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Quiz on Real Estate Practice Test 1, created by cchapinb on 09/07/2015.

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Real Estate Practice Test 1

Question 1 of 44

1

Disputed trust funds can be disbursed in the following way

Select one of the following:

  • verbal agreement between the parties

  • broker interprets contract and writes check

  • written agreement between the parties

  • following buyer client's instructions as to disbursement

Explanation

Question 2 of 44

1

Security deposits received in the agent's personal rental transaction are not required to be deposited in a trust account.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 44

1

No cause of action may arise against a licensee for failure to disclose

Select one of the following:

  • material facts that should have been known by the agent

  • the location of any registered sex offender

  • any offsite condition that materially impacts the property being transferred

  • the fact that the road is set to be widened to four lanes in the next year

Explanation

Question 4 of 44

1

A licensee can be disciplined for

Select one of the following:

  • telling his/her client about stigmatizations

  • disclosing stigmatizations in response to a direct inquiry

  • disclosing material facts that appeared in an inspection report

  • making an intentional misrepresentation in response to a direct inquiry

Explanation

Question 5 of 44

1

The services you must give to a customer do not include

Select one of the following:

  • confidentiality

  • accounting for money and property received

  • providing a meaningful explanation of agency relationships

  • providing an explanation of the scope of services to be provided

Explanation

Question 6 of 44

1

A licensee who receives compensation in a real estate transaction from more than one party can be disciplined unless the fee is accepted with the full knowledge and written consent of all parties.

Select one of the following:

  • True
  • False

Explanation

Question 7 of 44

1

In South Carolina, real estate license law is administered by the

Select one of the following:

  • South Carolina Human Affairs Commission

  • South Carolina Real Estate Commission

  • South Carolina Association of Realtors

  • Department of Housing and Urban Development

Explanation

Question 8 of 44

1

All of the following are protected classes under the Fair Housing Laws EXCEPT

Select one of the following:

  • race

  • handicap

  • value

  • national origin

Explanation

Question 9 of 44

1

The duties and powers of the SC Real Estate Commission include all of the following EXCEPT

Select one of the following:

  • promulgating regulations to protect the public

  • conducting disciplinary hearings

  • determining the standards for licensure

  • conducting investigations of a real estate office based on an irate phone call

Explanation

Question 10 of 44

1

The SC Real Estate Commission may investigate for all of the following reasons EXCEPT

Select one of the following:

  • its own initiative

  • a written complaint submitted by an agent about a cooperative commission arrangement

  • the director has reason to believe that a licensee is unfit to practice

  • a written complaint submitted by a disgruntled customer

Explanation

Question 11 of 44

1

The SC Real Estate Commission has the authority to

Select one of the following:

  • make and enforce the rules by which all licensees must abide

  • compose the examination questions on the state exam

  • administer the exams given at the testing sites

  • enact the laws that govern real estate licensees

Explanation

Question 12 of 44

1

A broker is convicted on May 1st of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the SC Real Estate Commission and leaves a message informing them of the conviction. Based on these facts, which of the following is TRUE?

Select one of the following:

  • the broker has properly informed the SC Real Estate Commission within 60 days after the conviction, and the broker's license may be renewed.

  • both the conviction and the broker's failure to notify the SC Real Estate Commission with 10 days violate the Commission regulations

  • because the conviction did not occur in state, it is not evidence of unworthy conduct

  • the conviction is evidence of both improper dealing and fraud

Explanation

Question 13 of 44

1

An agent's license renewal fee has been returned for insufficient funds. The SC Real Estate Commission

Select one of the following:

  • may take disciplinary action against the licensee

  • must allow the licensee a grace period of 30 days to pay the fee

  • may require the BIC to pay the renewal fee

  • must cancel the license immediately

Explanation

Question 14 of 44

1

A licensee may have a license revoked by the SC Real Estate Commission if the licensee

Select one of the following:

  • has been arrested for drugs

  • fails to mention a murder on a property to a potential buyer

  • pays a clerk to type up contracts

  • fails to inform the tenant that the security deposit will be held by the owner of the property, not the management company

Explanation

Question 15 of 44

1

The SC Fair Housing Law provides protection from discrimination for all of the following classes EXCEPT

