Chapter 4: Additional South Carolina Statutes and Topics (5 Questions)

Question 1

A listing broker knows that the five-year projection for the town includes construction of a parkway that will border the property. What disclosure obligations does the broker have to make to prospective purchasers?

a. none, unless the purchasers are clients
b. none, as the listing broker need not discover the latent defect
c. full disclosure, as this is a material fact
d. full disclosure, only if asked by the prospective purchaser

Answer 1

c. full disclosure, as this is a material fact

Question 2

Prior to putting a house on the market for sale, an owner has a home inspection completed on the property. The inspection report reveals there is mold in the air ducts. The seller indicates to the listing agent that this is confidential information and should NOT be disclosed because the mold is not visible, but is a latent defect. What obligation does the listing agent have?

a. no obligation. The listing agent is required to keep confidential information the seller has requested be kept confidential
b. the listing agent must only notify a buyer if a buyer is a client
c. no obligation. The buyer is required to inspect the property prior to submitting an offer
d. the listing agent is required to notify a buyer, whether customer or client, of the mold problem

Answer 2

d. the listing agent is required to notify a buyer, whether customer or client, of the mold problem

Question 3

A seller and a buyer agree that a property condition disclosure statement need not be completed for a specific transaction. In SC

a. this is permitted if both parties agree in writing
b. this is prohibited under law
c. this is permitted if the property is being sold “as is”
d. this is prohibited if the property conveyed is new construction

Answer 3

a. this is permitted if both parties agree in writing

Question 4

Disclosed dual agency would most likely occur in a

a. company that does not provide customer-level service
b. company that only practices buyer agency
c. cooperative sale situation
d. it would not occur because it is prohibited by SC law

Answer 4

a. company that does not provide customer-level service

Question 5

The Realty Company has entered into agency agreements with both a seller and a buyer. The seller and the buyer have signed the dual agency contract. The salesperson with the Realty Company who has been working with the buyer may

a. provide comparable market data to the seller, after providing the buyer, who requested this data, with the same information
b. disclose the buyer’s financial qualifications to the seller
c. tell the buyer that the seller will accept less than the listing price
d. inform the seller that the buyer will pay more than the offering price

Answer 5

a. provide comparable market data to the seller, after providing the buyer, who requested this data, with the same information

Question 6

A real estate licensee must give the agency disclosure form to prospective purchasers

a. before they are shown any properties
b. when they ask for it
c. at the closing table
d. after an offer to purchase is prepared

Answer 6

a. before they are shown any properties

Question 7

What obligations does a broker have to a buyer who wishes to purchase beach property?

a. none, unless the buyer is a client not a customer
b. disclose the existence of the SC Coastal Zone Management Act and its possible impact on the property
c. none, as only property that borders marshland is impacted
d. none, unless the purchaser plans to build a deck on the property

Answer 7

b. disclose the existence of the SC Coastal Zone Management Act and its possible impact on the property

Question 8

The salesperson’s brother is interested in purchasing a home listed with agent’s company. The salesperson

a. should suggest that the brother purchase a house not listed with the company
b. must refer the brother to another company
c. must disclose the family relationship to the seller

d. need not disclose the family relationship to the seller if the brother is a
customer

Answer 8

c. must disclose the family relationship to the seller

Question 9

The purpose of a licensee presenting the agency disclosure form in SC is to

a. establish an agency relationship with a client
b. provide a meaningful explanation of agency relationships offered in SC
c. avoid discrimination under SC fair housing laws
d. provide proof of representation to the other party in a transaction

Answer 9

b. provide a meaningful explanation of agency relationships offered in SC

Question 10

Which of the following is TRUE about the agency disclosure form?

a. It must be signed upon presentation by the potential buyer or seller
b. It must only be presented by the agent if the buyer or seller elects to be a client
c. It is an information brochure that must be acknowledged in a representation agreement
d. It is an information brochure that requires a buyer or seller to choose client or customer service

