H*3421 Session 109 (1991-1992)
H*3421(Rat #0032, Act #0012 of 1991) General Bill, By
House Labor, Commerce and Industry
A Bill to amend Title 40, Code of Laws of South Carolina, 1976, by adding
Chapter 60 so as to enact the South Carolina Real Estate Appraiser
Registration, License, and Certification Act; and to amend Sections 40-57-10,
40-57-20, 40-57-40, 40-57-90, as amended, 40-57-100, 40-57-110, 40-57-160,
40-57-170, and 40-57-240, relating to real estate brokers, counsellors,
salesmen, appraisers, auctioneers and property managers, so as to delete
certain references and provisions relating to real estate appraisers; and to
amend the 1976 Code by adding Section 40-57-115 so as to provide that the Real
Estate Commission shall promulgate regulations establishing standards
pertaining to education courses conducted pursuant to Chapter 57 of Title 40
and the schools or institutions conducting these courses; and to provide for
the manner in which funding shall be provided to implement the provisions of
this Act for fiscal year 1990-91.-amended title
02/05/91 House Introduced, read first time, placed on calendar
without reference HJ-5
02/07/91 House Debate adjourned until Tuesday, February 12, 1991 HJ-16
02/12/91 House Amended HJ-18
02/12/91 House Read second time HJ-20
02/13/91 House Read third time and sent to Senate HJ-26
02/14/91 Senate Introduced and read first time SJ-9
02/14/91 Senate Referred to Committee on Labor, Commerce and
Industry SJ-9
02/26/91 Senate Committee report: Favorable with amendment Labor,
Commerce and Industry SJ-12
02/28/91 Senate Read second time SJ-11
02/28/91 Senate Ordered to third reading with notice of
amendments SJ-11
03/05/91 Senate Amended SJ-10
03/05/91 Senate Read third time and returned to House with
amendments SJ-12
03/07/91 House Concurred in Senate amendment and enrolled HJ-29
03/19/91 Ratified R 32
03/22/91 Signed By Governor
03/22/91 Effective date 03/22/91
03/22/91 Act No. 12
04/02/91 Copies available
(A12, R32, H3421)
AN ACT TO AMEND TITLE 40, CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING CHAPTER 60 SO AS TO ENACT THE
SOUTH CAROLINA REAL ESTATE APPRAISER REGISTRATION,
LICENSE, AND CERTIFICATION ACT; TO AMEND SECTIONS
40-57-10, 40-57-20, 40-57-40, 40-57-90, AS AMENDED, 40-57-100,
40-57-110, 40-57-160, 40-57-170, AND 40-57-240, RELATING TO
REAL ESTATE BROKERS, COUNSELLORS, SALESMEN,
APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS, SO
AS TO DELETE CERTAIN REFERENCES AND PROVISIONS
RELATING TO REAL ESTATE APPRAISERS; TO AMEND THE 1976
CODE BY ADDING SECTION 40-57-115 SO AS TO PROVIDE THAT
THE REAL ESTATE COMMISSION SHALL PROMULGATE
REGULATIONS ESTABLISHING STANDARDS PERTAINING TO
EDUCATION COURSES CONDUCTED PURSUANT TO CHAPTER 57
OF TITLE 40 AND THE SCHOOLS OR INSTITUTIONS
CONDUCTING THESE COURSES AND TO PROVIDE FOR THE
MANNER IN WHICH FUNDING SHALL BE PROVIDED TO
IMPLEMENT THE PROVISIONS OF THIS ACT FOR FISCAL YEAR
1990-91.
Be it enacted by the General Assembly of the State of South Carolina:
South Carolina Real Estate Appraiser Registration, License, and
Certification Act
SECTION 1. Title 40 of the 1976 Code is amended by adding:
"CHAPTER 60
Real Estate Appraisers
Section 40-60-10. This chapter may be cited as the `South Carolina Real
Estate Appraiser Registration, License, and Certification Act'.
Section 40-60-20. As used in this chapter, unless the context requires
otherwise:
(1) `Analysis' means a study of real estate or real property other
than one estimating value.
(2) `Appraisal' or `real estate appraisal' means an analysis, opinion,
or conclusion as to the value of identified real estate or specified interests
in real estate, including a feasibility study, marketability study, or other
study or analysis that involves the rendering of an analysis, opinion, or
conclusion of value performed for a fee or other consideration, including
valuation or evaluation performed for a person who advises, consults, or
prepares.
(3) `Appraisal report' means any communication, written or oral, of
an appraisal. The testimony of an appraiser dealing with the appraiser's
analyses, conclusions, or opinions concerning identified real property is
deemed to be an oral appraisal report.
(4) `Appraisal subcommittee' means the designees of the heads of
the federal financial institutions regulatory agencies established by the
Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C.
Section 3301, et seq.), as amended.
(5) `Appraiser' means a person who is a state registered real estate
appraiser, a state licensed real estate appraiser, or a state certified real estate
appraiser.
(6) `Board' means the South Carolina Real Estate Appraisers Board
established pursuant to the provisions of this chapter.
(7) `Commission' means the South Carolina Real Estate
Commission.
(8) `Commissioner' means the South Carolina Real Estate
Commissioner.
(9) `Evaluation assignment' means an engagement for which an
appraiser is employed or retained to give an analysis, opinion, or
conclusion that relates to the nature, quality, or utility of identified real
estate or identified real property.
(10) `Federally related transaction' means any real estate related
financial transaction which:
(a) a federal financial institution regulatory agency or the
Resolution Trust Corporation engages in, contracts for, or regulates;
and
(b) requires the services of an appraiser.
(11) `Independent appraisal assignment' means an engagement for
which an appraiser is employed or retained to act, or would be perceived by
third parties or the public as acting, as a disinterested third party in
rendering an unbiased analysis, opinion, or conclusion relating to the
nature, quality, value, or utility of identified real estate or identified real
property.
(12) `Person' means individuals, corporations, partnerships, or
associations, foreign and domestic.
(13) `Real estate' means an identified parcel of land, including
improvements, if any.
(14) `Real estate appraisal activity' means the act or process of
valuation of real estate or real property and preparing an appraisal
report.
(15) `Real property' means one or more defined interests, benefits, and
rights inherent in the ownership of real estate.
(16) `Specialized services' means services other than independent
appraisal assignments which are performed by an appraiser. Specialized
services may include marketing, financing, and feasibility studies,
valuations, analyses, opinions, and conclusions given in connection with
activities such as real estate brokerage, mortgage banking, real estate
counseling, and real estate tax counseling.
(17) `State' includes any state, district, territory, possession, or
province of the United States or Canada.
(18) `State certified real estate appraiser' means a person who holds a
valid certificate as a real estate appraiser issued under the provisions of this
chapter.
(19) `State licensed real estate appraiser' means a person who holds a
valid license as a real estate appraiser issued under the provisions of this
chapter.
(20) `State registered real estate appraiser' means a person who holds
a valid registration as a real estate appraiser issued under the provisions of
this chapter.
