South Carolina General Assembly
109th Session, 1991-1992

Bill 3421


                    Current Status

Introducing Body:               House
Bill Number:                    3421
Ratification Number:            32
Act Number:                     12
Primary Sponsor:                Committee (26)
Type of Legislation:            GB
Subject:                        Real Estate Appraisers Act
Date Bill Passed both Bodies:   Mar 07, 1991
Computer Document Number:       3421
Governor's Action:              S
Date of Governor's Action:      Mar 22, 1991
Introduced Date:                Feb 05, 1991
Date of Last Amendment:         Feb 12, 1991
Last History Body:              ------
Last History Date:              Mar 22, 1991
Last History Type:              Act No. 12
Scope of Legislation:           Statewide
Sponsor Committee:              Labor, Commerce and Industry
Sponsor Committee Number:       26
Type of Legislation:            General Bill

History


 Bill  Body    Date          Action Description              CMN
 ----  ------  ------------  ------------------------------  ---
 3421  ------  Mar 22, 1991  Act No. 12
 3421  ------  Mar 22, 1991  Signed by Governor
 3421  ------  Mar 19, 1991  Ratified R 32
 3421  House   Mar 07, 1991  Concurred in Senate
                             amendment, enrolled for
                             ratification
 3421  Senate  Mar 05, 1991  Read third time, returned to
                             House with amendment
 3421  Senate  Feb 28, 1991  Read second time, notice of
                             general amendments
 3421  Senate  Feb 26, 1991  Committee Report: Favorable     12
                             with amendment
 3421  Senate  Feb 14, 1991  Introduced, read first time,    12
                             referred to Committee
 3421  House   Feb 13, 1991  Read third time, sent to
                             Senate
 3421  House   Feb 12, 1991  Amended, read second time
 3421  House   Feb 07, 1991  Debate adjourned until
                             Tuesday, February 12
 3421  House   Feb 05, 1991  Introduced, read first time

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(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.