answer the questions about state real estate laws question 2 how many continuing education hours are required a 5 hours b 10 hours c 24 hours d 18 hours the correct answer is c 24 hours licensees must complete a minimum of 24 continuing education hours by italy after the first two years of licensure including three hours of ethics training question three in order to obtain a south carolina real estate license you must have a high school diploma a true be false the correct answer is a true you must have a high school diploma or equivalent question four how often must you renew your sales agent license a every year b every two years c every three years d every four years the correct answer is b every two years every two years south carolina licensees must renew their licenses by completing the required education and paperwork question five how old do you have to be in south carolina to obtain a real estate license a 25 years old b 21 years old c 20 years old d 18 years old the correct answer is d 18 years old to be eligible to become a licensed south carolina real estate agent you must be at least 18 years old question 6 what information would be unethical for a listing agent to share with a potential buyer a the neighbors next door are really great and have two young children about the age of your kids b the community association fees are eight hundred dollars this year but they will be going up to twelve hundred dollars next year c the roof might need to be replaced in the next year or two d the seller is very eager for an offer because he lost his job and found a new one in a different state the correct answer is d the seller is very eager for an offer because he lost his job and found a new one in a different state it is inappropriate for a listing agent to tell a prospective buyer personal information about the seller even if it may encourage a sale the only exception would be in the case of a seller instructing the agent to do so doing so would be a confidentiality breach on the part of the listing agent the broker should answer all questions related to the property honestly question 7 a subdivision has a rule that each home in the neighborhood be at least 2 500 square feet this is an example of which concept a cooperative ownership b fair housing laws violation c restrictive covenant d homestead laws the correct answer is c restrictive covenant restrictive covenants are created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards examples include minimum housing size restrictions on architectural style or mandated underground sprinkling question 8 which of the following describes a transaction brokerage a the broker represents the seller in the transaction b the broker represents both the buying and selling parties c the broker represents the buyer in the transaction d the broker does not represent either party but provides general information and services to each the correct answer is d the broker does not represent either party but provides general information and services to each in a transaction brokerage the broker may help with general information or services but she is not looking out for the specific interest of either the buying or selling party question nine who takes the biggest risk in an open listing a the buyer b the agent c the seller d the lending institution the correct answer is b the agent in an open listing the seller will only pay the agent if the agent finds the buyer because the seller can have many agents in an open listing only the agent who finds the buyer will be compensated this means the agents who do not produce a buyer will receive no compensation question 10 an agency contract is being terminated in which scenario might there be damages owed to one of the parties a the owners discharged the agent because she was not acting in their best interest b the agency files for bankruptcy see the property owner discovers another claim on the title of the house d the agent resigns from the contract because he is overloaded with homes to sell the correct answer is d the agent resigns from the contract because he is overloaded with homes to sell agents and owners may resign from a sale but they may be liable for damages due to breach of contract however if there is a legally sound reason for resignation such as the owners requesting the agent do something illegal or the agent not acting in the seller's best interest there is no penalty for resignation being overloaded with homes to sell would not be considered a justifiable reason to end the contract so the agent may owe the seller some type of damages bankruptcy death legal incompetence and multiple claims on the title all automatically terminate the agency relationship by law question 11 foreclosure occurs when a blank seizes and sells a borrower's blank after the borrower has failed to blank the lender a bank personal property appreciate b lender home alert c lender collateral repay d bank property notify the correct answer is c lender collateral repay a lender requires collateral for a loan and if the buyer defaults on the terms of the loan agreement usually through failure to make payments in a timely manner the lender can and will seize the collateral usually the home and or property question 12 a buyer agrees to purchase a home once the sale on her current home is completed legally this is known as a contingency b specific performance c option agreement d negotiation the correct answer is a contingency contingencies or contingency clauses are a part of the contract of sale that allows a buyer or seller to get out of the contract without penalty in the case of certain specified events question 13 mr and mrs cox make mr and mrs green an offer on their home but they have not heard back from them on whether or not the offer has been accepted in the meantime they have found another