SC Exam Prep Flashcards
A relationship, whereby one, called the principal, authorizes another, called the agent, to
represent the principal in business relations with third parties, is known as
a. agency.
c. apparent.
b. brokerage
d. authority
a. agency
This defines agency
One employed by and under the control of another known as the principal, to represent such
principal in business dealings with third parties is known as a/an
a. servant.
b. agent
c. independent contractor.
d. client
b. agent
This defines agent
In an agency relationship, the one who employs another to represent him or her in legal and or
business dealings with third persons is called an
a. agent.
b. attorney-in-fact.
c. customer.
d. principal.
d. principal.
This defines principal (client)
The brokerage firm employed by either a seller or buyer may employ associated licensees to
assist in meeting the obligations to the brokerage fit’s principal client. Those so employed
may be called
a. subagents of the brokerage firm.
c. fiduciaries,
b. special agents of the brokerage firm.
d. attorney-in-fact.
a. subagents of the brokerage firm.
The person(s) with whom a brokerage firm is working under a transaction brokerage agreement is a
a. client.
b. customer.
c. fiduciary.
d. principal.
b. customer.
One who is in a position of trust and confidence with respect to another is known as a/an
a. fiduciary.
b. independent contractor.
c. servant.
d. broker.
a. fiduciary.
A competent person who is authorized by another to act in his/her place as an agent is known
as a/an
a. attorney-at-law.
b. master.
c. servant.
d. attorney-in-fact.
d. attorney-in-fact.
A written instrument authorizing a person to act for another to the extent indicated in the instrument is called
a. power of attorney.
b. a listing contract.
c. a permission to act slip.
d. an employment agreement.
a. power of attorney.
An agency that is voluntarily created through a contractual agreement between the principal/client and the agent is known as a/an
a. implied agency,
b. sensible agency.
c. statutory agency.
d. express agency.
d. express agency.
A common law agency created by the conduct and acts of the principal and agent is called
a. implied agency.
b. sensible agency.
c. statutory agency.
d. express agency.
a. implied agency.
An agent, while working within the scope of his/her authority, binds his/her principal. The authority granted by a seller to a broker is expressed in the
a. buyer’s broker agreement.
b. listing agreement.
c. management contract.
d. option contract.
b. listing agreement.
A type of authority that is voluntarily and explicitly set forth as instructions by the principal in the agency agreement is called
a. implied authority.
b. necessary authority.
c. express authority.
d. statutory authority.
c. express authority.
Authority exercised by an agent which is in accord with usual or traditional practices is called
a. express authority.
b. traditional authority.
c. statutory authority.
d. implied authority.
d. implied authority.
One is authorized to conduct a series of transactions involving an ongoing relationship such as
a salesperson or broker employed by a broker-in-charge is
a. special agent.
b. disclosed agent.
c. necessary agent.
d. general agent.
d. general agent.
One authorized to conduct a single transaction or a series of transactions not involving an ongoing relationship is
a. special agent.
b. undisclosed agent.
c, general agent.
d. statutory agent.
a. special agent.
An agent disclosed to the customer that he/she represents a client and he/she also disclosed the client’s identity. What type of principal is the client?
a. undisclosed principal
b. disclosed principal
c. partially disclosed principal
d. general principal
b. disclosed principal
Which of the obligations of a principal to an agent is not automatic and must be agreed upon?
a. reimbursement
b. opportunity
c. good conduct
d. good faith
a. reimbursement
There are eight situations by which an agency can be terminated by operation of the law. Which is best for the agent?
a. lapse of time
b. performance
c. change of law
d. destruction of subject matter
b. performance
Broker Tom has a listing on property owned by seller Steve. Which of the following should broker Tom NOT disclose to buyer Bob?
a. Tom has seen evidence of termites.
b. Steve may take less than the listing price.
c. The building has structural defects.
d. Zoning makes the present use non-conforming
b. Steve may take less than the listing price.
Which of the following is correct concerning a listing broker’s obligations and
responsibilities to the seller?
a. The broker may buy the seller’s property and sell it to a prospect at a profit as long as the
profit is 6% or less.
b. The broker may relieve herself of any fiduciary responsibilities as long as they have been
delegated to any qualified agents that are licensed with her company.
c. The broker is obligated to obey all of the seller’s lawful instructions, even those with which she personally disagrees.
d. The broker has the implied authority to reject unreasonable offers to the principal,
c. The broker is obligated to obey all of the seller’s lawful instructions, even those with which she personally disagrees.
Broker Joyce received a full price offer on some property she had listed. The offer is contingent on the owner financing 90% of the price. Joyce feels the offer is unacceptable because the buyer has defaulted on other loans in the past, but she does not mention this to her client. Did Joyce meet her fiduciary duties?
a. Yes, because she delivered the offer regardless of her feelings about it.
b. No, because she may be able to get a better deal later.
c. Yes, since she did find a buyer who was willing to pay full price.
d. No, because she withheld relevant facts from her client.
d. No, because she withheld relevant facts from her client.
