Free SC Real Estate Exam Flashcards

The SC LLR board, governed by S.C. Code Title 40, Chapter 57, that licenses and disciplines South Carolina salespersons, brokers-in-charge, and property managers. SCREC issues forms, audits trust accounts, investigates complaints, and may issue citations, fines, suspensions, and revocations.

Unit I Real Estate Principles (60 hours) must be completed before sitting for the salesperson exam, and Unit II Advanced Real Estate Principles (30 hours) must be completed before the license is issued. Both courses must come from an SCREC-approved school.

120 multiple-choice questions split into 80 national and 40 South Carolina state items, scored separately at 70%. A candidate must reach 56/80 national and 28/40 state; failing only one section means retaking only that section during the PSI eligibility window.

An applicant must be at least 18, hold a high school diploma or GED, complete the 90-hour education sequence, and pass an SLED criminal-background check with fingerprinting. The SC application is filed with SCREC after passing the PSI exam.

A newly licensed salesperson must complete 30 hours of SCREC-approved post-license education within the first year of licensure. Failure to finish on time causes the license to lapse, after which the licensee cannot practice until reinstated.

South Carolina real estate licenses renew biennially on June 30 of even-numbered years. Salespersons must complete 10 hours of continuing education each cycle: 4 hours in the SCREC-mandated core course plus 6 elective hours from approved providers.

A BIC is the broker designated to supervise a real estate firm or branch office and is solely responsible for trust funds, advertising, and the conduct of affiliated licensees. BIC renewal CE includes the standard 4-hour core plus a 4-hour BIC Duties and Responsibilities course, leaving 2 hours elective.

A licensee must give the SCREC Disclosure of Real Estate Brokerage Relationships form at first substantive contact, before the consumer shares confidential information such as motivation, price ceiling, or financial position. Electronic delivery is allowed if first contact is by phone or email.

Until a written agency agreement is signed, SC law presumes a consumer is a customer, owed only honesty, accounting, and disclosure of material adverse facts. A client relationship begins only when an agency or designated-agency agreement is executed, triggering full fiduciary duties.

With informed written consent, a brokerage firm may appoint one designated agent for the buyer and a different designated agent for the seller in the same transaction. Each designated agent owes full client duties to their assigned principal; the BIC remains a limited dual agent at the firm level.

A firm may represent both buyer and seller in the same transaction only with the prior written, informed consent of both parties on an SCREC-approved dual agency agreement. Dual agents cannot advocate price, terms, or disclose confidential information of either client.

Sellers of most one-to-four-unit residential properties must deliver a written disclosure statement to a buyer on or before contract formation, listing the owner's actual knowledge of defects in roof, systems, structure, environment, and HOA matters. Sellers may mark items "no representation" but cannot conceal known defects.

Exempt transfers include new construction never occupied, court-ordered transfers, foreclosure or REO sales by lenders, transfers between co-owners, transfers by fiduciaries in estates and trusts, and transfers to or from a government entity. The seller's common-law duty to avoid concealment still applies.

Even when caveat-emptor doctrines apply between buyer and seller, an SC licensee must disclose known material adverse facts about the physical condition of the property that a reasonable inspection by the buyer would not reveal. This duty is owed to both clients and customers.

Under S.C. Code Section 40-57-136, cash or certified earnest-money funds must be deposited into the firm trust account within 48 hours of receipt, excluding Saturdays, Sundays, and bank holidays. Licensees must deliver trust funds to the BIC no later than the next business day.

Each broker-in-charge must maintain a demand-deposit trust or escrow account at a South Carolina financial institution. The account title must include the brokerage firm name and the word "Trust" or "Escrow"; commingling firm operating funds with client funds is a license law violation.

If buyer and seller dispute the deposit, the BIC must hold funds in the trust account until the parties sign a written release or a court resolves the claim. The BIC may file an interpleader and deposit the funds with the clerk of court to be discharged from further liability.

Under State v. Buyers Service Co., residential real estate closings in South Carolina must be supervised by a licensed SC attorney, including title certification, document preparation, deed and mortgage recording, and disbursement of closing funds. Non-attorney closings are unauthorized practice of law.

Practicing real estate brokerage for compensation without an active SC license is a misdemeanor under S.C. Code Section 40-57-200, with statutory fines and potential jail time, plus civil exposure to refund the fee. SCREC can also order cease-and-desist actions against unlicensed persons.

A consumer-protection fund funded by licensee fees that may pay limited monetary judgments to persons harmed by a licensee's fraud, misrepresentation, or conversion of trust funds when the licensee cannot pay. A payout from the fund automatically suspends the responsible licensee until the fund is reimbursed with interest.

Licensees must notify SCREC in writing of changes to legal name, home address, or firm affiliation within ten days of the change. Failing to keep SCREC records current is a license law violation that can result in citations and fines.

Property management for compensation requires an SC property manager or salesperson license, and a separate Property Manager-in-Charge (PMIC) must supervise a property management firm. The PMIC has trust-account, recordkeeping, and supervision duties parallel to a real estate BIC.

All advertising by SC licensees must clearly identify the brokerage firm name as licensed; a salesperson cannot advertise property under only the licensee's name or a team name without the firm. Misleading claims about price, services, or designations are grounds for discipline.

An agent owes the client the OLDCAR duties: Obedience to lawful instructions, Loyalty (place the client's interests first), Disclosure of material facts, Confidentiality, Accounting for money and property, and Reasonable care and skill. These duties survive termination for confidential information.

A special agent is hired for one specific transaction (most salespersons listing a home). A general agent has broad authority over a series of transactions (property manager). A universal agent has unlimited authority and is rare. The exam usually tests special agency.

