Section #5: Other SC Laws Affecting Real Estate

Question 1

When purchasing a timeshare ownership plan in SC, a consumer who wants to be released from the purchase contract must notify the salesperson of his/her intent to withdraw from the transaction within:

a. three days, excluding Sunday.
b. four days, excluding Sunday.
c. five working days.
d. 30 days.

Answer 1

c. five working days.

Question 2

An owner of South Carolina property who does not reside in the state but sells a property in the state is subject to:

a. withholding tax.
b. abated tax.
c. taxation governed by his/her state of residence.
d. only federal income tax.

Answer 2

a. withholding tax.

Question 3

The purpose of the South Carolina Coastal Zone Management Act is to:

a. control the building of docks on inland waters.
b. control the flow of sediment into rivers.
c. control the number of boats that can use certain ports.
d. control erosion along the coast.

Answer 3

d. control erosion along the coast.

Question 4

If a consumer desires to purchase within an area restricted by the Coastal Zone Management Act, the licensee must:

a. disclose that he/she needs to seek an engineer’s advice.
b. disclose that the property is located within the zone.
c. disclose how close adjoining properties are to the intended purchase.
d. disclose restrictions to boat traffic within a 3-mile area.

Answer 4

b. disclose that the property is located within the zone.

Question 5

The South Carolina Consumer Protection Code allows for assumption fees on residential loans in the amount of:

a. 1 percent of the unpaid balance, not to exceed $400.
b. any amount negotiated in the agreement with the mortgage company.
c. up to 7 percent of original loan amount.
d. nothing, as assumption fees are illegal in South Carolina.

Answer 5

a. 1 percent of the unpaid balance, not to exceed $400.

Question 6

The purchaser is denied the right to choose an attorney for closing the transaction. This is a violation of the:

a. Homestead Exemption Act.
b. Consumer Protection Act.
c. Fair Housing Law.
d. SC RESPA.

Answer 6

b. Consumer Protection Act.

Question 7

The South Carolina Fair Housing Law is administered by the:

a. Human Affairs Commission.
b. Department of Housing and Regulation.
c. Real Estate Commission.
d. Department of Labor, Licensing and Regulation.

Answer 7

a. Human Affairs Commission.

Question 8

The purpose of the South Carolina Fair Housing Law is to:

a. add additional protected classes to federal law.
b. prevent duplication of federal law in investigating discrimination complaints.
c. curtail the practice of discrimination.
d. apply certain restrictions on residential tenants.

Answer 8

b. prevent duplication of federal law in investigating discrimination complaints.

Question 9

An approved primary residential property was appraised at $140,000 with no homestead exemption. The millage rate was 35 mills. Calculate the amount of the yearly taxes due.

Answer 9

$140000 x .04 = 5600 x

.035 = $196

Question 10

A property was sold at a purchase price of $250,000. What was the cost of the deed recording fee?

Answer 10

$925

Question 11

The owner of a single-family residential home is expecting an offer from a potential buyer. The owner must provide the Residential Property Condition Disclosure Form to the purchaser:

a. when the purchaser does a final walk through prior to closing.
b. when the purchaser views the home for sale.
c. prior to the time the purchaser makes an offer on the property.
d. prior to the time the purchaser makes an offer, but only if the property is listed with a real estate licensee.

Answer 11

c. prior to the time the purchaser makes an offer on the property.

Question 12

The property being sold is in an estate that has yet to be settled. The personal representative of the estate:

a. is required to deliver a Residential Property Condition Disclosure Form to the buyer.
b. is not required to deliver a Residential Property Condition Disclosure Form to the buyer.
c. is only required to deliver the Residential Property Condition Disclosure Form to the buyer if the property is listed by a real estate licensee.
d. is required to deliver the Residential Property Condition Disclosure Form to the buyer if the buyer makes the request in writing.

Answer 12

b. is not required to deliver a Residential Property Condition Disclosure Form to the buyer.

Question 13

The owner of a property has never lived in the property but holds the title. In this case, the owner:

a. is not required to deliver the Residential Property Condition Disclosure Form to the buyer.
b. is required to deliver the Residential Property Condition Disclosure Form to the buyer.
c. is exempt from the delivery of the form as he has never lived in the property.
d. is exempt from the delivery of the form as he holds title.

Answer 13

b. is required to deliver the Residential Property Condition Disclosure Form to the buyer.

Question 14

The available answers from which the seller may choose regarding property condition are “yes,” “no” and “no representation.” “No representation” means:

a. I have never lived in the property and know nothing about it.
b. I do not know of a problem.
c. I am not saying if I know of a problem.
d. I am exempt from disclosure of problems.

Answer 14

c. I am not saying if I know of a problem.

Question 15

The property being sold is a vacant lot. In this case:

a. the Residential Property Condition Disclosure Form does not have to be completed as there is no dwelling on the lot.
b. the Residential Property Condition Disclosure Form must be completed whether or not there is a dwelling on the lot.
c. the seller is exempt from the delivery of the form.
d. the seller must deliver the form but can claim “no representation” to the questions regarding a dwelling.

Answer 15

a. the Residential Property Condition Disclosure Form does not have to be completed as there is no dwelling on the lot.

Question 16

The seller purchased the property at a foreclosure sale and holds title. In this case, the seller:

a. is exempt from the delivery of the Residential Property Condition Disclosure Form.
b. must deliver the Residential Property Condition Disclosure Form as he holds title.
c. does not have to deliver the Residential Property Condition Disclosure Form as he has never lived in the property.
d. does not have to deliver the Residential Property Condition Disclosure Form since he bought it at a foreclosure sale.