(Full disclosure is a fiduciary duty)
After listing a house for sale, a broker incurs $37 in advertising expense and $17 in taxi fares
for prospects interested in the property. For which expense should the seller reimburse the
broker?
a. only advertising expenses, as taxi fares are not a normal expense of a listing broker
b. advertising expenses and transportation costs incurred in an attempt to market the listed
property
c. expenses are never reimbursed to a broker by a seller as part of a listing agreement
d. only those expenses agreed upon by the seller and the broker as part of the listing agreement.
d. only those expenses agreed upon by the seller and the broker as part of the listing agreement.
A broker took an exclusive listing contract on a seller’s home. The seller told the broker the roof leaked, but the broker made no notation on the listing. Later, a buyer made an offer on the property that the seller accepted. The broker lied when the buyer made his/her offer; telling him/her the roof was in good condition. After the buyer took possession, he/she discovered the truth during the first rain. Responsibility for the misrepresentation rests with
a. the broker only.
b. the seller only,
c. both the broker and the seller.
d, after possession, caveat emptor applies.
c. both the broker and the seller.
During the period of an exclusive right-to-sell listing, if the principal no longer wishes to be
represented by the brokerage firm, the principal may
a. revoke the agency created by the listing contract but may be liable for damages,
b. revoke the listing contract and not be liable for damages.
c. not revoke the agency because an exclusive right-to-sell listing is an irrevocable contract.
d. be forced to sell the property in accordance with the terms of the listing.
c. not revoke the agency because an exclusive right-to-sell listing is an irrevocable contract.
Three of the five permissible brokerage relationships in South Carolina are
a. transaction agency, disclosed dual agency and seller agency.
b. seller agency, buyer agency and transaction brokerage.
c. seller agency, single agency, and undisclosed dual agency.
d. buyer agency, cooperative subagency and transaction brokerage
b. seller agency, buyer agency and transaction brokerage.
(The five types allowed in SC are; seller agency, buyer agency, designated agency, disclosed dual agency and transaction brokerage)
In South Carolina, when must a licensee provide a meaningful explanation of agent, relationships to a buyer or a seller?
a. any time before the offer is presented
b. prior to writing the offer for a buyer
c. prior to asking the buyer his name and telephone number
d. at the first practical opportunity at which the licensee and the buyer or seller has substantive contact
d. at the first practical opportunity at which the licensee and the buyer or seller has
substantive contact
What term in the SC license law replaced the common law term, principal?
a. master
b. client
c. fiduciary
d. attorney-in-fact
b. client
In South Carolina, which of these duties of an agent to a principal continues after the agency relationship has been terminated?
a. full disclosure
b. loyalty
c. obedience
d. confidentiality
d. confidentiality
What is a common law ‘third party’ called in the SC license law?
a. master
b. client
c. fiduciary
d. customer
d. customer
When creating an agency relationship in SC between a real estate brokerage firm and a seller what is required?
a. there must be an agreement for the seller to pay a commission
b. the seller must have a clear title to the property
c. the seller and the brokerage firm must have a written agency agreement
d. the seller and the brokerage firm must agree to a 180-day listing
c. the seller and the brokerage firm must have a written agency agreement
A requirement for a non-resident to be eligible to receive a SC license is that they
a. not maintain a place of business within the state.
b. reside in a state which grants reciprocity with SC.
c. be licensed with a broker-in-charge licensed by SC.
d. are a non-resident for only 4 months of the year.
c. be licensed with a broker-in-charge licensed by SC.
An unlicensed person negotiated the sale of real estate. The real estate commission is payable to
a. the broker.
b. the salesperson.
c. no one.
d. an escrow holder.
c. no one.
Before taking the South Carolina real estate sales examination, every applicant shall furnish
evidence satisfactory to the Real Estate Commission of: successful completion of sixty
classroom hours,
a. attain the age of 21 years and be a high school graduate or equivalent.
b. attain the age of 18 years and be a high school graduate or equivalent.
c. attain the age of 18 years and be a resident of this state.
d. attain the age of 21 years and be a resident of this state.
b. attain the age of 18 years and be a high school graduate or equivalent.
In the event that a licensee failed to renew her license,
a. no more real estate activity will be legal except transactions in which she is the principal.
b. no commissions may be collected on the transactions she has not closed before her license expired.
c. her license will be canceled on September 30th.
d, as of September 1st, she will be fined $75.
a. no more real estate activity will be legal except transactions in which she is the principal.