(21) `Valuation' means an estimate of the value of real estate or real
property.
(22) `Valuation assignment' means an engagement for which an
appraiser is employed or retained to give an analysis, opinion, or
conclusion that estimates the value of an identified parcel of real estate or
identified real property at a particular point in time.
(23) `Timberland' means forest land that is producing, or is capable of
producing, timber as a crop.
(24) `Market analysis' means a study of real estate market conditions
for a specific type of property.
Section 40-60-30. (A) Except as provided in Section 40-60-40, it is
unlawful for a person to engage in real estate appraisal activity in this State
after December 31, 1991, without first obtaining a registration, license, or
certification as provided in this chapter.
(B) Real estate appraisers are authorized to engage in the following
types of real estate appraisal activity:
(1) A state registered real estate appraiser is authorized to engage in
any type of real estate appraisal activity which does not involve a
federally-related transaction.
(2) A state licensed real estate appraiser is authorized to engage in
any type of real estate appraisal activity which is not required pursuant to
federal law to be performed by a state certified real estate appraiser.
(3) A state certified real estate appraiser is authorized to engage in
any type of real estate appraisal activity.
Section 40-60-40. The provisions of this chapter do not apply to:
(1) a real estate licensee licensed in accordance with Chapter 57 of
this title who, in the ordinary course of his business, performs a market
analysis or gives an opinion as to the price of real estate except that the
market analysis or opinion must not be referred to as an appraisal.
Provided, however, that prior to performing any market analysis, the real
estate licensee must disclose in writing that the market analysis may not be
used for the purposes of obtaining financing in a federally-related
transaction;
(2) a registered forester registered pursuant to the provisions of
Chapter 27 of Title 48 who appraises or evaluates standing or growing
timber or timberland located in this State and issues an appraisal or
evaluation on such timber or timberland; provided, however, that when
such appraisal or evaluation is to be used in a federally-related transaction
such registered forester must be licensed or certified under the provisions of
this chapter if required by federal law or the guidelines established by the
appraisal subcommittee.
Section 40-60-50. (A) There is created the South Carolina Real Estate
Appraisers Board which consists of seven members. All members must be
residents of this State. One member must be a public member who may not
be connected in any way with the practice of real estate appraisal, real
estate brokerage, or mortgage lending. One member must be a licensed real
estate broker who is not a real estate appraiser. One member must be
actively engaged in mortgage lending, representing supervised financial
institutions, who is not a real estate licensee or a real estate appraiser and
who also must not be connected in any way with the brokerage of real
estate, the appraisal of real estate, or the review of real estate appraisals.
Four members must be real estate appraisers who have been actively
engaged in real estate appraisal for at least three years. In appointing real
estate appraisers to the board, while not automatically excluding other
appraisers, the Governor shall give preference to real estate appraisers
whose primary source of income is derived from appraising real estate and
not real estate brokerage.
(B) The Governor shall appoint the members of the board, upon the
advice and consent of the Senate, with consideration given to appropriate
geographic representation and to areas of appraisal expertise. The
appointments made when the Senate is not in session are effective until the
Senate confirms or denies that appointment.
(C) Each real estate appraiser member of the board appointed after July
1, 1992, must be a state certified real estate appraiser or a state licensed real
estate appraiser. At least two of the appraiser members appointed after July
1, 1992, must be state certified real estate appraisers.
(D) The term of each member of the board is three years and until their
successors are appointed and qualified. In the event of a vacancy, the
Governor shall appoint a person to fill the vacancy, and the person so
appointed shall serve for the remainder of the unexpired term.
(E) Upon expiration of their terms, members of the board shall
continue to hold office until the appointment and qualification of their
successors. No person may serve as a member of the board for more than
two consecutive terms. The Governor, after giving notice and opportunity
for a hearing, may remove from office a member of the board for:
(1) inability to perform or neglecting to perform the duties required
of members;
(2) incompetence; or
(3) dishonest conduct.
(F) The members of the board shall annually elect a chairman from
among the members to preside at board meetings.
(G) The board shall meet at least once each calendar quarter, or as
often as is necessary, and remain in session as long as the chairman
considers it necessary to give full consideration to the business before the
board. A quorum of the board is four members. Members of the board or
support staff, in a spirit of cooperation, may confer with similar boards of
other states, attend interstate meetings, and generally do those acts and
things as may seem advisable in the advancement of the profession and the
standards of real estate appraisal activity.
(H) Members of the board are entitled to per diem, subsistence, and
mileage as is provided by law for state boards, committees, and
commissions.
(I) The board shall establish policy and promulgate regulations
consistent with this chapter and through its regulations shall have the full
power to regulate the issuance of registrations, licenses, and certifications,
to discipline appraisers in any manner permitted by this chapter, to
establish further qualification for registrations, licenses, and certifications
consistent with this chapter, to regulate approved courses and course
providers or sponsors, and to establish standards for real estate appraisals
consistent with the standards recognized by the appraisal
subcommittee.
(J) The board shall prepare specifications for all licensing and
certification examinations, solicit bids and enter into contracts with one or
more persons, educational testing services, or organizations for the
preparation of a bank of questions and answers for licensing and
certification examinations and administer or contract for the administration
of examinations in those places and at those times as considered
appropriate.
(K) The commission shall supply staff support for the board. The
commissioner shall serve as chief executive officer of the board and shall
establish appropriate procedures for administering this chapter and
prescribe those duties for his assistants as may be necessary in the
administration and enforcement of this chapter.
(L) From its funds, the board shall pay its share of the expense of the
maintenance and operation of the office of the commission and the
utilization of the commission staff in the administration and enforcement of
this chapter in an amount agreed upon by the board and commission.
Section 40-60-60. (A) A person desiring to act as a state licensed or
state certified real estate appraiser must file an application for examination,
licensure, or certification with the board. A person desiring to act as a state
registered real estate appraiser must file an application for registration with
the board. The applications must be in the form and detail the board
prescribes.
(B) Each application for examination, registration, licensure, or
certification as a real estate appraiser, or for the renewal of a registration,
license, or certification, must be accompanied by the appropriate fee which
must be prescribed by the board by regulation.
(C) No fee or portion of a fee required pursuant to this chapter may be
refunded.
(D) The board may transmit to the appropriate federal authority, at
least annually, a roster of individuals who have become state licensed real
estate appraisers and state certified real estate appraisers and must collect
and transmit any information or fees established under Public Law 101-73,
Title XI, Real Estate Appraisal Reform Amendments. The board may
collect a processing fee necessary to carry out its function under this
subsection.
(E) The commissioner shall issue a registration, license, or certification
to engage in the practice of real estate appraising to all applicants who are
qualified under, and who comply with, all the requirements of this chapter
and all regulations promulgated by the board.
The registration, license, or certification remains the property of the
State and, upon suspension or revocation of the registration, license, or
certification, must be returned immediately to the commissioner with any
related pocket card. Registrations, licenses, and certifications expire on
June thirtieth of each year.
