South Carolina Real Estate Practice Exam.
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1. Prior to a 2024 legislative change, South Carolina's entry-level real estate license was known by a different title before being renamed. What was that former title?

• A. Salesperson
• B. Agent
• C. Broker Associate
• D. Realtor

2. A Charleston property owner grants a neighbor the right to cross her backyard to reach a shared dock. This nonpossessory right is best classified as which type of interest?

• A. A leasehold estate
• B. An easement appurtenant
• C. A license revocable at will
• D. A life estate

3. A Greenville buyer purchases a single-family lot but the recorded plat shows a utility company's underground line crossing the rear ten feet. What best describes the utility company's interest?

• A. A fee simple determinable
• B. A leasehold
• C. An easement in gross
• D. A dower interest

4. A Rock Hill city council rezones a corridor from residential to mixed commercial use to encourage new development along a transit line. This governmental action is an exercise of which power?

• A. Taxation
• B. Escheat
• C. Eminent domain
• D. Police power

5. A Spartanburg landowner conveys a parcel 'to my son so long as the land is used for farming.' What type of estate has been created?

• A. A fee simple absolute
• B. A fee simple determinable
• C. A life estate pur autre vie
• D. A periodic tenancy

6. A Florence homeowners' association restricts exterior paint colors on all lots within the subdivision. This restriction most likely originates from which source?

• A. A variance granted by the board of zoning appeals
• B. A local zoning ordinance
• C. A recorded restrictive covenant
• D. A special use permit

7. Broker Elena in Columbia represents the buyer in a transaction. Which duty does Elena owe to the seller, who is unrepresented by her?

• A. A duty to negotiate the lowest possible price for the seller
• B. Full fiduciary loyalty equal to that owed to her buyer client
• C. A duty to recommend her own attorney to the seller
• D. Honesty and fair dealing, without disclosing her buyer client's confidential information

8. In Sumter, brokerage Palmetto Realty Group represents both the seller and the buyer on the same deal after each party signs a written form acknowledging and consenting to the arrangement. What term describes this setup?

• A. Subagency
• B. Dual agency
• C. Undisclosed dual representation
• D. Exclusive designated agency only

9. Within the same Hilton Head brokerage, one associate is designated to represent the seller and a different associate is designated to represent the buyer in the same sale. What is this practice called?

• A. Single agency with informed waiver
• B. Designated agency
• C. Dual agency
• D. Subagency

10. A Beaufort seller accepts a buyer's written offer exactly as submitted, without any changes, and signs it. What has occurred at this point?

• A. A binding contract, since acceptance mirrored the offer's terms
• B. An option contract
• C. A counteroffer
• D. An unenforceable agreement until earnest money is deposited

11. A buyer's agent in Rock Hill learns that a competing offer on the same property fell through due to financing issues, information that could affect her own buyer client's negotiating strategy. What duty requires her to share this with her client?

• A. The duty of accounting owed to the brokerage
• B. The duty of obedience owed to the seller
• C. The duty of disclosure owed to her own client
• D. The duty of confidentiality owed to the competing buyer

12. A Sumter broker's licensed assistant, who does not hold an associate license, personally negotiates purchase price terms with a prospective buyer over the phone. Why is this activity a problem?

• A. It is a problem only if the assistant is under age 21
• B. It is permitted as long as the assistant is compensated hourly rather than by commission
• C. Negotiating price and material terms is licensed activity that an unlicensed assistant may not legally perform
• D. It is permitted because the broker orally authorized it

13. A Conway broker supervises three associates. One associate closes a transaction using a contract form the broker never reviewed, and the form contains an error that harms a client. Who bears ultimate responsibility for this supervision failure?

• A. The seller's attorney, because they should have caught the error
• B. No one, because the broker delegated the transaction
• C. Only the associate who used the form
• D. The supervising broker, because brokers are responsible for supervising the licensed activities of their associates

14. A Charleston buyer and seller sign a contract, but the buyer later learns the seller was a minor at the time of signing. What is the legal status of this contract?

• A. Fully enforceable against both parties
• B. Void from the beginning
• C. Voidable at the minor's option
• D. Valid but unrecordable

15. Which deed conveys only whatever ownership interest, if any, the grantor actually holds, and makes no promises whatsoever about the state of title? In North Augusta, a seller uses exactly this kind of deed to transfer a parcel to the buyer.

