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SC Angel > Chapter 2: Statutes Governing the Activities of Licensees (10 Questions) > Flashcards

Chapter 2: Statutes Governing the Activities of Licensees (10 Questions) Flashcards

1
Q

Security deposits received in the agent’s personal rental transaction are not required to be deposited in a trust account

a. true
b. false

A

b. false

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2
Q

Disputed trust funds can be disbursed in the following way
a. verbal agreement between the parties

b. broker interprets contract and writes check
c. written agreement between the parties
d. following buyer client’s instructions as to disbursement

A

c. written agreement between the parties

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3
Q

Action may be instituted against a real estate licensee by a customer for information contained in the Residential Property Condition disclosure Form if the real estate licensee is a signatory to that report.

a. true
b. false

A

a. true

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4
Q

No cause of action may arise against a licensee for failure to disclose:

a. material facts that should have been known by the agent
b. the location of any registered sex offender
c. any offsite condition that materially impacts the property being transferred
d. the fact that the road is set to be widened to four lanes in the next year

A

b. the location of any registered sex offender

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5
Q

A licensee can be disciplined for:

a. telling his/her client about stigmatizations
b. disclosing stigmatizations in response to a direct inquiry
c. disclosing material facts that appeared in an inspection report
d. making an intentional misrepresentation in response to a direct inquiry

A

d. making an intentional misrepresentation in response to a direct inquiry

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6
Q

Pertaining to outside service providers:

a. it is acceptable for a seller to offer incentives that would create a desire for the buyer to use his/her recommended service providers
b. it is acceptable for a licensee to require the use of certain service providers

c. it is advisable for a licensee to make a direct recommendation as to outside
service providers

d. it is not acceptable for a licensee to give the consumer a list of potential
service providers

A

a. it is acceptable for a seller to offer incentives that would create a desire for the buyer to use his/her recommended service providers

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7
Q

A resident licensee may pay a part of his/her commission on a cooperative basis to a licensee of another state if that licensee does not conduct any of the negotiations for which a fee, compensation or commission is paid in this state.

a. true
b. false

A

a. true

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8
Q

Pertaining to failure to disclose agency relationships:

a. surveys have shown the public understands how state statutes control the actions and behavior of licensees
b. licensees are required to give a meaningful explanation of agency at first substantive contact and to give the agency disclosure brochure to all consumers with whom they have substantive contact
c. licensees are required to give a meaningful explanation of agency at first physical contact, but do not have to give the agency disclosure brochure to anyone except clients
d. no action can be brought against a licensee for failure to disclose the party or parties for whom the licensee will be acting as an agent

A

b. licensees are required to give a meaningful explanation of agency at first substantive contact and to give the agency disclosure brochure to all consumers with whom they have substantive contact

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9
Q

If you are representing a seller as a single-agency client what forms should be used?

a. an agency-disclosure brochure and a buyer-agency agreement
b. a listing agreement and a buyer-agency agreement
c. an agency-disclosure brochure and a designated agency consent agreement
d. an agency-disclosure brochure and a listing agreement

A

d. an agency-disclosure brochure and a listing agreement

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10
Q

The services you must give to a customer do not include:

a. confidentiality
b. accounting for money and property received
c. providing a meaningful explanation of agency relationships
d. providing an explanation of the scope of services to be provided

A

a. confidentiality

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11
Q

Practicing dual agency without the full written knowledge and consent of all parties is:

a. acceptable if both parties verbally agree to the reduction in service
b. acceptable if the BIC creates a form stating the intent to reduce services and both parties sign the in-house form
c. acceptable if the office policy is dual or designated agency
d. a violation of license law

A

d. a violation of license law

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12
Q

Pertaining to dual and designated agency

a. in consensual dual agency, there are two subagents and two clients
b. in designated agency, there are two subagents and two clients each
c. in designated agency, there are two subagents with one client each
d. in consensual dual agency, there are two subagents with one client each

A

c. in designated agency, there are two subagents with one client each

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13
Q

It is an acceptable practice for a licensee to

a. make direct contact with the buyer client of another licensee as long as he/she does so with the knowledge and permission of the buyer’s agent
b. talk someone into breaking a representation agreement with another as long as the licensee discloses why he/she thinks it is in the best interest of the client
c. advise a tenant to break a lease in order to sell him/her a property as long as the licensee discloses why he/she thinks it is in the tenant’s best interest
d. none of the above

A

a. make direct contact with the buyer client of another licensee as long as he/she does so with the knowledge and permission of the buyer’s agent

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14
Q

A licensee who receives compensation in a real estate transaction from more than one party can be disciplined unless the fee is accepted with the full knowledge and written consent of all parties.