home they would like to purchase instead what is their best option a withdraw their offer with penalty b modify their offer to one they are confident mr and mrs green will not accept c withdraw their offer with no penalty d wait for mr and mrs green's response if they accept the offer pay the withdrawal fee outlined in the contract the correct answer is c withdraw their offer with no penalty before an offer has been accepted the buyers have the right to withdraw their offer with no penalty however if the seller has already accepted the offer the offer now becomes a contract that carries with it legal obligations question 14 reversion of title is a feature of what type of interest a fee simple b fee simple condition precedent c fee simple condition subsequent d fee simple determinable the correct answer is d fee simple determinable you may have been tempted to answer fee simple condition subsequent which allows the right of re-entry the grantor's right to go to court to reclaim the property in fee simple determinable the title reverts back to the grantor of a certain condition isn't met question 15 the lumber for a deck that has not yet been built is a personal property b a fixture c a trade fixture d real estate the correct answer is a personal property personal property is tangible movable and not permanently attached to real estate the lumber can become a fixture and therefore real estate if the deck is built a trade fixture is something used in conjunction with a business question 16 a mortgage is most accurately described as what type of lien a involuntary in general b voluntary and general c voluntary and specific d involuntary and specific the correct answer is c voluntary and specific no one can force you into a mortgage agreement so it's voluntary and a mortgage applies to only one property so it's specific question 17 real estate agents will earn their money once a piece of property is a financially secure b valued c sold or exchanged d loaned or abetted the correct answer is c sold or exchanged once the paperwork is signed for a sale or transfer the real estate agents earn their pay question 18 blank indicates ownership of property in real estate terms a actuance b title c certified d variance the correct answer is b title while title indicates ownership it is not a physical thing the deed is the physical proof of a title question 19 jones sells her house to her brother mike on a handshake this contract is a valid only in certain states be illegal c valid because they are related d unenforceable the correct answer is d unenforceable in order of a contract of sale to be valid there must be signatures from both parties question 20 when ownership of a piece of real estate goes from one person to another it is called an a convertary exchange b exchange c deal d transfer the correct answer is d transfer transfer describes the legal exchanges of property between two individuals convain can mean the same as transferred question 21 how does a home equity line of credit differ from a second mortgage a a home appraisal is not necessary for a home equity line of credit b the interest accrued on a home equity line of credit is not tax deductible c the terms can be used interchangeably d with a home equity line of credit the borrower can draw money as they need it the correct answer is d with a home equity line of credit the borrower can draw money as they need it in a traditional second mortgage a borrower would take all of the money loan to them at one time in a home equity line of credit the borrower may take up to a specified amount but they do not need to take that amount in full or all at one time question 22 what is the primary advantage of a bi-weekly mortgage a easier for budgeting b faster loan payoff c they accept those with lower credit scores d they offer a better interest rate the correct answer is b faster loan payoff because there are 26 two-week periods each year those with a bi-weekly mortgage will make 13 yearly payments instead of 12. this results in a faster loan payoff typically between 18 to 22 years while easier budgeting and a better interest rate may be true in certain mortgage scenarios the primary advantage of a bi-weekly mortgage is faster loan payoff question 23 when a property is released from a mortgage because it has been paid off by the borrower what document does the lender provide to prove this to be true a land release b estoppel certificate c postponement of lean d satisfaction piece the correct answer is d satisfaction piece a satisfaction piece is a document from the lender that states the property has been paid off and is released from the lien question 24 which government entity was created to encourage low-income housing a f m h a b f n m a freddie mac c f n m a fannie mae d g n m a ginny may the correct answer is d gnma jenny may while all of these are second mortgage markets and freddie mac does have multiple low-income housing programs only gini may was created to encourage low-income housing question 25 a loan for a new house has an origination fee of one point if the loan is for 275 000 what would the cost of that point be a and seventy five dollars b one thousand three hundred and seventy five dollars c one thousand dollars d two thousand seven hundred and fifty dollars the correct answer is d two thousand seven hundred and fifty dollars one point is equal to one percent of the total loan amount if the loan is two hundred and seventy five thousand dollars then the amount would be hundred and seventy five thousand dollars times point zero one equals two thousand seven hundred and fifty dollars question twenty six what is the purpose of underwriting a to get a current appraisal on a home's value b to determine the risks of making a loan c to compare the interest rates of different lenders d to determine how much a property