(F) A state registered real estate appraiser, state licensed real estate
appraiser, or a state certified real estate appraiser who fails or refuses, after
written notice from the board to apply for renewal and pay the fee and all
penalties imposed, is practicing without a registration, license, or
certification and is subject to the penalties provided therefor in this chapter
and any civil or criminal penalties authorized by law.
(G) A state registered real estate appraiser, state licensed real estate
appraiser, or a state certified real estate appraiser under this chapter who
fails to apply for the renewal of his registration, license, or certification and
pay the required fee on or before the date of its expiration shall pay a late
penalty established by regulation in addition to the renewal fee.
(H) The board, through its regulations, may establish those other
reasonable fees to aid in the enforcement and administration of this
chapter.
(I) Any check which is presented to the board as payment for any fee
which the board is permitted to charge under this chapter and which is
returned unpaid may be cause for denial of a registration, license, or
certification or for imposing any sanction permitted by this chapter.
(J) Except as provided for in subsection (D), all fees collected
pursuant to the provisions of this chapter must be deposited by the board in
the state general fund.
Section 40-60-65. The following temporary fees must be charged by
and paid to the board until the board establishes fees by regulation, at
which time this section no longer has any force or effect:
(1) an application fee of one hundred dollars for each real estate
appraiser registration;
(2) an application fee of two hundred dollars for each real estate
appraiser license or certification;
(3) a renewal fee of one hundred dollars for each real estate appraiser
registration;
(4) a renewal fee of two hundred dollars for each real estate appraiser
license or certification;
(5) a license or certification examination fee not to exceed one
hundred dollars as determined by the board without the requirement of a
regulation. The board may direct applicants to pay the fee, or any portion
thereof, directly to a third party who has contracted to administer the
examination;
(6) a replacement fee of twenty-five dollars for each real estate
appraiser registration, license, or certification where the original is lost or
destroyed;
(7) a fee of fifteen dollars for each change of personal name;
(8) a fee of thirty dollars to reinstate each registration, license, or
certification during the same year it was canceled;
(9) a fee of seventy-five dollars for each registration, license, or
certification filing for inactive status for each year inactive status is
granted;
(10) a fee of seventy-five dollars to activate a registration, license, or
certification from inactive status;
(11) a late penalty of twenty-five dollars shall apply from July first
through July thirty-first for each registration, license, or certification not
timely renewed. A late penalty of fifty dollars shall apply from August first
through August thirty-first. After August thirty-first, the registration,
license, or certification which has not been properly renewed must be
canceled, except that after August thirty-first, any person seeking to
reinstate his registration, license, or certification before the next renewal
period may do so upon payment of a late penalty of two hundred fifty
dollars;
(12) a fee of fifteen dollars for each attestation of registration, license, or
certification status;
(13) a fee not to exceed two hundred dollars per course as determined by
the board without the requirement of a regulation for the approval of
courses required by Section 40-60-70 and a renewal fee of one hundred
dollars a year. No fees may be charged for the approval or renewal of
courses which are part of a degree program and are offered by an accredited
college, university, technical college, community college, or junior
college;
(14) a fee of two hundred dollars for instructor approval and a renewal
fee of two hundred dollars per year provided that no fees may be charged
for instructor approval or renewal if the courses taught by the instructor are
offered as part of a degree program by an accredited college, university,
technical college, community college, or junior college.
Section 40-60-70. (A) (1) In order to qualify as a state registered real
estate appraiser, an applicant must:
(a) hold a real estate broker-in-charge, broker, or salesman license
issued pursuant to Chapter 57 of Title 40;
(b) submit appropriate registration fees.
(2) Failure to meet either requirement provided in item (1) of this
subsection is grounds for denial of a registration without a hearing.
(B) (1) In order to qualify as a state licensed real estate appraiser, an
applicant must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person
has fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he has successfully completed not less than
seventy-five classroom hours in a course or courses of study related to real
estate appraisal approved by the board which must include coverage of
standards of professional appraisal practice;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained
from the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board.
(iv) Various appraisal courses may be credited toward the
seventy-five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of one to four unit
residential properties:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal statistical concepts;
(j.) sales comparison approach;
(k.) site value;
(l.) cost approach;
(m.) income approach;
(n.) valuation of partial interests;
(o.) appraisal standards and ethics.
(d) demonstrate the equivalent of two years appraisal experience. If
requested, experience documentation in the form of reports or file
memoranda should be available to support the claim for experience;
(i) A year is defined in terms of hours within a calendar year. One
thousand hours constitutes a year of appraisal experience. A minimum of
two calendar years is required. Hours may be treated as cumulative in
order to achieve the necessary two thousand hours of appraisal
experience.
(ii) Acceptable appraisal experience may include, but is not limited
to, fee and staff appraisal, ad valorem tax appraisal, review appraisal,
appraisal analysis, real estate counseling, highest and best use analysis,
feasibility analysis/study, and teaching of appraisal courses. This should
not be construed as limiting experience credit to only those individuals who
are state certified or state licensed.
(iii) The verification for experience credit claimed by an applicant
must be by affidavit on forms prescribed by the board.
(e) after meeting the above requirements, stand for and pass an
examination administered or approved by the board.
(2) Failure to meet any of the requirements provided in item (1) of this
subsection is grounds for denial of license without a hearing.
(3) (a) An applicant seeking to qualify as a state licensed real estate
appraiser who lacks either the education or the experience requirements,
but not both, provided in item (1) of this subsection may apply for a
transitional license for a limited period of no more than twenty-four
months. Within twenty-four months from the date of issuance of a
transitional license, the licensee must submit proof of successful
completion of all of the educational or experience requirements.
(b) If proof of successful completion of the required education or
experience is not provided within twenty-four months, the license is
canceled automatically without any action by the board. Any person who
engages in real estate appraisal activity after this cancellation is practicing
without a license and is subject to the penalties provided in this chapter and
any other civil or criminal penalties provided by law.
(c) No license which has been canceled may be reinstated until it is
established to the satisfaction of the board that all educational and
experience requirements of the board have been met.
(d) The board is authorized to modify any requirements of this item
in order to bring these requirements into conformity of any guidelines
established by the appraisal subcommittee.
(C) (1) In order to qualify as a state certified real estate appraiser, an
applicant must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person
has fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he has successfully completed not less than
one hundred sixty-five classroom hours in a course or courses of study
related to real estate appraisal approved by the board which must include
coverage of standards of professional appraisal practice and which may
include the seventy-five classroom hours required for the state licensed real
estate appraiser classification;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained
from the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board.
(iv) Various appraisal courses may be credited toward the one
hundred sixty-five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of nonresidential
properties. Residential is defined as one to four residential units:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal math and statistics;
(j.) sales comparison approach;
(k.) site value;
(l.) cost approach;
(m.) income approach;
(n.) valuation of partial interests;
(o.) appraisal standards and ethics.
(d) demonstrate the equivalent of two years appraisal experience.