Answer 10

c. It is an information brochure that must be acknowledged in a representation agreement

Question 11

Which of the following is TRUE about the residential property condition disclosure statement?

a. the seller’s agent should fill in the form if the seller is out of town
b. the buyer’s agent is responsible for incorrect information on the form
c. failure to provide the form creates a defect in title
d. form must be presented to buyer prior to ratification of the sales contract

Answer 11

d. form must be presented to buyer prior to ratification of the sales contract

Question 12

Several weeks after a closing, an associate broker received a thank you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. In this situation, which of the following is TRUE?

a. the associate broker may accept the bonus because he is licensed as an associate broker
b. accepting the money is allowed if more than 30 days have elapsed since the closing
c. the associate broker may accept the money if his broker permits him to do so
d. accepting the money is a violation of SC Real Estate Commission regulations

Answer 12

d. accepting the money is a violation of SC Real Estate Commission regulations

Question 13

In SC, if a buyer has been presented an agency disclosure form by an agent and proceeds to purchase a property through that agent

a. the buyer remains a customer unless a representation agreement is signed
b. the buyer is considered a client through implied agency
c. the agent has no obligations to the buyer
d. the agent need not provide fair and honest treatment to the buyer

Answer 13

a. the buyer remains a customer unless a representation agreement is signed

Question 14

Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed NOT to tell any prospective buyers. The broker claims that the buyer did NOT ask about the roof. Under these facts the buyer

a. can sue the broker for nondisclosure required by license law
b. cannot sue the broker under the license law
c. can sue the seller under license law

d. cannot do anything because the leaking roof could have been discovered
by inspection

Answer 14

a. can sue the broker for nondisclosure required by license law

Question 15

A real estate broker representing the seller knows that the property has a cracked foundation and that is former owner committed suicide in the kitchen. The broker must disclose

a. both facts
b. the suicide, but not the foundation
c. the cracked foundation, but not the suicide
d. neither fact

Answer 15

c. the cracked foundation, but not the suicide

Question 16

Upon obtaining a listing, a broker or licensed salesperson is obligated to

a. set up a listing file and issue it a number in compliance with the SC Real Estate Commission
b. place advertisements in the local newspapers
c. cooperate with every real estate office wishing to participate in the marketing of the listed property

d. give the person or persons signing the listing a legible, signed, true, and
correct copy

Answer 16

d. give the person or persons signing the listing a legible, signed, true, and
correct copy

Question 17

A seller has a ratified contract of sale and is expecting to close on June 24. The listing broker receives an offer on the same property on June 15 that is higher than the ratified contract. What should the broker do?

a. reject the offer and return it to the buyer
b. suggest the seller terminate the contract of sale and accept the second higher offer
c. wait and not present the offer unless the contract of sale does not close on June 24
d. present the offer to the seller

Answer 17

d. present the offer to the seller

Question 18

Generally, an oral lease for five years is

a. illegal
b. unenforceable
c. a short-term lease
d. renewable only in writing

Answer 18

b. unenforceable

Question 19

Rent would best be defined as

a. contractual consideration to a third party
b. consideration for the use of real property
c. all monies paid b the lessor to the lessee
d. the total balance owed under the terms of a lease

Answer 19

b. consideration for the use of real property

Question 20

Which of the following tenancies does NOT involve a lessor-lessee relationship?

a. tenancy at will
b. tenancy in common
c. tenancy from month to month
d. tenancy from year to year

Answer 20

b. tenancy in common

Question 21

A lease would be terminated by which of the following?

a. sale of the lease premises
b. death of the tenant
c. abandonment of the leased premises by the tenant
d. expiration of the term in a lease for years

Answer 21

b. death of the tenant

Question 22

The authority to carry out the eviction of a delinquent tenant from rented property comes from the

a. court
b. landlord
c. sheriff
d. property owner

Answer 22

a. court

Question 23

Which of the following would NOT acquire title to real property?

