South Carolina Real Estate Law and Commission Rules
Statutes to name
Know the Real Estate Practice Act (Title 40, Chapter 57) for licensing and brokerage relationships; the residential property disclosure statute (Title 27, Chapter 50); the Horizontal Property Act for condominiums; the Property Owners Association Act for association disclosures; and the vacation time sharing statutes for timeshare regulation. These are the sources questions cite when a rule sounds unfamiliar.
The South Carolina closing rule
Real estate closings, title searches, and preparation of deeds and mortgages are the practice of law in South Carolina. Only a South Carolina licensed attorney may conduct a closing and prepare legal instruments. A licensee may fill in a Commission-approved or broker-approved form as instructed but may not draft contract language, write a repair clause, or advise on legal effect. Sending the parties to an attorney is always the correct answer.
Commission rules candidates must recall
Agency disclosure at first substantive contact, written agency agreements, written consent for dual or designated agency, trust account handling of earnest money with no commingling, prompt deposit and disbursement only on written agreement or court order, advertising that names the firm, supervision by the broker-in-charge, and restrictions on unlicensed assistants, who may not negotiate, quote terms, or be paid commissions.
Traps
- Assuming a licensee may hold a closing or hold funds in escrow indefinitely.
- Assuming an unlicensed assistant may host an open house and discuss price or terms.
- Assuming broker-in-charge review is optional for advertising and team names.
Worked example
A buyer's agent wants to type a handwritten repair agreement into the contract. The agent may not draft that language; the parties should use an approved addendum as directed by the broker-in-charge or have the attorney prepare the provision.