• A. A general warranty deed
• B. A quitclaim deed
• C. A special warranty deed
• D. A deed of trust

16. In Beaufort, a homeowner passes away shortly after executing a valid sales contract but before the closing date arrives. What is the typical outcome for the contract's obligations?

• A. The agreement is automatically voided by the seller's passing
• B. The agreement is converted into a lease with an option to buy
• C. The agreement remains enforceable, obligating the estate to complete the transfer of title
• D. The buyer automatically loses the earnest money deposit

17. A Florence buyer's purchase agreement includes a clause requiring both parties to attempt mediation before filing a lawsuit over any contract dispute. This clause is an example of which contract provision?

• A. A dispute resolution clause
• B. An assignment clause
• C. A liquidated damages clause
• D. A time-is-of-the-essence clause

18. A Myrtle Beach seller and buyer orally agree on all terms of a home sale and shake hands, intending to sign paperwork later that week, but the buyer backs out first. What is the most likely outcome regarding enforceability?

• A. The oral agreement is fully enforceable because both parties agreed to every term
• B. The buyer must pay double the sale price as a penalty
• C. The seller can force specific performance based on the handshake alone
• D. The agreement is generally unenforceable because contracts for the sale of real estate must be in writing

19. In Anderson, a homebuyer selects financing where the interest rate resets from time to time in line with a published market index. Which loan product is being described?

• A. A fixed-rate mortgage
• B. An adjustable-rate mortgage
• C. A graduated-payment mortgage
• D. A balloon-payment mortgage

20. Comparing two refinance quotes for a rental duplex in Anderson, an investor notices one lender's proposed monthly payment includes an extra amount earmarked for future property tax and insurance bills, while the competing lender's quote does not. Until those tax and insurance bills actually come due, where does the first lender hold the extra collected funds?

• A. In a personal escrow fund maintained by the loan officer
• B. In an account controlled by the lender being paid off in the refinance
• C. In the new lender's escrow (impound) account
• D. In the investor's own business operating account

21. A Spartanburg home appraises for $210,000 and sells for $225,000. The buyer obtains a loan for 80% of the appraised value. What is the loan amount?

• A. $168,000
• B. $189,000
• C. $174,000
• D. $180,000

22. A Charleston closing disclosure shows the seller owes property taxes for the portion of the year they owned the home, while the buyer owes taxes from the closing date forward. This adjustment process is called what?

• A. Amortization
• B. Recapture
• C. Proration
• D. Subordination

23. A Florence seller's existing loan has a favorable low interest rate, and the buyer wants to take over that same loan under its original terms. What type of financing arrangement allows this?

• A. A bridge loan
• B. A wraparound mortgage
• C. An assumable loan
• D. A purchase-money mortgage

24. While appraising a house in Orangeburg, an appraiser finds that a recently sold comparable includes a finished garage the subject property does not have. How should this difference be handled when adjusting the comparable's sale price?

• A. Subtract the garage's estimated value from the comparable's sale price
• B. Adjust the subject property's price rather than the comparable's
• C. Add the garage's estimated value onto the comparable's sale price
• D. Disregard it, since garages seldom influence value

25. An appraiser is valuing a highly unique custom-built home in Beaufort with few comparable sales available nearby. Which appraisal approach is most useful in this situation?

• A. The cost approach, estimating land value plus the depreciated cost to reconstruct the improvements
• B. The income approach, capitalizing rental income
• C. The gross rent multiplier method, comparing rent-to-price ratios
• D. The sales comparison approach, relying heavily on similar recent sales

26. A home in Sumter has an outdated kitchen layout that no longer meets buyer expectations, even though the home is structurally sound. This type of value loss is best classified as:

• A. Functional obsolescence
• B. Physical deterioration
• C. Economic (external) obsolescence
• D. Curable physical depreciation from deferred maintenance

27. A newly built asphalt plant begins operating on the edge of an otherwise well-maintained subdivision in Anderson, and buyers start offering less for homes there even though nothing about the houses themselves has changed. Which type of value loss does this illustrate?

• A. Deferred maintenance
• B. Physical deterioration
• C. Functional obsolescence
• D. Economic (external) obsolescence

28. A parcel of raw land in Summerville's downtown corridor might work as a fast-food pad site, a self-storage facility, or a medical office building. An appraiser weighs which option is legally allowed, physically achievable, financially sound, and yields the greatest return. What is this analysis called?

