Continuing education is required for license renewal cycles set by SCREC.
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
A South Carolina salesperson deposits an earnest money check into her personal checking account to keep it 'safe' until closing. This conduct is BEST described as:
Answer: B. Mixing a client's or customer's trust funds with personal or operating funds is commingling, an explicitly prohibited practice. Earnest money must be placed in a designated trust or escrow account. Commingling (and the more serious conversion of those funds) is a recognized ground for disciplinary action by the Commission.
Question 4 of 5
Under South Carolina license law, where must a salesperson's trust or escrow funds for a transaction be held?
Answer: B. A salesperson works under and is supervised by a broker-in-charge, who is responsible for maintaining the firm's designated trust/escrow account where client funds such as earnest money are held. Salespersons may not hold transaction funds in personal accounts; doing so constitutes commingling and is prohibited.
Question 5 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.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- SC Residential Property Condition Disclosure Statement: seller discloses known defects.
- Federal lead-based paint disclosure applies to homes built before 1978.
- Trust/earnest-money funds go in a designated trust account, not commingled with firm funds.
- The broker-in-charge is responsible for proper handling of all trust account funds.
- Do not commingle or convert client funds — a serious license-law violation.
- Pre-license: Unit I ~60 hours, Unit II ~30 hours.
- Continuing education is required for license renewal cycles set by SCREC.
- Material-fact disclosure to all parties is required even with non-client customers.
SC Disclosures, Escrow/Trust Funds & Key Items: FAQs
Is SC Disclosures, Escrow/Trust Funds & Key Items 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.