Select one of the following:

  • sex

  • creed

  • national origin

  • age

Explanation

Question 16 of 44

1

A housing discrimination charge must be filed with the SC Human Affairs Commission within

Select one of the following:

  • 6 months

  • 1 year

  • 2 years

  • 30 days

Explanation

Question 17 of 44

1

All of the following may be grounds for disciplinary action by the SC Real Estate Commission EXCEPT

Select one of the following:

  • inducing a party to break a contract

  • interfering with the agency relationship of another agent and client

  • conviction of violating state fair housing laws

  • failure to disclose the death of a seller due to cancer

Explanation

Question 18 of 44

1

Which of the following activities does NOT require a real estate or property management license in SC?

Select one of the following:

  • approving applications of leases

  • negotiating fees

  • conducting an open house

  • being paid a salary to manage an agent's marketing campaign

Explanation

Question 19 of 44

1

In SC, applications for any real estate license must

Select one of the following:

  • be completed before taking the written exam

  • contain a picture of the applicant

  • be made before May 31st of each year

  • be accompanied by a sworn statement attesting to the applicant's character

Explanation

Question 20 of 44

1

A licensee on inactive status may

Select one of the following:

  • receive compensation for referrals

  • work as a part-time assistant showing houses

  • not conduct real estate activities

  • work as a leasing agent at a property management company

Explanation

Question 21 of 44

1

Which of the following is correct regarding an applicant for broker-in-charge?

Select one of the following:

  • must be at least 25 years of age

  • must have been licensed as a salesperson for at least five years as a salesperson

  • may be exempt by the SC Real Estate Commission from the education requirements

  • may substitute the property manager-in-charge license for the broker-in-charge license

Explanation

Question 22 of 44

1

A real estate licensee who wishes to also become a property manager

Select one of the following:

  • may also apply for a property manager's license

  • must first acquire a broker's license

  • must attend a 30 hour property management course

  • may manage property with a real estate license

Explanation

Question 23 of 44

1

When a licensed broker-in-charge changes his or her place of business,

Select one of the following:

  • a new license will be issued by the SC Real Estate Commission immediately

  • the broker-in-charge must notify the SC Real Estate Commission within 10 days

  • a new license will be issued for a full term

  • the broker-in-charge's new address must be approved by the SC Real Estate Commission

Explanation

Question 24 of 44

1

In SC, licenses are renewed

Select one of the following:

  • annually, in the month issued

  • every two years in the month of the licensee's birthday

  • on December 30th of each even-numbered year

  • biennially, on June 30th of each even-numbered year

Explanation

Question 25 of 44

1

A broker-in-charge intends to open a branch office in a neighboring town. The Broker-in-charge applies for a branch office license, giving a name that clearly identifies its relationship with his main office. The BIC names a licensed real estate salesperson as the branch office manager. Under these facts, could the BIC receive approval for the branch office?

Select one of the following:

  • Yes, the BIC has fully complied with the requirements

  • No, under the license, brokers cannot be in charge of branch offices in more than one municipality

  • Yes, by naming the salesperson as the branch's manager, the BIC is in compliance with the requirement that a broker may be in direct operational control of only one office or branch.

  • Yes, if the SC Real Estate Commission approves one broker acting as BIC of two offices

Explanation

Question 26 of 44

1

In SC, an unlicensed real estate assistant may perform all of the following activities EXCEPT

Select one of the following:

  • compute commission checks

  • answer questions about advertising

  • hold an open house

  • prepare and distribute flyers and promotional materials

Explanation

Question 27 of 44

1

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is

Select one of the following:

  • violating the license law

  • required to have a brokers license

  • required to have a salesperson's license

  • exempt from real estate licensing requirements

Explanation

Question 28 of 44

1

In SC, the following are requirements for obtaining a broker's license EXCEPT

Select one of the following:

  • having successfully completed 150 hours of approved real estate courses

  • being at least 21 years of age

  • having been actively engaged as a licensed salesperson for at least 5 years

  • being of good moral character

Explanation

Question 29 of 44

1

Regarding licensing and duties of personal real estate assistants in SC, they

Select one of the following:

  • must be licensed

  • may insert factual information into form contracts under the employing broker's supervision and approval

  • may show houses for their supervising broker

  • must be unlicensed individuals, licensees must either be salespeople or associate brokers

Explanation

Question 30 of 44

1

In SC, which of the following would need to be a licensed real estate BIC?