• A. Assessed valuation
• B. Reproduction cost
• C. Highest and best use
• D. Effective gross income

29. A seller in Greenville knows the home's roof leaks significantly during heavy rain but says nothing to the buyer, who does not ask about the roof. What is the seller's likely legal exposure?

• A. The seller is only liable if the buyer's home inspector also missed the leak
• B. The seller may be liable for failing to disclose a known material defect that affects the property's value or desirability
• C. The seller's disclosure duty applies only to defects discovered after the contract is signed
• D. The seller has no disclosure obligation because the buyer never specifically asked about the roof

30. A buyer asks a listing agent in Charleston whether anyone has ever died in the home being sold. General disclosure practice treats this fact as:

• A. A defect that automatically voids the sale if not disclosed
• B. A structural defect requiring repair before closing
• C. A fact that must always be volunteered on the seller disclosure form regardless of any question
• D. A non-material fact that most states do not require agents to disclose unless directly asked or otherwise legally required

31. A listing agent in Myrtle Beach describes a condo as having a stunning ocean view when in fact the ocean is visible only from one small window. A buyer later complains the description was misleading. This description is most likely treated as:

• A. Puffing, an exaggerated but subjective opinion rather than an actionable misrepresentation
• B. A violation requiring immediate license revocation
• C. Fraud, because the buyer relied on the statement to their detriment
• D. A material misrepresentation of fact requiring rescission of the contract

32. A bank branch serving Easley routinely rejects mortgage applications and pulls back its marketing in particular zip codes that have a high share of minority residents, without regard to any applicant's individual credit standing. What is this practice called?

• A. Steering
• B. Redlining
• C. Underwriting
• D. Blockbusting

33. A listing agent in Sumter represents the seller but is negotiating with an unrepresented buyer directly. Even without a fiduciary relationship to the buyer, what duty does the agent still owe the buyer?

• A. No duty whatsoever, since the buyer chose not to hire representation
• B. A duty to negotiate exclusively in the buyer's financial favor
• C. The full fiduciary duty of loyalty owed only to a client
• D. A duty of honesty and fair dealing, including not making false statements of material fact

34. A landlord in Greenville refuses to rent an apartment to a family with young children, citing a preference for quiet tenants without kids. This refusal most directly violates fair housing protections based on:

• A. National origin
• B. Disability
• C. Religion
• D. Familial status

35. In Florence, agent Devon routinely shows properties in select neighborhoods exclusively to house-hunters of one particular race, steering them away from listings elsewhere, while giving buyers of other races access to the complete inventory. What is this conduct called?

• A. Steering
• B. Redlining
• C. Puffing
• D. Blockbusting

36. A tenant with a mobility disability in Spartanburg asks her landlord for permission to install a ramp at her own expense at the building's entrance. Under fair housing law, the landlord's obligation is generally to:

• A. Grant the request only if the landlord agrees to pay for the ramp themselves
• B. Ignore the request since it applies only to properties receiving federal funding
• C. Allow the reasonable modification, though the landlord may require the tenant to restore the property at move-out in some cases
• D. Deny the request because structural changes are never required under fair housing law

37. A mortgage applicant in Aiken is denied credit, and the lender relies in part on the fact that the applicant recently received public assistance income. Under the Equal Credit Opportunity Act, this practice is:

• A. Permitted only for jumbo loan applications
• B. Permitted, because public assistance income is inherently less reliable than wages
• C. Required, since lenders must document the source of all income used in underwriting
• D. Prohibited, because lenders may not discriminate based on an applicant's receipt of public assistance income

38. In South Carolina, real estate licensees are regulated by which state entity?

• A. The South Carolina Association of Realtors, a private trade association
• B. The South Carolina Real Estate Commission, operating under the Department of Labor, Licensing and Regulation
• C. The South Carolina Bar Association
• D. The county register of deeds office

39. A 17-year-old high school graduate in Florence wants to apply for a South Carolina real estate license. Based on state age eligibility requirements, this applicant:

• A. Qualifies because there is no minimum age requirement in South Carolina
• B. Qualifies only if sponsored by a broker-in-charge
• C. Qualifies immediately as long as a parent co-signs the application
• D. Does not yet qualify, because applicants must be at least 18 years old

40. Under current South Carolina law, a newly licensed entry-level real estate professional who must work under supervision while meeting experience and education requirements holds which license title?