Answer 16

b. must deliver the Residential Property Condition Disclosure Form as he holds title.

Question 17

The owner of the property wants to sell “as is.” In this case, the owner:

a. is exempt from the delivery of the Residential Property Condition Disclosure Form by saying she is selling “as is.”
b. is saying she is not making repairs but still must complete the Residential Property Condition Disclosure Form.
c. cannot be held liable if the purchaser finds undisclosed known defects since she stated “as is.”
d. cannot be held liable if the purchaser finds undisclosed known defects since she is not making repairs.

Answer 17

b. is saying she is not making repairs but still must complete the Residential Property Condition Disclosure Form.

Question 18

The owner delivered the Residential Property Condition Disclosure Form in a timely manner. The buyer had an inspection completed and found serious structural issues. In this case, the owner:

a. must repair the structural issues.
b. must rescind the contract of sale.
c. must give the purchaser back the funds she paid for the inspection.
d. must either deliver a new form with the disclosure or make the repair.

Answer 18

d. must either deliver a new form with the disclosure or make the repair.

Question 19

The owner is selling a six-plex apartment building. The owner:

a. is not required to complete the Residential Property Condition Disclosure Form.
b. is required to complete the Residential Property Condition Disclosure Form due to the fact that it is multifamily.
c. is not required to complete the Residential Property Condition Disclosure Form as it is an “as is “ sale.
d. is required to complete the Residential Property Condition Disclosure Form because it is more than four units.

Answer 19

a. is not required to complete the Residential Property Condition Disclosure Form.

Question 20

. The owner is aware of a latent defect in the property but does not want to disclose it, so she marks “no representation,” thinking that she will not be held liable if she doesn’t say anything. Which of the following is true?

a. She can use “no representation” and not disclose the defect and has no liability.
b. She can use “no representation” if the disclosure of the defect would stop the sale.
c. She must disclose the defect in order to relieve herself of the liability.
d. She does not have to disclose the defect if the buyer has an inspection completed.

Answer 20

c. She must disclose the defect in order to relieve herself of the liability.

Question 21

The buyer wanted to purchase new construction listed with a real estate agency and was told that she must use the builder’s attorney to close the property. The buyer’s sister is an attorney and she wanted her to close the property but was denied that option. This is a violation of:

a. the SC Fair Housing Law.
b. the SC Consumer Protection Code.
c. SC License Law.
d. SC Fairness in Selection Act.

Answer 21

b. the SC Consumer Protection Code.

Question 22

The purchaser of a time-share unit week wants to rescind the transaction. He waited 30 days to let the salesperson know. He was denied the right to rescind due to:

a. lapse of time allowed.
b. constructive notice.
c. lapse of contract.
d. constructive eviction.

Answer 22

a. lapse of time allowed.

Question 23

The tenant had no running water for more than 10 days due to a pipe that had frozen during the winter. He wants to break his lease and move elsewhere. He could use the theory of:

a. actual eviction.
b. right of rescission.
c. reversion.
d. constructive eviction.

Answer 23

d. constructive eviction.

Question 24

The owner wants to claim a homestead exemption. To do so, she must be:

a. over the age of 65, on disability, and she must make an application.
b. over the age of 65, blind, or on 100 percent disability.
c. over the age of 62 and disabled.
d. over the age of 62 and drawing social security.

Answer 24

b. over the age of 65, blind, or on 100 percent disability.

Question 25

The buyer has been denied rental housing based on the fact that her children seemed very boisterous during the interview with the rental agent. The agent stated that she should look for housing where children had more room to play. In this case, she violated SC Fair Housing Law based on:

a. her not being able to control the children.
b. her not giving the children room to play.
c. her familial status.
d. her being unmarried.

Answer 25

c. her familial status.

Question 26

Which of the following is a protected class under SC Fair Housing Law?

a. unwed mothers.
b. registered sex offenders.
c. convicted criminals.
d. persons with disabilities.

Answer 26

d. persons with disabilities.

Question 27

A buyer asks a real estate licensee if she can build some apartments on the vacant lot near the shoreline in Beaufort. The licensee should:

a. refer her to DHEC for the answers she needs.
b. ask the owner on the buyer’s behalf.
c. ask the owner’s agent on the buyer’s behalf.
d. check with the neighbors to see if apartments can be built there.

Answer 27

a. refer her to DHEC for the answers she needs.

Question 28

An owner from Ohio is selling a condo in Myrtle Beach to a SC resident. The owner’s net gain on the property is $100,000. In this case:

a. the seller must file a SC income tax return and remit $7,000.
b. the seller must ask the closing attorney to remit $7,000.
c. the buyer is required to withhold $7,000.
d. the seller is exempt as he is not a SC resident.

Answer 28

c. the buyer is required to withhold $7,000.

Question 29

An owner is over 65 years old and wants to apply for the homestead exemption. This should save him on taxes as he will be able to:

a. deduct $50,000 from his real estate taxes.
b. deduct $50,000 from his income taxes.
c. deduct $50,000 from his property value for tax purposes.
d. claim an exemption based on age and not pay any real estate taxes.

Answer 29

c. deduct $50,000 from his property value for tax purposes.

Question 30

The buyer has agreed to pay the deed recording fees as part of the contract of sale. The sales price of the property is $250,000. The amount to be collected for deed recording fees is:

a. $1,850.
b. $975.
c. $1,225.
d. $925.

Answer 30

d. $925.