a. true
b. false

A

a. true

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15
Q

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 SC license law
c. he must be a broker and five years experience
d. he should also give the buyer legal advice

A

b. he is not allowed to do this by SC license law

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16
Q

An unlicensed salesman negotiated the sale of real estate. The commission is payable to

a. the broker
b. the salesman
c. no one
d. an escrow holder

A

c. no one

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17
Q

In South Carolina, real estate license law is administered by the

a. South Carolina Human Affairs Commission
b. South Carolina Real Estate Commission
c. South Carolina Association of Realtors
d. Department of Housing and Urban Development

A

b. South Carolina Real Estate Commission

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18
Q

All of the following are protected classes under the Fair Housing Laws EXCEPT

a. race
b. handicap
c. value
d. national origin

A

c. value

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19
Q

The duties and powers of the SC Real Estate Commission include all of the following EXCEPT

a. promulgating regulations to protect the public
b. conducting disciplinary hearings
c. determining the standards for licensure

d. conducting investigations of a real estate office based on an irate phone
call

A

d. conducting investigations of a real estate office based on an irate phone
call

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20
Q

The SC Real Estate Commission may investigate for all of the following reasons EXCEPT

a. its own initiative
b. a written complaint submitted by an agent about a cooperative commission arrangement
c. the director has reason to believe that a licensee is unfit to practice
d. a written complaint submitted by a disgruntled customer

A

b. a written complaint submitted by an agent about a cooperative commission arrangement

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21
Q

The SC Real Estate Commission has the authority to

a. make and enforce the rules by which all licensees must abide
b. compose the examination questions on the state exam
c. administer the exams given at the testing sites
d. enact the laws that govern real estate licensees

A

a. make and enforce the rules by which all licensees must abide

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22
Q

A broker is convicted on May 1st of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the SC Real Estate Commission and leaves a message informing them of the conviction. Based on these facts, which of the following is TRUE?

a. The broker has properly informed the SC Real Estate Commission within 60 days after the conviction, and the broker’s license may be renewed.
b. Both the conviction and the broker’s failure to notify the SC Real Estate Commission with 10 days violate the Commission regulations.
c. Because the conviction did not occur in state, it is not evidence of unworthy conduct.
d. The conviction is evidence of both improper dealing and fraud.

A

b. Both the conviction and the broker’s failure to notify the SC Real Estate Commission with 10 days violate the Commission regulations.

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23
Q

An agent’s license renewal fee has been returned for insufficient funds. The SC Real Estate Commission

a. may take disciplinary action against the licensee
b. must allow the licensee a grace period of 30 days to pay the fee
c. may require the BIC to pay the renewal fee
d. must cancel the license immediately

A

a. may take disciplinary action against the licensee

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24
Q

In SC, all of the following would be grounds for revoking a broker’s license EXCEPT

a. being convicted of forgery in SC
b. guaranteeing future profit from the resale of property
c. depositing escrow money into his or her personal checking account
d. agreeing with a seller to accept a listing form more than the normal commission rate

A

d. agreeing with a seller to accept a listing form more than the normal commission rate

25
Q

A licensee may have a license revoked by the SC Real Estate Commission if the licensee

a. has been arrested for drugs
b. fails to mention a murder on a property to a potential buyer
c. pays a clerk to type up contracts
d. fails to inform the tenant that the security deposit will be held by the owner of the property, not the management company

A

d. fails to inform the tenant that the security deposit will be held by the owner of the property, not the management company

26
Q

Which of the following actions is legal and NOT a violation oflicense law?

a. encouraging a seller to reject an offer because the prospective buyer is a Methodist
b. Placing a “For Sale” ad in the newspaper in anticipation of receiving a listing
c. Delaying a closing until a commission is agreed upon
d. Having the buyer client pay the commission

A

d. Having the buyer client pay the commission

27
Q

The SC Fair Housing Law provides protection from discrimination for all of the following classes EXCEPT
a. sex

b. creed
c. national origin
d. age

A

d. age

28
Q

A housing discrimination charge must be filed with the SC Human Affairs Commission within

a. 6 months
b. 1 year
c. 2 years
d. 30 days

A

a. 6 months

29
Q

All of the following may be grounds for disciplinary action by the SC Real Estate Commission EXCEPT

a. inducing a party to break a contract
b. interfering with the agency relationship of another agent and client
c. conviction of violating state fair housing laws
d. failure to disclose the death of a seller due to cancer

A

d. failure to disclose the death of a seller due to cancer

30
Q

Which of the following activities does NOT require a real estate or property management license in SC?

