License Law Flashcards
4 Key disclosures required by the South Carolina Real Estate Commission.
- Undisclosed Principal
When licensees act as principals in transactions, this must be disclosed. - Agency Representation
A licensee must disclose an agency relationship to all parties to the transaction. - Seller Property Disclosure
A licensee must ensure sellers know their obligation to accurately disclose property condition. - Stigmatized Properties
Licensees must ensure sellers know that stigmatized characteristics (such as a death on the property, diseases of prior occupants, etc.) aren’t required to be disclosed.
It’s illegal for people to advertise themselves as licensed real estate professionals if they’re not licensed. Name 4 other requirements for advertising.
- A licensee must have a written listing agreement with a property owner in place before advertising that property for sale.
- All advertisements, which includes signs on the property, must include the full name of the licensee’s real estate brokerage firm.
- Electronic advertising can include a link to the firm’s website to meet this requirement.
- Team advertisements must include the brokerage firm’s full name conspicuously, in addition to the team name
True or False: The commission sets commission rates and splits.
False
True or False: Unlicensed employees of a real estate brokerage firm can’t receive compensation or commissions based on the amount of a real estate transaction.
True
True or False: If a member vacates, the next member must be selected in the same manner as the vacating member
True
Alfred, a South Carolina licensee, received trust funds from a client on Monday. When must he deliver the funds to his broker-in-charge?
By end of day Tuesday
If a broker-in-charge becomes medically incapacitated or dies, an associated licensee may act as the broker-in-charge for up to ______ months.
Six
Licensed residents of other states can apply for a license in South Carolina, but must pass the ______.
State portion of the licensing exam
Marco is a South Carolina salesperson associated with Movin’ On Up Realty in Spartanburg. He and his family own a few single-family rental properties in the area. Marco just received a security deposit check from a new renter. Into which of these accounts is Marco permitted to deposit these funds?
His personal trust account
James’s South Carolina real estate license expiration date passed last week and he hasn’t renewed it. Which of the following statements are true?
He can’t practice real estate until he renews his license.
Jermaine holds a salesperson license in South Carolina. How often must he renew his license?
Every two years
What’s the minimum age requirement to qualify for a broker license in South Carolina?
21
Jillian is a licensed broker-in-charge in South Carolina. Salesperson Charles, broker Josephine, and unlicensed assistant Nick also work at the brokerage. Who supervises whom?
Jillian supervises everyone.
What status would a South Carolina real estate license be in if the expiration date just passed and the licensee hasn’t renewed it?
Lapsed
Kathy Lee is up for her first renewal of her South Carolina salesperson license. How many hours of continuing education must she complete?
10 hours every two years
License laws protect the rights of ____________.
Buyers, sellers, tenants, and property owners
Licensing may be governed by ___________.
Laws, regulations, or a combination of those
Describe the composition of the South Carolina Real Estate Commission.
10 members: seven active real estate professionals elected by state house and senate members; two appointed by the governor; and one real estate professional elected by other commission members
List 4 duties of the South Carolina Real Estate Commission.
- Regulates and enforces real estate license law
- Approves real estate education courses
- Reviews applications
- Investigates customer complaints against licensees
Two items that must be on team advertisements
The brokerage firm’s name and the team name
Three license classifications in South Carolina
Salesperson, broker, and broker-in-charge; salespersons and brokers are associated licensees of the broker-in-charge
South Carolina currently offers reciprocal licenses for which state?
Georgia
Six license status types
Active, inactive, lapsed, canceled, revoked, and suspended
Trust fund commingling vs. conversion
Commingling: when company or personal funds are intermixed in an account with client funds; the commission allows some commingling
Conversion: when trust funds are used for a reason other than the intended purposes
The South Carolina Real Estate Commission is an office of the Division of Professional and Occupational Licensing (POL), which is
part of the ______________
Department of Labor, Licensing, and Regulation (LLR).
The South Carolina Real Estate Commission administers and enforces what Title and Chapter
Title 40; Chapter 57
Complaints for license law violations are submitted electronically to the commission and investigated.
Possible penalties for violations include
Public reprimand;
Licensee probation;
License suspension, restriction, or revocation;
Fines; and court costs.
Licensees have ___ days to appeal hearing decisions.
30
Unlicensed individuals who perform real estate activities for others for a fee or compensation face what penalties
Fines up to $50,000 or one year in jail
2 real estate activities that don’t require a license
Individuals acting under court order and employees performing official duties for a
government agency
