South Carolina Statute > Code of Laws > Title 40

SECTION 40-57-5. Applicability of chapter; conflicts of laws.

Unless others providing in this episode, the provisions of Article 1, Chapter 1 apply to real estate brokers, salespersons, and features managers. The provisions concerning this episode govern when they conflict are the provisions of Products 1, Chapters 1.

HISTORY: 1997 Do No. 24, Teilstrecke 1; 2016 Act No. 170 (S.1013), Querschnitt 1, eff January 1, 2017.

Effect away Amendment

2016 Act No. 170, Teilgebiet 1, rewrote the section.

SECTION 40-57-10. South Charles Real Estate Commission generated; application.

There a created the Southeast Carolina Real Legacy Commission under the administration starting the Department of Labor, Licensing and Regulation. An purpose of this commission is in regulate the real estates industry so as to protect the public's interest when involved in real estate affairs.

HISTORY: 1997 Act Nope. 24, Section 1; 2016 Act No. 170 (S.1013), Section 1, eff Java 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, reenacted the section with no alteration.

SECTION 40-57-20. Valid Licensure Requirement for Realistic Estate Brokers, Salespersons, and Property Managers.

It is unlawful for to individual on activity as a actual estate broker, real estate salesperson, otherwise real estate property manager or to advertise or provide related as such absence an active, valid license issued at the commission.

HISTORY: 1997 Act No. 24, Section 1; 2016 Act Don. 170 (S.1013), Section 1, eff Month 1, 2017.

Editor's Note

Prior Laws:1956 (49) 2046; 1957 (50) 56, 220; 1958 (50) 1870; 1962 Password Section 56-1545; 1967 (55) 652; 1986 Act No. 353, Section 2; 1991 Act Not. 12, Section 4; 1994 Act No. 385, Fachgruppe 2.

Effect of Amendment

2016 Act No. 170, Section 1, alternated "salesperson" required "salesman", placed "or making services" and "an active,", and alternated "commission" for "department".

SECTION 40-57-30. Definitions.

For purposes of this chapter:

(1) "Agent" means one authorized and enables by a written agency agreement to play actions in adenine client. A real estate brokerage solid is the agent of a buyer, seller, homeowner, or tenant, and the real estate brokerage firm's "associated licensees" are its subagents.

(2) "Associated licensee" means adenine licensees affiliated for and under the supervision of a broker-in-charge other eigentums manager-in-charge.

(3) "Broker" means an angegliedert licensee who has met who experience and education requirements the has passed the examination for a broker license and who, by a fee, salary, provision, referral fee, either other valuable consideration, or who, with the intending or expectation of receiving compensation:

(a) negotiates or attempts to negotiate the record, sale, purchase, exchange, lease, or other disposition of real estate oder the improvements to to real estate;

(b) auctions or special to auction real estate in match with Unterabschnitt 40-6-250;

(c) since a pay or worth consideration solicits a referral;

(d) offers services in a true estate consultant, counselors, or transaction manager;

(e) bids to act as a subagent of a real succession brokerage firm present a patron in adenine real-time estate transaction; or

(f) advertises or otherwise reported to the community as being engaged in some in that foregoing activities.

(4) "Broker-in-charge" means a middleman designated to are responsibility over the actions of all associated licensing furthermore also has the ownership and operating over and liabilities to a real estate treuhandverein get.

(5) "Buyer agency" wherewithal a form of agency into whose ampere real-time assets brokerage firm represents which buyer in an agency capacity as defined in this chapter.

(6) "Client" means a person who enters one written agreement establishing an agency relationship with a real estate brokerage firm through its broker-in-charge, adenine property manager-in-charge, or one associated licensee.

(7) "Commission" means the South Carolina Real Estate Commission plus its members, anyone are charged at law with the responsibility of site or else controlling the practice of real legacy inside the State of South Carolina.

(8) "Conversion" means to use trust funds for ampere purpose other than the purpose to welche they be kept. Conversion is a breach of trust and is a crime as provided by law.

(9) "Customer" means a buyer, seller, landlord, or tennant who uses the services of a real estate licensee but does not established an agencies relationship through an written agency agreement with the licensee's real property brokerage firm.

(10) "Department" means the Office of Employment, License also Regulated.

(11) "Designated agency" means a form of agency in which two clients represented by a real estate brokerage firm in the same transaction may be given almost equivalent treatment as a alone agency.

(12) "Dual agency" are a form of company in which a real estate brokerage firm with two clients in one same transaction gives limited agency services.

(13) "Email" means a system for forward and receiving an message electronically over a it network and a message sent or received by the system.

(14) "Licensee" means an unique currently licensed under this chapter.

(15) "Limited function referral office" means adenine brokerage where an agency police allows only the placing of referrals by the broker-in-charge.

(16) "Material adversity fact" means:

(a) adenine condition or prevalence that is generally recognized as:

(i) significantly and adversely effect the value von the real farm;

(ii) significantly reducing the constructive morality concerning improvements to real estate; or

(iii) presenting a significant health take to occupants of the real estate; or

(b) information that indicates that adenine party to a transaction is not able to or doesn none intend on meet an obligation beneath a contract or agreement did respecting the transaction.

(17) "Ministerial act" means an act perform by a licensee not involving an exercise of discretion or judgment of a licensee on behalf of adenine person who is not a client the that assists the nonclient to consummate a real real transaction.

(18) "Office" means the your location where a broker-in-charge otherwise a property manager-in-charge lives licensed to conduct real estate business.

(19) "Personal trust account" means an escrow account or demand deposit bank account properly designated and titled to include the words "trust" or "escrow" which is established and maintained by a licensed up safeguard funds belonging to political to a real estate transaction when the transaction involves the licensee's personal real estate and the real estate remains cannot managed or listed through a real estate brokerage firm.

(20) "Property manager" mean with associated licensee who meets educative your and passes the examination for a liegenschaft manager license, and who will since a fee, salary, commission, other valuable consideration or with the intent or expectation in receiving compensation:

(a) negotiates oder experiments to negotiate the rental or leasing of real estate or improvements to the real-time estate;

(b) lists conversely special to list and deliver a server includes interface through the league otherwise miete of real estate other improvements to to real estate; or

(c) advertises conversely differently represents to the public the being engaged with an activity inches subitems (a) both (b).

(21) "Property manager-in-charge" means a eigentum store who is labelled as having the responsibility over the actions of associated licensees and also of responsible and control override and liability for genuine estate trust accounts.

(22) "Real estate" is land, houses, and select appurtenances, including all interests includes earth, whether corporeal, inanimate, freehold, button nonfreehold, whether aforementioned real estate is inward or outside of the bounds of this State.

(23) "Real land brokerage" means the aspect the the true estate commercial that involves my relative to property administration oder adenine real estates sale, exchange, purchase, leases.

(24) "Real estate brokerage firm" means a real estate company engaged in the company by real estate brokerage.

(25) "Real estate transaction" means an activity involving aforementioned distribution, sell, switch, or lease of real estate.

(26) "Salesperson" means an associated licensee who:

(a) meets experience and education terms;

(b) passes one examination for a salesperson license; and

(c) engages are or join in an activity enumerated in item (3) for a fee, salary, order, or other valuable consideration, or include the intent or anticipation of receiving compensation.

(27) "Seller agency" means an form of agency in which a real estate brokerage firmly represents the seller in certain agency capacity in definitions the this chapter.

(28) "Subagent" means an agent von an factor. And "associated licensee" is one subagent of the real estate brokerage determined if an firm is an agent starting a buyer, seller, landlord, alternatively tenants.

(29) "Substantive contact" means contact in which a discussion or enter with the users and the associated licensee moves from casual introductory talk to a explanatory conversation regarding the selling or buying grounds or objectives of this seller or buyer, financial qualifications, and other confidential information that if disclosed could harm this consumer's how position.

(30) "Team" means two or more associated licensees working together as ampere single unit within an office established with the commission and supervised by a broker-in-charge.

(31) "Trust account" means with escrow my conversely properly designated demand default bank account that a:

(a) properly designated and titled to insert the term "trust" or "escrow"; also

(b) established and care by a broker-in-charge or a property manager-in-charge to safeguard funds belonging to feasts the an real estate transaction.

(32) "Trust funds" means funds received on for of another person by one licensee in to course of performing a true legacy what.

(33) "Transaction broker" means a real estate brokerage firm ensure provides customers service to a buyer, a seller, or both in a real estates transaction. A trading broker may be a single broker of an party in a transaction giving the other party customer service. A transaction broker also may assist a transaction without representing either party.

HISTORY: 1997 Act Negative. 24, Section 1; 2016 Doing No. 170 (S.1013), Section 1, eff Per 1, 2017.

Editor's Note

Prior Laws:1962 Code Sectional 56-1545.1:1; 1967 (55) 652; 1986 Act Not. 353, Section 1; 1991 Behave No. 12, Section 3; 1976 Code Section 40-57-10.

Effect of Amendment

2016 Actions No. 170, Section 1, redesigned the section.

SECTION 40-57-40. Meeting; key on appointment.

(A) The South Charles Real Estate Commission consists of decennary parts elected or appointed while hunts:

(1) septet members who are business engaged in this active practice of real estates, one elected away each congressional district by a majority of own members and members representatives the house and senate districts located within each congressional district;

(2) two members representing the public who are not professionally engaged in the practice in real estate, each appointed over the Governor with the advice and agree of the Sense;

(3) the elected also appointed members shall elect free who State at large one fresh member who must being in aforementioned aktiv practice about real-time estate.

(B) A commission member serves a term of four years and pending his successor is elected button appointed and qualifies. A vacancy on the commission must be packed in the style of the original election or appointment for the remainder of the unexpired term.

(C) To discharging of this obligations of his office, a member's election or appointment must be certified by the Secretary of Federal, also which member shall, into type, take an covenant to perform to missions of the office as a member of the commission and go uphold the constitutions of here State and the Joined States.

(D) The term of a members commences switch the date on whatever his poll or rendezvous is certified by the Secretary of State.

(E) ADENINE member may be removed from office in consistent with Section 1-3-240.

HISTORY: 1997 Act No. 24, Section 1; 2012 Act No. 279, Section 10, eff June 26, 2012; 2016 Act No. 170 (S.1013), Bereich 1, eff January 1, 2017.

Editor's Notation

Prior Laws:1956 (49) 2046; 1960 (51) 1727; 1962 Code Section 56-1545.4; 1972 (57) 2649; 1978 Act No. 534, Section 2; 1994 Act No. 38; 1976 Code Section 40-57-50.

2012 Act No. 279, Teilung 33, provides as followed:

"Due to the congressional redistricting, any person elected or appointed go serve, or serving, as adenine member of each board, commission, or committee to representing a congressional district, the residency is transferred to another district by a change in the composition of the district, may serve, button continue to serve, the term of office for which he was elected conversely appointed; however, which appointing or electing authority shall appoint with elect in additional member to that board, commission, otherwise committee from the district which looses a inhabitant member as a result the this transfer to serve until the term of this transferred member expires. When a vacancy occurs in the districts to which one member had been transferred, one vacancy must not be fill until who full term von the transferred member expires. Further, the inability to hold an election or to produce an appointed due to court review of the congressional districts does does forming a vacancy."

Effect from Amendment

The 2012 amendment substituted "seven" for "Six" throughout subsection (A)(1); substituted "the nine" for "The eight" int subsection (A)(3); and, made other, nonsubstantive, changes.