If requested, experience documentation in the form of reports or file
memoranda should be available to support the claim for experience;
(i) A year is defined in terms of hours within a calendar year. One
thousand hours constitutes a year of appraisal experience. A minimum of
two calendar years is required. Hours may be treated as cumulative in
order to achieve the necessary two thousand hours of appraisal
experience.
(ii) The applicant, for two years' experience credit, must have
accumulated a total of two thousand hours of appraisal experience of which
at least fifty percent (one thousand hours) must be in nonresidential
appraisal work. Residential is defined as one to four residential units.
(iii) Acceptable appraisal experience may include, but is not limited
to, fee and staff appraisal, ad valorem tax appraisal, review appraisal,
appraisal analysis, real estate counseling, highest and best use analysis,
feasibility analysis/study, and teaching of appraisal courses. This should
not be construed as limiting experience credit to only those individuals who
are state certified or state licensed.
(iv) The verification for experience credit claimed by an applicant
must be by affidavit on forms prescribed by the board.
(e) after meeting the above requirements, stand for and pass an
examination administered or approved by the board.
(2) Failure to meet any of the requirements provided in item (1) of
this subsection is grounds for denial of certification without a hearing.
(D) Failure to complete any of the educational requirements as
provided in this chapter is grounds for denial of registration, license, or
certification or denial of renewal of registration, license, or certification
without further hearing. No fees or portion of fees paid may be refunded if
any appraiser fails to meet the continuing education provisions of this
chapter.
(E) The board is authorized to waive or to modify any experience,
examination, or education requirements established in this chapter for
appraisers in order to bring those requirements into conformity with any
requirements established by the appraisal subcommittee.
(F) Any applicant who does not become licensed or certified within
one hundred eighty days after passing the examination must retake the
examination in order to qualify for the license or certification sought.
Section 40-60-80. (A) As a prerequisite to renewal of a registration,
license, or certification, an appraiser shall present evidence satisfactory to
the board of having met the continuing education requirements established
by this chapter or regulation.
(B) The basic continuing education requirement for renewal of a
registration, license, or certification is completion by the applicant of ten
classroom hours of instruction in courses or seminars which have been
approved by the board for each year of the renewal period.
(1) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(2) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least two
hours.
(3) Credit for the classroom-hour requirement may be obtained from
the following:
(a) accredited colleges or universities;
(b) technical, community, or junior colleges;
(c) real estate appraisal or real estate related organizations;
(d) state or federal agencies or commissions;
(e) proprietary schools;
(f) other providers regulated and approved by the board.
(C) A registration, license, or certification of an appraiser that has been
suspended may not be reissued until the applicant for reissuance presents
evidence of completion of the continuing education required by this
section.
(D) No appraiser whose registration, license, or certification has been
placed on inactive status is allowed to reactivate a registration, license, or
certification unless the provisions of this section are met in addition to any
other requirements of this chapter. Before applying to reactivate a
registration, license, or certification, the appraiser must obtain the
equivalent of ten classroom hours of instruction in courses or seminars
which cover real estate related appraisal topics for each year that the
registration, license, or certification has been on inactive status.
Section 40-60-90. (A) The board, through its regulations and
guidelines, shall establish standards relative to the establishment and
conducting of all education courses required by this chapter and the review,
approval, or regulation of schools, organizations, associations, institutions,
or instructors offering these courses, including, but not limited to,
sponsorship by accredited colleges, universities, and private business
entities and organizations; establishment, approval, and review of
curriculum; instructors; hours of attendance; classroom facilities;
enrollment and cancellation policies; texts; examinations; certificates of
completion; and other operating procedures.
(B) The board, through its regulations, shall establish fees relative to
the review, approval, or regulation of schools, organizations, associations,
institutions, or instructors offering the education courses required by this
chapter.
(C) The board may deny, reprimand, fine, suspend, or revoke the
approval of an instructor or school, organization, association, institution, or
other educational provider if, after a hearing held in accordance with the
South Carolina Administrative Procedures Act, the board finds that the
applicant, instructor, or educational provider has violated or failed to satisfy
the provisions of this chapter or the regulations and guidelines established
under this chapter.
Section 40-60-100. (A) Every applicant for registration, licensure, or
certification under this chapter who is not a resident of South Carolina shall
submit, with the application for registration, licensure, or certification, an
irrevocable consent that service of process upon the applicant may be made
by delivery of the process to the commissioner, if, in an action against the
applicant in a court of South Carolina arising out of the applicant's
activities as an appraiser, the plaintiff, in the exercise of due diligence, may
not effect personal service upon the applicant.
(B) A nonresident of South Carolina who has complied with the
provisions of subsection (A) of this section may obtain a registration,
license, or certification by conforming to all of the provisions of this
chapter relating to the registration, license, or certification sought.
(C) A person who is licensed or certified to practice real estate
appraising in other states shall submit an attestation of licensure or
certification from the real estate appraiser regulatory authority of the other
jurisdictions at the time of filing an application for examination and copies
of the records of any disciplinary actions taken against the applicant's
license or certification. In the application for examination, all questions of
equivalency of academic and experience requirements of other states must
be determined by the commissioner and, at the discretion of the
commissioner, the nonresident applicant must comply with additional
requirements specified by the commissioner.
(D) The commissioner, with concurrence of the board, may enter into
reciprocal agreements with real estate appraiser regulatory authorities of
other jurisdictions which provide for waivers of education requirements or
examinations if the board considers the education and examination
requirements of another jurisdiction to be substantially equivalent to the
requirements of this chapter and its regulations.
Section 40-60-110. The board shall recognize on a temporary basis the
certification or license of an appraiser who is licensed or certified to
practice real estate appraising in another state if:
(1) the property to be appraised in this State is part of a
federally-related transaction;
(2) the appraiser's business is of a temporary nature; and
(3) the appraiser enrolls with the board before advertising or
assuming to act as a state certified or state licensed real estate appraiser in
this State and pays any required fees.
Section 40-60-120. (A) The board shall prescribe the form of a wall
certificate to denote that an individual is a state registered real estate
appraiser, a state licensed real estate appraiser, or a state certified real estate
appraiser, as the case may be. The board shall mail the wall certificate to
the appraiser whose duty it is to display the wall certificate conspicuously
in the appraiser's place of business. The board also shall prepare and
deliver a pocket card indicating that the person whose name appears
thereon is a state registered real estate appraiser, a state licensed real estate
appraiser, or a state certified real estate appraiser.
(B) A registration, license, or certification issued under authority of
this chapter must bear a number assigned by the board. When signing an
appraisal report, a state registered appraiser shall place his registration
number adjacent to or immediately below his title of `State Registered Real
Estate Appraiser'. When signing an appraisal report, a state licensed real
estate appraiser shall place his license number adjacent to or immediately
below his title of `State Licensed Real Estate Appraiser'. When signing an
appraisal report, a state certified real estate appraiser shall place his
certificate number adjacent to or immediately below his title of `State
Certified Real Estate Appraiser'. The registration, license, or certificate
number must be used in all statements of qualification, contracts, or other
instruments used by the appraiser when reference is made to his registered,
licensed, or certified status.