a. the grantee
b. the devisee
c. the vendee
d. the lessee

Answer 23

d. the lessee

Question 24

A lessee who pays some or all of the lessor’s property expenses has a

a. gross lease
b. net lease
c. percentage lease
d. sublease

Answer 24

b. net lease

Question 25

The principal difference between an estate for years and an estate from year to year is that

a. an estate for years is a life estate
b. an estate for years cannot be terminated
c. an estate from year to year must be in writing
d. an estate from year to year has no expiration date

Answer 25

d. an estate from year to year has no expiration date

Question 26

How must a landlord handle a security deposit?

a. it can only be collected on a residential unit
b. landlords must pay tenants interest on their security deposit
c. at the end of the lease, the landlord cannot apply the security deposit to rent owed by the tenant
d. the landlord must return the security deposit, with an itemized list of deductions, to the tenant within 30 days of the end of the lease

Answer 26

d. the landlord must return the security deposit, with an itemized list of deductions, to the tenant within 30 days of the end of the lease

Question 27

All of the following are essential services that are required by the SC Residential Landlord and Tenant Act EXCEPT

a. heat
b. air conditioning
c. electricity
d. hot water

Answer 27

b. air conditioning c. electricity

Question 28

If a tenant’s whereabouts are unknown, how many days must the landlord wait before declaring abandonment?

a. 5 days
b. 10 days
c. 15 days
d. 30 days

Answer 28

c. 15 days

Question 29

A tenant vacated the property because the landlord refused to fix the hot water heater. This is called

a. constructive eviction
b. actual eviction
c. partial eviction
d. legal ejectment

Answer 29

a. constructive eviction

Question 30

A couple has signed a lease containing a provision to waive their rights to the interest earned from the security deposit. This provision is

a. unenforceable, thus making the lease invalid
b. unenforceable, but the lease is still valid
c. enforceable, because the couple agreed to the provision
d. enforceable only up to a security deposit limit of $1,000

Answer 30

c. enforceable, because the couple agreed to the provision

Question 31

How long must a landlord wait before he or she can raise rent to reflect a substantial increase in property taxes?

a. never, because this is illegal
b. until the lease expires
c. six months
d. four months

Answer 31

b. until the lease expires

Question 32

The on-site property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position the on-site manager

a. is exempt from the licensing requirements
b. must have a broker’s license
c. must have a real estate or property manager’s license
d. may negotiate but not sign leases without a license

Answer 32

c. must have a real estate or property manager’s license

Question 33

The heater in the water tank of a rental property is broken and the landlord has indicated that the heater will be repaired in a month or so. The SC Residential Landlord Tenant Act requires that

a. the tenant move promptly
b. the tenant repair the heater
c. the landlord repair the heater as soon as possible
d. the landlord provide cold, not hot, water

Answer 33

c. the landlord repair the heater as soon as possible

Question 34

The SC Residential Landlord-Tenant Act applies to

a. property management licensees, not real estate licensees
b. managers of townhouses
c. office leasing agents
d. licensees who manage property, not owners who manage own property

Answer 34

b. managers of townhouses

Question 35

. In SC, if a landlord wants to terminate a month-to-month tenancy, how much notice must the tenant receive?

a. 7 days
b. 30 days
c. 60 days
d. no notice

Answer 35

b. 30 days

Question 36

Which of the following statements is TRUE?

a. all leases must be in writing regardless of term
b. a 15 month oral lease is enforceable
c. a lease less than 6 months would have to be in writing
d. an 11 month oral lease is enforceable

Answer 36

d. an 11 month oral lease is enforceable

Question 37

In SC, the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of the scheduled due date?

a. 5 days
b. 7 days
c. 10 days
d. 30 days

Answer 37

a. 5 days

Question 38

Security deposits must be returned to the tenant within

a. 14 days
b. 15 days
c. 30 days
d. 45 days

Answer 38

c. 30 days

Question 39

What obligations does the smoke detector law impose on a landlord in a duplex?