• A. Property Manager
• B. Broker
• C. Independent Contractor
• D. Associate

41. Because South Carolina defines an Associate as a supervised licensee, an associate handling a listing or sale in South Carolina must do so:

• A. Under direct supervision only for the first transaction, then independently after that
• B. Independently, since the term 'associate' implies full autonomy
• C. Under supervision only if the associate is selling commercial property
• D. Under the oversight of a broker-in-charge, rather than independently

42. South Carolina agency law requires licensees to clarify to consumers which party they represent in a transaction. This requirement primarily exists to:

• A. Replace the need for a written listing or buyer agency agreement
• B. Allow licensees to avoid ever dealing with unrepresented consumers
• C. Guarantee that the represented party receives a lower price or better contract terms
• D. Prevent confusion about whose interests the licensee is legally obligated to protect during the transaction

43. A closing agent handling a South Carolina real estate transaction discovers a judgment lien against the seller recorded in the public record. Before the closing can proceed cleanly, this lien most likely needs to be:

• A. Voided simply because the sale is proceeding
• B. Automatically transferred to the buyer's responsibility after closing
• C. Ignored, since liens against the seller do not affect the buyer's title
• D. Satisfied or paid off at or before closing so that clear title can pass to the buyer

44. In South Carolina, a licensee may sometimes act as a limited, non-agent facilitator in a transaction rather than as a fiduciary agent for either party. In this non-agency role, the licensee's primary duty to both parties is generally:

• A. Fiduciary loyalty equally split between both parties at all times
• B. No duty of any kind, since no agency relationship exists
• C. Honesty, fair dealing, and disclosure of material facts, without full fiduciary loyalty to either side
• D. Full fiduciary loyalty to whichever party pays the commission

45. A prospective buyer in Beaufort begins discussing specific price and terms with a licensee for a property, moving beyond casual conversation into substantive negotiation. At this point, South Carolina practice generally expects the licensee to:

• A. Withhold agency disclosure until the closing table
• B. Immediately terminate the conversation until the buyer hires an attorney
• C. Require the buyer to sign a purchase contract before any further discussion
• D. Disclose which party the licensee represents in the transaction

46. As part of settling an estate in Anderson, the personal representative hires an appraiser to value a commercial building the decedent owned free and clear. Comparable investment sales in the area support a 6% capitalization rate, and the building produces $54,000 in annual net operating income. Applying the income approach, what value should the appraiser report to the probate court?

• A. $90,000
• B. $900,000
• C. $9,000,000
• D. $324,000

47. An Aiken landowner dies without a will and without any surviving relatives who can be located. Under general property law principles, ownership of the land ultimately passes through which process?

• A. Eminent domain
• B. Escheat to the state
• C. Adverse possession
• D. A partition action

48. Priya closes on a condominium unit in Hilton Head. Beyond fee simple title to the unit's interior airspace, which additional ownership interest does she typically receive?

• A. A life tenancy over the building's exterior walls
• B. A rented interest in the building's shared hallways and grounds
• C. An undivided tenancy-in-common share in the building's common elements
• D. A joint tenancy arrangement with the condominium developer

49. "I found the buyer myself, so you're not owed a thing," a Bluffton homeowner named Wanda tells her listing broker, Reggie, after she personally located a buyer and closed the sale on her own before their exclusive right-to-sell agreement expired. Is Wanda correct?

• A. No — the closing attorney is owed the commission, since Wanda located the buyer without any broker's help
• B. No — but only if Reggie also represented the buyer in the deal
• C. Yes — a homeowner who arranges her own sale owes no commission
• D. No — an exclusive right-to-sell agreement entitles Reggie to a commission no matter who brings the buyer

50. An associate in Aiken collects an earnest money check from a buyer and deposits it directly into the brokerage's own operating account used for daily business expenses. This practice is an example of:

• A. Acceptable as long as the broker later moves the funds within 30 days
• B. A required step before a purchase contract can be considered valid
• C. Commingling of client funds, which is a serious license law violation
• D. Standard industry practice for handling earnest money

51. A Greenville listing agent discovers that the seller's home has a history of chronic water intrusion in the basement. The seller instructs the agent not to mention it to buyers. What should the agent do?

