Determine your answer, then click the arrow to see the correct response.
What Is "Curable Depreciation" in Real Estate?
A) The decline in property value due to market conditions
B) The increase in property value due to renovations
C) The loss in property value that can be corrected by making repairs or improvements
D) The permanent loss in property value due to external factors
Correct Answer: C) The loss in property value that can be corrected by making repairs or improvements
Explanation: Curable depreciation refers to the loss in value of a property that can be corrected by making repairs or improvements, such as fixing a leaky roof or updating outdated plumbing.
What Is "Highest and Best Use" in Real Estate Appraisal?
A) The most profitable way to develop a property
B) The use that is physically possible, legally permissible, financially feasible, and maximally productive
C) The use preferred by the current property owner
D) The use that requires the least amount of investment
Correct Answer: B) The use that is physically possible, legally permissible, financially feasible, and maximally productive
Explanation: The highest and best use is the use of a property that is legally permissible, physically possible, financially feasible, and results in the highest value for the property.
What Is a "Subordination Agreement"?
A) An agreement that changes the priority of mortgage liens
B) A contract to lease a property
C) A method of transferring property ownership
D) An agreement to share property management responsibilities
Correct Answer: A) An agreement that changes the priority of mortgage liens
Explanation: A subordination agreement is a legal document that changes the priority of mortgage, judgment, and other liens, typically giving the new lender’s lien priority over the existing liens.
What Is a "Plat Map"?
A) A document showing the market value of a property
B) A map showing the division of land into streets, blocks, and lots
C) A survey of a building's interior layout
D) A blueprint for the construction of a new building
Correct Answer: B) A map showing the division of land into streets, blocks, and lots
Explanation: A plat map is a detailed map that shows how a tract of land is divided into lots, streets, and blocks, usually for the purpose of development or construction.
A Landlord in South Carolina Leases a Single-Family Home to a Tenant. Can the Landlord and Tenant Agree in Writing That the Tenant Will Be Responsible for Certain Repairs and Maintenance?
A) No, the landlord is always responsible for all repairs and maintenance
B) Yes, but only if the agreement is made in good faith and not to evade the landlord’s obligations
C) No, such agreements are illegal in South Carolina
D) Yes, the tenant can be responsible for all repairs and maintenance
Correct Answer: B) Yes, but only if the agreement is made in good faith and not to evade the landlord’s obligations
Explanation: In South Carolina, the landlord and tenant of a single-family residence can agree in writing that the tenant will perform specified repairs and maintenance, provided the agreement is made in good faith and not to evade the landlord’s legal obligations.
What Is Required for a Valid Real Estate Brokerage Agreement in South Carolina?
A) A verbal agreement between the broker and the client
B) A written agreement that sets forth all material terms of the agency relationship
C) An informal handshake
D) An agreement witnessed by a third party
Correct Answer: B) A written agreement that sets forth all material terms of the agency relationship
Explanation: South Carolina law requires that a listing or buyer’s representation agreement must be in writing and must detail all material terms, including the agent’s duties, compensation, and duration of the agency relationship.
In South Carolina, What Must a Landlord Disclose to a Tenant Under the Residential Landlord and Tenant Act?
A) The previous rental prices of the property
B) The names of the previous tenants
C) Any known hazardous materials on the property
D) The landlord's personal financial information
Correct Answer: C) Any known hazardous materials on the property
Explanation: Under the South Carolina Residential Landlord and Tenant Act, landlords are required to disclose any known hazardous materials on the property to ensure tenant safety
A Real Estate Brokerage Firm in South Carolina Operates Multiple Branch Offices. Can One Broker-in-Charge Manage All Offices?
A) Yes, a single broker-in-charge can manage all offices
B) No, each office must have its own separate broker-in-charge
C) Yes, but only if the offices are within the same city
D) No, unless the offices share the same address
Correct Answer: B) No, each office must have its own separate broker-in-charge
Explanation: In South Carolina, each branch office of a real estate brokerage firm must have its own separate broker-in-charge to ensure proper supervision and compliance with state regulation.
What Is the Minimum Number of Years a Broker or Salesperson Must Be Licensed in South Carolina To Apply for a Partial Continuing Education Waiver Based on Experience?
A) 10 years
B) 15 years
C) 20 years
D) 25 years
Correct Answer: D) 25 years
Explanation: Brokers or salespersons with at least 25 years of licensure in South Carolina may apply for a partial continuing education waiver, which requires them to complete only the mandatory four-hour core course biennially to maintain active licensure.
A Homeowner in South Carolina Sells Their Property for $550,000. They Pay a 5% Commission to Their Real Estate Agent and $10,000 in Closing Costs. How Much Does the Homeowner Net From the Sale After These Expenses?
A) $512,500
B) $515,000
C) $522,500
D) $525,000
Correct Answer: C) $522,500
Explanation: The commission paid to the real estate agent is 5% of $550,000, which is $27,500. Therefore, the total expenses are $27,500 (commission) + $10,000 (closing costs) = $37,500. The net amount the homeowner receives is $550,000 – $37,500 = $512,500.