Free South Carolina Real Estate Practice Test (2026) — LicenseIQ

Question 1

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 2

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 3

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 4

Under the South Carolina Vacation Rental Act, a vacation rental is a rental of residential property for:

Accepted Answer

Section 27-50-230 defines a vacation rental as one for fewer than 90 days, excluding tenancies governed by the Landlord and Tenant Act.

Question 5

A property manager receives a tenant's check for first month's rent. It must be deposited within 48 hours after:

Accepted Answer

Section 40-57-136 runs the 48-hour period for rental checks from lease signing.

Question 6

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 7

Which deposit of firm money into the trust account is permitted?

Accepted Answer

Section 40-57-136 bans commingling except for a clearly identified company amount for bank charges or keeping the account open. Leaving earned commissions in the account is commingling.

Question 8

Which statement about an inactive South Carolina license is correct?

Accepted Answer

Under §40-57-110(B), an inactive license must be renewed on the regular schedule and may stay inactive indefinitely, but the holder may not practice brokerage. Automatic cancellation applies to lapsed licenses that are not reinstated, not to properly renewed inactive ones.

Question 9

A licensed South Carolina broker also wants to hold a property manager license at the same time. Under §40-57-110:

Accepted Answer

Section 40-57-110 says a person cannot hold more than one license classification at a time. The other choices invent exceptions the statute does not contain.

Question 10

A major limitation of an automated valuation model (AVM) is that it:

Accepted Answer

AVMs are fast and inexpensive but assume average condition and struggle with unique homes and thin data.

Question 11

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 12

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 13

Commissioners on the South Carolina Real Estate Commission serve terms of:

Accepted Answer

Section 40-57-50 sets four-year terms. Two years is the license renewal cycle, which is why it is a common wrong answer.

Question 14

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 15

A property management agreement contains an automatic renewal clause. To comply with South Carolina law, it must:

Accepted Answer

Section 40-57-135(J) bars automatic renewal unless either party can cancel on thirty days' notice after the original expiration date.

Question 16

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 17

The cost approach is MOST useful for:

Accepted Answer

The cost approach suits new or special-purpose properties (schools, churches, government buildings) that lack comparable sales or income.

Question 18

A lien is BEST described as a:

Accepted Answer

A lien is a monetary encumbrance giving a creditor the right to have the debt satisfied from the property. A physical intrusion is an encroachment.

Question 19

An associate candidate passes the national portion of the PSI exam but fails the state portion. What must the candidate do?

Accepted Answer

The PSI handbook scores the portions separately, and a candidate retakes only the failed portion within the one-year eligibility window. The 24-month figure relates to reapplying after a license denial, not to exam retakes.

Question 20

Before advertising a property owned by someone else, a South Carolina licensee's firm must have:

Accepted Answer

Section 40-57-135(E)(1) requires a written listing agreement between the owner and the brokerage before a licensee advertises the property. The disclosure documents are separate requirements and do not authorize advertising.

Question 21

Annual crops planted and cultivated by a farmer, such as corn and wheat, are called ____ and are treated as ____.

Accepted Answer

Cultivated annual crops are emblements - personal property of the cultivator. Naturally growing plants (trees, grass) are fructus naturales and part of the real estate.

Question 22

Which conduct is a specific ground for discipline under §40-57-710?

Accepted Answer

Section 40-57-710(A)(23) lists knowingly giving false information to an investigator or inspector. Licensees may decline listings and set their own fees.

Question 23

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 24

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 25

A short-term loan used to buy a new home before the borrower's current home sells is a:

Accepted Answer

A bridge loan 'bridges' the gap between buying and selling and is typically repaid within about 12 months when the old home sells.

South Carolina real estate practice test

1. The four unities required to create a joint tenancy are:

2. Which of the following is a fiduciary duty an agent owes the principal?

3. A home sells for $400,000 with a 5% total commission. What is the total commission?

4. Under the South Carolina Vacation Rental Act, a vacation rental is a rental of residential property for:

5. A property manager receives a tenant's check for first month's rent. It must be deposited within 48 hours after:

6. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

7. Which deposit of firm money into the trust account is permitted?

8. Which statement about an inactive South Carolina license is correct?

9. A licensed South Carolina broker also wants to hold a property manager license at the same time. Under §40-57-110:

10. A major limitation of an automated valuation model (AVM) is that it:

11. A life estate is measured by:

12. A title search is performed primarily to:

13. Commissioners on the South Carolina Real Estate Commission serve terms of:

14. A broker received a 4.2% commission totaling $12,600. What was the sale price?

15. A property management agreement contains an automatic renewal clause. To comply with South Carolina law, it must:

16. A buyer of a unit in a cooperative receives:

17. The cost approach is MOST useful for:

18. A lien is BEST described as a:

19. An associate candidate passes the national portion of the PSI exam but fails the state portion. What must the candidate do?

20. Before advertising a property owned by someone else, a South Carolina licensee's firm must have:

21. Annual crops planted and cultivated by a farmer, such as corn and wheat, are called and are treated as .

22. Which conduct is a specific ground for discipline under §40-57-710?

23. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

24. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

25. A short-term loan used to buy a new home before the borrower's current home sells is a:

Sources