is worth the correct answer is b to determine the risks of making a loan mortgage lenders use a process called underwriting to assess the risks of making a loan to assess a potential borrower's risk they look at factors such as salary credit history and terms of employment question 27 if a borrower puts down 10 percent on their home loan what is the loan to value ratio a 20 b 90 c 80 d 10 the correct answer is b ninety percent if a loan has a ninety percent loan to value ratio the borrower is responsible for putting down ten percent most conventional home loans have a loan to value ratio of 80 percent question 28 a homeowner is buying a new home but hasn't sold their old one which type of loan would they obtain in the short term and pay back as soon as their old house is sold a swing b home equity c wrap around d sale leaseback the correct answer is a swing a swing loan also sometimes referred to as a bridge or gap loan is a short-term loan that allows borrowers to borrow against their current property in order to buy a new one they are typically taken out when the borrower wants to buy a bigger home but hasn't sold their current property question 9. which is not one of the three c's of underwriting a credit b capacity c collateral d conformity the correct answer is d conformity capacity is the cash reserve and debt ratio of the borrower collateral includes their down payment and property types credit includes their credit score and accounts conformity is not one of the three c's of underwriting question 30 who is the typical reverse mortgage customer a all of these b someone with a lot of equity in their home c someone without a lot of liquid capital d someone elderly the correct answer is a all of these in a reverse mortgage the lender gives money to the borrower using the home itself as collateral the loan typically does not require repayment until death or until the homeowner moves out reverse mortgages are popular options for those with all three of these attributes elderly and who are house rich and cash poor meaning they have a lot of equity in their home but not a lot of liquid cash question 31 the american with disabilities act of 1990 would affect which of the following a a third floor apartment in a newly constructed apartment complex b an existing business with 20 employees c a single-family home d multi-family home with three units the correct answer is b an existing business with 20 employees the americans with disabilities act ada of 1990 seeks to accommodate those with disabilities by broadening their access to public facilities any existing business with 15 or more employees must update their facility to conform with ada rules and regulations almost all new construction with the exception of single-family homes must be handicapped accessible while newly constructed ground floor apartments are subject to ada regulations those on higher levels are not as of 1988 multi-family buildings with four or more units must comply with ada standards question 32 a real estate agent declines to show a muslim couple a house in a neighborhood because she feels the area isn't muslim friendly this is known as what a good faith exception b redlining c steering d blockbusting the correct answer is c steering steering is the act of directing or not directing clients to a certain area based on race religion sex familial status national origin or handicap while the agent may believe she is acting benevolently by directing her buyers to an area they will be comfortable this practice is a violation of the federal fair housing act question 33 according to hud standards which of the following would be an acceptable neighborhood advertisement a traditional living b exclusive neighborhood c muslim friendly d senior housing the correct answer is d senior housing housing intended to serve those 55 and older is acceptable according to hud standards words indicative of race religion color familial status sex handicap or national origin are not acceptable nor are words that would be considered discriminatory such as exclusive restrictive traditional or board approved question 34 what is the main purpose of regulation z a to let borrowers know the true cost of credit b to lock the borrower into a mortgage once the paperwork is signed c to set a minimum interest rate d to limit the amount consumers can be charged the correct answer is a to let borrowers know the true cost of credit regulation z states the annual percentage rate or apr cost of credit must be disclosed when borrowers apply for credit regulation z also called the truth in lending act does not set a minimum or maximum interest rate question 35 which of the following would not be considered a finance charge a interest b seller's points c finders fees d appraisal fees the correct answer is b seller's points a finance charge is any charge made by the lender of credit that the borrower is directly or indirectly required to pay the borrower is not responsible to pay the seller's points but is responsible for items such as finders fees appraisal fees and interest question 36 when real estate agents represent the buyer and not the seller of a piece of property they're engaging in a buyer protection b buyer agency c seller protection d good faith the correct answer is b buyer agency agency is the term for representation in a real estate transaction the principal in this case the buyer gives legal authority to an agent to act on the principal's behalf when dealing with a third party question 37 if you are representing both the buyer and the seller of a piece of real estate it's called a double representation b dual agency c dual real estate d double agency the correct answer is b dual agency while dual agency is not legal in all states in some states a real estate agent is allowed to represent both the buyer and seller of a piece