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Indicates Matter Stricken
Indicates New Matter
Sponsors: Reps. Scott, Huggins, Bedingfield and Duncan
Document Path: l:\council\bills\nbd\11294ab07.doc
Introduced in the House on February 21, 2007
Currently residing in the House Committee on Judiciary
Summary: Real estate transactions
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/21/2007 House Introduced and read first time HJ-46 2/21/2007 House Referred to Committee on Labor, Commerce and Industry HJ-47 2/28/2007 House Recalled from Committee on Labor, Commerce and Industry HJ-36 2/28/2007 House Referred to Committee on Judiciary HJ-36 3/27/2007 House Member(s) request name added as sponsor: Huggins, Bedingfield, Duncan
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VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-57-142 SO AS TO PROVIDE THAT WHEN A LICENSEE ACTING IN HIS AGENCY CAPACITY RECEIVES MONEY FROM A RESIDENTIAL REAL ESTATE TRANSACTION, THE MONEY MUST BE DEPOSITED WITH THE OFFICE OF THE STATE TREASURER WHEN OWNERSHIP OF THE MONEY IS IN DISPUTE AND THE PROPERTY SALE AGREEMENT REQUIRES THE PARTIES TO MUTUALLY AGREE ON THE DISBURSEMENT OF MONEY PRIOR TO DISBURSEMENT, TO PROVIDE A NOTICE REQUIREMENT, TO PROVIDE A LICENSEE MAY NOT DEPOSIT DISPUTED MONEY WITH THE OFFICE OF THE STATE TREASURER WITHIN THIRTY DAYS OF PROVIDING NOTICE, AND TO REQUIRE THAT A LICENSEE WHO DEPOSITS MONEY PURSUANT TO THIS SECTION SHALL CERTIFY TO THE OFFICE OF THE STATE TREASURER THAT HE HAS COMPLIED WITH THE NOTICE REQUIREMENTS OF THIS SECTION; TO AMEND SECTION 22-3-10, AS AMENDED, RELATING TO THE EXTENT OF A MAGISTRATES COURT'S CIVIL JURISDICTION IN AN INTERPLEADER ACTION ARISING FROM A REAL ESTATE CONTRACT FOR THE RECOVERY OF EARNEST MONEY IF THE SUM IS LESS THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS, SO AS TO DELETE THE REQUIREMENT THAT THE ACTION BE AN INTERPLEADER; TO AMEND SECTION 27-18-175, RELATING TO THE APPLICATION OF THE UNIFORM UNCLAIMED PROPERTY ACT, SO AS TO PROVIDE THAT EARNEST MONEY OR AN ESCROW DEPOSIT FOR REAL PROPERTY IS PRESUMED ABANDONED IF COMPLIANCE WITH SECTION 40-57-142 IS ACHIEVED BUT A PARTY DOES NOT AGREE ON DISBURSEMENT OF THE MONEY; TO AMEND SECTION 40-57-135, AS AMENDED, RELATING TO THE DUTY OF A BROKER-IN-CHARGE AND A PROPERTY MANAGER-IN-CHARGE TO FILE AN INTERPLEADER ACTION IN A COURT OF COMPETENT JURISDICTION, SO AS TO CHANGE THE WORD "INTERPLEADER" TO "APPROPRIATE" AND TO MAKE A CONFORMING CHANGE; AND TO REPEAL SECTION 22-3-25.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 57, Title 40 of the 1976 Code is amended by adding:
"Section 40-57-142. (A) Money, that a licensee acting in his agency capacity receives from a residential real estate transaction must be deposited with the Office of the State Treasurer if:
(1) ownership of the money is in dispute pending disbursement; and
(2) the property sale agreement requires the parties to mutually agree on the disbursement of funds prior to disbursement.
(B) A licensee shall provide notice to a person claiming ownership of funds to which ownership is disputed, that the licensee will deposit the disputed funds with the Office of the State Treasurer pending resolution of the dispute and disbursement. The notice must be either delivered or posted in the United States mail, postage prepaid, to the person at his address stated in the sale agreement.
(C) A licensee may not deposit disputed funds with the Office of the State Treasurer within thirty days of providing notice pursuant to subsection (B).
(D) When depositing disputed funds with the Office of the State Treasurer, the licensee shall certify that he has complied with the notice requirements of subsection (B) of this Section."
SECTION 2. Section 22-3-10(13) of the 1976 Code, as last amended by Act 180 of 2004, is further amended to read:
interpleader actions an action arising from a real estate contracts contract for the recovery of earnest money, only if the sum claimed does not exceed seven thousand five hundred dollars; and"
SECTION 3. Section 27-18-175 of the 1976 Code, as added by Act 43 of 2001, is amended to read:
"Section 27-18-175. (A) Earnest money or an escrow deposit for real property is presumed abandoned, if compliance with Section 40-57-142 is achieved but a party does not agree on disbursement of the money.
(B) This chapter does not apply to a forfeited reservation
deposits deposit. For purposes of this chapter, the term 'reservation deposit' means an amount of money paid to a business association to guarantee that the business association holds a specific service including, but not limited to, a room accommodation at a hotel, a vacation rental, seating at a restaurant, or an appointment with a doctor, for a specified date and place. The term 'reservation deposit' does not include an application fee, a utility deposit, or a deposit made toward the purchase of real property."
SECTION 4. 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 action, the escrow agent may deposit the earnest money with the court , according to the rules and procedures governing interpleader actions;"
SECTION 5. Section 22-3-25 of the 1976 Code is repealed.
SECTION 6. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 7. This act takes effect upon approval by the Governor.
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