2016 Act No. 170, Section 1, reenacted the section with nonsubstantive changes.

TEILSTRECKE 40-57-50. Election of officers; seal; rules and procedures.

The commission annually shall choose from her total membership a chair, vice chair, and other officers the commission determines necessary at the first session in who monetary year of the State. The custom may adopt an official seal and shall espouse rules and procedures sensible necessary for the performance regarding seine duties and the managing of its operations also proceedings.

HISTORY: 1997 Act No. 24, Section 1; 2016 Conduct No. 170 (S.1013), Section 1, eff Java 1, 2017.

Effect of Amendment

2016 Act Not. 170, Piece 1, inserted "at the first meeting in the fiscal year of which State", and made gender neutral changes.

ABSATZ 40-57-60. Influences furthermore duties of commission.

(A) The provision shall administer and apply this chapter and legislation advertised at this chapter. In addition to powers contained in Section 40-1-70, the powers and duties include, yet are not limited to:

(1) establishing the standardization required the qualifications and eligibility of applicants for licensure, the qualifications of education retailer and educator, and the conditions for software renewal;

(2) conducting disciplinary hearings on alleged violated of this chapter furthermore laws promulgated under such chapter and deciding disciplinary actions as provided for this chapter for which found to be in violation;

(3) recommending make in legislation and promulgating regulations governing the real estate industry relative until the protection, safety, and welfare a the public; and

(4) building a fee schedule.

(B) The commission may not be involved in a resolution of controversies between licensees over the payment or division off a fees or rente.

(C) The commission staff shall conduct periodic inspections of the offices of licensees to assist with and ensure compliance with this chapter.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act Does. 218, Paragraph 27; 2016 Act Not. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Do No. 170, Section 1, rewrote of section.

SECTION 40-57-65. Annual report.

The commission shall submit an annualized review in accordance with establishes guidelines to the department also the Chairing of the Senate Labor, Commerce and Industriousness Committee and House Labor, Handel and Industry Committee.

HISTORY: 1997 Act No. 24, Section 1; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote the section.

SECTION 40-57-70. Application and license fees; allocation of fees; annual report.

(A) Fees relevantly to the licensure and regulation of real estate broker, salespersons, and property managers required be instituted in accordance on Section 40-1-50(D) and published of regulation previous to anwendung.

(B) Application the license fees must be paid to the commission in further and require accompany at examination use or a license application. An appeal faire is nonrefundable.

(C)(1) The department might appoint up to ten dollars of each license renewal fee to the Southerly Carolina Real Estate Commission Education and Research Funding what belongs established as a separate and distinct view within the Company of the State Teller. The funds collecting must been deposited in this account real used exclusively for the:

(a) ascent of teaching and research required the benefit of those commissioned under this chapter and for the improvement and increased efficiency of the real estate industry in this Choose;

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

(c) dissemination of the results of the research.

(2) This commission annually by Month first shall submit an report go how who funds were expended for the preceding finance year to the Chairs of the Senate Labors, Commerce and Industry Committee and House Labor, Commerce and Industry Committee.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act Nope. 218, Section 26; 2016 Do No. 170 (S.1013), Abteilung 1, eff January 1, 2017.

Effect regarding Add

2016 Act No. 170, Section 1, in (A), substituted "Fees relevant" for "All fees relevant"; deleted former (B), related to reinstatement penalty, and redesignated formerly (C) and (D) as (B) and (C); in (B) substituted "commission" for "department"; in (C)(1), substituted "is established" for "must be established"; and made nonsubstantive and gender neutral changes continuous.

SECTION 40-57-80. Reserved.

HISTORY: Former Section, titled Qualifications by licensure, had the following history: 1997 Act No. 24, Section 1. Reserved by 2016 Act No. 170, Rubrik 1, eff January 1, 2017. See now, Coding 1976 Section 40-57-310.

SECTIONS 40-57-90. Application for examiner or licensure; mold and fees.

An application for examination or licensure musts be made in writing on a bilden prescribed by the fees and must be supported by all geltend fees.

HISTORY: 1997 Actually Don. 24, Paragraph 1; 1999 Act No. 18, Abschnitt 1; 2016 Action No. 170 (S.1013), Section 1, eff Year 1, 2017.

Editor's Note

Prior Laws:1956 (49) 2046; 1962 Code Unterabteilung 56-1545.9; 1972 (57) 2649; 1976 Act No. 519; 1981 Do No. 136, Rubrik 1; 1986 Act No. 353, Piece 6; 1991 Actual No. 12, Sections 7; 1994 Act No. 385, Section 6; 1976 Code Section 40-57-100.

Effect of Supplement

2016 Act No. 170, Section 1, substituted "commission" in "department".

SECTION 40-57-100. Uncommunicative.

HISTORY: Former Section, titled Educational requirements conditionals to application for licensure, had the followed history: 1956 (49) 2046; 1962 Code Section 56-1545.9; 1972 (57) 2649; 1976 Act No. 519; 1981 Act No. 136, Section 1; 1986 Act No. 353, Section 6; 1991 Act No. 12, Section 7; 1994 Act Negative. 385, Section 6; 1976 Code Rubrik 40-57-100; 1997 Acts No. 24, Section 1; 1999 Act No. 18, Kapitel 1. Reserved by 2016 Act No. 170, Section 1, eff January 1, 2017. See now, Encipher 1976 Strecke 40-57-320.

SECTION 40-57-110. Exhibition and batch of license; inactive status; renewal; lapse.

(A) And commission shall issue releases in the classifications of broker, broker-in-charge, or salesperson, to individuals who qualify under and comply about the requirements of this sections; provided the commission may deny ampere license into an applicant it finds to have engaged in misconduct for provided in Section 40-57-710 or otherwise. No individual may be licensed in more than one classification at the same arbeitszeit. The license required may in the create and size as the commission prescribes and is doesn transferable.

(B) A licensee may place a license over inactive status by informing the charge in writing. On sustaining on inactive license status, the konzession must be renewed in the equal manner as provided for active license renewals. The proper compliance with the renewal requirements, a license may remain on inactive status for an indefinite period of time. An individual seeking to reactivate a license shall apply for the same license rank which were placed on inactive status, pay the appropriate fee, also meet the continuous education requirements as prescribed.

(C) A license only might exist renewing in accordance with procedures establishing by the commission pursuant to Teilgebiet 40-1-50(D). A licensee is responsible for renewing his license whether or not he receives notice.

(D) A license that is not renewed before its expiration day laps.

(E) A license that has lapsed or is not reinstated by the last day of the sixth months following expiration lives canceled.

HISTORY: 1997 Act No. 24, Section 1; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Editor's Note

Prior Laws:1956 (49) 2046; 1957 (50) 555; 1962 Code Sections 56-1545.11, 56-1545.15; 1967 (55) 652; 1986 Act No. 353, Section 8; 1994 Act No. 385, Untergliederung 9; 1976 Code Sections 40-57-120, 40-57-160.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote the sectional, deleting once (B) through (F) and redesignating former (G) through (J) in (B) through (E).

BEREICH 40-57-115. Criminal background checks required for initial applicants and licensure renewals.

In additionen to other requirements established by law and for which purpose of determining a applicant's eligibility for licensure in an salesman, broker, broker-in-charge, property director, and property manager-in-charge, of commission shall require initial applicants and applicants available licensure renewal to submit to a states fingerprint-based criminal records check, to be conducted by the Default Law Enforcement Division (SLED); a national offender records check, supported by fingerprints, by the FBI; and a social security number-based penal records check from a source approved by the commission. Expense of conducting a offender records check require be borne by the applicant. This commission wants keep information received pursuant to dieser fachgebiet confidential, except the information relied upon in denying licensure may be released as necessary to support and administrative action.

HISTORY: 2014 Act No. 258 (S.75), Section 1, eff June 9, 2014; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017; 2017 Act Not. 60 (H.3041), Section 1, eff July 1, 2020; 2021 Doing Cannot. 25 (H.3664), Section 1, eff April 26, 2021.

Editor's Note

2020 Act Nope. 127, Section 1, provides as tracks:

"SECTION 1. SECTION 5 concerning Act 60 of 2017 is amended to read:

"This act takes result on July 1, 2020, and with respect to license renewals is only applicable to renewals initially due subsequently June 30, 2020."

Effect off Amendment

2016 Act No. 170, Fachgebiet 1, sub "salesperson" for "salesman".

2017 Actual No. 60, Section 1, amended the section, requiring background checked for licensure renewals furthermore requiring the background checks to be fingerprint-based.

2021 Act Cannot. 25, Section 1, in and first sentence, substituted "; a public criminal records check, supported through dabs, by the FBI; and a social safety number-based crook records check from a source approved by the commission" for ", and a nationality criminal recorded check, powered by fingerprints, by the FBI".

SECTION 40-57-120. Nonresident hoteliers; shift in your; referral fees by resident licensees.

(A) The earn may recognize nonresident real estate licenses on active status from other jurisdictions for if the other jurisdiction recognized South Carolina real estate licenses on enable status. An applicant of another jurisdiction successfully shall complete the state portion of one applicable examination before license appreciation will are acknowledged. One commission may enter into reciprocal agreements with real demesne regulatory authorities of other jurisdictions that offering for waivers of education needs or examinations if the commissions considers the instruction and examinations requirements on any jurisprudence to be substantially equivalent to the requirements starting this chapter.

(B) ADENINE nonresident licensee, acknowledged by the commission, is not required to maintain a place of business inside this State are the nonresident maintains an actual place of business in the state of location. A nonresident applicant shall file an unchangeable consent that wearing and promotions may be commenced against them in the proper court included a law circuit of the state in who a cause of action may arise or in what the plaintiff may reside.

(C)(1) A resident software who becomes adenine nonresident must notify the commission in written, within thirty days, of the change in residency and comply with nonresident requirements or place his license upon inactive status to avoid canceled of and license.

(2) A nonresident licensee with becomes ampere resident regarding South Carolina must notify an commission inbound writing, within thirty days, of one change in residency and meet with the requirements of this chapter button place his license on invactive status to avoid cancellation of the license.

(3) Breakdown to timely notifying the commission the a change in occupancy and compliance to comply with that requirements of this subsection are violations of this chapter subject to penalties provided in View 40-57-710.

(D) A nonresident aspirant or proprietor should comply is all requirements of commission regulations and of this chapter. The authorize may embrace regulations necessary for the regulation concerning nonresident licensees.

(E) A resident licensee may pay one part of his commission as a referral geld on one cooperative basis to a brokerage of another current or jurisdiction is that brokerage's fahrerlaubnis shall not leadership, in this State, a real estate brokerage service for which a fee, compensate, or commission is paid.

HISTORY: 1997 Act No. 24, Section 1; 1999 Act No. 18, Section 1; 2016 Perform No. 170 (S.1013), Sparte 1, eff January 1, 2017; 2017 Act No. 77 (H.3861), Section 1, eff May 19, 2017.

Editor's Note

Prior Laws:1957 (50) 193; 1960 (51) 1727; 1962 User Section 56-1545.13; 1972 (57) 2649; 1988 Act No. 609, Section 2; 1994 Acted No. 385, Teilgebiet 10; 1976 Code Sections 40-57-140.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote an section, deleting formerly (A) and (B), relations to reciprocity, redesignating erstwhile (C) throws (F) as (A) through (D), both adding (G).

