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H. 4892

STATUS INFORMATION

General Bill
Sponsors: Rep. Edge
Document Path: l:\council\bills\agm\18265mm06.doc

Introduced in the House on March 23, 2006
Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Real estate licensee

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/23/2006  House   Introduced and read first time HJ-45
   3/23/2006  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-46

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/23/2006

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-57-141 SO AS TO PROVIDE FOR A PROCEDURE TO BE FOLLOWED BY A REAL ESTATE LICENSEE IF THE OWNERSHIP OF MONIES RECEIVED BY A REAL ESTATE BROKER IS IN DISPUTE; AND TO AMEND SECTION 40-57-135, AS AMENDED, RELATING TO DUTIES, POLICIES, AND RECORDKEEPING BY CERTAIN REAL ESTATE PROFESSIONALS, SO AS TO CONFORM IT TO THE ESTABLISHED PROCEDURE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Chapter 57 of Title 40 of the 1976 Code is amended by adding:

"Section 40-57-141.    (A)    A real estate licensee licensed pursuant to this chapter may deposit with the clerk of court in accordance with this section monies, other than a residential security deposit, that the real estate broker received while acting in fiduciary capacity if the ownership of the monies is in dispute.

(B)    The disputed monies must be deposited with the clerk of court in the county that is the location of property for which the disputed monies are held. At the time of depositing the disputed monies, the real estate broker shall certify to the clerk of court that the persons who are claiming ownership of the disputed monies have been notified in accordance with subsection (C) that the disputed monies are to be deposited with the clerk of court and that the persons may initiate a special proceeding with the clerk of court to recover the disputed monies.

(C)    Notice to the persons who are claiming ownership to the disputed monies required pursuant to subsection (B) must be provided by hand-delivering a copy of the notice to the person or by mailing it by first class mail, postpaid, properly addressed to the person at the person's last known address.

(D)    A real estate broker shall not deposit disputed monies with the clerk of court until thirty days following notification of the persons claiming ownership of the disputed monies.

(E)    Upon the filing of a special proceeding to recover the disputed monies, the clerk shall determine the rightful ownership of the monies and distribute the disputed monies accordingly. If a special proceeding is not filed with the clerk of court within one year of the disputed monies being deposited with the clerk of court, the disputed monies are deemed unclaimed and must be delivered by the clerk of court to the State Treasurer."

SECTION    2.    Section 40-57-135(B)(5)(b) of the 1976 Code, as last amended by Act 218 of 2004, is further amended to read:

"(b)    filing of an interpleader appropriate action in a court of competent jurisdiction; by filing such an the action, the escrow agent may deposit the earnest money with the court, according to the rules and procedures governing interpleader actions;"

SECTION    3.    This act takes effect upon approval by the Governor.

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