(C) All real estate appraisals given in connection with federally-related
transactions in this State must be in writing and contain the license or
certification number assigned by the board to the real estate appraiser.
(D) Wall certificates and pocket cards shall remain the property of the
State and, upon any suspension or revocation of a registration, license, or
certification pursuant to this chapter, the individual holding the related wall
certificate or pocket card immediately shall return the wall certificate or
pocket card to the commissioner.
Section 40-60-130. (A) State registration, licensure, or certification is
granted only to persons who bear a good reputation for honesty,
trustworthiness, integrity, and competence to transact real estate appraisal
activity in a manner as to safeguard the interest of the public and only after
satisfactory proof of the qualifications has been presented to the board.
(B) Where an applicant for a registration, license, or certification has
been convicted in a court of competent jurisdiction of this or any other
state, district, or territory of the United States, or of a foreign country of the
offense of forgery, embezzlement, obtaining money under false pretenses,
theft, extortion, or conspiracy to defraud or other like offense, has been
convicted of a felony or a crime involving moral turpitude, or pled nolo
contendere to any such offense, the untrustworthiness of the applicant and
the conviction in itself may be a sufficient ground for refusal of granting a
registration, license, or certification. As used in this chapter, `felony'
includes any offense which, if committed in this State, would be deemed a
felony, without regard to its designation elsewhere. As used in this chapter,
`conviction' includes a finding or verdict of guilty or a plea of guilty
regardless of whether an appeal of the conviction has been sought. An
applicant for a registration, license, or certification who has been convicted
of any offense enumerated in this subsection may be registered, licensed, or
certified by the board only if:
(1) at least five years have passed since the applicant was convicted,
sentenced, or released from any incarceration, whichever is later;
(2) no criminal charges are pending against the applicant; and
(3) the applicant presents to the board satisfactory proof that the
applicant now bears a good reputation for honesty, trustworthiness,
integrity, and competence to transact real estate appraisal activity in a
manner to safeguard the interests of the public.
(C) If an applicant has been denied a registration, license, or
certification or his registration, license, or certification to practice or
conduct any regulated profession, business, or vocation has been suspended
by any occupational licensing body of this State, any other state, any
foreign country, or any court or lawful agency thereof, or if the applicant
has been guilty of conduct or practices in this State or elsewhere which
would have been grounds for suspending his registration, license, or
certification under this chapter had the applicant then been registered,
licensed, or certified, the applicant is considered not to be qualified unless,
because of lapse of time and subsequent good conduct and reputation, or
other reason considered sufficient, it appears to the board that the interest
of the public is not likely to be endangered by the granting of a registration,
license, or certification.
(D) If an applicant has been disbarred or his registration, license, or
certification to practice or conduct any regulated profession, business, or
vocation has been revoked by any occupational licensing body of this State,
any other state, any foreign country, or any court or lawful agency thereof,
the applicant may be registered, licensed, or certified by the board only
if:
(1) at least two years have passed since the date that the applicant's
occupational registration, license, or certification were revoked;
(2) no criminal charges are pending against the applicant at the time
of application; and
(3) the applicant presents to the board satisfactory proof that the
applicant now bears a good reputation for honesty, trustworthiness,
integrity, and competence to transact real estate appraisal activity in such a
manner as to safeguard the interests of the public.
(E) Where an applicant or an appraiser has been found guilty of a
violation of the Federal Fair Housing Law or the South Carolina Fair
Housing Law by an administrative law judge or a court of competent
jurisdiction and after any appeal of the conviction is concluded, the
conviction may be a sufficient ground for refusal of granting a registration,
license, or certification or the imposition of any sanction permitted by this
chapter.
(F) Whenever any appraiser is convicted or pleads nolo contendere to
any offense enumerated in subsection (B) of this section, the appraiser must
notify the board within seven days of that conviction by certified mail,
return receipt requested. The appraiser's registration, license, or
certification automatically must be revoked sixty days after the conviction
or plea unless the appraiser makes a written request to the board for a
hearing during that sixty-day period. Following a hearing held pursuant to
this subsection, the board may impose upon that appraiser any sanction
permitted by this chapter.
(G) Where an applicant or an appraiser has made a false statement of
material fact on an application or caused to be submitted or been a party to
preparing or submitting any falsified application to the board, the action
may be a sufficient ground for the refusal, suspension, or revocation of the
registration, license, or certification.
(H) Suspension or revocation of a registration, license, or certification,
as provided by this chapter, also is grounds for refusal to grant a
registration, license, or certification.
(I) The conduct provided for in subsections (A) through (E) of this
section which relates to the denial of a registration, license, or a
certification to an applicant also is grounds for the imposition of any
sanction permitted by this chapter when the conduct is that of an
appraiser.
Section 40-60-140. (A) The board may, upon its own motion, and
shall, upon the written complaint of any aggrieved person, investigate the
activities of an applicant or a person registered, licensed, or certified under
this chapter and may deny, suspend, revoke, or otherwise restrict a
registration, license, or certification or impose either a public or private
reprimand, other discipline, or a fine not to exceed one thousand dollars per
occurrence, if the board finds an applicant, state registered real estate
appraiser, state licensed real estate appraiser, or state certified real estate
appraiser has:
(1) failed to meet the minimum qualifications for registration,
licensure, or certification established by or pursuant to the provisions of
this chapter;
(2) procured or attempted to procure a registration, license, or
certification under the act by knowingly making a false statement,
submitting false information, or making a material misrepresentation in an
application filed with the board or procured or attempted to procure a
registration, license, or certification through fraud or misrepresentation;
(3) paid money to a person to procure a registration, license, or
certification other than the fees established pursuant to the provisions of
this chapter;
(4) performed an act in the practice of real estate appraising which
constitutes dishonest, fraudulent, or improper conduct;
(5) engaged in the business of real estate appraising under an
assumed or fictitious name;
(6) paid a finder's fee or a referral fee in connection with an appraisal
of real estate or real property in this State;
(7) made a false or misleading statement in that portion of a written
appraisal report that deals with professional qualifications or in any
testimony concerning professional qualifications;
(8) violated the confidential nature of governmental records to which
an appraiser gained access through employment or engagement as an
appraiser by a governmental agency;
(9) violated any of the standards for the development or
communication of real estate appraisals as promulgated by the board;
(10) failed or refused without good cause to exercise reasonable
diligence in developing an appraisal, preparing an appraisal report, or
communicating an appraisal;
(11) exhibited negligence or incompetence in developing an appraisal,
in preparing an appraisal report, or in communicating an appraisal;
(12) accepted an independent appraisal assignment when the
employment itself or fee to be paid was contingent upon the appraiser's
reporting a predetermined estimate, analysis, valuation, opinion, or
conclusion, or upon the award, recovery, or consequences resulting from
the appraisal assignment;
(13) failed to retain for five years the original or a true copy of each
appraisal report prepared or signed by the appraiser and all supporting data
assembled and formulated by the appraiser in preparing each appraisal
report. The five-year period for retention of records is applicable to each
engagement of the services of the appraiser and commences on the date of
delivery of each appraisal report to the client unless, within the five-year
period, the appraiser is notified that the appraisal or the appraisal report is
involved in litigation, in which event the five-year period for the retention
of records commences on the date of the final disposition of the litigation; (14) failed upon reasonable request of an authorized investigator of
the board to make all records required to be maintained under the
provisions of this chapter available to the board for inspection and copying
by the board or failed to appear upon reasonable request for an interview
with an authorized investigator of the board;
(15) demonstrated bad faith, dishonesty, untrustworthiness, or
incompetency to act as an appraiser in a manner to endanger the interests of
the public;
(16) performed or attempted to perform any real estate appraisal
activity on property located in another state without first having complied
fully with that state's laws regarding real estate appraisal activity;
(17) paid a fee or valuable consideration to a person for acts or
services performed in violation of this chapter;
(18) been convicted of a felony or a crime involving moral turpitude
or pled guilty or nolo contendere to any such offense;
(19) violated any provision of this chapter or any regulation
promulgated hereunder.