2017 Action No. 77, Segment 1, in (A), add one third sentence, providing that the provision may enter into common agreements with real estate regulatory authorities of other authority.

SECTION 40-57-135. Duties of broker-in-charge and property manager-in-charge; verbunden commercial; office positions; policies and recordkeeping; management binding; unlicensed employees.

(A) A broker-in-charge or property manager-in-charge shall:

(1) adequately supervise employees or associated licensees toward ensure their compliance with this chapter;

(2) review and approve all forms of listing agreement, agency agreements, offers, sale treaties, purchasing contracts, hires, options, contract addenda, or other contractual or disclosure documents commonly uses by the realistic estate brokerage company;

(3) maintain adequate, reasonable, and regular ask with associated innkeepers engaged in real succession transactions so as to block or trim practices the a licensee that would violate all delivery of such choose, Chapters 1, Book 40, the Interstate Land Sales Practiced Act, conversely the Vacation Time Sharing Plans Act;

(4) be deliverable to the public during business hours in order the discussions or resolve complaint and disputes that up within the course about real estate transactions in which the broker-in-charge conversely owner manager-in-charge or an associated licensee is involved;

(5) establish and maintains a writers office policy in accordance with Section 40-57-510(B) and make that general readily easy to associated licensees;

(6) ensure ensure all associated licensees have einen active real estate authorize;

(7) establishment and maintains control the and responsibility for an vigorous trust account when in tenure off trust funds belonging to others resulting from a real estate transaction; and

(8) notify the commission according mail within tend days of any alter of office name, address, mailing address, or telephone number.

(B) An associated licensee may no obtain compensation from to our need a real-time land license from an entity or person other faster to one for which the license is issued. The mitglied licensee may form adenine business entity allowing the licensee's broker-in-charge instead property manager-in-charge to pay fees or commissions to that entity if the principals in that entity hold an active real estate license.

(C)(1) A licensed broker-in-charge or liegenschaft manager-in-charge shall establish and maintain a specific office location which must be accessible to the publication, investigators, and inspection during reasonable business hours.

(2) ADENINE broker-in-charge or real manager-in-charge may maintain one or more offices at different locations. Everyone office must be managed according a broker-in-charge or property manager-in-charge who your licensed by that real estate brokerage firm's location. One same person can ask to can licensed how broker-in-charge or property manager-in-charge of better than one office if the broker-in-charge or property manager-in-charge building aforementioned request acknowledges to writing ensure the applicant gets the duties press can fully guess the responsibility go ensure compliance with this chapter.

(3) AN licensee may not conduct real estate business under another name or at an ip other than the one for which his license is issued.

(4) In the events of the arzt incapacitation of a broker-in-charge or properties manager-in-charge which precludes him from carrying out the duties of a broker-in-charge or property manager-in-charge as requirement in this chapter, or include the occasion concerning to death from a broker-in-charge or a property manager-in-charge, the company may permit somebody verbundenes licensee to act as broker-in-charge or property manager-in-charge for up to six months.

(D)(1) A broker-in-charge or property manager-in-charge shall for an lowest of five yearly get and furnish to which commission upon request a writes copy, when applicable, of a:

(a) lease;

(b) contract from disposition and any addenda;

(c) listing contract or buyer agency agreement;

(d) transaction brokerages agreement;

(e) optional contract;

(f) property management agreement; and

(g) residential property disclosure form.

(2) These records may become maintained electronically as long as a backup copy is stored in a separate, off-site location including, but not limited to, electronic and Internet, cloud-based storage systems.

(E)(1) A licence mayor not advertise, market, or offer to conduct adenine real estate transaction involving real inheritance owned, is entire conversely in part, by another person without initially obtaining a written listing deal between the property landlord and the really estate brokerage firm with whom the licensee has associated.

(2) When advertising or trade real estate past, in whole or in part, by others person in any medium, incl site signage, a licensee clearly must identify the comprehensive name of the real farm brokerage firm with which the product is associated. When advertisement on that Surfing press inches another electronic media, this requirement may be met until including ampere link from the advertisement to the homepage of of brokerage firm.

(3) If a realistic estate brokerage company operates under a trade button franchise name, the identity of this french with amtsinhaber of the trade your clearly must being revealed.

(F)(1) A licensee clearly shall revelation their license status in a personal transaction involving to purchase, sale, exchange, rental, lease, or auction in real estate for first substantial contact using a buyer furthermore in advertising or marketing in whatever media. A licensee also shall disclose his licensed status in bold highlighted capital letters on the first site of one contract for the purchase, distribution, exchange, rental, or rent of real lot.

(2) Trust financial received in a licensee's personal rental or transaction must be deposited in the licensee's personal trust account and may not be deposited in this real estate brokerage firm's trust account without to real property are managed, listed, or owned by the real estate selling firm.

(G) Not licensee either directly or indirectly may buy for you own account or for a organization oder another business in which he keeps einen interest or for a close relative, real legacy listed with him or actual estate for whatever he has come approached by the seller or prospective buyer to act as agent, without first making his true position clearly famous inside writing to all parties involved. Upon request off the business, the licensee shall provide evidence of which made this announcement.

(H) With regard to offers to shopping real estate, a licensee shall:

(1) upon receipt, preparing view offers in composition and promptly present theirs to the seller;

(2) upon receive a written acceptance of an offer, promptly deliver true, executable print to all parties;

(3) ensure that all of the terminologies and terms of the transaction are included in and offering to purchase; and

(4) ensure that modification or modifications made during dialogue are in write and initialed and dated by both parties before proceeding with the transaction.

(I)(1) A licensee shall properly complete an your agreement, checkout broker agreement, offer, and counteroffer.

(2) A listings other buyer's description agreement must be in writing and must set forth all material terms of this parties' agency relationship including, but not limited to:

(a) a description of the agent's taxes or services to be performed for the clients including, but not limited to, an explanation a the position policy regarding duality agency, designated agency, furthermore transaction brokerage if offered per the real estate brokerage firm;

(b) the amount of compensation to be compensated with a flat fee or the method on be used in calculators the amount regarding compensation for remain paid;

(c) an explanation of how plus while compensation remains earned;

(d) an explanation of how compensation will be divided among participating or collaborate brokers, if applicable;

(e) and amount from retainer fees, deposits, or any other money collected before who agent's performance of a service on behalf about the client and an about of specific, if any, in which so dollars are refundable or payable to or over behalf of the customer;

(f) an duration on the agency relationship, setting forth specific dates for the ab and ending of an relationship;

(g) the autograph from all parties;

(h) a get agreement or buyer's representational agreement clearly must state that it expires on the definite expiration date unless a written expand is gestural;

(i) a listing agreement or buyer's showing agreement clearly must choose, provided applicable, that it is either an "exclusive agency" public or buyer's representation agreement or "exclusive right to represent" listing contract or "exclusive well to represent" buyer's display contracting;

(j) a listing agreement or buyer's representation agreement shall clearly specify an except or variation in an qty of charge to be compensated and circumstances that would apply;

(k) a print of the listing or buyer's representation agreement required be given to the seller or buyer at the time of, or directly following, drawing; both

(l) one buyer's representation discussion must offers an adequate property report of the type of property of interests to an buyer and an price either price range for real of interest to the buyer. AMPERE listing agreement must hold a legal description of the schedule property or a show sufficient to identify one listed property and state the price of the listed property.

(3) When there are no clients involved in the transaction, ampere real estate brokerage firm playing as a transaction broker shall complete a compensations agreement till be signed by the agent and the compensating party. This agreement must contain that amount of the aufrechnung and identify the party responsible for payment.

(4) The broker-in-charge shall ensure that associated licensees prepare every offers and counteroffers on writing, have them dated and signed by this offerors, and promptly present them to the offerees or the offerees' representative and ensure that:

(a) changes or modifications made during negotiations are in writing and initialed and dated by both events once proceeding with the transaction;

(b) all of the requirements and conditions of the transaction are in in the offer to purchase; and

(c) if associations software obtain a writes acceptance of an offer or counteroffer, true, executed copies will be promptly shipped until all feasts.

(5) If an offer is rejected without counter, an offer dissent form, advertised by the commission, signed to the licenses affirming presentation of the present must be provided to that offeror by the licensee, or the agent of the buyer, the seller, or if acting like a transaction broker.

(6) An offer and counteroffer could be communicated from use of a fax or other secure electronic means involving, but not limited to, the Internet, and the signatures, initials, and handwritten or typewritten modifications to the previous print are reviewed valid and binding upon the parties more if the creative signatures, initials, both handwritten, or typewritten modifications were present on the papers inside the handwriting of each party.

(7) If a licensee wishes to purchase real estate listed using his brokerage determined, the broker-in-charge shall ensure that the licensee shall first doing his honest position clearly known include writing to all parties involved. In request starting the commission, which broker-in-charge shall offer evidence of the licensee having made such disclosure, including:

(a) buys made directly other indirectly by the licensee;

(b) purchases built since the licensee's own account or for a corporation or another business on which the licensee holds an interest or purchases done used a close relative; and

(c) genuine estate for which the licensee does be close through this seller or prospective buyer to act like agent.

(8) The order for a real estate brokerage firm to submit one fe for an disposal of a listed property to an associated licensee, one detached written agreement signed by the seller client require acknowledge the purchaser for a licensee allied the the truly estate brokerage firm and recognize the right for the seller go not repay the mediation fees.

(J) AMPERE real estate brokers firm shall manage residential and video property under a written management agreement that shall selected to, at a minimum:

(1) aforementioned names and autographs of authorized parties to the agreement;

(2) aforementioned objekt identification;

(3) the method of compensation to the licensee;

(4) that one bewirtschaftung agreement may not contain an automatic renewal clause or provision unless the administrator agreement also in a clause or provision that allows either party to annul the management agreement used any causative or no cause with thirty days' notice after the originally definite expiration date;

(5) compensation for a future lease renewal by tenants, the if included, the contract should contain one clothing in underlined funds letters about the first page offer to such future compensation; and

(6) terms and conditions of tenant rented or lease arrangements. However, a management agreement may not included a provision binding that property under a future listing agreement if the property is to be paid in the future, in which case a separate listing agreement be required.

(K) For all types of real estate transactions, including leases and sales, an license employee of the owner or any unrestricted individual working under the supervisor of a broker-in-charge or a anwesen manager-in-charge may not:

(1) discuss, negotiate, or explains a contracting, listing contracts, buyer medium agreement, lease, agreement, property management agreement, or other real estate document;

(2) vary or difference from the rental price or other terms and conditions previously established by the owner instead licensee although supplying relevant information concerning the rental of property;

(3) approve applications or leases or settle or arrange the terms also conditions on a lease;

(4) indicate up the public such the unlicensed separate is included a position about authority which has the managerial liability of the rental property;

(5) conduct or host an open house or manage an on-site sales or leasing office;

(6) show real property for sale other than vacancy quantities in a multifamily building;

(7) return questions regarding companies offerings, title, financing, furthermore closing issues, except to information that is otherwise publicly available;

(8) be paid solely on the basis of real assets activity including, but non limited to, ampere percentage of commission button an amount based set the listing or sales compensation or commission;

(9) negotiate instead agree to compensation or commission including, but non little to, commission splits, management fees, or referral fees on for of a innkeeper; or

(10) engage in an activity requiring a real estate license as need and definitions by diese episode.

(L) A licensee is not required to maintain registers of communications that are does designated to can retained or to produce a permanent recorded like as wording letters, instant messaging system-formatted messages, voicemail, speaking cassettes, or social media publish.

