SC Real Estate Exam Flashcards

Q: What score do I need to pass the South Carolina real estate salesperson exam?

South Carolina requires 70% on each section separately: 56 of 80 national questions and 28 of 40 state questions. Sections are scored independently, so passing one does not offset failing the other. If you fail only one section, you generally retake just that section within your PSI eligibility window.

Q: How much pre-license education is required in South Carolina?

South Carolina requires a 90-hour pre-license sequence delivered as two SCREC-approved courses: Unit I Real Estate Principles (60 hours) and Unit II Advanced Real Estate Principles (30 hours). Unit I must be completed before sitting for the salesperson examination; Unit II must be completed before the license is issued.

Q: When must agency disclosure be given in South Carolina?

A licensee must deliver the SCREC Disclosure of Real Estate Brokerage Relationships form at first substantive contact with a prospective buyer or seller, before any confidential information is shared. Until the consumer signs a written agency agreement, SC law presumes the consumer is a customer, not a client.

Q: Does South Carolina have real estate license reciprocity?

South Carolina offers a non-resident license-recognition path for licensees from states with substantially similar licensing standards. Qualifying applicants generally pay an application fee, submit a current license certification, and may sit for only the South Carolina state portion rather than the full 120-question exam.

Question 1

SCREC (South Carolina Real Estate Commission)

Accepted Answer

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.

Question 2

South Carolina 90-hour pre-license education

Accepted Answer

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.

Question 3

SC salesperson exam structure

Accepted Answer

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.

Question 4

Salesperson eligibility in South Carolina

Accepted Answer

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.

Question 5

South Carolina 30-hour post-license requirement

Accepted Answer

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.

Question 6

SC license renewal cycle and CE

Accepted Answer

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.

Question 7

Broker-in-Charge (BIC) in South Carolina

Accepted Answer

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.

Question 8

SC Real Estate Brokerage Disclosure form delivery

Accepted Answer

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.

Question 9

Customer vs. client status in South Carolina

Accepted Answer

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.

Question 10

Designated agency in South Carolina

Accepted Answer

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.

Question 11

Disclosed dual agency in South Carolina

Accepted Answer

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.

Question 12

SC Residential Property Condition Disclosure Act (Title 27, Ch. 50)

Accepted Answer

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.

Question 13

Exemptions from the SC Property Condition Disclosure Statement

Accepted Answer

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.

Question 14

Licensee duty to disclose material adverse facts (SC)

Accepted Answer

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.

Question 15

South Carolina 48-hour trust account deposit rule

Accepted Answer

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.

Question 16

South Carolina trust account naming and type

Accepted Answer

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.

Question 17

Disputed earnest money in South Carolina

Accepted Answer

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.

Question 18

Attorney-supervised closings in South Carolina

Accepted Answer

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.

Question 19

Unlicensed activity penalties in South Carolina

Accepted Answer

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.

Question 20

South Carolina Real Estate Recovery Fund

Accepted Answer

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.

Question 21

SCREC change-of-information notice

Accepted Answer

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.

Question 22

Property manager-in-charge in South Carolina

Accepted Answer

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.

Question 23

SCREC advertising rules

Accepted Answer

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.

Question 24

Fiduciary duties owed to a client in agency

Accepted Answer

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.

Question 25

Special vs. general vs. universal agency

Accepted Answer

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.

Question 26

Procuring cause

Accepted Answer

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.

Question 27

Buyer agency vs. transactional broker

Accepted Answer

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.

Question 28

Essential elements of a real estate contract

Accepted Answer

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.

Question 29

Statute of Frauds in real estate

Accepted Answer

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.

Question 30

Bilateral vs. unilateral contract

Accepted Answer

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.

Question 31

Liquidated damages clause

Accepted Answer

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.

Question 32

Fee simple absolute

Accepted Answer

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.

Question 33

Joint tenancy with right of survivorship vs. tenancy in common

Accepted Answer

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.

Question 34

General warranty deed vs. quitclaim deed

Accepted Answer

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.

Question 35

Easement appurtenant vs. easement in gross

Accepted Answer

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.

Question 36

Encumbrance vs. lien

Accepted Answer

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.

Question 37

Conventional, FHA, and VA loans

Accepted Answer

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.

Question 38

Loan-to-value (LTV) ratio

Accepted Answer

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.

Question 39

Mortgage vs. deed of trust

Accepted Answer

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.

Question 40

TILA-RESPA Integrated Disclosure (TRID)

Accepted Answer

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.

Question 41

Discount points

Accepted Answer

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.

Question 42

Three approaches to value

Accepted Answer

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).

Question 43

Comparative market analysis (CMA) vs. appraisal

Accepted Answer

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.

Question 44

Gross Rent Multiplier (GRM)

Accepted Answer

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).

Question 45

Fair Housing Act protected classes

Accepted Answer

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.

Question 46

Steering, blockbusting, and redlining

Accepted Answer

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.

Question 47

ADA reasonable accommodations vs. modifications

Accepted Answer

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).

Question 48

Federal lead-based paint disclosure (Title X)

Accepted Answer

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.

Question 49

Commission split math

Accepted Answer

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.

Question 50

Property tax proration at closing

Accepted Answer

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.

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