South Carolina Prelicensing Curriculum Content Outline For Real Estate .

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South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)Introduction to the Curriculum Content OutlineThe South Carolina Real Estate Salesperson Prelicensing Curriculum, commonly known as "UnitI," is comprised of the following Sections; each receives greater detail in this Outline.Also, selected Sections end with suggested activities and assignments to help reinforce the terms,concepts, and processes identified. You should apply your own expertise to create similarreinforcements that actively involve students.The intention of the Curriculum is to provide a reasonably comprehensive guide to the subjectmatter, laws, processes, and activities that are part of the real estate profession.It is NOT intended to restrict itself to only those facts and details that may appear on thelicensing test. However, you should review the vendor's test outline (available online in theCandidate Information Bulletin) to ensure all terms and concepts are adequately defined anddiscussed in the most appropriate Section below.Proper instruction will ensure that the student will be prepared for entering the complex practiceof the real estate profession in South Carolina, and should therefore be able to pass the licensingexam.Section Title1. Real Property2. Governmental Controls and Laws Affecting Real Estate3. Pricing of Real Properties4. Real Estate Finance5. Settlement/Closing6. Agency and other brokerage relationships7. Contracts8. EthicsInstructional : The Hour-ranges provided above specifically allow the flexibility to incorporatenecessary Review and Exam time into the required 60 course hours.Further note: The emphasis and time required to develop the topics identified in Section 8, Ethics,may be worked into appropriate topics in other areas, such as ethics and elements of FairHousing and ADA, ethical dimensions of agency, contract preparation, and adherence tocontractual and legal obligations.This document was prepared 9/16 for the South Carolina Real Estate Commission;intended f o r use in the preparation of Class Materials for Salesp erson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)1. Real Property-- 8 to 10 instructional hours -I.ELEMENTS OF REAL PROPERTYA.Define and explain1.Real property2.Real estate (realty)3.Land4.Personal property sa.Legal tests, i.e., intention, method of attachment, adaptation,relationship/understanding of parties8.Trade fixturesB.Real property rights1.Mineral rights2.Water rightsa.Littoralb.Riparianc.Terms of addition, e.g., accession, accretion, alluvion, relictiond.Terms of reduction, e.g., erosion, avulsion3.Air rightsC.Bundle of t enjoymentD.Legal description1.Metes and bounds2.Reference to plat, etc. (lot & block)3.Government rectangular system (information only -not applicable in SC)II.ESTATES AND TENANCIESA.Define and s document was prepared 9/1 6 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)B.III.Types of estates1.Freeholda.Inheritable fee simple1)Own life (ordinary)2)For life or another (pur autre vie)b.Future d by lease agreementb.Leaseholds and tenancies1)Tenancy for years2)Tenancy for term3)Periodic tenancy4)Tenancy at will5)Tenancy by sufferanceFORMS OF OWNERSHIPA.Tenancy in severalty1.By a person2.By legal entitiesB.Tenancy in common1.Concurrent with two or more owners2.No special wording to create3.No right of survivorship (upon death title passes to heirs or assigns)4.Each owner owns a part which is undivided (not specified)5.Each may own with separate deeds6.Only unity of possession is required7.Right to partition8.Transfer of interestC.Joint tenancy1.Concurrent with two or more owners2.Special wording to create3.Each owns all - each owns an undivided interest4.Right of survivorship (upon death title remains with surviving tenants)5.Four unities--possession, interest, time, title6.Right to partition7.Transfer of interest2This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)D.E.F.IV.Marital ownership (informational only; not applicable in South Carolina)1. Marital property states; general guidelines2. Tenancy by the entiretyStatutory ownership, or common interest ownership1.Condominiumsa.Fee simple ownershipb.Common elements; limited