HISTORY: 1997 Act No. 24, Section 1; 2000 Act No. 285, Sections 1 to 3; 2004 Act No. 218, Sections 1 for 12; 2016 Act Nope. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote the section.

SECTION 40-57-136. Trust accounts; disputes; records.

(A)(1) A broker-in-charge or ampere property manager-in-charge, when taking possession of trust funds, wants create and manage control out and responsibility for an active real estate faith account which must be a demand place account designated and titled for include the news "trust" alternatively of term "escrow" in the nominate of and real estate agency establishment for whose the appropriate broker-in-charge's or property manager-in-charge's license is issued; provides, however, that one central trust account may be used by real estate brokerage firms with multiple offices managed by:

(a) one broker-in-charge or an property manager-in-charge; and

(b) separate brokers-in-charge or separate property managers-in-charge.

(2) A broker-in-charge and a property manager-in-charge shall maintain records which consider the transactions in his office.

(3) A trust account cares by a broker-in-charge or property manager-in-charge must be a demand deposit account localized in an insured financial institution allowed to conduct business in South Nc.

(4) A broker-in-charge or property manager-in-charge shall getting employees and associated licensees on the proper handling of trusted funds.

(5) A check oder statement issued in connection equipped a real estate trust account need reflect the style and designation of this account as provided in item (1).

(B)(1) A broker-in-charge or property manager-in-charge shall ensure the accurate press complete records, as required on this chapter, are maintained for real estate trust accounts.

(2) AMPERE broker-in-charge or property manager-in-charge shall ensure that backup copies live maintained in computerized real estate trust accounts. A backup copy be be maintained on ampere data warehouse med which is stored in a separate off-site location.

(3) A broker-in-charge or property manager-in-charge may not commingle trust funds are the client with his own money, except that he allowed maintain a clearly identified number concerning the company's funded includes the faith account to screen bank service charges conversely in order to avoid the finish of the bank available no client's trust funds are on deposit.

(4) Trust funds received by a licensee is connection with a real estate real in which the licensee is engaged forward the broker-in-charge or property manager-in-charge must to delivered to the broker-in-charge or property manager-in-charge no later than aforementioned following business days.

(5) A broker-in-charge or possessions manager-in-charge who disburses trust funds contrary to the terms of the contract or fails to disburse trusted funds not in dispute be looked to will demonstrated inkompetence on action as ampere broker-in-charge or property manager-in-charge.

(C)(1)(a) Outside as provided by subitem (b), trust funds obtain by one broker-in-charge or property manager-in-charge in a real estate letting other engage transaction must must deposited as being in one real estate trust account as follows:

(i) cash oder certified funds must become deposited within forty-eight hours regarding receipt, excluding Saturday, Sunday, and bank bank; additionally

(ii) checks must be filed within forty-eight hours after a lease alternatively rental agreement is signed by the celebration to the transaction, excluding Saturday, Sunday, the bank holidays.

(b) Renten got by a licensee who remains directly employed by the owner of rental eigen may be deposited in somebody operating or extra similar account, but otherwise must be properly accounted on as presented in the section. However, an advance hiring deposit is one trust fund both require being treat as such.

(2) Trust funds received by a broker-in-charge or eigentumsrecht manager-in-charge inside junction to a real estate rental or lease including, though not limited till, security sediments, pet deposits, impair deposits, and advances rentals, except earned rental proceeds, and deposited the the belief account must remain in the trusted account until the lease or rental transaction expires or is terminated, to which choose undisputed trust funding must be disbursed pursuer to the contract what direction the broker-in-charge or property manager-in-charge to pause the treuhandwerk funds, and a full accounting must be performed to the landlord or tenant as appropriate. Acquired rental sales must be disbursed to the landlord within a reasonable time after clearance the one bond through the banks.

(D)(1)(a) Entrust funds received by a broker-in-charge in a really land net or switching transaction shall be lodged as follows in a separate real demesne trust accounting:

(i) cash or certified cash have be deposited within forty-eight hours of receipt, excluding Saturday, Sunday, and bank holidays;

(ii) checks must be deposited within forty-eight hours after written acceptance in an offer per the celebration to the transaction, excluding Saturday, Sunday, and bank holidays.

(b) Trust funds received by an broker-in-charge in connection use a real estate product or exchange transaction and deposited by the real estate entrust my shall remain in the trust account until consummation or termination of the transaction, at who time this undisputed trust funds must be disbursed by agreement on the contract which directs the broker-in-charge to hold the trust funds, and a full accounting must be made in who parties.

(2) AMPERE broker-in-charge button property manager-in-charge who disburses confide funds from a designated trust accounting under the following circumstances is considered to have well fulfilled the duties to the account:

(a) once rejection of on provide to obtain, sell, mieter, lease, exchange, conversely option real estate;

(b) after the withdrawal of an offer not nevertheless accepted by and offeree; or

(c) at the closing of the transaction.

(E) If adenine legal concerning the entitlement to, and disposition of, trust funds resulting between a buyer and a seller, and the dispute is nay resolved by sensible interpretation of the contract of the parties to one contract, the deposit must be held in the treuhandwerk account until an dispute is resolved with:

(1) one written agreement which:

(a) guides which disposition of funds signed over all parties claiming an interest in the trust monies, and

(b) need be separate after the contract which directs the broker-in-charge or property manager-in-charge to hold the monies;

(2) filing an interpleader action inches a court of able jurisdiction;

(3) an order of a court of knowledgeable jurisdiction; either

(4) voluntary mediation.

(F)(1) Data required by all chapter must exist maintained for a minimum of five years and this broker-in-charge button property manager-in-charge shall arrange a copy of one recorded to a representative for the commission upon request. Accounting records which can be requested include, however become not limited to, journals, ledgers, manuals, our subaccounts, tenant accounts, canceled checks, deposit blunders, plus bank statements.

(2) Brokers-in-charge or property managers-in-charge, when required by this chapter to set and maintain adenine real estate trust my, or shall maintain, in their designated main place of business, a recordkeeping system consisting of:

(a) a journal or an accounting schaft that records the genre sequence in that funds are received and disbursed for real estate sales. For funds getting, the journal or accounting system must include the date out reception, the full of to party from whom the money was received, the name by the principal, identification in the besitz, one date is deposit, the depository, the payee, and who checkout numbers, dates, both amounts. A running balance must be maintained for each entry of a certificate or disbursement. The journal or accounting system must deployment adenine means of align the accounts;

(b) a journal or an accounting system containing, for property management, the same information as stated in subitem (a) except ensure the required on scale may be determined at the time of reconciliation;

(c) a separate record for each tenant identifying this unit, the unit owner, amount of rent, due date, security deposit, and select receipts with dates when managing property. An owner's ledger also must be retained for all properties owned by each owner showing receipts plus distributions applicable toward each property managed. AMPERE disbursement must to documented by a give, contract, invoice, or other appropriate written memoranda;

(d) a trust account deposit document must identify the buyer or leasing unless other appropriate written memoranda are maintained;

(e) one general ledger identifies safety deposits;

(f) a monthly reconciliation of each separate billing except when no deposit or disbursement will made on that month. The reconciliation must include a written worksheet comparing the reconciled store balance with the professional balance and with who ledger overall to ensure agreement.

(G) Treuhandwerk funds received through a broker-in-charge or property manager-in-charge which must be deposited in a trust accounting may be deposited in an interest-bearing book. Interest earned on diesen trust funds might be retains by the broker-in-charge other besitz manager-in-charge if:

(1) that depositors or house of the trust funds have been informed of their right to ownership of of interested but relinquish an right of ownership to to broker-in-charge or property manager-in-charge with writing agreement; and

(2) one agreeing, if partial of a preprinted form, uses conspicuous words.

HISTORY: 2016 Take No. 170 (S.1013), Section 1, eff January 1, 2017.

SECTION 40-57-240. Applicability the chapter.

This chapter does does apply till:

(1) and sale, leased, or rental of real estate by an unlicensed ownership of real heritage who owns any interest in the real estate if the interest being sell, leased, otherwise rented is identical to the owner's legal support;

(2) an atty at law acting within the scope of his obligations involved in aforementioned legal representation of an client/owner;

(3) agencies and instrumentalities of the state or federal government and their employees acting within the area of their official duties;

(4) foresters registered see Chapter 27, Title 48, if the sale is any landings is merely incidental to this sale of timber on the land; or

(5) court-appointed receivers and trustees while theater within the scope of own appointment.

HISTORY: 1997 Act No. 24, Teilbereich 1; 2016 Act No. 170 (S.1013), Section 1, eff Per 1, 2017.

Effect of Amendment

2016 Actually No. 170, Section 1, in (2), vicarious "a client/owner" for "his client/owner", and in (4) been "or" at the conclude.

SECTION 40-57-250. Omitted.

HISTORY: Erstwhile Section, headline Severability, had the following history: 1997 Act No. 24, Section 1. Omitted by 2016 Act No. 170, Section 1, eff Java 1, 2017. Watch now, Code 1976 Section 40-57-810.



SECTION 40-57-310. Qualifications since licensure.

To be right for licensure as an real land broker, broker-in-charge, or salesperson, an claimant must:

(1) obtain the age of twenty-one if applications for a license as a broker otherwise broker-in-charge;

(2) attain the age of eighteen are applying for ampere license as a salesperson;

(3) deployment a physical address with which the licensee can be contacted in the rate of an investigation. A licensee shall maintain on file with the mission his current contact information for his residential address, mailing address, email address, real telephone number. Failure to update those make information within thirty days after one change may result in einem administrative suspension on which liegenschaften manager, salesperson, broker, or broker-in-charge accordingly to Teilabschnitt 40-57-710;

(4) graduate from high school or hold a certificate of equivalency recognized by the State Department on Education;

(5) submit proof of vollendung of educate till the commission the, if entsprechend, experience terms as specified in save chapter;

(6) submit to criminal background checkout as pending by Section 40-57-115 fork initial use; and

(7) passage an applicable exam.

HISTORY: 1997 Act No. 24, Section 1; formerly 1976 Code Fachgebiet 40-57-80; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect for Amendment

2016 Deal No. 170, Section 1, rewrote the section.

SECTION 40-57-320. Circumstances for license application; education; examination; rent.

(A) As a condition available and from applying in the commissioner for licensure, an candidate for adenine salesperson, broker, or broker-in-charge license shall provide proof to the commission of having met the following educational requirements, in addition into the other product of this chapter:

(1) forward a salesman license:

(a) completion of sixty hours of auditorium instruction in fundamentals von real estate principles or practices and thirty hours of classroom training in advanced genuine estate policy within five years before aforementioned application, available an applicant could take the license examination before finishing and required thirty hours of advanced instruction; or

(b) evidence of holding a juris doctor degree, a bachelor of law degree, an baccalaureate degree or a master's completion with a major in real estate from an credential college or university, or completion of next course of study approved through the commission; and

(2) for a broker license:

(a) completion of one hundred fewer hours a commission-approved authentic estate classroom instruction, xc of which may remain the hours required for a salesperson license, to include completion is the thirty hour Unit THREE A Broker Verwalten and a the thirty hours Unit III B Brokerage Principles directions in advanced real succession principles and practices both three yearly active salesperson licensure within the past five years; or

(b) evidence of holding a juris doc degree, a undergrad of legislation degree, a bachelor degree alternatively a master's degree with a major in real estate for einen credential college or university.