Select one of the following:

  • person who employs fewer than 3 agents

  • Son acting under a power of attorney to convey real estate

  • Owner of a duplex

  • Partnership selling a building owned by the partners

Explanation

Question 31 of 44

1

A real estate license is required for all of the following EXCEPT

Select one of the following:

  • managing real estate

  • reselling a personal mobile home

  • selling real estate

  • collecting rent for the use of real estate

Explanation

Question 32 of 44

1

A person must be licensed as a real estate broker or salesperson if that person is

Select one of the following:

  • selling his or her house

  • buying a house for his or her personal use

  • engaging in the real estate business

  • constructing houses

Explanation

Question 33 of 44

1

An applicant for a real estate license in SC must

Select one of the following:

  • have completed at least 2 years of college

  • be at least 21 years old

  • submit to a credit check

  • show proof of passing the license exam any time up to 6 months prior to the application

Explanation

Question 34 of 44

1

Under SC law, which of the following needs to be licensed?

Select one of the following:

  • the owner of a 30 unit apartment building

  • an employee of the State Housing Authority

  • a man who has been appointed the trustee of an estate

  • an auctioneer who auctions farm land

Explanation

Question 35 of 44

1

A BIC fails to renew her license by June 30th but continues to engage in real estate transactions. What penalties could be incurred?

Select one of the following:

  • none, because the license remains active if the renewal and penalties are all paid within six months

  • an automatic hearing with the commission after 90 days with a possible $1,000 fine and/or six months' imprisonment

  • $500 fine and/or six months imprisonment upon conviction

  • none, if the BIC can prove that non-renewal was not of malicious intent

Explanation

Question 36 of 44

1

A licensee who wishes to manage condominiums

Select one of the following:

  • must have a broker's license

  • does not need a property management license

  • can have a provisional real estate sales license

  • can have a time share license

Explanation

Question 37 of 44

1

A SC real estate salesperson may lawfully collect compensation from

Select one of the following:

  • either a buyer or a seller

  • his or her employing broker only

  • any party to the transaction or the party's representative

  • a licensed real estate broker only

Explanation

Question 38 of 44

1

If a licensee violates a provision of the license law, the licensee may be subject to which of the following?

Select one of the following:

  • revocation of license for a minimum of six months

  • minimum fine of $500

  • hearing in front of an administrative law judge

  • temporary restraining order

Explanation

Question 39 of 44

1

A licensee from another state applying for a license in South Carolina must file with the SC Real Estate Commission a

Select one of the following:

  • certificate of specific performance

  • irrevocable consent to suit

  • corpus delicti

  • copy of their birth certificate

Explanation

Question 40 of 44

1

All potential tenants must be provided and EPA Booklet and required to sign a lead based paint disclosure form for all rental properties built prior to

Select one of the following:

  • 2000

  • 1980

  • 1978

  • 1972

Explanation

Question 41 of 44

1

The Federal Anti-trust law which prohibits property managers from conspiring to set a commission or fee is called the

Select one of the following:

  • Sherman and Clayton Acts

  • Equal Credit Opportunity Acts

  • Real Estate Settlement and Procedures Act

  • Fair Housing Act

Explanation

Question 42 of 44

1

The enforcement agency over Megan's Law is

Select one of the following:

  • SLED

  • FBI

  • Attorney Generals Office

  • Local Sheriffs Dept

Explanation

Question 43 of 44

1

The Johns v. Mayer upheld the Civil Rights Act of 1866 by prohibiting

Select one of the following:

  • some racial discrimination

  • all racial discrimination

  • sexual discrimination

  • discriminatory advertising

Explanation

Question 44 of 44

1

If a person feels that he/she has been discriminated against by a property manager, a complaint may be filed with

Select one of the following:

  • the U.S. Supreme Court

  • a local magistrate

  • the Real Estate Commission

  • the Dept of housing and Urban Development

Explanation

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