Before you read
Test yourself first: 5 questions
Question 1 of 5
A South Carolina broker-in-charge receives an earnest money deposit on behalf of a buyer. Where must these funds be held?
Answer: B. Client funds such as earnest money must be deposited in a designated real estate trust or escrow account and must not be commingled with the broker's personal or operating funds. The broker-in-charge is accountable for proper trust-account handling.
Question 2 of 5
Who is primarily responsible for maintaining and reconciling a brokerage's trust (escrow) account in South Carolina?
Answer: B. In South Carolina the broker-in-charge is responsible for the proper handling, maintenance, and reconciliation of the brokerage's trust/escrow account. Affiliated salespeople turn over funds they receive, but accountability for the account rests with the broker-in-charge.
Question 3 of 5
Under South Carolina law, when a licensee receives an earnest-money deposit in connection with a transaction, who is ultimately responsible for ensuring those funds are deposited into a designated trust or escrow account?
Answer: B. In South Carolina the broker-in-charge is responsible for the proper handling and supervision of all trust/escrow funds held by the firm. Salespersons must promptly turn deposits over to their broker-in-charge, who must see that the money is placed in a designated trust account and properly accounted for.
Question 4 of 5
A South Carolina salesperson receives an earnest-money check from a buyer. What is the proper handling under South Carolina rules?
Answer: B. Earnest money is trust money. A South Carolina salesperson must promptly turn the funds over to the broker-in-charge so they are deposited into the brokerage's trust/escrow account. Commingling trust money with personal or operating funds is prohibited.
Question 5 of 5
A salesperson handling rentals collects tenant rent and owner funds for several managed properties. Under South Carolina rules, how must these funds be handled?
Answer: B. Rent and owner funds in property management are trust funds that must be kept in a designated trust/escrow account and never commingled with personal or operating money. The broker-in-charge is accountable for supervision, proper handling, and recordkeeping of these funds.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The broker-in-charge is accountable for the proper handling, record-keeping, and disbursement of these trust funds. South Carolina licenses renew on a regular cycle, and licensees must complete the required continuing-education hours before renewal to keep their license active and in good standing.
Handling Escrow Funds and Renewal in South Carolina: FAQs
Is Handling Escrow Funds and Renewal in South Carolina on the real estate exam?
Yes. State License Law is a scored domain on the South Carolina real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does South Carolina test this differently?
South Carolina applies its own license law on top of the national portion. This page covers the South Carolina rules specifically, which is what the state section of your exam tests.
