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Printed Page 3010, Apr. 25
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| (3) Failure to notify the commission of the change in residency and compliance with the requirements of this section is a violation of the license law subject to the penalties as provided by Section 40-57-170.
(F) All nonresident applicants and licensees must comply with all requirements of commission regulations and of this chapter. The commission may adopt regulations necessary for the regulation of nonresident licensees.
SECTION 40-57-145. A nonresident holding a license on the effective date of this act is not required to meet the prelicense education and examination requirements of Sections 40-57-100 and 40-57-110 of the 1976 Code in order to continue to hold a license after that date unless he allows the license to lapse or applies for a license that requires passing a different qualifying examination.
SECTION 40-57-150. The Real Estate Commission is authorized to establish license and application fees by regulation. None of the license fees provided for is in lieu of any business license fees or taxes imposed by a municipality. In addition to the fees authorized by this section, the Commission is authorized to contract with a state-funded institution of higher learning to conduct examinations for the Commission and the institution is authorized to charge and collect examination fees, not to exceed the reasonable cost to conduct examinations, which must be retained by the institution to defray the cost of conducting those examinations.
The Real Estate Commission may allocate a sum of up to five dollars from each real estate broker's, salesman's, and property manager's annual renewal fee to the South Carolina Real Estate Commission Education and Research Fund to be used: (1) to carry out the advancement of education and research for the benefit of those licensed under the provisions of this chapter and for the improvement and increased efficiency of the real estate industry in this State; (2) to provide for the analysis and evaluation of factors which affect the real estate industry in South Carolina; and (3) to provide for the dissemination of the results of the research.
The funds collected from the fee authorized in the above paragraph must be deposited in a special fund by the State Treasurer to be used exclusively for the purposes provided in the above paragraph. Withdrawals from the fund must be made upon the written request of the South Carolina Real Estate Commission.
SECTION 40-57-155. (A) As a condition of license renewal, a broker or sales agent must satisfactorily complete eight hours of approved course
(B) A licensee may receive continuing education credit for courses taken under a continuing legal education program, provided such courses relate directly to real estate law in South Carolina and have been preapproved by the commission as meeting the criteria for continuing real estate education. Credit for such courses is subject to approval by the commission.
(C) The commission shall administer the continuing education program and shall approve and regulate courses, instructors, and course providers to implement the purposes of this section. In administering the program, the commission may promulgate regulations to require licensees to provide proof of compliance with the continuing education requirements as a condition of license renewal. The commission may contract with an outside provider for the record keeping services required by this section.
(D) Temporary fees must be charged by and paid to the commission until permanent fees are established by regulation as follows:
(1) an annual filing fee of fifteen dollars;
(2) a fee of fifteen dollars for providing certification to another state of a licensee meeting the South Carolina continuing education requirement;
(3) a fee of one hundred dollars for each course approved;
(4) a fee of one hundred dollars for each instructor approved;
(5) a fee of fifty dollars for each course approval renewal;
(6) a fee of fifty dollars for each instructor approval renewal.
(E) The commission shall promulgate regulations prescribing the overall parameters of the continuing education program.
(F) This section also applies to nonresident licensees. Where applicable, a nonresident licensee who has successfully satisfied the continuing education requirements of his resident state and certifies this information to the continuing education administrator or service is considered to have satisfied the requirements of this section. A nonresident who lives in a state which does not require continuing education must satisfy the South Carolina continuing education requirements.
(H) A licensee upon reaching the age of sixty-five, with a minimum of twenty-five years of licensure, is exempt from the requirements of this section.
SECTION 40-57-160. It is the duty of the commission 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 commission. The license must be in that form and size as the commission prescribes and must not be transferable. The licenses expire annually.
SECTION 40-57-170. (A) The commission may upon its 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 commission 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;
(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, within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, 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 within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, 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
(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.
(B)
(1) The commission may make any public or private investigation which it considers necessary to determine whether any person has violated this chapter or any order or regulation hereunder, or to aid in the enforcement of this chapter or in the prescribing of regulations and forms thereunder.
(2) The commission may require or permit any person to file a statement in writing, under oath or otherwise as the commission determines, as to all facts and circumstances concerning the matter to be investigated.