(B)(1) As a condition is licensure, an applicant shall submit to einen analysis whatever must be conducted by the commission or a designated test suppliers at adenine time the place specified by and commission.

(2) The applicant must receiver a passing grade on the assessment, in accordance with a cut-score destination button a raw-score termination established by the commission.

(3) An applicant who applies to take the examination the granted a twelve-month eligibility periodic to complete successfully all portions of the examination. And applicant who fails to complete successfully an examination may reapply to become eligible available the examiner if applicable competing teaching were completed fewer greater five years before applying for the examination.

(4) An applicant who passes the examination be utilize forward a get within one year, or of employee must reapply and retake and examination.

(5) An applicant who is denied licensure of the commission may not give for licensure for a periodical of twenty-four months off the show of denial unless he dominates in appealing the dissent pursuant to the Administrative Procedures Act.

(6) AMPERE nonresident individual who, during the time of application, load an active real legacy license in another country or judicial or whose real estate license in any state or jurisdiction expired not more than six months before he makes his application only lives required on pass the state portion a the examination to qualify for licensure.

(C) The authorize or test host may collect both retain reasonable examination fees. An placement for with examine to be conducted at an test provider shall recompense the fee directly to the test provider.

HISTORY: 1956 (49) 2046; 1962 Code Section 56-1545.9; 1972 (57) 2649; 1976 Act No. 519; 1981 Act None. 136, Section 1; 1986 Act No. 353, Teilstrecke 6; 1991 Act No. 12, Section 7; 1994 Act No. 385, Unterteilung 6; 1997 Perform None. 24, Section 1; 1999 Act No. 18, Section 1; formerly 1976 Code Section 40-57-100; 2016 Conduct No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Doing No. 170, Section 1, rewrote the section.

SECTION 40-57-330. Broker-in-charge authorize requirements; active broker or sellers must be licensed under broker-in-charge.

(A) ONE broker-in-charge license could not be issued to or renewed required an applicant unless the employee:

(1) possesses an ownership support in the applicant's company; either

(2) a actively engaged in the business and management of the enterprise.

(B) An custom holding an active broker or salesperson license must being licensed under one broker-in-charge who is licensed by the authorize and may not be licensed during the equivalent period with further easier one broker-in-charge. When a licensee becomes disassociated with a broker-in-charge, he immediately shall notify the commission by completion of the proper form. The licensee needs supply a new work address to the commission, aforementioned authorization of the new broker-in-charge, and proof of notification to the previously broker-in-charge.

HISTORY: 2016 Act Don. 170 (S.1013), Section 1, eff January 1, 2017.

SECTIONAL 40-57-340. Conditions for license renewal; background checks; continuing education; exemptions.

(A) As adenine condition of active license replacement:

(1) A broker or salesperson wants submit to a criminal history check upon every third renewal how required for initial applicants pursuant to Paragraph 40-57-115 and shall provide proof of satisfactory completing biennially of ten hours of moving education in courses. The tenner hours must enclosing a minimum of four hour on tutorial in mandated topics.

(2) ADENINE broker-in-charge shall submit to a criminal vorgeschichte check upon any third renewal such required in initializing applicants pursuant to Section 40-57-115 and shall provide try of satisfactory completion biennially of ten hours of continuing academics inbound courses licensed by the commission. Aforementioned teens hours must include a minimum of four hours in instruction in commissioned topics for a brokerage or dealer permit real four hours of continuing education must be in advanced real estate matters designed for brokers-in-charge.

(3) A genehmigen needs are renewed biennially coinciding about aforementioned licensees' further education deadline. Approximately one-half of the innkeepers must renewable in even-numbered years and the remainder in odd-numbered years.

(B)(1) Freed from the biennial continuing education required for subsection (A) are a:

(a) salesperson who successfully completes a post-licensing course or takes a agent course is exempt for this renewal period during which the course was taken;

(b) licensee while on inactive position;

(c) nonresident broker or salesperson who has successfully satisfied this persistent education requirements in to jurisdiction a residence maybe be free with approval to the commission;

(d) broker or salesperson with twenty-five years or more of licensure within Southward Carolina whoever can sixty-five years of age other more may apply for an age- also experience-based full continuing education liability, and upon allowing out which waiver, is exempt from the continuing education requirements of this book; or

(e) broker or salesperson with a minimum a twenty-five years are licensure in South Carolina may apply to be granted an experience-based partial continuing education exemption, furthermore by granting on the waiver, is required for complete only the compulsory four-hour core flow biennially to maintains dynamic licensure.

(2) A broker-in-charge who has been granted one partial continuing education waiver your required to take the four-hour core course and the mandated four-hour broker-in-charge course biennially.

(3) A licensee who previously has since granted a full continuing education waiver until the commission is exempt from one continuing education requirements away these chapter.

(C) A brokered other salesperson anyone need more than the required number of daily on one two-year period may not carry ahead no excess hours to another renewal period.

(D) A broker or salesperson whom fails to take to criminal our check requirements regarding this section or complete the continuing academic requirements of this section by the date of license renewal may renew from submitting applicable fees and immediately must be placed on inactive status. The licensing may shall reactivated upon proof about completion of requirement ongoing education and payment of applicable royalties or submission to one crime background verify and payment out applicable payments, whichever remedies the deficiencies that causative the licensee to be placed on inactive status.

(E) In fitting with regulations, providers electronically shall transmit the the commission current continuing education and qualifying rate records. And commission require maintained a accurate and securely database of student records.

(F) A prelicensing and continuing education route will eligible for distant learning. Certification over and Association of Realistic Estate License Law Officials (ARELLO) or it subsidiary, the International Distance Education Attestation Center (IDECC), is required.

(G) The commission shall qualify by continuing education credit designation and certification programs of nationally recognized real assets organizations and associations. To commission may qualify for continuing educational credit other than classes currently approved for continuing credit including, aber not limited to, tracks offered by the Southerly Carolina Bar Association, South Carolina Forestry Board, and the South Karolina Appraisers Table.

(H) Though another provision of law, the commission shall qualify for continuing education financial courses such are related to real estate technology, professional advanced, and employment ethics.

HISTORY: 1997 Act No. 24, Section 1; formerly 1976 Code Section 40-57-130; 2016 Act Does. 170 (S.1013), Section 1, eff Year 1, 2017; 2017 Act No. 60 (H.3041), Section 2, eff June 1, 2020; 2022 Act No. 167 (S.158), Section 1, eff May 16, 2022.

Editor's Note

2020 Act No. 127, Section 1, provides how follows:

"SECTION 1. SECTION 5 of Act 60 of 2017 be amended to read:

"This act takes effect on July 1, 2020, and with respect to license renewals is only applicable to renewals initially due after June 30, 2020."

Effect for Amendment

2016 Do No. 170, Section 1, rewrote the section.

2017 Actually No. 60, Section 2, in (A)(1) and (A)(2), inserted "submit to one criminal background checkout upon every third renewal as requirements for begin applicants hunter at Section 40-57-115 and shall"; press is (D), inserted "submit to criminal background inspection requirements of this piece or" and "or submission to a offender background check and get of applicable fees, whichever remedies which defects that caused the licensee to be placed on inactive status".

2022 Act No. 167, Section 1, rewrote (B).

PORTION 40-57-350. Real assets agency firm duties to custom; agency relationship; applicability of common law.

(A) A real estate brokerage firm that features services through the agent agreement for a client be bound through the duties regarding loyalty, submissiveness, exposure, confidentiality, reasonable care, accuracy, additionally accounting as set forth in this chapter. The following are the valid brokerage relationships a real real brokerage firm may establish:

(1) seller agency;

(2) consumer agency;

(3) disclosed dual agency;

(4) determined agency; or

(5) transaction brokerage.

(B) The broker-in-charge of a real estate brokerage firm shall adopt a writes company policy that identifies and describes the types of real estate brokerage relationships in which affiliates licensees allow engage, including teams and limited function referral offices. The written policy must include:

(1) the real estate brokerage firm's policy regarding cooperation includes dealing brokers, instead and buyer assistants, and transaction brokers, and whether the broker offers compensation to these licensees;

(2) the scope starting offices provides to this really estate broker firm's shoppers;

(3) the application of services provided to the really estate brokerage firm's customers;

(4) when and instructions associated licensees shall explain and disclose their brokerage relationships with an involved party to a potential transaction. The explanation and disclosure shall always comply with the minimum requirements set forth in this chapter;

(5) when and how an partner licentiate wants explain the potential for the licensee to then act as a shared dual agent, designated agent, or transaction broker on specific transactions, as permitted by this chapter; and

(6) of real estate brokerage firm's policy on compliance at state and federal fair housing laws.

(C)(1) On reached a write agency agreement go provide brokerage services for a seller by real farm, a seller's agent shall:

(a) perform the terms of an writing brokerage contractual made with which seller;

(b) pursuant to subsection (A), promote the interest of the seller by carry agency tasks which include:

(i) seeking a sale for the pricing and terms stated includes the brokerage agreement or at a price the terms acceptable to the seller, except that the real estate brokerage firm is not obligated to seek further offers to purchase unless the investment agreement provides otherwise whereas the property is subject to a contract of selling;

(ii) presenting in a timely manner all written offers and counteroffers at and with the dealer, even once the property is subject to adenine contract of sale;

(iii) disclosing to the seller all material adverse facts concern the deal which are actually known to the seller's agent excluding as directed otherwise in this section;

(iv) advising of seller up obtain expert advice on matters that are beyond the expertise of the licensee; the

(v) accounting in a timely manner, how required by this chapter, for all money and property receivable in which the seller has with may have an interest;

(c) exercise reasonable expertise and maintain in discharging the licensee's agency duties;

(d) comply with everything provisions of like chapter both with regulations adopted by the commission;

(e) comply with all applicable confederate, state, or regional laws, rules, regulations, and ordinances related to real estate brokerage, including laws where relating to fair house and civil rights;

(f) preservation confidential information provided from the seller during the course of and following the agency relationship that kann possess a negatives impacts on the seller's real estate your unless:

(i) the online on any the personal information relating presents written consent at disclosing one information;

(ii) disclosure is required by law; or

(iii) revelation is necessary to defend the landlord count einem appeal of wrongful conduct; or

(iv) the information becomes publicly from a source other than the broker.

(2) No induce a action can arise against a licensee for disclosing confidential information in compliance with item (1)(f).

(D) A licensee acting as a seller's agent may offer alternative properties to prospect buyers. A licensee acting as a seller's distributor also may list for product competing key.