• A. Follow the seller's instruction because the seller is the agent's client
• B. Remain silent because verbal instructions from a client override disclosure duties
• C. Disclose the defect only if a buyer specifically asks about basement moisture
• D. Advise the seller that known material defects generally must be disclosed and decline to conceal them from prospective buyers

52. In Spartanburg, an offer to purchase states that the buyer isn't required to proceed unless she secures loan approval within 21 days of acceptance. What is this type of clause called?

• A. A lien subordination clause
• B. A price escalation clause
• C. A liquidated damages provision
• D. A financing contingency

53. A Charleston metes-and-bounds legal description in a deed begins at an iron pin, runs a series of courses and distances, and returns to the same iron pin. Why is closing back at the starting point essential to this description?

• A. It establishes the property's zoning classification
• B. It satisfies recording requirements for deed indexing
• C. It confirms the boundary forms a complete, enclosed parcel rather than an open-ended line
• D. It determines the property's assessed tax value

54. In Newberry, a homebuyer's lender mandates private mortgage insurance since her down payment came in under 20% of the sale price. What does this coverage primarily exist to do?

• A. Shield the seller from loss if the buyer backs out before closing
• B. Cover the buyer's losses if the property suffers damage
• C. Guarantee payment of the listing agent's commission
• D. Cover the lender's losses in the event the borrower stops paying

55. During a closing in Camden, the closing disclosure lists a credit to the buyer for the earnest money deposit already paid. What effect does this credit have on the cash the buyer must bring to the table?

• A. It raises the amount of cash needed at closing
• B. It lowers the amount of cash needed at closing
• C. It has no bearing on the buyer's closing funds
• D. It gets applied to the seller's net proceeds column instead

56. An associate in Rock Hill posts a for-sale ad on social media for a listed property using only her personal name and phone number, without mentioning her brokerage affiliation at all. This kind of advertisement is generally considered:

• A. A prohibited blind ad because it fails to identify the licensee's brokerage
• B. Required practice to protect the seller's privacy
• C. Acceptable only for rental listings, not sales listings
• D. Fully compliant advertising as long as the associate's name is accurate

57. An associate in Orangeburg receives an earnest money deposit from a buyer along with a signed purchase contract. Under general trust account handling rules, what should the associate do with the funds?

• A. Hold the check personally until closing to avoid extra paperwork
• B. Deliver the funds promptly to the broker-in-charge for deposit into the proper trust or escrow account
• C. Return the funds to the buyer until the seller signs the contract
• D. Deposit the funds into the associate's personal checking account for safekeeping

58. A rental listing in Rock Hill states it is ideal for a single professional and requests no families. Under federal fair housing law, this advertisement is problematic because:

• A. It expresses a preference that excludes applicants based on familial status, a protected class
• B. It is permissible because landlords may specify any tenant preference they choose
• C. It only violates state, not federal, law
• D. It is illegal only if a family actually attempts to apply and is rejected

59. A person without any real estate license in South Carolina regularly negotiates purchase offers and collects a fee for helping people buy homes. Under state real estate license law, this activity is most likely:

• A. Permitted, as long as the fee charged is disclosed to both parties in writing
• B. Unlawful practice of real estate without a license, subject to enforcement by the Real Estate Commission
• C. Permitted only in transactions involving property valued under a certain threshold
• D. Permitted, because only listing property for sale requires a license, not negotiating offers

60. The South Carolina Real Estate Commission investigates a licensee for repeatedly mishandling client trust funds. Which type of action does the Commission have authority to take against the licensee's license?

• A. A criminal indictment, which only a court can pursue, with no involvement from the Commission
• B. Disciplinary action, which may include suspension or revocation of the license
• C. Only a civil lawsuit filed by the injured client, since the Commission has no disciplinary power
• D. A refund order requiring the client's brokerage to pay damages directly

61. At closing on a South Carolina home sale, the settlement statement itemizes charges such as prorated property taxes, recording fees, and loan payoff amounts. The primary purpose of this settlement statement is to:

• A. Replace the deed as the official document that transfers ownership of the property
• B. Serve only as a marketing summary for the closing attorney's file
• C. Guarantee that neither party will incur any future property-related expenses
• D. Provide a clear, itemized accounting of all financial credits and debits so both buyer and seller can review exactly what they are paying or receiving at closing