a. approving applications of leases
b. negotiating fees
c. conducting an open house
d. being paid a salary to manage an agent’s marketing campaign

A

d. being paid a salary to manage an agent’s marketing campaign

31
Q

In SC, applications for any real estate license must

a. be completed before taking the written exam
b. contain a picture of the applicant
c. be made before May 31 of each year
d. be accompanied by a sworn statement attesting to the applicant’s character

A

a. be completed before taking the written exam

32
Q

A licensee on inactive status may

a. receive compensation for referrals
b. work as a part-time assistant showing houses
c. not conduct real estate activities
d. work as a leasing agent at a property management company

A

c. not conduct real estate activities

33
Q

Which of the following is correct regarding an applicant for broker-in-charge?

a. must be at least 25 years of age
b. must have been licensed as a salesperson for at least five years as a salesperson
c. may be exempt by the SC Real Estate Commission from the education requirements

d. may substitute the property manager-in-charge license for the broker-in-
charge license

A

c. may be exempt by the SC Real Estate Commission from the education requirements

34
Q

A real estate licensee who wishes to also become a property manager

a. may also apply for a property manager’s license
b. must first acquire a broker’s license
c. must attend a 30-hour property management course
d. may manage property with a real estate license

A

d. may manage property with a real estate license

35
Q

When a licensed broker-in-charge changes his or her place of business,

a. a new license will be issued by the SC Real Estate Commission immediately
b. the broker-in-charge must notify the SC Real Estate Commission within 10 days
c. a new license will be issued for a full term
d. the broker-in-charge’s new address must be approved by the SC RealEstate Commission

A

b. the broker-in-charge must notify the SC Real Estate Commission within 10 days

36
Q

In SC, licenses are renewed

a. annually, in the month issued
b. every two years in the month the licensee’s birthday
c. on December 30 of each even-numbered year
d. biennially, on June 30 of each even-numbered year

A

d. biennially, on June 30 of each even-numbered year

37
Q

When a broker-in-charge has his or her license suspended for two years, what effect does this have on the associate brokers and salespeople affiliated with the broker-in-charge?

a. their licenses will be revoked, subject to reinstatement after one year
b. their licenses will also be suspended for a 2 year period
c. suspension has no effect on the licensees
d. their licenses must be returned to SC Real Estate Commission

A

d. their licenses must be returned to SC Real Estate Commission

38
Q

A broker-in-charge intends to open a branch office in a neighboring town. The Broker-in-charge applies for a branch office license, giving a name that clearly identifies its relationship with his main office. The BIC names a licensed real estate salesperson as the branch office manager. Under these facts, could the BIC receive approval for the branch office?

a. Yes, the BIC has fully complied with the requirements
b. No, under the license, brokers cannot be in charge of branch offices in more than one municipality

c. Yes, by naming the salesperson as the branch’s manager, the BIC is in compliance with the requirement that a broker may be in direct operational
control of only one office or branch.

d. Yes, if the SC Real Estate Commission approves one broker acting as BIC of two offices

A

d. Yes, if the SC Real Estate Commission approves one broker acting as BIC of two offices

39
Q

In SC, an unlicensed real estate assistant may perform all of the following activities EXCEPT

a. compute commission checks
b. answer questions about advertising
c. hold an open house
d. prepare and distribute flyers and promotional materials

A

c. hold an open house

40
Q

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is

a. violating the license law
b. required to have a brokers license
c. required to have a salesperson’s license
d. exempt from real estate licensing requirements

A

d. exempt from real estate licensing requirements

41
Q

Under SC law, which of the following is exempt from continuing education requirements for license renewal?

a. a licensee who is 65 and has been in the real estate business 20 years
b. a licensee who has completed a property management course
c. a licensee in a referral company
d. a licensee who wishes to change from inactive to active status

A

b. a licensee who has completed a property management course

42
Q

In SC, the following requirements for obtaining a broker’s license EXCEPT

a. having successfully completed 150 hours of approved real estate courses
b. being at least 21 years of age
c. having been actively engaged as a licensed salesperson for at least 5 years
d. being of good moral character

A

c. having been actively engaged as a licensed salesperson for at least 5 years

43
Q

Regarding licensing and duties of personal real estate assistants in SC, they

a. must be licensed
b. may insert factual information into form contracts under the employing broker’s supervision and approval
c. may show houses for their supervising broker
d. must be unlicensed individuals, licensees must either salespeople or associate brokers

A

b. may insert factual information into form contracts under the employing broker’s supervision and approval

44
Q

Which of the following is TRUE of mandatory continuing education?

a. 8 hours are due every year
b. 8 hours are due every 2 years
c. it is required of every real estate licensee
d. it is required to maintain inactive status