common elementsc.Owners' association and bylawsd.In-state contracts and disclosures1)Certificate of assessment2.Cooperativesa.Corporation ownership in severaltyb.Proprietary leasec.Owners' associationd.Differences in condos and co-opse.Ownership is in stock, not real estate3.Timeshares, or interval ownership4.Townhouses5.Planned Unit Developments (PUDs)Business entities1.General partnership2.Limited partnership, e.g., Limited Liability Corporations (LLCs)3.Corporation4.REITSLAND USE CONTROLSA.Public/Governmental1.Police powera.Restrictive powersb.Zoning lawsI)Master plan2)Ordinances3)Variances4)Non-conforming use5)Spot zoning (rezoning)c.Building codesd.Subdivision regulationse.Health and sanitation lawsf.Environmental protection laws3This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for u s e in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)g.2.3.B.C.Terminology and concepts, e.g., hazards, contamination,Superfund, abatement, mitigation, responsible parties andliabilitiesEminent domaina.Purpose of 'taking'b.Condemnation and "just compensation"c.Delegation of powerTaxation of real estatea.Direct1)State government2)County and municipal governmentsa) Reassessment at time of sale; "point of sale"b. Real property taxes1)Assessment overview2)Ad valorem3)Millage, or mill, rate4)General and special assessmentsEscheat4.Private1.Deed restrictions2.Covenants, Conditions, and Restrictions (CC&Rs)3.Homeowners Associations (HOAs)Encumbrances1.Liens (voluntary and involuntary)a.Specific liens1)Mortgage lien2)Tax lien3)Mechanic's lien4)Special assessmentsb.General liensc.Priority of liens2.Lis pendens3.Non-possessory n grossb.Tenementsc.Appurtenant1)Creation by mutual agreement4This document was prepared 9/16 for the South Carolina Real Estate Commission; intendedfor u s e in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)2)5.V.Creation by other catione)Implicationd.Termination of easementsEncroachmentsTRANSFER/ALIENATION OF REAL PROPERTYA.How estates are created1.Original entry (public grant)2.Involuntary transfera.Judicial saleb.Tax salec.Adverse possessiond.Accretion/avulsione.Eminent domainf.Escheat3.Voluntary transfer (grant)a.Saleb.Giftc.Probate; conveyances after death1) Testate (with a will)2) Intestate (without a will - may be deemed an involuntarytransfer depending on the decedent's known preferences)3) Other terms, e.g., executor, administrator, personalrepresentative, types of willsd.DedicationB.Equitable title and legal titleC.Marketable titleD.Deeds-purpose, types, common covenants and warranties1.General warranty deed covenantsa.Seizenb.Against encumbrancesc.Further assuranced.Quiet enjoymente.Warranty foreverf.Right to convey2.Special warranty deed3.Quitclaim deed5This document was prepared 9 / 1 6 f o r the South Carolina Real Estate Commission;intended for use in the preparation o f Class Material for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)E.F.Characteristics and elements of deeds of conveyance1.Major sectionsa.Premises1)Names of grantor and grantee2)Explanatory facts3)Granting clause4)Consideration5)Adequate descriptionb.Habendum (to have and hold)1)Estate to be taken2)Conditions affecting the grant3)Covenants of title, when requiredc.Testimonium1)Date2)Competent grantor's signature3)Witnessesd.Acknowledgment2.Delivery and acceptance3.Recordation (constructive notice vs. actual notice)a.Processb.Importance4.Unrecorded deedsa.Grantor to grantee (valid)b.Subsequent purchasers or creditors (invalid)Title issues1.Title searcha. Chain of title/title abstractb. Cloud on titlec. Suit to quiet title2.Assurances of title (title insurance)a. Mortgagee's policyb. Owner's policySuggested classroom activities:Invite an attorney to speak on problems with titlesSearch a titleLook up records onlineInvite a speaker from a tax officeTax math problemsDo your own pro perty’s titles searchDiscuss riparian and water rights, including terms applicable within your region, e.g.,lakefront, rivers, streams, ownership boundaries, navigable/non-navigabledistinctions, etc.6This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)2. Governmental Controls and Laws Affecting Real Estate-- 8 to 12 instructional hours -I.REAL PROPERTY TAX LAWSA. Homeowner tax breaks (primary residence & second home)1.Mortgage