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.

Section 40-57-30. For purposes of this chapter:

(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).

(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.

(8) `Property manager-in-charge' means the property manager who is designated as having the responsibility over the actions of associated property managers and also the responsibility and control over and liability for real estate trust accounts.

(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:

(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.

(C) Before entering upon the discharge of the duties of the office, a member shall file with the Secretary of State, or other appropriate office charged with these duties of the Secretary of State as its successor entity, in writing an oath to perform the duties of the office as a member of the commission and to uphold the constitutions of this State and the United States.

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

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

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

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

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

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

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

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

(B) For each active license and inactive license not renewed by its expiration date, the department may assess a reinstatement penalty of one hundred dollars per month for each month or part of a month for a period not to exceed six months during which the license may be reinstated.

(C) All application and license fees are payable to the department in advance and must accompany an examination application or a license application. Application fees are nonrefundable.

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

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

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

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

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

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

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

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

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

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

(6) pass the appropriate examination unless exempt.

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

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

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

(3) For a property manager's license, completion of thirty hours of classroom instruction in property management principles and practices. In lieu of the classroom instruction required for taking the property manager's examination, an applicant may furnish to the department evidence of a Juris Doctor, Bachelor of Laws degree, or a baccalaureate degree with a major in real estate from an accredited college or university.

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

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

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

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

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

Section 40-57-110. (A) The department shall issue a license in classifications of broker, salesman, or property manager to individuals who apply and who qualify under and comply with the requirements of this chapter. No individual may be licensed in more than one classification at the same time. The license must be in the form and size as the department prescribes and is not transferable.

(B) The department may issue a designated broker-in-charge license to a broker or one qualified to be licensed as a broker and may issue a designated property manager-in-charge license to a licensed property manager or one qualified to be licensed as a property manager upon application on a form prescribed by the department and accompanied by applicable fees; however, no broker-in-charge or property manager-in-charge license shall be issued to or renewed for an applicant unless the applicant:

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

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

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

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

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

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

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

(1) submit to the commission satisfactory proof that the person is trustworthy, has a good reputation for honesty and fair dealing, and is competent to transact the business of a real estate licensee;

(2) submit proof of educational qualifications as set forth in this chapter if the proof of educational qualifications on file is more than five years old;

(3) pass the applicable examination; and

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

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

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

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

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

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

(B) An individual applying for a license by reciprocity shall submit an application, license fee, and certification of licensure from the real estate regulatory authority of the jurisdiction where the current or previous

(C) A nonresident real estate salesman license may not be granted to an applicant unless that applicant is affiliated with a resident or nonresident broker licensed by the commission. If a nonresident licensee terminates the affiliation with a broker licensed by the commission, the license of the nonresident is canceled unless the licensee places the license on inactive status or affiliates with another broker licensed by the commission.

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

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

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

(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 40-57-130. (A) As a condition of active license renewal, a broker or salesman shall provide proof of satisfactory completion biennially of eight hours of instruction in courses approved by the department and taught by instructors approved by the department. The eight hours shall include a minimum of two hours of instruction in current federal and state law affecting brokers and salesmen.

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

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

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

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

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

(5) a broker or salesman upon reaching the age of sixty years with a minimum of twenty-five years of licensure.

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

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

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

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

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

(4) instruct employees and associated licensees on the proper handling of trust funds;

(5) be available to the public during normal business hours in order to discuss or resolve complaints and disputes which arise during the course of real estate transactions in which the broker-in-charge or property manager-in-charge or an associated licensee is involved;

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

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

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

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

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

(3) All monies received by a property manager-in-charge in connection with a real estate rental including, but not limited to, security deposits, pet deposits, damage deposits, and advance rentals (except earned rental proceeds) shall remain in the trust account until the lease or rental transaction expires or is terminated, at which time the monies must be disbursed in accordance with the contract which directs the property

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