a. none, only single-family rentals are impacted by smoke detector regulations
b. to provide and maintain smoke detectors
c. to advise the tenant to provide their own smoke detectors
d. to repair a malfunctioning smoke detector within 30 days

Answer 39

b. to provide and maintain smoke detectors

Question 40

A tenant pays rent and a security deposit. What are the regulations regarding the deposit of these funds?

a. the rent must be deposited into the general account and the security deposit placed into the escrow account
b. the rent must be deposited into one escrow account and the security deposit placed into another escrow account
c. both the rent and the security deposit can be deposited in the same escrow account
d. the rent must be sent directly to the owner and the security deposit placed into the escrow account

Answer 40

c. both the rent and the security deposit can be deposited in the same escrow account

Question 41

Provisions under the SC Vacation Time Sharing Plan Act

a. require that funds from a time share sale be placed in an escrow fund for a certain period
b. require that anyone selling a time share must have a real estate license
c. mandate a four day right of rescission
d. are enforced by HUD

Answer 41

a. require that funds from a time share sale be placed in an escrow fund for a certain period

Question 42

All of the following agreements must be in writing EXCEPT a

a. exclusive agency listing
b. three-month lease
c. exclusive-right-to-sell
d. multiple listing

Answer 42

b. three-month lease

Question 43

A listing broker has received a written offer to purchase from sales broker. The seller counteroffers, changing some of the terms. In this situation

a. all changes to the original offer need only be initialed by the seller
b. all changes to the original offer need to be initialed and dated by both parties
c. an entirely new written offer must be submitted
d. negations can be verbal because the original contract is in writing

Answer 43

b. all changes to the original offer need to be initialed and dated by both parties

Question 44

Listing based on a “net price” are

a. more profitable because no minimum is set on the amount of commission collectible
b. legal in SC as long as the seller agrees
c. illegal in SC at any time
d. permissible with approval of the commission

Answer 44

c. illegal in SC at any time

Question 45

All of the following are TRUE about offers in SC EXCEPT

a. offers need to be in writing
b. all parties should receive copies of a ratified contract
c. all terms, with the exception of a closing date, which negotiable, are to be included in the offer

d. any changes made during negotiations must be initialed and dated by all
parties

Answer 45

c. all terms, with the exception of a closing date, which negotiable, are to be included in the offer

Question 46

In SC, the age of legal competence is

a. 18
b. 19
C. 20
d. 21

Answer 46

a. 18

Question 47

Buyer agency contracts in SC

a. must be in writing to be enforceable
b. must be on specific forms
c. are not regulated under the license laws
d. are illegal

Answer 47

a. must be in writing to be enforceable

Question 48

Twenty years ago, a homeowner obtained a 30 year mortgage loan to purchase a home. The interest rate on the loan was 9.275 percent. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which of the following statements is true in SC?

a. the homeowner’ s lender is entitled by statute to charge the homeowner a prepayment penalty equal to one year’s interest on current balance of the loan
b. the homeowner’s lender is not permitted by SC statute to charge the homeowner a prepayment penalty on loans of more than $100,000
c. SC does not take an official statutory position on the issue of prepayment penalties
d. Because the homeowner’ s loan was greater than $180,000, the lender may charge a prepayment penalty under SC law.

Answer 48

d. Because the homeowner’ s loan was greater than $180,000, the lender may charge a prepayment penalty under SC law.

Question 49

Under the SC Consumer Protection Code, a purchaser may

a. choose his or her own real estate agent
b. elect to use the family attorney for the closing
c. refuse to pay a prepayment penalty on a $200,000 loan
d. pay a maximum $600 fee when assuming a loan

Answer 49

b. elect to use the family attorney for the closing

Question 50

A house was purchased for $227,100, cash. The deed recording fees will cost

a. $314.65
b. $375.55
C. $841.75
d. $1502.20

Answer 50

C. $841.75