(3) For the purpose of any investigation or proceeding under this chapter, the commission or any officer designated by regulation may administer oaths or affirmations, and upon its own motion or upon request of any party shall subpoena witnesses, compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
(4) Upon failure to obey a subpoena or to answer questions propounded by the investigating officer and upon reasonable notice to all persons affected thereby, the commission, through the Attorney General, may apply to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 for an order compelling compliance.
(C) The commission may:
(1) issue an order requiring a person to cease and desist from any unlawful practice and to take such affirmative action as in the judgment of
(a) violated any provisions of this chapter.
(b) directly or through any agent or employees knowingly engaged in any false, deceptive, or misleading practices in the sale or rental of real estate, including advertising and promotions.
(c) violated any lawful order or rule of the commission.
(2) make findings of fact in writing that the public interest will be irreparably harmed by delay in issuing an order and in such case may issue a temporary cease and desist order. Prior to issuing the temporary cease and desist order, the commission, whenever possible by telephone or otherwise, shall give notice of the proposal to issue a cease and desist order to the person. Every temporary cease and desist order shall include in its terms a provision that upon request a hearing will be held promptly to determine whether or not it becomes permanent.
SECTION 40-57-180. Before refusing, suspending, or revoking any license and before issuing any public or private reprimand or assessing any fines, the commission shall notify the applicant or licensee of the charges against him and must grant him an opportunity to be heard. The hearing must be held not less than thirty days nor more than ninety days after the applicant or licensee is notified of the charges against him. If charges are brought against a salesman, his broker must also be notified of the charges. Hearing of the charges must be at the time and place designated by the commission and must be conducted in accordance with the State Administrative Procedures Act. The hearing must be attended by at least five members of the Real Estate Commission, including the member from the congressional district in which the applicant or licensee resides.
SECTION 40-57-190. The commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation shall have power to administer oaths and to issue subpoenas for the attendance of witnesses and the production of books, records, accounts, and papers.
SECTION 40-57-200. The commission shall render a decision on any complaint within sixty days from the final hearing on such complaint and shall give immediate notice in writing of such ruling or decision to the applicant or licensee affected thereby, and where the investigation or hearing shall have been instituted by complaint filed, to the party or parties by whom the complaint was made. If such ruling shall be to the prejudice of, or shall injuriously affect the licensee, the commission shall also state in such notice the date upon which the ruling or decision shall
SECTION 40-57-210. The commission shall maintain a public docket or other record, in which the commission shall record, from time to time as made, the rulings or decisions upon all complaints filed with the commission, and all investigations instituted by the commission in the first instance, upon or in connection with which any such hearing shall have been had, or in which the licensee charged shall have made no defense.
SECTION 40-57-220. Every applicant or licensee aggrieved by a decision of the commission in refusing, suspending, or revoking any license or in issuing reprimands provided under the provisions of this chapter may appeal from the decision of the commission to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1.
SECTION 40-57-230. After the revocation of any license, no new license shall be issued to the same licensee, within a period of one year from and after the date of such revocation, nor at any time thereafter except upon an affirmative vote of at least a majority of the members of the Commission.
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.
SECTION 40-57-250. After a hearing as provided for in Section 40-57-170, or after entering a plea of guilty in lieu of hearing, a licensee adjudged to be in violation of the provisions of Section 40-57-170 of this chapter, or of any regulation or order promulgated under the authority of this chapter, may be required by the Commission to pay a penalty of not less than twenty-five dollars nor more than five hundred dollars to be assessed and collected by the Commission in addition to such sanctions as set forth in Section 40-57-170. Any party penalized under this subsection has the right of review as provided for in Section 40-57-220.
SECTION 40-57-270. (A) The fact or suspicion that a property may be or is psychologically impacted, as a result of facts or suspicions that the death of an occupant of the real property has occurred or may have occurred upon the real property, or the manner of death where death has occurred, or that an occupant was inflicted with or died from Human Immuno-deficiency Virus or diagnosed with Acquired Immune Deficiency Syndrome, or any other disease which has been determined by medical
(B) No cause of action may arise against an owner of real estate or his agent for the failure to disclose to the transferee that the transferred property was psychologically impacted as described in subsection (A) of this section.
(C) This section does not relieve an owner or agent of an obligation to disclose the physical condition of the premises.
(D) Nothing in this section immunizes an owner or his agent from making an intentional misrepresentation in response to a direct inquiry from a transferee or a prospective transferee of real property, concerning psychological impacts or stigmas associated with real property.