When should a buyer’s earnest money personal check be deposited in the trust account of the
brokerage?
a, upon acceptance of both parties of the contract
b. within 48 hours of acceptance of an offer to purchase
c. within 48 hours after receipt
d. on or before the next banking day after receipt
b. within 48 hours of acceptance of an offer to purchase
A real estate salesperson in SC wrote an ad for her new listing: “Spacious executive brick
home with a great view of the mountains and priced to sell at only $625,000, Call 271-9732.
What is wrong with this ad?
a. It is offensive to certain groups,
b. It is in violation of the Fair Housing Act as amended in 1989.
c. It is in violation of Regulation Z.
d. It does not contain the name of the real estate company.
d. It does not contain the name of the real estate company.
The SC Real Estate Commission has the power to
a. act as an advisory board to the Governor.
b, create the standards for the employees of the SC Real Estate Commission.
c, suspend a license, fine and impose jail sentences of up to 6 months.
d. conduct disciplinary hearings and decide the punishment of those found guilty.,
d. conduct disciplinary hearings and decide the punishment of those found guilty.,
When a salesperson receives a personal check as an earnest money deposit he must
a. place it in his own trust account.
b. place it in the broker’s general account.
c. give it to his broker no later than the following business day,
d. place it in the salesperson’s special account.
c. give it to his broker no later than the following business day,
A very difficult sale results in a dispute between brokers *A” and *B’ about earned commission. Broker “A” feels that the bonus offered should have been paid to him as a procuring cause and complains to the Real Estate Commission. Which is correct?
a. He must submit his complaint in writing.
b. Bonuses are always paid to the selling agent only.
c. Both brokers will have to appear at a hearing before Commission members.
d. Commission disputes are not under the jurisdiction of the Real Estate Commission.
d. Commission disputes are not under the jurisdiction of the Real Estate Commission.
By what authority does the state of South Carolina require a person to have a real estate
license to practice real estate?
a. Commission power
b. State statute
c. Govemmental authority
d. State Constitution
b. State statute
The real estate license law is an example of
a. good legislation.
b. big government.
c. police power.
d. protectionism.
c. police power.
The purpose of the real estate license law is to
a. provide revenue for the state.
b. protect the people who are selling real estate.
c. increase employment opportunities for salespersons.
d. protect the public when involved in real estate transactions,
d. protect the public when involved in real estate transactions,
J was found guilty of acting as a broker and an undisclosed principal in the same transaction. The decision of the Commission was to revoke J’s license. What is the minimum time J must wait following revocation of his license, to be eligible for a new license?
a. six months
b. nine months
c. three years
d. two year
c. three years
K, a licensed salesperson from Alabama, has a friend, M, in South Carolina who has listed
his house for sale. K gave M’s agent the name of a buyer who purchased the house. After
the settlement, M’s agent gave K’s brokerage firm a referral fee. How is this legal?
a. The referral fee is $500 or less.
b. K did not come into SC and help with the sale.
c. The fee was paid in cash.
d. K’s continuing education hours have been met.
b. K did not come into SC and help with the sale.
Why are the requirements for continuing education mandated by the state?
a. To decrease liability for brokers
b. To protect the public’s interest
c. To provide additional training for agents
d. To comply with Federal Statutes
b. To protect the public’s interest
Copies of all closing statements of transactions handled by a broker must be kept on file in his office for a period of
a. three years.
b. one year.
c. five years.
d. two years
c. five years.
An agent received a cash deposit for a principal’s property. The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For this action, the agent was found guilty of
a. conversion.
b. commingling.
c. dual agency.
d. secret profit.
b. commingling.
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 South Carolina license law.
c. he must be a broker and five years of experience.
d. he should also give the buyer legal advice.
b. he is not allowed to do this by South Carolina license law.
A real estate license may be revoked upon proof of the licensee
a. charging more than the usual rate of commission.
b. having a dispute between a broker and a salesperson as to commission.
c. refusing to accept a listing.
d. violating a buyer’s right to choose an attorney or insurance agent.
d. violating a buyer’s right to choose an attorney or insurance agent.
The __________ establishes an agency relationship between the property owner as principal
(client) and the brokerage as an agent.
a. listing agreement
b. personal services agreement
c sales contract
d. buyer’s representation agreement
a. listing agreement
The listing agreement does which of the following?
a. Creates an agency relationship between the listing salesperson and the property owner
b. Obligates the seller to sell if a full-price offer is received
C. Employs a real estate brokerage to represent a buyer
d. Creates an agency relationship between the listing brokerage and the property owner
d. Creates an agency relationship between the listing brokerage and the property owner
A brokerage agreement whereby the property owner hires one or more brokerages agrees to
compensate only the one brokerage that produces a buyer, and reserves the right to sell by
himself and pay no agents is called
a. net listing.
b. open listing.
c. exclusive right to sell.
d. exclusive agency.
b. open listing.