SC Real Estate key terms

A relationship in which one person, the agent, is authorized to act for another, the principal, and owes that principal duties of trust and loyalty; in real estate it is normally created by a written brokerage agreement.

The legal obligations an agent owes a principal, commonly obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, all of which require the agent to put the principal's interests ahead of the agent's own.

A person a licensee assists in a transaction but does not represent; the licensee owes honesty, fairness, and disclosure of material facts, but not the full fiduciary duties owed to a client.

A single brokerage representing both buyer and seller, or both landlord and tenant, in the same transaction; lawful in South Carolina only with the informed written consent of all parties.

An arrangement in which the broker-in-charge assigns one licensee to represent the buyer and another to represent the seller in the same transaction, so each side receives undivided loyalty from a different agent.

The licensed broker who is responsible for supervising a real estate office, its licensees, and its records, and who must be identified to the Commission as the person in charge of that office.

The state board within the Department of Labor, Licensing and Regulation that licenses brokers, salespersons, and property managers, adopts rules, investigates complaints, and imposes discipline on licensees.

A separate bank account in which a brokerage holds money belonging to others, such as earnest money or tenant security deposits; those funds may not be mixed with the firm's own operating money.

A person who performs clerical or administrative work for a licensee but may not quote prices, negotiate terms, or perform any other activity that requires a real estate license.

The point at which a South Carolina licensee must give a consumer the brokerage relationships disclosure, generally the first meaningful discussion about a specific property or transaction before confidential information is shared.

A South Carolina form that explains the available agency options and must be provided to consumers at first substantive contact so they understand who, if anyone, the licensee represents.

A South Carolina practice in which a licensed attorney conducts the settlement, prepares or reviews the deed and loan documents, and oversees disbursement, reflecting the state Supreme Court's holding that closings are the practice of law.

The two-step process by which one party proposes contract terms and the other agrees to them exactly, creating a binding contract; any change in the terms is a counteroffer rather than an acceptance.

A response to an offer that changes one or more of its terms, which rejects the original offer and puts a new offer on the table that the other party may accept or reject.

A contract provision making a party's obligation conditional on a stated event, such as obtaining financing or a satisfactory inspection; if the condition fails, that party may cancel without breaching.

A buyer's good-faith deposit held in trust by the broker or closing agent; it is usually credited to the buyer at closing but may be forfeited if the buyer breaches the contract.

A state law requiring certain agreements, including contracts for the sale of real property and most leases longer than one year, to be in writing and signed to be enforceable in court.

A negotiated window in a South Carolina sales contract during which the buyer may inspect and investigate the property and may terminate the contract for any reason, typically recovering the earnest money.

The borrower's written promise to repay a loan on stated terms, including interest rate, payment amount, and maturity date; it is evidence of the debt and is separate from the security instrument.

A written instrument that pledges real property as security for a debt, giving the lender the right to foreclose if the borrower defaults; the borrower normally keeps title while the lien remains in place.

The four parts of a typical monthly housing payment: principal, interest, property taxes, and hazard insurance; lenders use it to qualify borrowers and licensees use it to estimate carrying costs.

The loan amount divided by the property's appraised value or purchase price, whichever is lower, expressed as a percentage; higher ratios usually require mortgage insurance and larger down payments.

A property's net operating income divided by its value or price, expressed as a percentage; it measures the yield an income property produces and is used to convert income into an estimate of value.

The division of income and expenses, such as property taxes, rent, and loan interest, between buyer and seller as of the closing date so each party bears the cost of the period it owns the property.

The most complete form of real property ownership, giving the owner the full rights to use, sell, lease, and devise the property, with no time limit or condition attached.

A right held by one person to use another person's land for a specific purpose, such as a driveway or utility line; it is an encumbrance that generally runs with the land.

The use of a property that is legally permitted, physically possible, financially feasible, and produces the greatest value; it is the foundation of the appraisal process.

A licensee's estimate of the likely selling price based on comparable properties that are listed, pending, or recently sold; it supports pricing advice but is not an appraisal.

A conveyance in which the grantor guarantees title against defects arising both before and during the grantor's ownership and promises to defend the grantee against lawful claims.

A conveyance that transfers whatever interest the grantor may hold without any warranty of title; it is commonly used to clear clouds on title, correct errors, or transfer property between family members.

A policy protecting an owner or lender against loss from title defects, liens, or claims that existed before the policy date but were not revealed by the title search.

The licensee whose efforts started an uninterrupted chain of events that produced a completed sale; it is the usual standard for resolving commission disputes between competing brokers.

Mixing client or transaction funds with the broker's personal or operating money, which is prohibited; the related offense of conversion is the actual misappropriation or use of those trust funds.

Under the federal Fair Housing Act: race, color, religion, sex, national origin, familial status, and disability; South Carolina enforces these protections and some local ordinances add further classes.

Professional standards adopted by the National Association of REALTORS and enforced through local boards, setting duties to clients, customers, the public, and other practitioners that go beyond license law.

A South Carolina statement in which a seller of residential property reports known defects and conditions to the buyer before contracting; making the disclosure does not relieve the buyer of inspecting the property.

The state agency that investigates complaints of unlawful discrimination, including in housing, and works with federal agencies in enforcing fair housing law.