(D) A member may be removed from office pursuant to Section 1-3-240.

(E) In order to establish terms which do not expire simultaneously, those members appointed to fill seats which terms expire on June 30, 1996, shall serve for terms which expire as follows: two members on June 30, 1998; two members on June 30, 1999; and two members on June 30, 2000.

Section 40-57-50. (A) The commission annually shall elect from its total membership a chairman, vice-chairman, and other officers the commission determines necessary. The commission may adopt an official seal and shall adopt rules and procedures reasonably necessary for the performance of its duties and the governance of its operations and proceedings.

Section 40-57-60. The commission shall set general policy with regard to the administering and enforcement of this chapter and regulations promulgated under this chapter. Powers and duties include, but are not limited to:

(1) determining the standards for qualifications and eligibility of applicants for licensure;

(2) conducting disciplinary hearings on alleged violations of this chapter and deciding disciplinary actions as provided in this chapter for those found to be in violation;

(3) recommending changes in legislation and promulgating regulations governing the real estate industry relative to the protection of the safety and welfare of the public.

Section 40-57-65. The annual report must be made in accordance with Section 40-1-50 (I).

Section 40-57-70. (A) Fees must be established in accordance with Section 40-1-50(D). Current published fees are in effect until such time as they may be revised by the board in accordance with this section.

(D) The department may allocate a sum of up to ten dollars from each licensee's renewal fee to a South Carolina Real Estate Commission Education and Research Fund. The funds collected must be deposited in a special fund by the State Treasurer to be used exclusively for:

(1) the advancement of education and research for the benefit of those licensed under the provisions of this chapter and for the improvement and increased efficiency of the real estate industry in this State;

(2) the analysis and evaluation of factors which affect the real estate industry in this State; and

(3) the dissemination of the results of the research.

Section 40-57-80. To be eligible for licensure as a broker, salesman, or property manager, an applicant shall:

(A) have attained the age of twenty-one if applying for a license as a broker, broker-in-charge, or property manager-in-charge.

(B) have attained the age of eighteen if applying for a license as a salesman or property manager.

(C) submit to a credit report which indicates credit worthiness satisfactory to the commission. If notified of unsatisfactory credit, the applicant shall have sixty days to respond.

(D) be a high school graduate or hold a certificate of equivalency.

(E) submit proof of completion of education and, where applicable, experience requirements as specified in this chapter.

(F) pass the appropriate examination unless exempt.

Section 40-57-90. An application for examination or licensure must be made in writing on a form prescribed by the department and accompanied by all applicable fees.

Section 40-57-100. (A) As a condition for and before applying to take a license examination, an applicant for a salesman, broker, or property manager license shall provide proof of having met the following educational requirements which are valid for five years:

(2) For a broker's license, completion of ninety hours, including the sixty hours completed for salesman's license, of classroom instruction in advanced real estate principles and practices and related topics plus three years of experience as a licensee. In lieu of the experience and classroom hours required for taking the broker's license examination, an applicant may furnish to the department evidence of a Juris Doctor, Bachelor of Laws degree, or a baccalaureate degree with a major in real estate from an accredited college or university;

(3) For a property manager's license, completion of thirty hours of classroom instruction in property management principles and practices.

(B) In order to determine competency and as a condition for licensure applicants shall submit to appropriate examinations which must be conducted by the department or a designated test provider at times and places specified by the department.

(1) An individual who currently holds a real estate license in another state or jurisdiction or whose real estate license in another state or jurisdiction expired not more than six months prior to application will be required to pass only the state portion of the examination to qualify for licensure.

(2) To become eligible for issuance of a license, an applicant must receive a passing grade on the examination, in accordance with a cut-score determination conducted by the department.

(3) An applicant who fails an examination may be reexamined within the three-month period following initial examination. Should an applicant pass one part of a two-part examination and fail the other, the applicant may be reexamined and pass the failed portion within the succeeding three-month period.

(4) Applicants who pass the examination shall apply for a license within one year or be required to apply for and retake the examination.

(5) The department or test provider is authorized to collect and retain reasonable examination fees. Applicants for the examination by a test provider will pay the fee directly to test provider.

(1) is an owner of at least a fifty percent interest in the applicant's company; or

(2) is actively engaged on a fulltime basis in the operation and management of the company.

(C) Applicants must also submit to a credit report indicating credit worthiness satisfactory to the department. If notified of unsatisfactory credit, the applicant shall have sixty days to respond.

(D) Individuals may not practice real estate until they receive a license issued by the department.

(E) Individuals holding an active broker or salesman license must be licensed under a broker-in-charge who is licensed by the department and may not be licensed during the same period with more than one broker-in-charge. When a licensee becomes disassociated with a broker-in-charge for any reason, the broker-in-charge shall notify immediately the department by letter and furnish a forwarding address.