interest deductionsa.Acquisition debtb.Equity debt1) Refinancing2) Second mortgage3) Equity line of credit2.Property tax deductions3.Homestead exemption (SC Code, not national)a.Over age 65b.Blindc.100% disabled4.Pointsa.Acquisition debtb.RefinancingB. Capital gains on sale1.Personal residence (Tax Payer Relief Act of 1997)2.1031 tax-deferred exchange (more emphasis on broker level)C. Assessment rate in SC1.Primary Personal residence (4%)2.Other (6%)3.Agricultural (4%) (rollback)D. MathII.FEDERAL FAIR HOUSING LAWSA.Civil Rights Act of 18661.Provisions2.Jones vs. MayerB.Fair Housing Act1.Types of property covered2.Prohibitions, esp. advertising3.Enforcement4.Time limits5.Penalties7This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)Specific stency of policiesProtected classes6.C.D.III.AMERICANS WITH DISABILITIES ferentiating FH vs. ADAIV.LEAD-BASED PAINT DISCLOSURE LAWSA.Residential propertiesB.Investors and rentersV.FEDERAL ANTITRUST LAWSA.PurposeB.Governmental authorityC.Price fixing, tie-in agreementsD.Allocation of markets and customersE.Penalties for violationsVI.TRUTH IN ADVERTISINGA.Administered by the Federal Trade Commission (FTC)B.Key provisionsVII.TECHNOLOGY/ELECTRONIC TRANSACTIONSA.Federal: Electronic Signatures in Global and National Commerce Act (ESIGN)B.State: Uniform Electronic Transactions Act (2004 Act 279-SC Code Ann. Sec.26-6-10 et. seq.)1.Applicability2.Exempted real estate transactions8This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)VIII.SOUTH CAROLINA REAL ESTATE LICENSE LAWA.Regulatory issues and agencies1.Purpose2.Legislature/legal authority3.Police power4.Department of Labor Licensing and Regulation (LLR)5.Commission powers and dutiesa.Standards for licensure (qualifications)b.Promulgate spension, revocation and fines2)Cease and desist orders3)Other penaltiesf.Appeals/ Administrative Law Judge (ALJ)B.Real estate licenses1. Activities requiring a license2. Exemptions from licensure3. Reapply for license after revocationC.Duties and requirements of licensees1.BIC and PMICa. Supervision and maintenance of trust accountb. Review and approval of formsc. Maintaining contact with associated licenseesd. Instructing licensees on handling of trust fundse. Available to the publicf. Policy manualg. Offices2.Associated licenseesa. Timing of delivery of trust fundsb. Notification of change of name, address, or brokerage firmc. Advertising and identifying affiliated companyd. Disclosing name of franchisee. Disclosing licensed statusf. Reducing offers, acceptances, and changes to writingg. Closing documents and reducing delaysh. TeamsD.Regulated activities1.Advertising2.Compensationa. Unlicensed personsb. Cooperating brokers9This document wos prepared 9/16 for the South Carolina Real Estate Commission; intendedfor use in the preparation of Class Materials for Salesperson Pre/licensing Courses

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)E.F.G.H.Disclosures1.Undisclosed principals2.Agency representation3.Seller/property4.Stigmatized propertiesTrust Receipt and deposit of earnest moneya.Cash/certified fundsb.Checks/other monies3. Account informationa.Locationb.Designation4. Property managementa.Security or advance rental depositsb.Rents5. Option fundsa.What they are and how they are handled6. Disbursementsa.Disputed fundsb.Undisputed7. Real Estate Commission auditsa.Paper trailb.Personal fundsLicense types, qualifications, and procedures1.Salesman qualifications2.Broker qualifications3.In-Charge qualifications4.Licensing procedures5.Property ManagerLicense maintenance and statuses1.Renewal and maintenancea.Renewal periodb.Licensee responsibility for renewalc.Reporting changes in employer/BIC2.Statusesa.Activeb.Inactivec.Other, e.g., current, lapsed, expired, cancelled, revoked, suspended10This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for u s e in the preparation o f Class Materials for Salesperson P relicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)I.J.J.L.M.X.Current continuing education requirementsAgency and non-agency representation agreements1.Essential provisions2.Signatures of all parties3.Transaction brokerage4.Additional listing provisionsOffers and counteroffers to purchaseRecordkeepingViolations (Refer to Section 40-57-710a for a complete list of