(B) When an appraiser has previously been sanctioned by the board or
by any other state's real estate appraiser regulatory authority, the board may
consider these prior sanctions in determining the severity of a new sanction
which may be imposed upon a finding that an appraiser has violated a
provision of this chapter or any of the regulations of the board. The failure
of an appraiser to comply with or to obey a final order of the board may be
cause for suspension or revocation of the individual's registration, license,
or certification after opportunity for a hearing.
(C) In a disciplinary proceeding based upon a civil judgment, an
appraiser must be afforded an opportunity to present matters in mitigation
and extenuation but may not collaterally attack the civil judgment.
Section 40-60-150. (A) An appraiser who has had a registration,
license, or certification revoked by the board must not be issued a new
registration, license, or certification within two years from and after the
date of the revocation, nor at any time thereafter except upon an affirmative
vote of at least a majority of the members of the board.
(B) A registration, license, or certification of an appraiser that has been
revoked must not be reissued until the applicant for reinstatement presents
evidence of completion of the continuing education required by this
chapter.
(C) A license or certification of an appraiser that has been revoked
may not be reissued until the applicant for reinstatement successfully
completes the examination for licensure or certification.
Section 40-60-160. (A) Whenever a complaint filed with the board
involves an appraisal report which varies from a sales, lease, or exchange
price the board may in its discretion decline to conduct an
investigation.
(B) A person authorized to conduct an investigation on behalf of the
board shall have access to and may examine any writings, documents, or
other material which may be related to an investigation.
(C) In the conduct of an investigation or proceeding under this chapter,
the chairman of the board, the commissioner, or any duly authorized
assistant or deputy appointed by the commissioner, may issue subpoenas to
compel production of those writings, documents, or material on behalf of
the board. After the service of a notice of hearing, the chairman of the
board, commissioner, or any duly authorized assistant or deputy appointed
by the commissioner may issue subpoenas to compel production of those
writings, documents, or material, either on behalf of the board or at the
request of a respondent. The commissioner, chairman of the board, the
board, or the respondent may apply to the circuit court of the county in
which a person disobeying a subpoena resides for an order requiring
compliance. Failure to comply with an order is punishable as for contempt
of court.
(D) If technical assistance is required in an investigation due to its
complexity, the commissioner may contract on behalf of the board for
consultant services provided:
(1) no member of the board or commission obtains financial gain for
himself through these consultant services;
(2) no person with whom a member of the board or commission or a
member of his household is employed or negotiating or has an arrangement
concerning prospective employment, may provide these consultant
services.
(E) The results of all investigations may be reported only to the board
or to the commissioner and the records of the investigations are not subject
to subpoena in civil actions. Records of investigations must be kept by the
board and no part of any investigative record may be released for any
purpose other than a hearing before the board or its designated hearing
officer, review by another law enforcement agency or lawful licensing
authority upon issuance of a subpoena from the agency or authority or at
the discretion of the board or the commissioner, review by the respondent
after the service of a notice of hearing, or an appeal of a decision by the
board to a court of competent jurisdiction. After service of a notice of
hearing, a respondent has a right to obtain a copy of the investigative record
pertaining to the respondent.
(F) Whenever the board issues a disciplinary sanction pursuant to the
provisions of this chapter, the board shall publish the sanction in its official
newsletter unless the sanction is a private reprimand.
(G) The commissioner shall maintain in his main office a public docket
or record, in which he shall record, from time to time as made, the rulings
or decisions upon all complaints filed with the board and all investigations
instituted by the board, upon or in connection with which any hearing has
been held, or in which a state registered real estate appraiser, a state
licensed real estate appraiser, or state certified real estate appraiser has
made no defense unless the board issues a private reprimand in that
instance.
Section 40-60-170. (A) Before the board shall impose on any
appraiser any sanction permitted by this chapter or deny issuance of a
registration, license, or certification to an applicant, it shall provide for a
hearing for the appraiser in accordance with the Administrative Procedures
Act.
(B) The date of the hearing must not be less than thirty nor more than
one hundred twenty days from the date after the appraiser or applicant is
notified of the charges against him.
(C) If an appraiser or applicant fails to appear at any hearing after
reasonable notice, the board may proceed to hear the evidence against the
appraiser or applicant and take action as if the appraiser or applicant had
been present. A notice of hearing or final decision of the board in a
disciplinary proceeding must be served upon the appraiser or applicant by
personal service or by certified mail, return receipt requested, to the last
known address of record with the board. If the material is returned marked
`unclaimed' or `refused' or is undeliverable and if the appraiser or applicant
may not be located after diligent effort, the commissioner is considered to
be the agent for the appraiser or applicant for the purposes of this section,
and service upon the commissioner is considered service upon the appraiser
or applicant.
(D) A decision by the board to revoke or suspend a registration,
license, or certification or to restrict, limit, or otherwise discipline a
registration, license, or certification holder must be by majority vote of the
total membership of the board. A disciplinary action is subject to review
by the circuit court upon petition filed by the registration, license, or
certification holder within thirty days from the date of delivery of the
board's decision to the registration, license, or certification holder. A copy
of the petition must be served upon the commissioner.
(E) A person who has exhausted all administrative remedies available
within this chapter and who is aggrieved by a final decision of the board is
entitled to judicial review in accordance with the Administrative
Procedures Act. The review is limited to the record established by the
board hearing.
(F) No stay or supersedeas may be granted for more than six months
pending appeal from a decision by the board to revoke, suspend, or
otherwise restrict a license, certification, or registration.
Section 40-60-180. The board shall have the authority to exclude all
persons during the board's or the staff of the board's:
(1) deliberations on disciplinary proceedings;
(2) meetings with an appraiser or an applicant or the legal counsel of
that appraiser or applicant in which the appraiser or applicant seeks to settle
a matter before the board in lieu of a hearing;
(3) review of the results of investigations initiated under this
chapter.
