Free South Carolina Property Practice Test — LicenseIQ

Question 1

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 2

A home with a fair market value of $280,000 qualifies as the owner's legal residence. Total millage is 300 mills. Ignoring exemptions, what is the annual property tax?

Accepted Answer

Assessed value = $280,000 x 4% = $11,200. Tax = $11,200 x 300 / 1,000 = $3,360. Using the 6% ratio would give $5,040, which is the tempting wrong answer.

Question 3

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 4

When a tenant in common dies, that owner's share:

Accepted Answer

Tenancy in common has NO right of survivorship, so a deceased co-owner's interest passes by will or to heirs. Automatic passage to co-owners describes joint tenancy.

Question 5

Absent a contract provision allocating it, who is primarily liable for South Carolina's deed recording fee?

Accepted Answer

Section 12-24-20 makes the grantor primarily liable and the grantee secondarily liable, with exceptions such as deeds from a master-in-equity or a government.

Question 6

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 7

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 8

Which person may negotiate a real estate sale for another without a South Carolina real estate license?

Accepted Answer

Court-appointed receivers and trustees acting within their appointment are exempt under §40-57-240. There is no builder's agent exemption, and negotiating for a finder's fee is brokerage. The builder's representative is tempting because the representative is an employee, but employment by a builder is not on the exemption list.

Question 9

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 10

Which statement about the two public members of the South Carolina Real Estate Commission is correct?

Accepted Answer

Section 40-57-50 provides that the two public members are appointed by the Governor with Senate consent. The congressional-district seats are the ones filled from active practitioners, and public members by definition are not there to represent licensees.

Question 11

South Carolina real estate licenses renew:

Accepted Answer

Section 40-57-340 provides for biennial renewal. The current cycle ends June 30, 2026. Four years is the commissioner term, not the license cycle.

Question 12

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 13

A $280,000 house in a 300-mill district is the owner's legal residence. The owner moves out and rents it year-round, so it is reassessed at 6%. Ignoring exemptions, how much does the annual tax increase?

Accepted Answer

At 4%: $280,000 x 0.04 = $11,200 x 0.300 = $3,360. At 6%: $280,000 x 0.06 = $16,800 x 0.300 = $5,040. Increase = $5,040 - $3,360 = $1,680. The $5,040 choice is the new tax, not the increase.

Question 14

An associate wants to buy a property his firm has listed. He must:

Accepted Answer

Section 40-57-135(G) and (I)(7) require a licensee buying property to disclose the licensee's true position in writing to all parties.

Question 15

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 16

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 17

According to S.C. Code §40-57-10, the primary purpose of the South Carolina Real Estate Commission is to:

Accepted Answer

Section 40-57-10 states that the Commission regulates the industry to protect the public's interest in real estate transactions. Promoting the industry sounds plausible, but it is a trade association function, not the Commission's statutory purpose. The Commission never sets commission rates.

Question 18

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 19

When must the owner deliver the Residential Property Condition Disclosure Statement?

Accepted Answer

Section 27-50-50(A) requires delivery before the parties sign the contract or as the contract provides.

Question 20

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 21

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 22

Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

Accepted Answer

Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.

Question 23

A timeshare that lets the owner use the property during a specific, set week each year is a:

Accepted Answer

Fixed-week timeshares assign the same week every year; floating weeks allow different weeks subject to availability.

Question 24

A neighbor's new garage extends two feet over the property line. This is an:

Accepted Answer

An encroachment is an improvement that intrudes onto another's land; a survey establishes the boundary.

Question 25

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

South Carolina real estate property practice test

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

2. A home with a fair market value of $280,000 qualifies as the owner's legal residence. Total millage is 300 mills. Ignoring exemptions, what is the annual property tax?

3. Under a land contract (contract for deed), during the payment period the buyer holds:

4. When a tenant in common dies, that owner's share:

5. Absent a contract provision allocating it, who is primarily liable for South Carolina's deed recording fee?

6. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

7. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

8. Which person may negotiate a real estate sale for another without a South Carolina real estate license?

9. A title search is performed primarily to:

10. Which statement about the two public members of the South Carolina Real Estate Commission is correct?

11. South Carolina real estate licenses renew:

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

13. A $280,000 house in a 300-mill district is the owner's legal residence. The owner moves out and rents it year-round, so it is reassessed at 6%. Ignoring exemptions, how much does the annual tax increase?

14. An associate wants to buy a property his firm has listed. He must:

15. Which document is recorded in the county records and makes the property collateral for a loan?

16. A property manager owes fiduciary duties primarily to the:

17. According to S.C. Code §40-57-10, the primary purpose of the South Carolina Real Estate Commission is to:

18. A real estate licensee who is not an attorney may:

19. When must the owner deliver the Residential Property Condition Disclosure Statement?

20. Private restrictions placed in a deed by a developer are called:

21. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

22. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

23. A timeshare that lets the owner use the property during a specific, set week each year is a:

24. A neighbor's new garage extends two feet over the property line. This is an:

25. The government's power to take private property for public use with just compensation is:

Sources