violations.)I.Guaranteeing profits2.Criminal convictions3.Dual contracts4.Choice of attorney, etc.ADDITIONAL STATE LAWSA.South Carolina Consumer Protection Code1.No maximum rate of interest2.Lender may not select attorney (borrower's choice), etc.3.Loan transfer/transfer fees4.Conditions of prepayment without penaltyB.South Carolina Residential Landlord and Tenant Act5.Landlord obligations6.Tenant remedies for landlord's noncompliance7.Retaliation8.Tenant obligations9.Landlord remedies for tenant's noncompliance10.Abandonment11.Constructive evictionC.South Carolina Vacation Time Sharing Plans Act1.Enforcement agency2.Ownership and lease plans3.Unit week4.Right of rescission5.PenaltiesD.Megan's Law1.Define and explain2.Disclosure do's and don'ts3.Enforcement authorityE.South Carolina Coastal Zone Management Act1.Oversight by South Carolina Department of Health and EnvironmentalControl (DHEC), Ocean & Coastal Resource Management (OCRM)11This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)F.2.Definitions3.Protected areas, including wetlands4.Regional applicability; disclosuresOther state laws and issues1.Smoke detectors2.7% non-resident tax3.S. C. Human Affairs Commission4.Predatory lending5.S. C. Residential Property Condition Disclosure Statement6.Effect of foreclosure on leases and evictionsSuggested Classroom Activities:Figure taxes and capital gainsRole playing with testers on Fair HousingTrust account exercises expanding extensively on the entries in the GuidelinesBooklet.12This document was prepared 9/16 for the South Carolina Real Estate Commission; intendedfor use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)3. Pricing of Real Properties-- 4 to 6 instructional hours -I.VALUATION AND APPRAISALA.Definitions1.Appraisal2.Purpose of an appraisal3.Function of an appraisal4.Market value5.Value7.Price8.Comparative (competitive) market analysis (CMA)B.Essential elements/characteristics of .Principles of value1.Supply and demand2.Highest and best ionD.Influences on oaches to value1.Definitionsa.Sales comparison approachb.Income approachd.Cost approach13This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)2.N.Sales comparison approacha.Types of propertiesb.Market comparison1)Recent sales data2)Compare with subject3)Verify data4)Make adjustmentsc.Adjustments1)Time of sale2)Location3)Physical characteristics4)Sale concessions3.Income approacha.Types of propertiesb.Capitalization1)The formula2)Determining NOI3)Capitalization ratec.Gross rent multiplierd.Gross income multiplier (informational only, no math)4.Cost approacha.Types of propertiesb.The conceptc.The formula (five steps)d.Replacement and reproduction differentiatede.DepreciationI)Physical deterioration2)Functional obsolescence3)External (economic) obsolescence4)Curable and incurablef.Methods to estimate costI)Square footage comparison2)Other methods and terms, e.g., quantity survey, unit inplace, comparativeComparative (competitive) Market Analysis (CMA)1.Purpose, common uses, limitations2.Relationship to formal appraisal3.Method(s) of gathering and processing data, e.g., acceptable number ofcomps, time period for recent sales, acceptable distance from subject property4.Similar analysis, terms, and use: Broker Price Opinion (BPO)/Broker Opinionof Value (BOV)14This document was prepared 9/16 for the South Carolina Real Estate Commission; intendedfor use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)II.THE APPRAISAL PROCESSA.Define the problemB.Preliminary survey and appraisal planC.Collect dataD.Analyze and process dataE.Application of three approaches to valueF.Correlation of final estimate (Reconciliation)III.MATHSuggested classroom activities:Practicum for Comparative Market AnalysisDiscuss the effect on pricing of property specifics using common examples, such as:Site particulars- location, soil types, availability of water and pu blicutilities, proximity to probable enhancements (parks, hospitals, schools, etc.)and possible detractors (busy streets, noisy businesses, airports, etc.)Improvement details, including constr uction types, building materials, age ofstructure(s), renovation considerations and costs, etc.15This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)4. Real Estate Finance-- 6 to 8 instructional hours -I.FINANCING