of real estate dual agency is sometimes referred to as limited agency question 38 in a blank the real estate agent represents only the buyer or the seller of a piece of property a combined agency relationship b limited agency relationship c split agency relationship d single agency relationship the correct answer is d single agency relationship in a single agency relationship a real estate agent is hired by either the buyer or the seller and must keep that party's best interest in mind question 39 blank is when an individual can be paid for brokering a real estate transaction yet represent neither the buyer nor the seller a situational brokerage b transactional brokerage c divisional brokerage d individual brokerage the correct answer is b transactional brokerage transactional brokerage is only legal in some states and care must be taken to see what the duties and responsibilities are for the agents brokering a deal if they are not representing either side of the deal question 40 some states have blank that require agents to disclose who they are representing to the buyers a agent identification clauses b agency disclosure laws c agency branding laws d agent identification laws the correct answer is b agency disclosure laws agency disclosure laws help clear up confusion over whose interests are being represented in a transaction these laws are in place to protect buyers from being misled by agents who are actually representing the sellers question 41 when a person or entity uses the land of another for a specific purpose it is known as an a easement b literal right c restrictive covenant d lean the correct answer is a easement the most common types of easements are access utility and drainage easements question 42 which of the following is not considered realty a a growing tree b bricks mortar together in a wall c lumber d land the correct answer is c lumber realty is defined as land and everything permanently attached to it bricks mortared together in a wall are considered permanently attached to the land whereas free lumber is not as it could easily be moved question 43 mr smith has died by what rights does his wife lay claim to his property a tenancy in common b dour c courtesy d imminent domain the correct answer is b dour dour rights grant a wife or child interest in her husband's estate curtsy laws recognize the rights of a husband in the event of his wife's death question 44 a person has been using another person's land for 30 years without permission they may have a legal claim to the land by which means of ownership a involuntary alienation b voluntary alienation c they do not have a legal claim to the land d adverse possession the correct answer is d adverse possession adverse possession laws are very old laws found in every state the idea behind this type of possession is that if the true owner is so disinterested in the land they own that they allow someone else to use it for a long period of time depending on the state 7 to 40 years the person using it has rights based on the fact they were treating the property as their own question 45 a condominium is legally defined as a a community in which the architectural style makes the homes look uniform and neat in appearance b an association with dues used to maintain community property including swimming pools park areas and parking lots c a community where the owner owns a portion of the shares of stock of the cooperative corporation d a community where homeowners have the title to one piece of individual property and the right to use community property shared with others the correct answer is d a community where homeowners have the title to one piece of individual property and the right to use community property shared with others condominium is a legal term that describes land ownership in a condominium a person has a title and exclusive ownership to a piece of property typically a house or unit and shared access to other community areas this may include parks pool areas and parking lots but these areas do not define what a condo is nor are condominiums required to have these structures a community where the owner owns a portion of shares of stock is called a cooperative question 46 a stream and large rock are referenced in a property description which type of land description would this be considered a lot and block b governmental survey c rectangular survey d mets and bounds the correct answer is d mets and bounds monuments and occupancy markers are sometimes used in meds and bounds property descriptions monuments include both natural and man-made items like large trees rocks or fences occupancy descriptions include more vague owned properties such as carlson's farm governmental survey is just another term for rectangular survey question 47 rectangular survey is used in many states as a way to evenly divide property into six even square mile areas what are these areas called a counties b villages c cities d townships the correct answer is d townships the divisions created in rectangular survey property descriptions are called townships question 48 which of these would determine if there is encroachment on a property a survey b easement c ejectment d appraisal the correct answer is a survey a survey determines if one's building or property encroaches trespasses on another's a survey is typically part of a real estate contract question 49 what is meant by riparian rights a the former property owner still lives at the property but it has officially been sold b there is no legal owner to the land so the property becomes possession of the government c the property owner has property that borders a moving body of water d the property was given to the current owner by a deceased family member the correct answer is c the property owner has property that borders a moving body of water if a property owner has