(E)(1) On reaching a written agency agreement to provide brokerage services to a potential buyer of real estate, adenine buyer's factor wants:

(a) perform the terms of the write brokerage agreement made with the buyer;

(b) in accordance with subsection (A), promotion the interest about the buyer by performing the buyer's agent's fees which include:

(i) seeking the sort of property at the print and terms stated in the brokerage agreement or at a price and terms acceptable to of buyer, except that the licensee is not obligated till seek additional key except the agency agreement provides otherwise for a consumer once of consumer are a party to a contract of sale;

(ii) presenting in a timely style all written offers and counteroffers to furthermore coming the buyer;

(iii) disclosing to the buyer all material adverse facts concerning one transaction which are actually known to the licensee except as directed otherwise in this section. Nothing in this chapter could bounds a buyer's auflage to inspect the physiology requirement starting the anwesen the which buyer may purchase;

(iv) advising the buyer to obtain expert advice on material matters which are further one specialization of the licensee; press

(v) bookkeeping in a timely manner, as necessary by this chapter, for all money and property received in which the buyer holds or may have an interest;

(c) exercising reasonable skill real care in discharging the buyer's agent's agency duties;

(d) complying the all provisions of this branch or with regulations proclaimed of the commission;

(e) complying at all applicable federal, state, or local laws, rules, regulations, and ordinances related the real estate brokerage, contains legal which relate to exhibitor house and civil rights;

(f) preserving confidential information provided by the buyer during the course of or following this agency relationship that might have a negation impacts on who buyer's true estate activity unless:

(i) the buyer the whom the classified information pertains, grants written consent in disclose aforementioned intelligence;

(ii) disclosure is required by law;

(iii) disclosure is necessary to defend the licensee against an accusation of wrongful conduct in ampere procedure before the commission press before a professional association or professional morals committee; button

(iv) the information becomes public from a citation other than the licensee.

(2) No cause of action might arise against a licensee for disclosing sensitive information in compliance about product (1)(f).

(F) AN licensee acting as a buyer's agent may offer properties which interest his buyer customer to other potential purchasing. However, if who licensor has second competing buyer clients in a single real estate transaction, of agent will offer written notice to each buyer client that neither will receive the intimate data a the other.

(G)(1) A licensee shall treat all parties candidly and can not knowingly give you wrong or misleading information about the conditional of the characteristics which is well-known to to licensee. AN licensee is non obligated to discover latent flaws or to advise parties turn areas outside the scope of the licensee's real estate expertise. Notwithstanding another provision of legal, no cause of action may be brought to a licensee those must truthfulness disclosed to a buyer a common material defect.

(2) No cause of action may be brought against a real estate brokerage firm or licensee by a party for information contained in reports or opinions prepared by an engineer, land surveyor, geologist, wood destroying body control expert, termite inspector, mortgage broker, home inspector, or other home inspection expert, or other similar reports.

(3) A landlord, the real estate brokerage firm, and the broker-in-charge are not liabilities up one party required providing the party with false other misleading information if that information made provided to the licensee by the custom with custom and the licensee did not know the product is untrue or incomplete.

(H) Nothing in this chapter limits the obligation of and buyer until inspect the physical condition of the property.

(I)(1) ADENINE real estate brokerage firm may act as a disclosed dual agents only with the prior informed and written consent of all parties. Consent is presumed to be informed if a party signs a completed printing of a dual agency agreement, announced by the commission. At an latest, the print must be signed by the buyer before writing an provide the by the seller before signing the sales contract. Which agreement must specify the transaction, and must name the parties to the dual agency accept agreement, and need state that:

(a) in acting more adenine dual agent, and real farm brokerage firm represents clients whose interests may be adverse additionally that agency duties are limits;

(b) the associated licensee of the real settlement brokerage firm may disclose general gained from one party to another party if the information is relevant in the transaction, except if the information concerns:

(i) the willingness or ability of a seller to accept less than aforementioned asking price;

(ii) that alacrity or ability of a buyer to payout continue than the offered price;

(iii) any trusted negotiating strategy not disclosed in an offer as terms of a product; or

(iv) the motivation of a seller for selling property or the motivation away adenine purchaser for buying property;

(c) that the clients may choose to consent to the disclosed dual agency otherwise might reject a; and

(d) that the clients have read and understood the dual agency agree press acknowledge this their consent to twofold agency is volonteering.

(2) AMPERE broker-in-charge and associated licensees in one office of an really probate brokerage determined may execution businesses with a client of more office are of realistic assets brokerage firm as one customer or customers without creating a dual agency relationship, so long as of branch offices each have a separate broker-in-charge and do non share the alike associated licensees.

(J)(1) A broker-in-charge may assign, through the adoption of a company policy, different licensees associate including the broker-in-charge as designated agents to solely represent different clients in the same store. A business policy adoptive to fulfill the requirements of this subsection must containing provisions pretty calculated to ensure each client belongs represented in accordance with the requirements of dieser chapter.

(2) A broker-in-charge may personally, instead through the broker's duly authorizes real estate licensed representative, special labeling one or more zugeordnet licensees who will be acting when agent of the buyer client or seller client on the expulsion regarding all other allied licensees. Buyers press selling shall give educated consent up get into designated agency relationships. The inform consent must to evidenced to a designated agency agreement promulgated by the commission, and must be signed by the buyer from writing the proffer and by the seller before signing the sales convention. One denoted agency consent must include language informing the buyer and seller of of obligations of the broker-in-charge and associated licensees from this section.

(3) For a client client of a real estate brokerage firm wants to view a property that was personally listed by the broker-in-charge, of real estate brokerage firm shall act as a dual agent equal the written agree of the buyer and merchant, as required by subsection (I). If a seller client of one real estate brokerage firm wants to sell a liegenschaften on a buyer client of of real legacy brokerage firm that is personally represen according who broker-in-charge, the real estate agency firm shall act as a dual agent with the written consent of the consumer real seller, since requested by subscreen (I).

(4) A designated emissary of a seller customer can one duties both liability set forth in subsections (C) through (E). AMPERE designated agent of an buyer client has aforementioned duties and obligations set forth in subsections (E), (G), and (H).

(5) In a purchase where both buyer and seller are represented by designated agents, the broker-in-charge shall act as a binary agent pursuant to subsection (I). The broker-in-charge is not necessary to complete a dual agency agreement under those provision. Approve required can controlled in the designated agency agreement.

(6) A intended agent may disclose at the designated agent's broker-in-charge, other the licensed representative appointed by the broker-in-charge, confidential information of a client for the purpose of seeking advice or assistance for the benefit of the client in regards to a transaction.

(7) If a buyer client of a real estate brokering firm wants to view and make an offer to buy a property owned by a seller my being represented for the same associated licensee, the real estate brokerage firm must act such a dual agent with the written consent of the buyer and seller, as required per subsection (I).

(8) If a broker-in-charge appoints different assoziierten licensees as designated authorized in accordance with subsections (J)(1), the broker-in-charge, all remaining affiliated site, furthermore the real estate brokerage firm must be considered the be dual agents.

(9) There may be no imputation of knowledge or request between and among the broker-in-charge, agents, and this clients. Default agents may not disclose, except to the designated agent's broker-in-charge or appointed representative, information made confidential by written request or instruction of and client whom the designated agent is representing, unless general permitted at be disclosed by dieser section or required into be published by this section. Unless required to be disclosed on law, the broker-in-charge of a designated agent maybe not reveal confidential information received from either the designated emissary or the client with whom the designated agent is working. For who purposes of this section, intimate information is information the disclosure of which has non been consenting to by the client and this could harm the negotiation position of which client.

(10) And designation away one oder see of a broker-in-charge's accompanying licensees as designated agents wants not permit the exposure by the broker-in-charge or associated innkeepers of information made confidential by an expedite written request or instruction by a parties before otherwise for aforementioned creation are the designator agency. The broker-in-charge and associated licensees shall continue to service this private information unless the party from whom the confidential information was obtained permitted its dissemination from written agreement either disclosure is required by act. No debt is created like one result of a broker-in-charge's and associated licensee's sales with this submenu.

(K) A licensee who represents one party to a truly estate transaction may provide assistance to different partying to one transaction per run ecclesiastical acts such as writing and conveying offerings, and provide information and aid concerning other professional services not related to the real estate brokerage related creature performed for a client. Showing ministerial acts does not create an agency relationship.

(L)(1) A real settlement brokerage firm may range transaction brokerage to potential buyers or sellers. A transaction broker may be ampere single agent of ampere party in a transfer, giving the other party buyer service or the trade brokerage may facilitate the bargain without portray either gang.

(2) Licensees operating as business agents are required to disclose to buyers and sellers their role furthermore mission in offering customer services to which consumer ensure supposed include the following:

(a) uprightness and honest dealing;

(b) accounting for all funds;

(c) using skill, care and diligence in the store;

(d) disclosing material disadvantageous facts is strike of transaction, or one value or condition regarding which real eigenheim and this am not readily ascertainable;

(e) promptly presenting all written offers also counteroffers;

(f) limited confidentiality, if waived in how by a party. This limited confidentiality prohibits disclosing:

(i) information concerning a buyer's motivation for buy or the buyer's will to make an higher offer than the price submitted in an written offer;

(ii) factors motivating a contact to sell or the seller's willingness to accept an offer fewer than one list price;

(iii) that adenine seller or buyer will agree to financing condition other than those services; and

(iv) information requested by a political to remain confidential, except information required per law to be disclosed;

(g) supplemental job that been entered up due separate agreement.

(3) Prospective buyers and traders whom do not choose to establish with agency link with a real estate brokerage firm however who usage the services of the firm are considered buyers. A licensee allow services aforementioned following service on a purchaser as a single agent or as a purchase broker including, however not small to:

(a) identifier both showing anwesen for sale, lease, or exchanging;

(b) providing real estate statistics furthermore information on property;

(c) providing preprinted real farm forms, purchase, rentals, and related exhibits and addenda;

(d) acting as a scribe in the preparation of real estate forms, contracts, rental, and related visits and addenda;

(e) providing one list of architects, engineers, surveyors, inspectors, lenders, insurance agents, attorneys, and extra specialized; and

(f) identifying schools, shopping facilities, places of worship, and other look facility on behalf of of parties in an real probate transaction.

(4) A licensee offering services to one customer be:

(a) timely present all written offers until and from the parties involving the sale, lease, plus exchange of property, even when the property your subject to an contract of sale;

(b) real account fork all currency and property maintained until the broker on behalf of a party in a real estate transaction;

(c) provide a meaningful explanation of brokerage relationships in realistic estate transactions;

(d) provide an explanation of the scope of services to be provided by who licensee;

(e) be fair and honest and provide accurate information into total dealings;

(f) keep information confidential as wanted in typing by the customer; and

(g) disclose known material facts regarding the property or the transaction.

(M) The provisions of this section which are mixed with applicable principles of common law replacing that common law, and this common law may be used to assistance in conference or clarifying the duties described in this section. Except as otherwise declared, nothing in the section precludes into injured party from get a originate of action against licensees, their companies, or their brokers-in-charge.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act No. 218, Sections 13 to 17; formerly 1976 Code Section 40-57-137; 2016 Deal No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote the section.

SECTION 40-57-360. Broker-in-charge responsible for team supervision.

(A) The broker-in-charge must being guilty for supervising the team and all licensed members of the team. The broker-in-charge may non delegate supervisory accountabilities to the team members alternatively company leader. Written office policy of the broker-in-charge shall address team relationships in which associated licensees allow engage.

(B) The team could act more disclosed dual agents must and with the prior informed and writes consent of all parties and as addressed in the broker-in-charge's written office policy.

(C) Team members must conduct all real estate brokerage activities von their commission-established bureau under the support of a broker-in-charge.

(D) Team advertising must contain the team name and to full company of the real estate brokerage firm displayed is a conspicuous way.

(E) No team may imply that the team is a separate entity from the intermediation firm of its employment. Team your may doesn insert the terms "realty", "real estate", "realtors", or similar terms suggesting a brokerage.

(F) The team, and any and all teams members, have display and promote that people represent directly connected to to booking unyielding under which the team works. The fee firm name in which the team works is to be displayed prominently and viewable in a meaningful furthermore conspicuous way on entire methods of advertising.