(F) Individuals holding an active property manager license must be licensed under a property manager-in-charge or broker-in-charge who is licensed by the department or be designated as a property manager-in-charge. A property manager may not be licensed during the same period with more than one property manager-in-charge or broker-in-charge. When a licensee becomes disassociated with a broker-in-charge or property manager-in-charge for any reason, the broker-in-charge or property manager-in-charge shall notify immediately the department by letter and furnish a forwarding address.

(G) After revocation of a license, a new license may not be issued to the same individual within a period of one year from the date of revocation, or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. A person seeking licensure after revocation shall:

(3) pass the applicable examination; and

(4) meet any other qualifications and conditions which apply to individuals applying for a license and who have never been licensed.

(H) A licensee may place a license on inactive status by informing the department in writing. To maintain an inactive status of the license, the license must be renewed in the same manner as provided for active license renewals. Upon proper compliance with the renewal requirements, a license may remain on inactive status for an indefinite period of time. Individuals seeking to reactivate a license shall apply for the same license classification which was placed on inactive status, pay the appropriate fee, and meet the continuing education requirements as prescribed.

(I) Licenses must be renewed in accordance with Section 40-1-50(E). It is the licensee's responsibility to renew the license whether or not notice is received.

(J) A license which has not been renewed by its date of expiration is lapsed and may be reinstated within six months following expiration upon payment of applicable fees plus penalties.

(K) A license which has lapsed and has not been reinstated by the last day of the sixth month following expiration must be canceled.

Section 40-57-120. (A) The commission may enter into reciprocal agreements with real estate regulatory authorities of other jurisdictions which provide for waivers of education requirements or examinations if the commission considers the education and examination requirements of another jurisdiction to be substantially equivalent to the requirements of this chapter.

(B) An individual applying for a license by reciprocity shall submit an application, license fee, and certification of licensure from the real estate regulatory authority of the jurisdiction where the current or previous license was held. In addition, copies must be provided of the records of any disciplinary actions taken against the applicant's license. The commission, at its discretion, may impose additional requirements with which an applicant shall comply.

(D) A nonresident is not required to maintain a place of business in this State if he maintains an active place of business in the state of domicile. Every nonresident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside, by the service of a process or pleading, authorized by the laws of this State, on the chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, the consent stipulating and agreeing that the service of the process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in South Carolina. If the process or pleadings mentioned in this chapter are served upon the chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, it must be by duplicate copies, one of which must be filed in the office of the commission and the other immediately forwarded by the commission by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the commission.

(E) (1) A resident licensee who becomes a nonresident, within sixty days, shall notify the commission in writing of the change in residency and comply with nonresident requirements or place his license on inactive status to avoid cancellation of the license.

(2) A nonresident licensee who becomes a resident of South Carolina, within sixty days must notify the commission in writing of the change in residency and comply with the requirements of this chapter or place his license on inactive status to avoid cancellation of the license.

(3) Failure to notify the commission of the change in residency and compliance with the requirements of this section are violations of the license law subject to the penalties as provided by Section 40-57-170.

(F) All nonresident applicants and licensees must comply with all requirements of commission regulations and of this chapter. The commission may adopt regulations necessary for the regulation of nonresident licensees.

(B) The following are exempt from the mandatory continuing education program:

(1) a licensee who successfully completes a thirty-hour postlicensing course or a licensee who successfully completes the thirty-hour course for qualification as a broker;

(2) a licensee while on inactive status; however, the eight-hour requirement must be completed and proof submitted with an application to return to active status;

(3) instructors of approved courses if they request in writing continuing education credit for time spent teaching or developing approved continuing education courses;

(4) a nonresident licensee who has successfully satisfied the continuing education requirements of the jurisdiction of residence;

(5) a licensee, upon reaching the age of sixty years with a minimum of twenty-five years of licensure.

(C) Licensees taking more than the required number of hours during a two-year period may not carry forward any excess hours to another renewal period.

(D) A licensee who fails to complete continuing education requirements by the date of license renewal may renew by paying applicable fees, but must immediately be placed on inactive status and may not engage in the practice of real estate while on inactive status. The license may be reactivated upon proof of completion of required continuing education and payment of applicable fees.

Section 40-57-135. (A) The duties of the broker-in-charge or property manager-in-charge are to:

(1) adequately supervise employees or associated licensees and maintain real estate trust accounts;

(2) review and approve all forms of listing agreements, agency agreements, offers, sale contracts, purchase contracts, leases, options, contract addenda, or other routinely used contractual documents;

(3) maintain adequate, reasonable, and regular contact with associated licensees engaged in real estate transactions so as to prevent or curtail practices by a licensee which would violate any provision of Title 40, Chapters 1 and 57, the Interstate Land Sales Practices Act, or the Vacation Time Sharing Plans Act;

(6) ensure that accurate and complete records, as described in this chapter, are maintained for real estate trust accounts;

(7) ensure that backup copies are maintained for computerized real estate trust accounts. Backup copies must be maintained on a data storage medium which is separate from the medium which contains the source documents;

(8) establish and maintain a written office policy in accordance with Section 40-57-138(B).