Section 40-60-190. (A) No person other than a state registered real
estate appraiser, a state licensed real estate appraiser, or a state certified real
estate appraiser shall assume or use the title or any title, designation, or
abbreviation likely to create the impression of state registration, licensure,
or certification as a real estate appraiser.
(B) `State registered real estate appraiser', `state licensed real estate
appraiser', and `state certified real estate appraiser' only may be used to
refer to individuals who hold this registration, license, or certification and
may not be used following or immediately in connection with the name or
signature of a firm, partnership, corporation, or group or in that manner that
it might be interpreted as referring to a firm, partnership, corporation,
group, or anyone other than an individual holder of the registration, license,
or certification.
(C) No registration, license, or certification may be issued under the
provisions of this chapter to a corporation, partnership, firm, or group.
Section 40-60-200. (A) A person who, directly or indirectly, with the
intention or upon the promise of receiving any valuable consideration,
offers, attempts, or agrees to perform or performs any single act of real
estate appraisal as defined in Section 40-60-20, whether as a part of an
appraisal or as an appraisal, is considered an appraiser within the meaning
of this chapter. The commission of a single act by a person who is required
to have a registration, license, or certification under this chapter but who is
not registered, licensed, or certified constitutes a violation of this
chapter.
(B) It is unlawful for any person, directly or indirectly, to engage in or
conduct the business of, or advertise or hold himself out as engaging in or
conducting the business of, or act in the capacity of, an appraiser within
this State without first obtaining a registration, license, or certification as
provided in this chapter.
(C) A person acting as an appraiser within the meaning of this chapter
without a registration, license, or certification is guilty of a misdemeanor
and, upon conviction, must be punished by a fine of not more than five
hundred dollars or imprisonment of not more than six months, or both, in
the discretion of the court.
Section 40-60-210. (A) The board may issue a cease and desist order
prohibiting a person from violating the provisions of this chapter by
engaging in the practice of an appraiser without a registration, license, or
certification. The cease and desist order is final ten days after it is issued
unless the person to whom the order is issued requests a hearing before the
board.
(B) The violation of a cease and desist order of the board issued under
subsection (A) of this section subjects the person violating the order to
further proceedings before the board, and the board is authorized to impose
a fine not to exceed one thousand dollars for each transaction constituting a
violation of the order. Each day that a person practices in violation of this
chapter constitutes a separate violation.
(C) Initial judicial review of the decision of the board entered pursuant
to this section is available solely in the circuit court of the county of
domicile of the board.
(D) Nothing in this section may be construed to prohibit the board
from seeking remedies otherwise available by statute without first seeking a
cease and desist order in accordance with the provisions of this section.
Section 40-60-220. For the purposes of Chapter 20, Title 1, the South
Carolina Real Estate Appraisers Board is subject to review in conjunction
with the South Carolina Real Estate Commission and the programs,
functions, and regulations of the South Carolina Real Estate Appraisers
Board must be terminated as provided in Chapter 20, Title 1 on June 30,
1995, unless reauthorized by law."
Members first appointed
SECTION 2. Of the members first appointed to the South Carolina Real
Estate Appraisers Board, three shall serve for three years, two shall serve
for two years, and two shall serve for one year, and until their successors
are appointed and qualify. The initial terms of each member must be
designated by the Governor when making the initial appointments.
Appraiser reference deleted
SECTION 3. Section 40-57-10(1) of the 1976 Code is amended to read:
"(1) `Broker' means any person who for a fee, commission, or
other valuable consideration, or with the intent or expectation of receiving
a fee, commission, or consideration, negotiates or attempts to negotiate the
listing, sale, auction, purchase, exchange, or lease of any real estate or of
the improvements thereon, or negotiates or attempts to negotiate, or solicits
or attempts to solicit, a referral with respect to the foregoing activities, or
collects rents or attempts to collect rents, or who advertises or holds himself
out as engaged in any of the foregoing activities. The term includes the
activity provided in subsections (3) and (4) of this section. The term also
includes any person employed by or on behalf of the owner of real estate to
conduct the sale, auction, leasing, or other disposition thereof at a salary or
for a fee, commission, or any other consideration. It also includes any
person who engages in the business of charging an advance fee or
contracting for collection of a fee in connection with any contract whereby
he undertakes primarily to promote the sale of real estate through its listing
in a publication issued primarily for such purpose or for referral of
information concerning the real estate to brokers, or both."
Appraiser reference deleted
SECTION 4. Section 40-57-20 of the 1976 Code is amended to read:
"Section 40-57-20. It is unlawful for any person to act as a real
estate broker, counsellor, real estate salesman, property manager, or real
estate auctioneer or to advertise or assume to act as such without first
having obtained a license issued by the Real Estate Commissioner. Any
person violating this provision is guilty of a misdemeanor and, upon
conviction, must be punished by a fine of not more than five hundred
dollars or by imprisonment for a term of not more than six months, or both,
in the discretion of the court."
Appraiser reference deleted
SECTION 5. Section 40-57-40 of the 1976 Code is amended to read:
"Section 40-57-40. The provisions of this chapter are applicable
only to those persons holding themselves out to the public as real estate
brokers, counsellors, auctioneers, real estate salesmen, and property
managers and shall not apply to agencies and instrumentalities of the state
or federal government nor to employees of any lender or public officials
making appraisals for federal, state, and local units of the
government."
Appraiser reference deleted
SECTION 6. Section 40-57-90 of the 1976 Code, as last amended by Act
609 of 1988, is further amended to read:
"Section 40-57-90. Licenses as real estate broker, counsellor,
real estate salesman, auctioneer, or property manager must be granted only
to persons who submit satisfactory proof to the commissioner that they are
trustworthy and bear a good reputation for honesty and fair dealing, and are
competent to transact the business of a real estate broker, counsellor, real
estate salesman, auctioneer, or property manager in that manner as to
safeguard the interest of the public. A person applying for a license or an
examination shall first submit to a credit report and satisfy requirements
established by regulation. A real estate salesman must be employed by a
real estate broker-in-charge in order to be licensed."
Appraiser reference deleted
SECTION 7. Section 40-57-100(1) of the 1976 Code is amended to
read:
"(1) Any person desiring to act as a real estate broker,
counsellor, salesman, property manager, or auctioneer shall file with the
Real Estate Commissioner an application in writing upon that form and
with that detail as the South Carolina Real Estate Commission prescribes,
and each applicant shall first pass to the satisfaction of the commissioner
the examination prescribed, unless he is exempt therefrom."
Appraiser reference deleted
SECTION 8. Section 40-57-110 of the 1976 Code is amended to
read:
"Section 40-57-110. In addition to the proof of honesty, integrity,
truthfulness, and good reputation of an applicant for a license, either real
estate broker, counsellor, salesman, property manager, or auctioneer, the
applicant shall submit to a written examination to be prepared and
conducted by the commissioner or an institution designated by the
commission."