A

b. 8 hours are due every 2 years

45
Q

In SC, which of the following would need to be a licensed real estate BIC?

a. person who employs fewer than 3 agents
b. Son acting under a power of attorney to convey real estate
c. Owner of a duplex
d. Partnership selling a building owned by the partners

A

a. person who employs fewer than 3 agents

46
Q

A real estate license is required for all of the following EXCEPT

a. managing real estate
b. reselling a personal mobile home
c. selling real estate
d. collecting rent for the use of real estate

A

b. reselling a personal mobile home

47
Q

A person must be licensed as a real estate broker or salesperson if that person is

a. selling his or her house
b. buying a house for his or her personal use
c. engaging in the real estate business
d. constructing houses

A

c. engaging in the real estate business

48
Q

An applicant for a real estate license in SC must

a. have completed at least 2 years of college
b. be at least 21 years old
c. submit to a credit check

d. show proof of passing the license exam any time up to 6 months prior to
the application

A

c. submit to a credit check

49
Q

Under SC law, which of the following needs to be licensed?

a. the owner of a 30 unit apartment building
b. an employee of the State Housing Authority
c. a man who has bee appointed the trustee of an estate
d. an auctioneer who actions farm land

A

d. an auctioneer who actions farm land

50
Q

A BIC fails to renew her license by June 30 but continues to engage in real estate transactions. What penalties could be incurred?

a. none, because the license remains active if the renewal and penalties are all paid within six months
b. an automatic hearing with the commission after 90 days with a possible $1,000 fine and/or six months’ imprisonment
c. $500 fine and/or six months imprisonment upon conviction
d. none, if the BIC can prove that non-renewal was not of malicious intent

A

c. $500 fine and/or six months imprisonment upon conviction

51
Q

A licensee who wishes to manage condominiums

a. must have a broker’s license
b. does not need a property management license
c. can have a provisional real estate sales license
d. can have a time share license

A

c. can have a provisional real estate sales license

52
Q

A SC real estate salesperson may lawfully collect compensation from

a. either a buyer or a seller
b. his or her employing broker only
c. any party to the transaction or the party’s representative
d. a licensed real estate broker only

A

b. his or her employing broker only

53
Q

Mark, a licensed broker, procures a ready, willing, and able buyer for his seller- principal. The seller first accepts the buyer’s offer in writing, then experiences a change of heart and withdraws the original acceptance. In this situation, the broker

a. is entitled to collect a commission
b. is out of luck because the transaction was never

completed c. may sue the buyer

d. may retain the deposit as commission

A

a. is entitled to collect a commission

54
Q

A broker has an exclusive-right-to-sell listing on a building. The owner is out of town when the broker gets an offer from a buyer to purchase the building providing the seller agrees to take a purchase money mortgage. The buyer must have a commitment from the seller before the seller is scheduled to return to the city. Under these circumstances the

a. broker my enter into a binding agreement on behalf of the seller
b. broker may collect a commission even if the transaction falls through because of the seller’s absence from the city
c. the buyer is obligated to keep the offer open until the seller returns
d. the broker must obtain the signature of the seller to effect a contract

A

d. the broker must obtain the signature of the seller to effect a contract

55
Q

A broker who represents a seller under an exclusive-agency listing receives two offers for the property at the same time, one from one of his salespeople and one from the salesperson of a cooperating broker. What should the broker do?

a. Submit the offer from his salesperson first
b. Submit the offer from the other salesperson first
c. Submit the higher offer first
d. Submit both offers at the same time

A

d. Submit both offers at the same time

56
Q

If a licensee violates a provision of the license law, the licensee may be subject to which of the following?

a. revocation of license for a minimum of six months
b. minimum fine of $500
c. hearing in front of an administrative law judge
d. temporary restraining order

A

d. temporary restraining order

57
Q

A licensee from another state applying for a license in South Carolina must file with the SC Real Estate Commission a

a. certificate of specific performance
b. irrevocable consent to suit
c. corpus delicti
d. copy of their birth certificate

A

b. irrevocable consent to suit

58
Q

Which of the following would NOT be true about nonresident licensees?

a. must be licensed as a broker or salesperson in some state
b. be licensed under a resident SC Broker
c. take all education course requirements in SC
d. must notify the commission in writing within 60 days of becoming a SC resident

A

c. take all education course requirements in SC

59
Q

Which of the following would be a condition for licensure as a salesperson in SC?

a. pass the state exam within five years of the provisional licensing course
b. complete an additional 30 hours of post licensing within three years
c. be at least 21 years of age
d. attend a provisional licensing course

A

a. pass the state exam within five years of the provisional licensing course

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