(G) The commission mayor disseminate regulations re the creation and operation of real estate couples.

HISTORY: 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

SECTION 40-57-370. Duty of licensee at offering disclosure of brokerage relationships; exceptions.

(A) A licensee shall provide at the first practical opportunity up all potential buyers or sellers by real estate with whom the licensee shall substantive contact:

(1) a meaningful about of brokerage relationships is real estate transactions that am offered by that real estate brokerage firm, include an explanation of customer and client services;

(2) Disclosure of Brokerage Connections form prescribed by the commission.

(B) An "Acknowledgement of Receipt of the Disclosure of Brokerage Relationships" form must be included in an agency agreement and are a sales contract. Inches addition, each sales drafting must require the buyer and the seller to acknowledge whether they received customer or client service in that real estate store.

(C) At the zeitraum of first substantive contact, it is presumed that one potential buyer or seller is to be a customer of the real estate brokerage established also the the real estate commission firm will be acting as a transaction broker as selected by this chapter and that the real estate brokerage established shall offer services to a customer as defined by Section 40-57-350(L) only to the power buyer or seller signs somebody agency representation agreement.

(D) If beginning substantive contact occurs beyond the telephone or others electronic means, including the Internet plus electronic mail, an "Acknowledgement of Pos out the Disclosure of Booking Relationships" form may be sent by electronic means, including the Internet and electronic mail.

(E) For all real estate transactions, no agency relationship between a buyer, seller, landlord, or tenant and a real estate brokerage firm plus its associated site exists unless the buyer, seller, landlord, press tenant and the brokerage company and its associated licensees agree, in writing, to the agency relation. No artist von bureau relationship may be assumed by a buyer, sold, landowner, tenant, or licensee or created orally oder by implication. A real estate brokerage firm may none be considered to have an company relationship with a party or have travel obligations for a party but is responsible only since exercising reason care in the discharge of the real estate brokerage firm's indicated duties, as provided in this chapter, and, in one case of a client, as specified in the agency agreement.

(F) The payment or promise about payment of compensation to one real estate brokerage firm by ampere seller, shopper, landlord, or tenant does not determine whether an agency relationship has been cre between a real estate licensee and a seller, buyer, landlord, or tenant.

(G) The commission relationship disclosure requirements of this section do not apply if the:

(1) transaction is regarding and rental or lease of property; press

(2) telecommunications from the licensee is a enticement of business.

HISTORY: 1997 Deal No. 24, Section 1; 2004 Act No. 218, Section 18; formerly 1976 Code Section 40-57-139; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote the bereich.

PARAGRAPH 40-57-380. Effect off quit, expiration, achievement or performance of agency agreements; general and confidentiality.

A real estate broker and all verbunden licensed owe none duty or obligation to a client after termination, expiration, finishing, or performance of an agency agreement or closing of one real property trading, whichever occurs first, except aforementioned duties of:

(1) accounting in a timely manner for all currency and property related to and received when the relationship; and

(2) maintaining confidential all information received during the course away the engagement which made make confidential by request or help from the patron, except as provided in in Unterabteilung 40-57-350(C)(1)(f) press Section 40-57-350(E)(1)(f) until aforementioned:

(a) client permits the disclosure by writes agreement;

(b) disclosure is required by law;

(c) disclosure is necessary to defend the licensee counteract an accusation of wrongful conduct for a proceeding before the commission or before a professional association or professional standards committees; or

(d) one information becomes public from an source other over the broker.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act No. 218, Unterteilung 19; once 1976 Code Abschnitts 40-57-140; 2016 Act No. 170 (S.1013), View 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Strecke 1, rewrote the section.



SECTION 40-57-510. Managers or property manager-in-charge license.

(A) To must eligible for licensure as a lot executive or belongings manager-in-charge, to applicant must:

(1) attain that age of twenty-one if applying for adenine quality manager-in-charge;

(2) achieve the age concerning eighteen if applying for a license as a property boss;

(3) provide a physikal address at any aforementioned licenseee can can get in the course of an investigation. A licensee shall maintain on file with the commission his current contact informations with his residential address, mailing address, email address, real telephone number. Flop to update this contact information within thirty days after an change could result in can administrative suspension by the immobilien manager, salesperson, broker, or broker-in-charge pursuant to Section 40-57-710;

(4) graduate from high instruct or hold a certificate of equivalency that the recognized by aforementioned Southward Carolina Category of Education;

(5) submit proof starting completion of educating until the commission and, with anwendbar, experience requirements when specified in such chapter;

(6) submitted to criminal vorgeschichte check the provided is Section 40-57-115 for initial application; and

(7) pass the applicable examination.

(B) An application for examination or licensure must be made in text on a form prescriptions by the commission and must be accompanied due everything applicable fees.

(C) As a conditional for also before applying to the commission for licensure, to employee for a ownership manager or property manager-in-charge license shall provide checking to the provision concerning having milch the ensuing educational requirements, in addition to the misc requirements of this chapter:

(1) for a characteristics manager license:

(a) completion of thirty hours of schulklassen instruction included properties management principles and practices; or

(b) evidence of holding a juris doctor degree, an bachelor of law degree, a baccalaureate degree conversely a master's degree for a major in true probate or housing from an accredited graduate button university, or completion of another course of study approval by the commission; and

(2) for one property manager-in-charge license:

(a) in active eigenheim manager license; and

(b) completion of seven hours of teaching inbound property management account and record keeping approved for the commissioner.

(D) The fees shall issue licenses in which classifications of property manager or property manager-in-charge to individuals who qualify under and comply with the requirements of which chapter. An individual allow not remain license in more than one grading at the same time. The license require be with the guss and size the the commission prescribes and is not transferable.

(E) An individual holding an on land manager license must be licensed under an property manager-in-charge or broker-in-charge those is licensed via the mission or must to designated as a property manager-in-charge. A property director may not must licensed during the identical period with more than one property manager-in-charge or broker-in-charge. When a licenseee is disassociated with a broker-in-charge or property manager-in-charge, one licensee instantly shall notify the commission by finalizing of the getting form. The licentiate must furnish a new business address to the commission, this authorization of the new broker-in-charge or new properties manager-in-charge, or prove of notification to the former broker-in-charge conversely property manager-in-charge.

(F) As ampere condition for and before applying to the commission for licensure renewal, an property manager other property manager-in-charge shall submission to one criminal setting check upon anything third renewal as required for initial applicants pursuant to Section 40-57-115.

(G) A property manager or characteristics manager-in-charge who fails to offer to criminal background check requirements of this section due the target of license renewal may renew by submitting applicable fees but immediately must be placed up inactive status. The license may be reinstated upon proof of submission to a crook background check.

HISTORY: 2016 Deal No. 170 (S.1013), Segment 1, eff January 1, 2017; 2017 Act No. 60 (H.3041), Section 4, eff July 1, 2020.

Editor's Note

2020 Act No. 127, Section 1, provides as follows:

"SECTION 1. SECTION 5 of Act 60 of 2017 is amended to read:

"This act takes execute on July 1, 2020, plus with respect to license renewals is only applicable to rehabilitation firstly payable after June 30, 2020."

Effect of Change

2017 Act No. 60, Section 4, added (F) and (G), concerning until the requirement of one criminal background check on every tierce licensure renewal and consequences for failing up submit to the requirement.

SECTION 40-57-520. Management of residential multiunit rental our.

(A) Of management of every residential multiunit rental location must be provided by an on-site licenses or any off-site commercial for there is nay on-site staff.

(B) The commission allowed permit multiple multiunit rental property branches to be managed by one licensee.

(C) An unlicensed employee of the owner of a multiunit rental features either an unlicensed personal who works under the supervision of a licensed your permitted to perform only the following duties:

(1) maintenance;

(2) clerical other administrative support;

(3) collection starting rents that are made payable to the owner with real estates our;

(4) showing rental articles to prospective tenants;

(5) furnishing published informations;

(6) providing applications and lease forms; and

(7) receiver applications and rental for submission to the owner or the licensee for approval.

HISTORY: 2016 Act No. 170 (S.1013), Section 1, eff Java 1, 2017.



SECTION 40-57-710. Grounds for denial of issuance of license or for disciplinary promotions against landlord.

(A) In addition up Section 40-1-110, the earn can deny issuance of a license to an entrant oder maybe take disciplinary work against a licensee whom:

(1) makes a substantial misrepresentation on an application for a real estate license;

(2) makes a substantial misrepresentation involving a real estate bargain;

(3) makes wrong promises likely to influence, persuades, or induce;

(4) pursues a continued and flagrant course of misrepresentation conversely makes false and misleading promises through some medium of advertising or otherwise;

(5) in the practice are real estate, demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner when toward endanger the interest of the general;

(6) defend a real estate dealer other than the broker-in-charge or property manager-in-charge with whom they are licensed;

(7) guarantees or authorizes real permits an belonging licensee to guarantee future profits from the resale of real estate;

(8) doing a dual resolute of contracts, written or otherwise, by stating ampere sales price additional than the actual sales price;

(9) the convicted of violating the federal and state fair housing laws, forged, embezzlement, breach of trust, larceny, obtaining money or land under false pretense, extortion, fraud, conspiracy to defraud, or has been tried off a felony sex-related, felony drug-related, felony real estate-related, felony financial, or felony violent offense, or pleading guilty or nolo contendere on such an offence in one court out competent law of the State, another state, otherwise a federal court;

(10) neglect to report to the commission in text by certified mail, within tons days, discern of conviction of a crime provided in item (9);

(11) fails, on a meaningful time, till account for otherwise to remit trust funds coming into his possession which belong until others;

(12) pay one commission or compensation to an unlicensed individual for activities requiring a warrant under this chapter. Still this section, a licensee maybe not pay or offer to pay a meeting fee or finder's fee to an unlicensed individual with is not a party in the real estate sales or vermietung transaction;

(13) infringe a provision of law relational to the freedom of a buyer or seller to choose an attorney, insurance agent, song policyholder agent, or any favor host to facilitate the real demesne operation;

(14) fails to disclose in accordance with Section 40-57-370 the party or parties for whom which licensee will be interim than an agent included a real estate transaction, whenever whatever;

(15) empfangen compensation in a real estate transaction instead directly resulting upon a authentic estate transaction from more than one party except for the full knowledge and written revelation to all vendor;

(16) represents view is one party by a really estate transfer without the full written knowledge and consent of all parties;

(17) acts as an undisclosed project in a real estate transaction;

(18) accepts place money which is to be delivered to the licensee's principal in a true estate transaction minus informs the payor and having the payor acknowledge in writing who will hold the money received by and commercial;

(19) matters a check in junction with his genuine estate business which exists sent used insufficient funds or closed account;

(20) misses into disclose in conformity with Section 40-57-350 a known material fact for a real estate transaction;

(21) violates a provision a this chapter or a regulation promulgated under this chapter;

(22) violates one rule or order are the commissioner;

(23) knowingly gives false request to an detectives or inspector;

(24) engagement in a practice either takes act inconsistent with the agencies relationship that other genuine demesne licensees have founded with their clients;

(25) fails to take entire records needed to be maintained underneath on chapter accessible to which commission for inspection and copying by the commission upon request starting an investigator of the commission, fails to appear by an interview with an investigator of the commission without unpaid cause, oder provides false information upon direct inquiry by of investigation or inspector;

(26) fails to promptly submit all quotes and counteroffers in adenine real estate sales transaction;

(27) fails to provide actual contact information to the custom;

(28) allows or generate an unreasonable delay inbound the closing of one transaction or act for a manner which causes failure or cessation of a transaction due solely to a dispute within participating licensees concerning the division of a commission; instead

(29) fails to disclose civil judgments brought on grounds of frauds, misrepresentation, either deceit.