(B) (1) The broker-in-charge or property manager-in-charge shall establish and maintain an active real estate trust account so designated in the name for which the respective broker-in-charge's or property manager-in-charge's license is issued. Notwithstanding the foregoing provision, the brokers-in-charge or property managers-in-charge of a real estate company with multiple offices may utilize one central trust account.

(2) All monies received by a property manager as agent for his principal in a real estate transaction must be deposited in a separate real estate trust account so designated within forty-eight hours of receipt, excluding Saturdays, Sundays and bank holidays; except that rent monies received by a licensee who is also directly employed by the owner of rental property may be placed in an operating or other similar account, but otherwise must be properly accounted for as provided for in this section.

(3) All monies received by a property manager-in-charge in connection with a real estate rental including, but not limited to, security deposits, pet deposits, damage deposits, and advance rentals (except earned rental proceeds) shall remain in the trust account until the lease or rental transaction expires or is terminated, at which time the monies must be disbursed in accordance with the contract which directs the property manager-in-charge to hold the monies, and a full accounting must be made to the landlord or tenant as appropriate. Earned rental proceeds must be disbursed to the landlord within a reasonable time after clearance of the deposit by the bank.

(4) All monies received by a broker-in-charge as agent for a principal in a real estate sales or exchange transaction must be deposited as follows in a separate real estate trust account so designated:

(c) All monies received by a broker-in-charge in connection with a real estate sales or exchange transaction and deposited in the real estate trust account shall remain in the trust account until consummation or termination of the transaction, at which time the monies shall be disbursed in accordance with the contract which directs the broker-in-charge to hold the monies, and a full accounting must be made to the principal.

(5) In the event a dispute arises between buyer and seller concerning the entitlement to and disposition of an earnest money deposit, or between a landlord and tenant concerning entitlement to and disposition of a security deposit, and the dispute is not resolved by reasonable interpretation of the contract by the parties to the contract, the deposit must be held in the trust account until the dispute is resolved by:

(a) a written agreement which directs the disposition of monies and is signed by all parties claiming an interest in the trust monies. The agreement must be separate from the contract which directs the broker-in-charge or property manager-in-charge to hold the monies;

(b) filing of an interpleader action in a court of competent jurisdiction;

(c) order of a court of competent jurisdiction;

(d) voluntary mediation.

(6) All trust accounts maintained by brokers-in-charge or property managers-in-charge must be located in an insured financial institution authorized to conduct business in South Carolina.

(7) A broker-in-charge or property manager-in-charge shall also maintain, in his designated principal place of business, a recordkeeping system consisting of:

(a) for real estate sales, a journal or an accounting system which records the chronological sequence in which funds are received and disbursed. For funds received, the journal or accounting system shall include the date of receipt, the name of the party from whom the money was received, the name of the principal, identification of the property, the date of deposit and depository, the payee, the check numbers, dates, and amounts. A running balance must be maintained for each entry of a receipt or disbursement. The journal or accounting system shall provide a means of reconciling the accounts;

(d) unless other appropriate written memoranda are maintained, trust account deposit documents shall identify the broker-in-charge or property manager-in-charge and the buyer or tenant;

(e) A general ledger identifying security deposits;

(f) A monthly reconciliation of each separate account except where there has been no deposit or disbursement during that month. The reconciliation shall include a written worksheet comparing the reconciled bank balance with the journal balance and with the ledger total to ensure agreement.

(8) All monies received by a licensee in connection with a real estate transaction in which the licensee is engaged for his broker-in-charge or property manager-in-charge must be immediately delivered to the broker-in-charge or property manager-in-charge.

(9) A broker-in-charge or property manager-in-charge may not commingle monies or other property of the principal with the broker-in charge or property manager-in-charge's own money or property, except that a broker-in-charge or property manager-in-charge may maintain a clearly identified amount of his own funds in the trust account to cover bank service charges in order to avoid the closing of the account when no client's monies are on deposit.

(10) Monies received by a broker-in-charge or property manager-in-charge which must be deposited in a trust account may be deposited in an interest-bearing account. Interest earned on these monies may be retained by the broker-in-charge or property manager-in-charge only if:

(a) a person remitting the monies to the broker-in-charge or property manager-in-charge has been informed of the person's right to ownership of the interest but relinquishes the right of ownership by written agreement; and

(b) if part of a preprinted form, the written agreement must be conspicuous and must require initials indicating an affirmative or negative response.