SOURCESA.Primary mortgage lenders1.Defined2.Classificationsa.Institutional lendersb.Non-institutional lenders1)Mortgage companies2)Mortgage brokers3)Private investors4)Seller financingB.Secondary mortgage market1.Description2.Purpose3.Secondary institutionsa. Fannie Maeb. Ginnie Maec. Freddie MacC.Down payment assistance programs1.General overview and history2.Local availability, sources, changesII.INSTRUMENTSA.Promissory note (evidence of the debt)B.Mortgages (pledge)C.Deed of trustD.Lien theory and title theoryIII.ELEMENTS/PROVISIONS OF MORTGAGESA.All elements of a contractB.Subject to Statute of FraudsC.Parties to a mortgageD.Does not convey ease of mortgageH.Priority of mortgagesI.Subordination clause ("junior mortgage")16This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)J.K.L.M.N.IV.Non-recourse (default by borrower)Mortgagor covenantsI.Pay taxes2.Keep property insured3.Protect against removal4.Keep property in good repair5.Allow mortgagee right of re-entryPrepayment penaltyDefeasance clauseAcceleration clause1.Default2.Due-on-sale (alienation clause)TYPES OF LOANSA.Common loans and repayment methods1.Straight term mortgage (interest only)2.Fully amortized mortgage4.Partially amortized mortgage (balloon)5.Adjustable rate mortgage (ARM)6.Open-end loan7.Construction loans8.Home equity loans9.Negative amortization10.Reverse annuity mortgage (RAM)11.Conforming and non-conforming loans12.Sub-prime loansB.Interest1.Points2.Paid in arrears3.Fixed epayment penalty5.Annual percentage rate (APR)C.Property pledged1.Package mortgage2.Blanket mortgageD.Alternative types of financing1.Contract for deed (land contract, installment contract)2.Purchase money mortgage17This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)3.4.5.6.Wrap aroundsSale lease-backsAssumptions/novationSubject toV.GOVERNMENT BACKED OR CONVENTIONALA.FHA insured loansB.VA-guaranteedC.Conventional loans1.Uninsured2.Insured3.Mortgage insurance requirementsa. Mortgage Insurance Premium (MIP)b. Private Mortgage Insurance (PMI)VI.LOAN UNDERWRITINGA.Qualifying the propertyB.Loan-to-value ratio1.Explanationa.Down paymentb.Equity2.FHA3.VA4.ConventionalC.Qualifying the buyer1.Income2.Assets3.Credit historya.Prime borrowerb.Sub-prime borrower4.VA eligibilityD.Qualifying the title1.Marketable title2.Liens3.Conditions, covenants, and restrictions (CC&Rs)E.Mortgage costs1. Mortgage interest rates2. Equalizing the yield (discount points)3. Origination fee and other lender fees4. Required disclosures5. Predatory lending issues18This document was prepared 9/16 for the South Carolina Real Estate Commission;intended f or use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)F.G.a.Excessive interest; usuryb.Unexpected/under-explained costsForeclosure1.Redemption - concept and issues2.Title taken by lender3.Deficiency judgments4.Distribution of fundsShort salesVII.NATIONAL CONSUMER PROTECTION ACT (Truth in Lending)A.Known as "Regulation Z"B.Disclosures for lendersC.Real estate advertisingVIII.EQUAL CREDIT OPPORTUNITY ACTA.Fair Credit Reporting ActIX.MATHSuggested classroom activities:Seller net sheetsBuyer cost sheetsGood faith estimatesLoan comparison (FHA, VA, Conventional)Case lawFamiliarization with forms19This document was prepared 9/16 for the South Carolina Real Estate Commission; intendedfor u s e in the preparation of Class Materials for Salesperson P relicensing C ourses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)5. Settlement/Closing-- 2 to 4 instructional hours -I.II.CLOSINGSA.Common terms and elements1. Escrow, settlement, closing2. Escrow/trust/impound accountB.Purpose, procedures, and parties1. Settlement agent2. Licensee responsibilitiesC.Contract and other documents, e.g., deed, bill(s) of sale, property reports, releases,liens, property warranty policiesD.Real Estate Settlement Procedures Act bitionsE.Closing Disclosure (CD) (See in class room crowed items4.Prorated items5.Possession/transfer6.HUD-1a. Home Equity Line of Credit (HELOC)b. Reverse annuity mortgage (RAM)F.Cash transactions and non-regulated financingMATH, especially South Carolina deed recording feeA.Prorate prepaid interest and taxesB.Prorate accrued interest and taxesC.Other common prorationSuggested classroom activities:Prepare worksheets to show proration