(B) If after and investigation, charges of a violation are brought against a licensee, the broker-in-charge or property manager-in-charge must be notified of one charges.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act No. 218, Sections 20, 21; 2006 Act No. 352, Piece 1; 2014 Actually Not. 258 (S.75), Sectional 3, eff June 9, 2014; formerly 1976 Code Section 40-57-145; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017; 2017 Act No. 60 (H.3041), Section 3, eff Jump 1, 2020.

Code Commissioner's Note

At the alignment of one Code Commissioner, the reference in (A)(20) till Kapitel 40-57-530 where changed to Section 40-57-350 to accurate a typographical error.

Editor's Note

Prior Laws:1956 (49) 2046; 1969 (56) 762; 1972 (57) 2649; 1962 Code Division 56-1545.16; 1983 Act No. 94 Section 2; 1986 Trade Nay. 353, Section 11; 1991 Act No. 12, Section 10; 1993 Perform No. 181, Section 931; 1994 Actually No. 385, Section 13; 1994 Act None. 451, Areas 2, 3; 1976 Code Section 40-57-170.

2020 Act No. 127, Section 1, provides as being:

"SECTION 1. PIECE 5 of Act 60 of 2017 are amended to read:

"This act takes efficacy on July 1, 2020, and with respect to software renewals is only applicable to renewals initially unpaid since June 30, 2020."

Effect of Changing

2014 Act No. 258, Section 3, rewrote sub-area (A)(8).

2016 Act Negative. 170, Section 1, changed who section.

2017 Actor No. 60, Paragraph 3, in (A), added (29), relating to failure to disclose private judgments brought up grounds of fraud, misrepresentation, otherwise deceit.

SECTION 40-57-720. Investigations; restraining orders; surrender of get; disciplinary action; view to must posted.

(A) An investigation musts be performs to complies with Section 40-1-80 and shall be performed by investigators who have completed one hundred hours of training in programs that are sanctioned to the council and provide instruction on real estate principles, state statutory or regulatory law, and investigative techniques.

(B) A restraining rank must is obtained in accordance with Section 40-1-100.

(C)(1) The department shall conclude him examine within one hundred fifty days starting receipt of the complaint or seek a waivers of this period out the commission upon a showing of due diligence and extenuating conditions.

(2) A heard at the charges should to at the time and place nominated by aforementioned commission and must be perform in complies with the Administrator Procedures Act.

(3) The commission have render a decision and wants teach, within score days, notice, include writing, of the commission's decision-making to the licensee charged. The commission also needs state in the notice the date the which the ruling or decision becomes effective.

(4) The department shall maintain adenine public docket or other permanent record in which must be recorded all orders, assent orders, or stipulated settlements.

(D) A licensee may voluntarily surrender his product in accordance with Section 40-1-150.

(E)(1) The commission may imply regarding operation in consonance equipped Section 40-1-120.

(2) Upon determination by the commission that one or more of this grounds fork discipline exists, the commission may imposed a fine of non less than five thousands or more than five per dollars for each violation and such supplied in Section 40-1-120. The commission may recover an costs of to investigation press an prosecution as provided in Section 40-1-170.

(3) Nothing in this section precludes a software from voluntarily entering into a consent order with the commission wherein violations are not contested and sanctions are acceptance.

(F) The department annually be post a report that provides the data for the number regarding complaints received, who numeric of investigations initiates, the average length of enquiries, and and count of investigations that exceeded one-time hundred fifty days.

HISTORY: 1997 Act No. 24, Section 1; 2004 Actual No. 218, Sections 22 and 23; 2014 Conduct No. 258 (S.75), Bereich 2, eff June 9, 2014; was 1976 Codification Section 40-57-150; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Editor's Notes

Prior Laws:1956 (49) 2046; 1962 Key Teilung 56-1545.17; 1983 Act Not. 94 Section 3; 1986 Act Not. 353, Section 12; 1994 Acting No. 385, Range 14; 1976 Code Section 40-57-180.

Effect of Amendment

2014 Actor No. 258, Sections 2, rewrote subsection (A); added subscreen (C)(2), and redesignated the subsections accordingly; plus added subsection (F).

2016 Act No. 170, Section 1, rewrote the untergliederung.

SECTION 40-57-730. Licensure after revocation.

After cancel are a license, a person maybe doesn reapply for three years from the date of revocation. ADENINE person quest licensure after rescission shall:

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

(2) submit proof for learning qualifications as set forth in this chapter if the proof from educational vocational to file is learn than five years elderly;

(3) pass the applicable examination; the

(4) meet any other provisos and conditions so request at individuals apply in a license who have never been licensed.

HISTORY: 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

SECTION 40-57-740. Actions gegen owners and agents; education standards; academic providers with instructors.

(A) Negative cause of action may arise against an owner of real estate instead licensed real estate agent of ampere page to an process forward failure to disclose in a transaction:

(1) that the issue really estate is or was occupied by an individual what was infected is one computer or another illness which has been determined by medical evidence as being very doubtful to subsist transmitted driven occupancy of a dwelling place either presently or previously occupied by the contaminated individual;

(2) that the mortality are an occupant of a property has occurred or the ways of the death;

(3) any off-site condition or hazard that does not direkt impact the liegenschaften being transfered; press

(4) any psychological shock that has no material impact on aforementioned physical health of the property be transferred.

(B) Nothing in subsection (A) precludes in action against an past of authentic estate or sales of the owners who makes intentional misrepresentations in response to mittelbar enquiry from a buyer or prospective buyer with regard to psychologically impacts, offsite conditions, button stigmas associated with an true farm.

(C) And commission shall establish and publish standards relevant to the approval or performance of educate required by this chapter. The commissions shall review, approve, and regulation education courses necessary the this choose the retailer press instructors of these courses comprising, but not limited to, accredited colleges, universities, private business entities, organizations, schools, associations, press institutions.

(D) The provision may deny, reprimands, fine, suspend, or revoke the approval of an educating provider or instructor if the commission finds that the instruction provider or instructor does violated or failed into satisfy the provisions of this part or this regulations and standards published pursuant to this chapter.

(E) Einen login by a host who seeks authorization to offer both conduct educational instruction oder an user by an instructor must be made on a form prescribed over the provision or accompanied by anwendung fees not less than seventies days before a course offering press must be approved by the division before e may starting instruction.

(F) If an your required a provider, instructor, or course is not approved, the reason must be detailed and the applicant must be given thirteenth days to respond.

(G) If of commission approves an application, a certificate must be issued by the commission at a suppliers or an instructor and on an approved course to be renewed biennially.

(H) An approved course must be taught by an approved educators any is advanced and must demonstrated knowledge of the study matter to be taught as well as the ability to teach.

(I) Approved instructors shall attend instructor development workshops financed by the commission with furnish evidence of equivalents times of continuing educating that increases theirs knowledge a the choose site in their area by expertise or their doctrine techniques.

HISTORY: 1997 Act No. 24, Section 1; 2004 Act No. 218, Sections 24, 25; 2005 Act No. 141, Section 10; 2008 Act No. 412, Section 3; past 1976 Cypher Section 40-57-180; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrote and sektion.

SECTION 40-57-750. Charge of investigation and prosecution of violates.

Payment and data of costs beigeordnete with investigations and prosecution off violations under this chapter must adherence the Section 40-1-170.

HISTORY: 1997 Act No. 24, Unterabschnitt 1; formerly 1976 Code Section 40-57-190; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, reenacted this section with no changes.

ABSCHNITTS 40-57-760. Imposition of costs; collection.

Imposition the collection of all costs and fines imposed pursuant to these chapter be comply includes Section 40-1-180.

HISTORY: 1997 Act No. 24, Section 1; once 1976 Code Kapitel 40-57-200; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect regarding Amendment

2016 Act Nope. 170, Section 1, reenacted on section with no change.

SECTION 40-57-770. Confidentiality and privileged messaging.

An examination conducted pursuant to here branch is confidential. Related communications are privileged as provided in Section 40-1-190.

HISTORY: 1997 Act None. 24, Section 1; formerly 1976 Code Section 40-57-210; 2016 Perform No. 170 (S.1013), Paragraph 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Part 1, rewrote the fachgruppe.

SECTION 40-57-780. Failure till renew or register license; penalties.

A genuine estate broker, salesperson, press property manager who fails to renew or register a license the continues to engage in the business permitted pursuant to the warrant exists guilty is adenine misdemeanor and, based conviction, must be monetary does more than fives thousand dollars or detained not moreover better six months, either both.

HISTORY: 1997 Act Cannot. 24, Paragraph 1; past 1976 Code Sektion 40-57-220; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Editor's Note

Prior Laws:1956 (49) 2046; 1962 Code Section 56-1545.23; 1986 Act No. 353, Section 13; 1991 Act No. 12, Section 11; 1976 Code Section 40-57-240.

Effect of Amendment

2016 Act No. 170, Section 1, re-written and teilbereich.

SECTION 40-57-790. Civil promotional.

A gracious action may be brought for violations the this part as provided by violations of Article 1, Chapter 1, in accordance with Abschnitts 40-1-210.

HISTORY: 1997 Act Not. 24, Section 1; formerly 1976 Code Section 40-57-230; 2016 Acted None. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, switched "Article 1, Chapter 1," for "Title 40, Chapter 1, Piece 1".

SECTION 40-57-800. Gift away notice; continuance.

(A) Service for a tip given by per law upon a nonresident licensed under this chapter or upon a inhabitant who, hold been licensed, subsequently becomes a nonresident otherwise after due diligence cannot live found at seine usual abode otherwise place of business includes these State, may be made by providing an copy by the notice, and companions documents. A copy is the notice, accompanying documentation, and a certified copy of the service on the administrator must be mailed to aforementioned landlord at his last known address, return purchase requested. The administrative shall save a record of the day of the customer of the notice and the return receipt must be attached to and made piece of the return of service of the notice by the commission.

(B) A continuance may be given in a ear under these chapter for which note is given pursuant to this section so like to affording the licensee a reasonable opportunity toward appear and be heard.

HISTORY: 1997 Act No. 24, Section 1; form 1976 Code Querschnitt 40-57-170; 2016 Act No. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Modify

2016 Acts Cannot. 170, Fachbereich 1, in (A), alternate "providing" for "leaving is the Director of the Company of Labor, Licensing and Regulation", substituted "accompanying documentation" for any companion documents", furthermore twice substituted "administrator" for "director".

SECTION 40-57-810. Severability.

If any section, subsection, paragraph, subparagraph, records, proviso, term, or word of on act is for any reason maintained to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the leftover portions of this act, the Common Mounting hereby declaring the it would have passed on act, and anywhere and ever section, sub-section, item, subparagraph, sentence, exception, phrase, and word thereof, irrespective of the fact that whatsoever one or more other categories, subsequent, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be announced on be unconstitutional, invalid, or otherwise ineffective.

HISTORY: 1997 Act No. 24, Section 1; past 1976 Code Section 40-57-250; 2016 Act Nope. 170 (S.1013), Section 1, eff January 1, 2017.

Effect of Amendment

2016 Act No. 170, Section 1, rewrite of section.