Free South Carolina Agency Practice Test — LicenseIQ

Question 1

For disclosed dual agency, when must the buyer sign the Commission's dual agency consent?

Accepted Answer

Section 40-57-350(I) requires the buyer to sign before writing an offer and the seller to sign before signing the sales contract.

Question 2

A seller asks his listing agent to prepare the deed to save on legal fees. The agent should:

Accepted Answer

South Carolina courts treat preparing a deed for another as the unauthorized practice of law (In re Easler, cited in Doe v. McMaster). Charging no fee or having a BIC review it does not turn a licensee into a lawyer.

Question 3

A listing agent passes along a structural engineer's report in good faith. The report turns out to be wrong. Under §40-57-350(G), the agent is:

Accepted Answer

Section 40-57-350(G) provides that no cause of action arises against a licensee for information in an expert's report. Licensees still may not knowingly give false information.

Question 4

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 5

The sales contract names the closing attorney as the escrow agent for the earnest money. The buyer gives the check to the associate. Which statement is correct?

Accepted Answer

Section 40-57-136(H) keeps the licensee responsible for timely, proper delivery to the trust fund agent named in the contract when funds are held outside the firm.

Question 6

A complaint under the South Carolina Fair Housing Law must be filed with the state agency within:

Accepted Answer

Section 31-21-120 requires a written, verified complaint within 180 days. One year is the general deadline for a private civil action, which makes it a tempting choice.

Question 7

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 8

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 9

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 10

A buyer who uses a licensee's services without a written agency agreement is a:

Accepted Answer

Section 40-57-30 defines a customer as a buyer, seller, landlord, or tenant using a licensee's services without a written agency agreement. A client has a written agreement.

Question 11

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 12

Which agency administers and enforces the South Carolina Fair Housing Law?

Accepted Answer

Section 31-21-90 assigns the law to the Human Affairs Commission. The Real Estate Commission can discipline licensees for related misconduct but does not administer the fair housing statute.

Question 13

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 14

Which feature distinguishes designated agency from dual agency in South Carolina?

Accepted Answer

Section 40-57-350(J) requires a Commission-promulgated designated agency agreement and provides that confidential information is not imputed. In both relationships the firm represents both parties.

Question 15

For disclosed dual agency, when must the seller sign the Commission's dual agency consent?

Accepted Answer

Section 40-57-350(I) requires the seller's consent before the seller signs the sales contract.

Question 16

In South Carolina, an agency relationship between a brokerage firm and a client is created:

Accepted Answer

Section 40-57-370(E) says no agency exists unless the parties and the firm agree in writing. Agency cannot be assumed, created orally, or implied, and payment alone does not create it.

Question 17

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 18

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 19

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 20

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 21

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 22

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 23

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 24

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 25

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

South Carolina real estate agency practice test

1. For disclosed dual agency, when must the buyer sign the Commission's dual agency consent?

2. A seller asks his listing agent to prepare the deed to save on legal fees. The agent should:

3. A listing agent passes along a structural engineer's report in good faith. The report turns out to be wrong. Under §40-57-350(G), the agent is:

4. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

5. The sales contract names the closing attorney as the escrow agent for the earnest money. The buyer gives the check to the associate. Which statement is correct?

6. A complaint under the South Carolina Fair Housing Law must be filed with the state agency within:

7. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

8. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

9. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

10. A buyer who uses a licensee's services without a written agency agreement is a:

11. An agent authorized to perform a single specific act for a principal is a:

12. Which agency administers and enforces the South Carolina Fair Housing Law?

13. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

14. Which feature distinguishes designated agency from dual agency in South Carolina?

15. For disclosed dual agency, when must the seller sign the Commission's dual agency consent?

16. In South Carolina, an agency relationship between a brokerage firm and a client is created:

17. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

18. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

19. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

20. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

21. An agency relationship can be terminated by all of the following EXCEPT:

22. The client a broker represents is the:

23. The best way to create an agency relationship is a(n):

24. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

25. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Sources