Five women, Linda (Gail Harris), Jessica (Melissa Moore), Kimberly (Stacia Zhivago), Suzanne (Barbii) and Janey (Dana Bentley) buy the old Hokstedter place for their new sorority house. They get it cheap because of the bloody incidents from five years before committed by Hokstedter (Michael Villella). They decide to stay in it for the night so they can meet the movers in the morning, despite the electricity and the phones not working. Janey tells the group of the murders years before, putting the group on edge. As it turns to night, a storm rolls in and the girls are crept out by they neighbor Orville Ketchum (Peter Spellos) who recalls the night of the murders, and how Hokstedter was defeated. He gives them the keys to the basement before returning home. The girls decide to explore the basement, and find Hokstedter's tools and also a ouija board. Meanwhile, Lt. Mike Block (Jürgen Baum) and Sgt. Phyliss Shawlee (Toni Naples) set out in the storm to get to the Hokstedter house after they receive a disturbance call from the house, and also suspect Orville had something to do with the murders, although Mike was unable to pin anything on him at the time.
After taking showers, the group decide to use the ouija board to contact Hokstedter, however after they become too scared decide to go to bed. Suzanne and Janey have an argument, causing Janey to return downstairs to drink the rest of the alcohol. However she is attacked and stabbed to death. Soon after, Suzanne goes downstairs to find Janey, however can not find her. She alerts the others of Janey's disappearance, and the group split up to search. Suzanne goes up to the attic, but is locked in. She accidentally stands on a bear trap before the killer stabs her to death. Meanwhile, Mike and Phyliss travel to a strip club to talk to Candy (Bridget Carney) a survivor of the Hokstedter massacre. However, Candy can not recall if Orville was part of the murders.
Linda, Jessica and Kimberly begin to think Janey and Suzanne are playing a trick on them, and so go down to the basement to find them. Just as they are about to give up, they find their bodies strung up on the ceiling. The girls run upstairs and arm themselves with knives before attempting to leave. However they run into Orville and so retreat back into the house and lock the doors and windows. As the survivors become more panicked, they realize they left the attic window open. They run upstairs and lock the window, however Kimberly realizes that he has already gotten into the house. She panics and runs downstairs. While Linda remains in the attic, Jessica goes after Kimberly. Kimberly bumps into Orville and hides in a bathroom, but the killer gets in and murders her.
While Linda hides in the attic, Orville enters. Linda manages to stab him numerous times before finally choking him. She goes downstairs in search of Kimberly and Jessica, but instead finds Kimberly dying in a bathtub. Linda is attacked by a still alive Orville, but Linda overpowers him and drowns him in the toilet. She goes downstairs to find Jessica, but answers the phone when it rings. A woman asks for her husband, Hokstedter, before warning her he is in the house, before hanging up. Linda is lured into the basement by Jessica, who reveals herself to have been possessed by Hokstedter. Jessica chases Linda upstairs where the two fight, before Orville reveals himself to still be alive. Orville stabs Jessica, however Jessica knocks him out, before Linda manages to defeat Jessica, stabbing her in the neck.
The next morning, Mike arrives with police officers after the movers found the bodies. They find Linda still alive, but now possessed by Hokstedter. Orville wakes up and shoots Linda dead before the police officers shoot Orville. He however, survives and is rushed to hospital and later released after police could not pin the murders on him.Gail Harris as Linda
Melissa Moore as Jessica
Stacia Zhivago as Kimberly
Barbii as Suzanne
Dana Bentley as Janey
Jürgen Baum as Lt. Mike Block
Toni Naples as Sgt. Phyliss Shawlee
Mike Elliott as Eddie
Bridget Carney as Candy
Peter Spellos as Orville Ketchum
Michael Villella as Hokstedter
An early draft of the film was written by Mark Thomas McGee. McGee had written a book about Roger Corman and told Corman he wanted to write a film for him. Corman paid him to write Sorority House Massacre II, assigning Beverly Gray to work with him. McGee later said that Gray:
Was more of a critic than a collaborator. She’d tell me what she didn’t like, which was just about everything, but she never told me what she would like in its place. She spoke in generalities. Never specifics. My third draft was no closer to pleasing her than the first one had been. So when she asked for another rewrite I came to the conclusion that I would be writing Sorority House Massacre II for the rest of my life. Not knowing what else to do I called Roger to voice my concerns. I said that I was willing to do another draft but I needed more guidance than Beverly seemed willing to give me. He said that I had met my contractual obligation and sent me a check for my trouble. That script... was never produced.
Roger Corman and his wife Julie were going away to Europe for a week. Jim Wynorski, who had made a number of films for the two, went to Julie with the idea of making a slasher film on the sets of Slumber Party Massacre 2 and Rock and Roll High School Forever which were both scheduled to be dismantled. Julie Corman put a hold on striking the sets and told Wynorski to make the film while they were gone without telling Roger.
Wynorski says "I wrote the script in four days, cast it in two and started shooting the moment they left town. Roger only got wind of it after they returned."
The film was originally titled Jim Wynorski’s House of Babesthen Nightie Nightmares but was ultimately called Sorority House Massacre 2. Wynorski had never seen the original.
The film was made in seven days. Wynorski says "I was adding humor whenever possible and making sure there was plenty of nudity along the way. At first, the script ended when the cops arrived in the morning and found the Gail Harris character alive and holding the knife. I said to hell with that and continued on.bringing Orville back to life one more time to take care of business."
The movie was followed by Hard to Die, which basically re-used the same plot; it saw the return of several actors and actresses, although playing different characters.
Sorority House Massacre III began production in 2001 and wrapped principal photography in February 2002. In August 2002, it was announced that the film had changed the name to FINAL EXAM. In April 2007, it was announced that the film would be released later in the year on DVD under another new title, The Legacy, but Roger Corman's Concorde Pictures closed up shop and the film was never released. In March 2015, Director Jim Wynorski released a poster for the film on his official Facebook Page with the title Sorority House Massacre III: The Final Exam. It's unknown at this stage if the film will ever be released.