The agent whose uninterrupted efforts produce a ready, willing, and able buyer is the procuring cause and earns the commission, even if another agent writes the final offer. Commission disputes between brokers are typically resolved by arbitration under MLS or Realtor association rules.

A buyer's agent owes the buyer full fiduciary duties under a signed buyer agency agreement. A transactional or non-agency broker assists both parties without representing either and owes only honesty, disclosure of material defects, and accounting. SC presumes customer status until an agency agreement is signed.

A binding real estate contract requires competent parties, mutual assent (offer and acceptance), legal purpose, consideration, and a writing signed by the party to be charged under the Statute of Frauds. Missing any element makes the contract voidable or void.

Contracts for the sale of real property or for any lease longer than one year must be in writing and signed by the party to be charged to be enforceable. Oral listings, oral purchase agreements, and oral commission agreements are generally unenforceable in court.

A purchase agreement is bilateral: both parties exchange promises (buyer promises to pay, seller promises to convey). An option or open listing is unilateral: only the offeror is bound, and performance by the other party is required to create an obligation.

A purchase contract can pre-set the seller's remedy if the buyer defaults, typically allowing the seller to keep the earnest money as full damages. To be enforceable, the amount must be a reasonable forecast of harm at the time of contracting, not a punitive penalty.

The highest form of ownership in real property: the holder has unlimited duration, unrestricted use within zoning and law, and the right to sell, lease, devise, or encumber. The estate passes by deed or inheritance and is not subject to a reverter.

Joint tenancy requires the four unities (time, title, interest, possession) and includes survivorship: a deceased co-owner's share passes to the survivors, not heirs. Tenancy in common owners hold separate divisible shares that pass through the estate; SC is not a community property state.

A general warranty deed conveys ownership with the broadest covenants and warrants title against all defects, even those arising before the grantor owned it. A quitclaim deed transfers only whatever interest the grantor has, with no warranties, and is often used to clear clouds on title.

An easement appurtenant benefits a neighboring parcel (the dominant tenement) and runs with the land when sold. An easement in gross benefits a person or entity, such as a utility company, and does not transfer with ownership of the underlying land.

An encumbrance is any claim or limitation that affects title, such as an easement, restriction, encroachment, or lien. A lien is a specific type of encumbrance giving a creditor a monetary claim against the property; tax and mechanic liens may take priority over earlier mortgages.

Conventional loans are not government-insured and typically require private mortgage insurance below 20% down. FHA loans are federally insured with low down payments and a monthly mortgage insurance premium. VA loans are federally guaranteed for eligible veterans, often with no down payment and no PMI.

LTV equals the loan amount divided by the lesser of sale price or appraised value. A higher LTV means greater lender risk; conventional loans above 80% LTV typically require private mortgage insurance until the borrower reaches 20% equity.

A mortgage is a two-party security instrument between borrower and lender, foreclosed judicially in many states. A deed of trust uses a neutral trustee holding title until the loan is paid and typically allows non-judicial foreclosure. South Carolina is primarily a mortgage state with judicial foreclosure.

Under federal TRID rules, lenders must give a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before consummation. Changes to APR, loan product, or addition of a prepayment penalty trigger a new 3-day Closing Disclosure waiting period.

One discount point equals 1% of the loan amount, paid upfront to the lender to lower the borrower's interest rate ("buying down the rate"). Points may be tax-deductible as prepaid interest on a primary residence purchase and are negotiable between borrower and lender.

An appraiser reconciles three approaches: Sales Comparison (best for residential), Cost Approach (best for new or special-purpose property: land value + reproduction cost - depreciation), and Income Approach (best for income-producing property using a capitalization rate).

A CMA is a licensee's pricing opinion based on comparable sales used to advise a seller or buyer; it is not a formal valuation. An appraisal is an independent licensed appraiser's USPAP-compliant opinion of value, typically required by the lender to support the loan amount.

GRM equals sale price divided by gross monthly (or annual) rent and is used to estimate the value of small income properties. Example: if comparable homes sell at a GRM of 120 and a property rents for $1,500/month, value is roughly $180,000 ($1,500 x 120).

Title VIII of the Civil Rights Act of 1968, as amended, prohibits discrimination in housing based on race, color, religion, national origin, sex (including sexual orientation and gender identity per HUD), disability, and familial status. SC's Fair Housing Law mirrors the federal classes and is enforced by the SC Human Affairs Commission.

Steering channels buyers toward or away from neighborhoods based on a protected class. Blockbusting induces sales by predicting that members of a protected class are moving in. Redlining is a lender's refusal to lend in a defined area on a protected-class basis. All three are illegal under the Fair Housing Act.

Under the Fair Housing Act, landlords must allow reasonable accommodations to rules at the housing provider's expense (such as accepting a service animal despite a no-pet policy) and must permit reasonable modifications to the unit at the tenant's expense (such as a grab bar).

For pre-1978 housing, sellers and landlords must give buyers/tenants the EPA pamphlet "Protect Your Family from Lead in Your Home," disclose known lead-based paint and reports, and give buyers a 10-day inspection period (waivable in writing). The lead disclosure form must be attached to the contract.

Commission = sale price x commission rate, then split per the listing agreement. Example: $300,000 sale at 6% total = $18,000. Split 50/50 between listing and selling brokerages = $9,000 each; a 70/30 in-house split to the agent yields $6,300 to the agent and $2,700 to the firm.

Annual taxes are prorated between seller and buyer based on the closing date using a 360-day year (or actual days, depending on contract). The seller typically owes taxes through the day before closing; in SC the buyer usually receives a debit for taxes from closing through year-end if taxes are paid in arrears.