Appraiser reference deleted
SECTION 9. Section 40-57-160 of the 1976 Code is amended to
read:
"Section 40-57-160. It is the duty of the commissioner to issue a
license to engage in the business of real estate broker, counsellor, salesman,
property manager, or auctioneer to all applicants who are duly qualified
under, and who comply with, all requirements of this chapter and all
regulations of the commissioner. The license must be in that form and size
as the commissioner prescribes and must not be transferable. The licenses
expire on June thirtieth of each year."
Appraiser reference deleted
SECTION 10. Section 40-57-170(A) of the 1976 Code is amended to
read:
"(A) The commissioner may upon his own motion or a verified
complaint together with evidence, documentary or otherwise, presented in
connection therewith, making out a prima facie case, investigate the actions
of any real estate broker, counsellor, salesman, auctioneer, property
manager, or any person who has unlawfully assumed to act in either
capacity within this State and has the power to suspend, revoke, and cancel
any license issued under the provisions of this chapter and assess fines at
any time where the licensee has by material misrepresentation obtained a
license, or where the licensee is found by the commissioner to be guilty of
any of the following acts:
(1) making any substantial misrepresentation;
(2) making any false promises of a character likely to influence,
persuade, or induce;
(3) pursuing a continued and flagrant course of misrepresentation, or
making false promises through agents or salesmen or any medium of
advertising, or otherwise;
(4) any conduct in a real estate transaction which demonstrates bad
faith, dishonesty, untrustworthiness, or incompetency in a manner as to
endanger the interest of the public;
(5) acting for more than one party in a transaction without the
knowledge of all parties for whom he acts;
(6) acting in the dual capacity of broker and undisclosed principal in
any transaction;
(7) representing or attempting to represent, if a salesman, a real estate
broker other than his employer without the express knowledge and consent
of his employer;
(8) guaranteeing or authorizing or permitting any person to guarantee
future profits which may result from the resale of real property;
(9) making of dual sets of contracts, written or otherwise, which would
falsify the transaction by stating a sales price higher than the actual sales
price in an effort to obtain a larger loan from any lender or lending
institution or for the purpose of misinforming any governmental agency;
(10) being convicted in any court of competent jurisdiction of this State,
any other state, or any federal court of forgery, embezzlement, breach of
trust, larceny, obtaining money or property under false pretense, extortion,
fraud, conspiracy to defraud, or any other offense involving moral
turpitude, or pleading guilty or nolo contendere to any such offense;
(11) failing, within a reasonable time, to account for or to remit any
monies coming into his possession which belong to others; (12) paying a commission or compensation to any person for
performing the services of a real estate broker, salesman, or property
manager who has not first secured his license under the South Carolina
Real Estate Licensing Act. A South Carolina licensed broker may pay a
part of his commission on a cooperative basis to a licensed broker of
another state if the nonresident broker does not conduct in this State any of
the negotiations for which a fee, compensation, or commission is paid;
(13) failing, if a broker, to place, as soon after receipt as is practicably
possible, any deposit money or other money received by him in a real estate
transaction in a separate real estate trust or escrow account maintained by
him in a banking institution authorized to do business in this State, wherein
the funds must be kept until the transaction is consummated or otherwise
terminated, at which time a full accounting thereof must be made by the
broker. Records relative to the deposit, maintenance, and withdrawal of the
funds must be properly maintained and made available to a representative
of the South Carolina Real Estate Commission upon request;
(14) violating any provision of law relating to a buyer's freedom of
choice in choosing an attorney, insurance agent, or title insurance agent to
handle his real estate transaction;
(15) failing, if a broker or property manager, to deposit all security
deposits, damage deposits, advance fees, and rental proceeds received by
the broker or property manager on or before the next banking day in a
separate escrow or real estate trust account so designated. All these funds
except rental proceeds shall remain until the lease or rental transaction
expires or is terminated, at which time a full accounting must be made by
the broker or property manager. Rental proceeds must be disbursed within
a reasonable time after deposit and clearance of the deposit by the bank.
Records relative to the receipt, deposit, maintenance, and withdrawal of the
funds must be properly maintained and made available to a representative
of the South Carolina Real Estate Commission upon request;
(16) failing, if a licensee, to report to the commission in writing by
certified mail, return receipt requested, within ten days after receipt by the
licensee of those convictions set forth in item (10) of this subsection;
(17) a real estate licensee shall disclose on a form approved by the
commission for which party he is acting and may not receive compensation
from more than one party except with the full knowledge and consent of all
parties;
(18) violating any regulation promulgated by the commission."
Appraiser reference deleted
SECTION 11. Section 40-57-240 of the 1976 Code is amended to
read:
"Section 40-57-240. Any real estate broker, counsellor, salesman,
auctioneer, or property manager who fails to renew or register his license
annually and continues to engage in such business is guilty of a
misdemeanor and, upon conviction, must be punished by a fine of not more
than five hundred dollars or imprisonment of not more than six months, or
both, in the discretion of the court."
Standards for real estate education courses and schools
SECTION 12. The 1976 Code is amended by adding:
"Section 40-57-115. (A) The commission, through its
regulations and guidelines, shall establish standards relative to the
establishment and conducting of all education courses required by this
chapter and the review, approval, or regulation of schools, organizations,
associations, institutions, or instructors offering these courses, including,
but not limited to, sponsorship by accredited colleges, universities, and
private business entities and organizations; establishment, approval, and
review of curriculum; instructors; hours of attendance; classroom facilities;
enrollment and cancellation policies; texts; examinations; certificates of
completion; and other operating procedures.
(B) The commission, by regulation, shall establish reasonable fees
relative to the review, approval, or regulation of schools, organizations,
associations, institutions, or instructors offering the education courses
required by this chapter.
(C) The commissioner may deny, reprimand, fine, suspend, or revoke
the approval of an instructor or school, organization, association,
institution, or other educational provider if, after a hearing, the
commissioner finds that the applicant, instructor, or educational provider
has violated or failed to satisfy the provisions of this chapter or the
regulations and guidelines established under this chapter."
Funding
SECTION 13. The South Carolina Real Estate Commission during fiscal
year 1990-91 may use any funds appropriated to it for this year, which the
commission determines are not and will not be needed for the purposes
appropriated and may carry forward any excess appropriation from its fiscal
year 1990-91 budget to its fiscal year 1991-92 budget in an amount not to
exceed forty-five thousand dollars, to implement the provisions of this act
including the organizational and start-up expenses of the South Carolina
Real Estate Appraisers Board established in Chapter 60, Title 40, as
contained in Section 1 of this act. The commission in implementing the
provisions of this section is not required to obtain the prior approval of the
Budget and Control Board although Budget and Control Board and
Comptroller General accounting and fiscal procedures must be followed,
and the provisions of Paragraph 112.2, of Section 112, Part I, Act 612 of
1990 are superseded to the extent authorized by this section.
Time effective
SECTION 14. This act takes effect upon approval by the Governor.
Approved the 22nd day of March, 1991. |