SECTION 40-57-280. Notwithstanding any other provision of law:
(1) All monies received by a property manager as agent for his principal in a real estate transaction must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, in a separate escrow or real estate trust account so designated.
(2) All monies received by a broker as agent for his principal in a real estate transaction must be deposited in a separate escrow or real estate trust account so designated as follows:
(a) all cash monies or certified funds must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays;
(b) all other monies must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays.
(3) All monies received by a broker or property manager and deposited in the escrow or real estate trust account as provided for above must remain there until consummation or termination of the transaction, at which time the broker or property manager shall make a full accounting of it to his principal.
Section 40-57-10. There is created the South Carolina Real Estate Commission under the administration of the Department of Labor, Licensing and Regulation. The purpose of this commission is to regulate the real estate industry so as to protect the public's interest when involved in real estate transactions.
Section 40-57-20. It is unlawful for an individual to act as a real estate broker, real estate salesman, real estate property manager, or to advertise as such without a valid license issued by the department.
(1) `Commission' means the group of individuals charged by law with the responsibility of licensing or otherwise regulating real estate within the State of South Carolina.
(2) `Department' means the Department of Labor, Licensing and Regulation.
(3) `Licensee' means an individual currently licensed under the provisions of this chapter.
(4) `Broker' means an individual who for a fee, salary, commission, or other valuable consideration, or who with the intent or expectation of receiving compensation:
(a) negotiates or attempts to negotiate the listing, publication, sale, purchase, exchange, lease, or other disposition of real estate or the improvements thereon;
(b) auctions or offers to auction real estate;
(c) solicits a referral in order to conduct activities set forth in this section.
(c) offers advisory services as a real estate consultant or counsellor;
(e) offers to act as an agent representing a principal in a real estate transaction;
(f) advertises or otherwise holds himself out to the public as being engaged in any of the foregoing activities.
(5) `Broker-in-charge' means the broker who is designated as having responsibility over the actions of all associated licensees and also has the responsibility and control over and liability for any real estate trust accounts.
(6) `Salesman' means a licensee associated with a broker-in-charge who, for compensation, engages in or participates in an activity included in item (4).
(7) `Property manager' means an individual who for a fee, salary, commission, or other valuable consideration, or who with the intent or expectation of receiving compensation:
(a) negotiates or attempts to negotiate the rental or leasing of real estate or improvements thereon;
(b) lists or offers to list and provide services in connection with the leasing or rental of real estate or improvements thereon.
(c) collects or attempts to collect deposits for leases or rentals;
(d) advertises or otherwise holds himself out to the public as being engaged in any of the foregoing activities.
(9) `Real estate' means land, buildings, and other appurtenances, including all interests in land, whether corporeal, incorporeal, freehold, or nonfreehold, whether the real estate is situate in this State or out-of-state.
(10) `Real estate transaction' means an activity involving the sale, purchase, exchange, or lease of real estate.
(11) `Trust account' means a properly designated bank account established and maintained by a broker-in-charge or a property manager-in-charge to safeguard funds belonging to parties to a real estate transaction. As used in this chapter, `trust account' and `escrow account' shall have the same meaning.
(12) `Office' means the principal office location where a broker-in-charge or a property manager-in-charge is licensed to conduct real estate business.
(13) `Branch office' means a suboffice of a company in which full-service real estate activities are conducted and at which a broker-in-charge or property manager-in-charge is licensed to conduct real estate transactions.
(14) `Client' means a person with whom a licensee has established an agency relationship.
(15) `Customer' means a person with whom a licensee has not established an agency relationship.
(16) `Associated licensee' means a licensee who is affiliated with a broker-in- charge or property manager-in-charge.
Section 40-57-40. (A) The South Carolina Real Estate Commission consists of nine members appointed by the Governor with the advice and consent of the Senate of whom:
(1) six must be professionally engaged in the practice of real estate, one from each of the six congressional districts;
(2) three members must represent the public and must not be professionally engaged in the practice of real estate.
(B) Except as provided in subsection (E), commission members serve a term of four years and until their successors are appointed and qualify. No member may serve more than two consecutive full terms. A vacancy on the commission must be filled in the manner of the original appointment for the remainder of the unexpired term.
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