Exam (elaborations)
THE CE SHOP PRACTICE TEST SC REAL ESTATE
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THE CE SHOP PRACTICE TEST SC REAL ESTATE
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THE CE SHOP PRACTICE TEST SCREAL ESTATE QUESTIONS AND
ANSWERS GRADED A+
oWhen performing a market analysis, given the adjusted sales prices of three comparables, which
comparable would you weigh most heavily?
-The one that had more upward adjustments than the others
-The one that required less adjustment
-The one with an adjusted sales price higher than the actual sales price
-The one with the adjusted sales price lower than the actual sales price - The one that required less
adjustment
**The comparable that required less adjustment overall (including both upward and downward
adjustments) will be the one most similar to the subject property. Therefore, it would be weighed most
heavily.
In South Carolina, the parties agree in the sales contract to a repair procedure unless what document is
attached?
-Amendment to Repair Procedure
-Due Diligence Addendum
-Seller Disclosure Statement
-Waiver of Repair Procedure - Due Diligence Addendum
Without a buyer agency agreement in place, which party does the agent who's assisting the buyer
represent?
-No one
-The agent
-The buyer
-The seller - The seller
**If there is no agency agreement in place, the agent who's assisting the buyer represents the seller.
If special assessments apply to a property involved in a South Carolina sales transaction, who's
responsible for paying the assessment?
-The brokers representing the buyer and seller
,-The buyer, if the assessment is applied prior to closing
-The closing attorney
-The seller, if the assessment is applied prior to closing - The seller, if the assessment is applied prior to
closing
**The sellers are responsible for paying any special assessments applied before closing, and the buyers
are responsible for any that are applied after closing.
Mark is a seller who prepaid his property taxes. What happens to the amount he prepaid and won't
benefit from when he sells?
-He'll receive a credit at closing.
-He'll receive a debit at closing.
-The buyer must repay this amount when the next property taxes are due.
-The excess funds are deposited into the state's Widows and Orphans Fund. - He'll receive a credit at
closing.
**Prepaid items are credited to the seller at closing. Accrued but not yet paid items are credited to the
buyer at closing.
Deducting the costs of maintaining and operating an income property provides a(n) _______ that's
attractive to many real estate investors.
-Credit boost
-Increase in equity
-Profit
-Tax shelter - Tax shelter
**Operating expenses can be deducted from rental income, and therefore provide a tax shelter that
makes investing more attractive.
Hiram plans to do a 1031 tax-deferred exchange. He just sold his property. How many days does he have
to close on a new property?
-180
-30
-45
-60 - 180
Denise is the listing agent on a property that's next to a lake. When advertising the property for sale, she
describes it as "waterfront." Is this okay?
-No, she didn't mention how much frontage the property has on the lake.
, -No, the word "waterfront" is misleading.
-Yes, as long as she includes a photo.
-Yes, the house sits next to the lake. - Yes, the house sits next to the lake.
**Using "waterfront" to describe this property is acceptable. Now, if the only water in sight was a small
man-made pond the sellers put in ... that'd be a different story.
Earnest money in South Carolina must be deposited using _________.
-Any legal tender
-Cash or money order
-Wired funds or a certified check
-Wired funds or a money order - Any legal tender
**Earnest money in South Carolina can be paid using a personal check, cash, or through other means.
The IRS will only allow _______ of passive losses to be deducted against active taxable income.
-2000
-3000
-4000
-5000 - 3000
**The IRS only allows $3,000 of passive losses to be deducted against active taxable income.
What date is used for adjustments to closing costs between the parties to a South Carolina sales
contract?
-Buyer possession
-Closing date
-Earnest money receipt date
-Effective date of contract - Closing date
**All adjustments to closing costs are prorated as of date of closing.
Margo has found her dream house. It's listed at $370,000, and she plans to offer $365,000. She has a
letter from her lender stating that she's been pre-approved for a maximum $375,000 loan. Why should
she ask her lender to re-write the pre-approval letter?
-By law, the letter can only note that she's been approved for the amount she's offering.
-By providing the letter with her maximum loan amount, Margo risks reducing her negotiating ability.
-Pre-approval letters should only state that the buyer's income, assets, and liabilities have been verified.
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