SC Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Dual agency

A relationship in which one brokerage represents both sides of the same transaction; in South Carolina it requires the informed written consent of all parties before it begins.

Fiduciary duties

Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, owed by a licensee to a client; confidentiality generally continues after the agency relationship ends.

Statute of Frauds

Legal rule requiring real estate sales contracts and leases longer than one year to be in writing and signed by the party against whom enforcement is sought.

Contingency clause

A contract provision making performance conditional on a specified event, such as loan approval or inspection; if the condition fails, the buyer typically may cancel and recover earnest money.

Loan-to-value ratio

The loan amount divided by the property's price or appraised value; lenders use it to set down payment requirements and decide whether mortgage insurance is needed.

RESPA Section 8

The federal prohibition against giving or receiving fees, kickbacks, or things of value in exchange for referrals of settlement service business in federally related mortgage loans.

Private mortgage insurance

Coverage protecting a lender against default on high loan-to-value loans; under federal law it generally terminates automatically when the balance reaches 78 percent of original value.

Tenancy in common

Concurrent ownership with separate undivided interests, no right of survivorship, and freely transferable shares that may be unequal and may pass by will or intestacy.

Joint tenancy

Concurrent ownership with right of survivorship that requires the four unities of time, title, interest, and possession; a deceased co-owner's share passes to the survivors.

Easement by prescription

A right to use another person's land acquired through open, notorious, continuous, hostile use for the statutory period, generally twenty years in South Carolina.

Highest and best use

The use that is legally permissible, physically possible, financially feasible, and maximally productive, yielding the highest present value for the site.

Capitalization rate

A rate derived from market sales that converts net operating income into value; value equals net operating income divided by the capitalization rate.

Gross rent multiplier

The ratio of a property's sale price to its gross monthly rent; value is estimated by multiplying the multiplier by the subject property's gross rent.

General warranty deed

A deed in which the grantor warrants title against defects arising before and during the grantor's ownership, including covenants of seisin, quiet enjoyment, and warranty forever.

Quitclaim deed

A conveyance of whatever interest the grantor may hold, with no warranties; it carries no promise that the title is valid or marketable.

Adverse possession

Title acquired by possession that is open, notorious, hostile, continuous, and exclusive for the statutory period, generally ten years under color of title and twenty without in South Carolina.

Exclusive right to sell

A listing agreement entitling the broker to a commission regardless of who procures the buyer, even if the owner sells the property personally during the term.

Procuring cause

The broker's efforts that began and continued an uninterrupted chain of events leading to the sale, supporting a claim for a commission.

Material adverse fact

A condition that significantly affects the value or desirability of the property and that a reasonable buyer would want to know before deciding.

Lead-based paint disclosure

Federal requirement that sellers and landlords of pre-1978 housing disclose known lead hazards, give the EPA pamphlet, and allow a ten-day inspection period.

Fair housing protected classes

Federal classes protected from housing discrimination: race, color, religion, sex, national origin, familial status, and disability; the law covers sales, rentals, advertising, and financing.

Reasonable accommodation

A change in rules, policies, practices, or services, such as permitting a service animal, so a person with a disability can use and enjoy a dwelling.

Blockbusting

Inducing owners to sell or list by suggesting that members of a protected class are entering the neighborhood and will reduce property values; prohibited by fair housing law.

Antitrust in real estate

Federal law prohibits competitors from fixing commission rates, allocating markets, or organizing group boycotts; licensees may not agree with competing brokers on fees.

Code of Ethics Article 1

The REALTOR obligation to protect and promote the client's legitimate interests, subject to the duty to treat all parties honestly and to disclose all pertinent facts.

Commission calculation

Total commission equals sales price multiplied by the agreed rate; that amount is then divided among cooperating brokers according to their written compensation agreement.

Acre conversion

One acre equals 43,560 square feet, one square mile equals 640 acres, and one mile equals 5,280 feet; these factors convert between area and linear measurements.

Discount points

One point equals one percent of the loan amount; discount points are charged by lenders to adjust the effective yield on a mortgage loan.

Broker-in-charge

The licensee designated to supervise a real estate office, monitor affiliated licensees, maintain trust accounts, and ensure compliance with Commission rules.

South Carolina license renewal

South Carolina licenses renew on a biennial cycle, requiring continuing education in Commission-approved courses and payment of renewal fees to remain active.

Agency disclosure timing

South Carolina requires a written agency disclosure at the first substantive contact with a consumer, and agency relationships must be established by written agreement.

Trust account rules

Client and trust funds must be held in a separate trust account, disbursed only as authorized, kept in accurate records, and never commingled with operating funds.