riparian rights their property borders a moving body of water such as a river or stream typically a property owner with riparian rights cannot meddle with the natural flow of the water touching their property question 50 which document outlines the environmental effects that are caused by new development a environmental development report b environmental impact report c environmental project report d environmental risk report the correct answer is b environmental impact report the environmental impact report statement describes the likely environmental effects a new development will have the document is sometimes required by local governmental agencies before new construction is started question 51 what is the objective of most appraisals a determining investment value of a property b determining insurance value of a property c determining market value of a property d determining loan value of a property the correct answer is c determining market value of a property although an appraiser may be used to evaluate any of these they typically are sought to determine the market value of a property question 52 value is different from market price in that market price blank a is taxable and market value is not b is a fact that has actually occurred c is not an actual value but just an idea d is always 10 below market value the correct answer is b is a fact that has actually occurred market value is just an estimate of what a property should sell for in the current market market price is what it did sell for the other answer choices are not true question 52 market value is different from market price and that market price a is taxable and market value is not b is a fact that has actually occurred c is not an actual value but just an idea d is always 10 below market value the correct answer is b is a fact that has actually occurred market value is just an estimate of what a property should sell for in the current market market price is what it did sell for the other answer choices are not true question 53 the sales comparison approach to valuation is directly related to a market investment return rates b all pending cancelled and short sale listings c the quality and amount of sales data available d the principle of anticipation the correct answer is c the quality and amount of sales data available the sales comparison sometimes still referred to as market approach to valuation involves an appraiser locating similar properties to the property being appraised when there are more homes on the market it is easier for the appraiser to find similar properties and to make valuation adjustments as appropriate question 54 which of the following is not a typical obligation of the mortgager a maintain the property b keep a hazard insurance policy in force c get permission for alterations d advise the mortgage of a change in the escrow account balance the correct answer is d advise a mortgagee of a change in the escrow account balance this question requires you to know who the mortgager borrower and mortgagee lender are the first three answers relate to the borrower's duties the mortgagee does the advising about the escrow account balance the borrower contributes money to the escrow account only according to the lender's accounting of what it needs question 55 interest paid on the accrued interest as well as the principal is called a compensating interest b simple interest c exponential interest d compound interest the correct answer is d compound interest while simple interest is paid only to the principal owed when accrued interest is added in or included the interest is compounding question 56 of these individuals who can perform an appraisal a all of these b real estate broker c real estate agent d real estate appraiser the correct answer is d real estate appraiser a real estate agent or broker cannot prepare an official property appraisal instead they can prepare a comparative market analysis cma or broker's opinion of value bov question 57 how is land different than other property assets a its value is not tied to nearby housing values b it cannot decline in value c it retains its value better than other property assets d it is fixed and immobile the correct answer is d it is fixed and immobile land is the only property asset that is fixed and immobile like other properties land can decrease or increase in value as surroundings become more or less desirable even though it cannot depreciate in an accounting sense the other options are all not true or not unique to land question 58 you may need to know the value of the house you inherited a for income tax purposes b for real evaluation purposes c for appraisal tax purposes d for estate tax purposes the correct answer is d for estate tax purposes estate taxes are based on the appraisal of a particular piece of property question 59 an appraisal is a an exact value of a particular piece of property b an estimated value of a particular piece of property c the investment value of a particular piece of property d a predetermined value of a particular piece of property the correct answer is b an estimated value of a particular piece of property appraisers do use a variety of mathematical techniques in their work but the act of arriving at the value of a particular piece of property is not precise question 60 when estimating the value for a particular piece of property an appraiser will not investigate a environmental factors b social factors c physical factors d future factors the correct answer is d future factors an appraiser will investigate economic environmental physical and social factors when estimating the value for a particular piece of property thank you for watching this video and please don't forget to share it if you found it helpful check out these other videos that could be helpful too good luck in your real estate journey