of prepaid and accrued interest and taxes,and other common prorationsGenerate lists of common closing expenses and who pays; investigate anddiscuss availability, coverages, and costs of d ifferent home warrantypolicies in you r areaComparison of loan estimates with closing disclosure figures20This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)6. Agency and other Brokerage Relationships-- 8 to 10 instructional hours -I.THE LAW OF AGENCY and other Brokerage RelationshipsA.Define and explain1.Common law2.Agency3.Principal4.Agent5.Subagent6.Single er agency12.Buyer agency (buyer broker)13.Attorney-in-fact14.Power of attorney15.Dual agent16.Dual agency17.Designated agent18.Designated agency19.Transaction broker20.Transaction brokerage21.Ministerial ActsB.General Concepts1.Contractual nature of relationshipa.Company and subagencyb.BIC and agent responsibility for actions of subordinates andprincipalsc.Representation agreements - licensees and companyd.Multiple listing services (MLS)2.Conflict of interest, including secret/undisclosed profits and self-dealinga. Legal and ethical issuesC.Types of authority of agencies1.Express2.ImpliedD.Types of agents1.General2.Special3.UniversalE.Types of principals21This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for u s e in the preparation of Class Materials for Salesperson P relicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)1.2.3.II.DisclosedUndisclosedPartially disclosedAGENCY AND NON-AGENCY RELATIONSHIPS AND RESPONSIBILITIESA.Characteristics1.Contractual and/or igations of parties1.Agent's duties to principala.Obedience to lawful instructionsb.Full disclosure or noticec.Loyaltyd.Accountabilitye.Care, knowledge, and skillf.Confidentialityg.Handling of offers, counteroffers, and multiple offers2.Principal's obligations to agenta.Compensation1)Procuring cause2)Broker protection clauseb.Reimbursementc.Opportunityd.Good conducte.Indemnityf.Good faith3.Transaction broker obligations to third partiesa.Honesty and fair dealingb.Disclosure1)Seller disclosure, when applicable2)Agency relationship, when applicable3)Adverse material factsc.Due care, knowledge and skilld.Limitations of customer service4.Liabilitiesa.Dual agency issuesb.Limits of expertise, recommending other professionals (legal, tax,accounting, etc.)c.Types of liability, e.g., joint, several, vicariousC.Creation and termination of agency22This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)D.Property disclosure1.Material defects, e.g., structural, site/soil, meeting code specifications2.Stigmatized properties3.Environmentala.Asbestosb.Underground storage tanksc.Radond.EIFS (stucco)e.Toxic moldf.Other, e.g. pests, hazard zone, insurability4.Wetlands5.Licensee responsibility to verify disclosures and property representationsIII.SOUTH CAROLINA AGENCY DISCLOSURE FORMA.Timing of disclosureB.Types of agency practiced by brokerageC.Informed consentIV.COMPANY POLICYA.Seller/buyer single agency representationB.Disclosed dual agencyC.BIC/Licensee relationships, statutory and contractualD.Independent contractor/employee statusSuggest classroom activities:Changing hatsFilling out disclosure formsExplaining disclosure forms23This document was prepared 9/16 for the South Carolina Real Estate Commission;intended for use in the preparation of Class Materials for Salesperson Prelicensing Courses.

South Carolina Prelicensing Curriculum Content Outlinefor Real Estate Salespersons (Unit I)7. Contracts-- 6 to 8 instructional flours MENTS/REQUIREMENTSA.Offer and acceptanceB.Legal considerationC.Competent partiesD.Legal purposeE.Legal formF.Modifications/alterations/addendaG.Signed originalsH.Reality of consent (versus duress)III.STATUTE OF FRAUDSIV.BROKERAGE AGREEMENTSA.Purpose of Agency Agreements1.Creates agency relationship2.Employment contract3.Buyer or seller4.Disclosed dual agency5.Conflict of interestB.Contents of Listing or Buyer Brokerage Agreement1.Property d

representative, types of wills d. Dedication B. Equitable title and legal title C. Marketable title D. Deeds-purpose, types, common covenants and warranties 1. General warranty deed covenants a. Seizen b. Against encumbrances c. Further assurance d. Quiet enjoyment e. Warranty forever f. Right to convey 2. Special warranty deed 3. Quitclaim deed 5