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New South Carolina Real Estate License Law Changes: A Comprehensive Breakdown

The South Carolina real estate landscape is undergoing significant changes in 2024, impacting how professionals in the industry operate. Whether you’re an associate, a broker-in-charge, or part of a real estate team, these updates are crucial for maintaining compliance and optimizing your business practices. Here’s a comprehensive breakdown of the key changes that will benefit South Carolina real estate agents. As always, Pinnacle Real Estate Academy is here to keep you informed of any and all real estate industry changes.

A clipboard with keys and a model house on top with SC real estate agents shaking hands in the background

1. Terminology Changes

  • Salesperson to Associate or Supervised Licensee: The term “salesperson” is now replaced with “associate” or “supervised licensee”. This change reflects a shift towards a more professional and inclusive terminology within the industry.

2. Broker-in-Charge Responsibilities

  • Single BIC Requirement: An associate can only have one Broker-in-Charge (BIC). The BIC is responsible for day-to-day management, trust accounts, and compliance, and these responsibilities cannot be delegated.

3. Non-Team Advertising Changes

  • Advertising Other Brokerage’s Listings: Agents can now advertise listings from other brokerages, including on social media, under the following conditions:
    • Written Authorization: Must be obtained from the Listing Brokerage Firm.
    • Clear Acknowledgment: The Listing Brokerage Firm must be acknowledged in a clear and conspicuous manner.
    • Seller’s Authorization: Must be obtained, typically through the Listing Agreement.
  • General Real Estate Advertising: When advertising properties owned by others or general real estate services, licensees must:
    • Identify Brokerage Firm: The full name of the brokerage firm must be identified.
    • Online Advertising: A link to the brokerage firm’s homepage can fulfill this requirement online.
    • Implementation Delay: This rule has a 12-month implementation delay, effective until May 2025.

4. Team Advertising Changes

  • Team Naming Convention: Real estate teams must include the word “team” in their names, formatted as “— Team at — Brokerage”.
  • Brokerage Name Size Requirement: The brokerage name must be at least half the size of the team name on any communication. For instance, if the team name is in size 60 font, the brokerage name must be at least size 30 font.
  • Frequency of Brokerage Name Mention: The brokerage name must appear at least half as many times as the team name in any communication.
  • Implementation Delay: There is a 36-month delay for compliance, giving teams three years to adapt to these changes.

5. Wholesaling Ban

  • Marketing Property Requirements: There are now only two legal ways to market a property in South Carolina:
    • Ownership: You own the property (your name is on the deed).
    • Listing Agreement: You have an active, written listing agreement with the property owner.
  • Disciplinary Grounds: Assisting someone in selling a property they do not own is grounds for discipline by the Real Estate Commission.
  • Exception Details:
    • Property Flipping: Allowed if the property is not listed for sale until a new deed is issued.
    • Contractual Assignments: Permitted as long as there is no implication of selling the property itself.
    • Marketing Assignments: Allowed without suggesting the sale or marketing of the underlying property.

6. New Consumer Protections

  • Ban on Long Term Marketing Agreements: These agreements are now unenforceable and deemed unfair if they:
    • Run with the Land: Bind future parties.
    • Allow for Assignment without Consent: Transfer services without the property owner’s consent.
    • Create a Recorded Encumbrance: Place a burden on the property that affects its transferability.
  • Legal Remedies: Consumers harmed by these agreements can recover damages, costs, and attorney’s fees from service providers engaged in predatory practices.
  • Bad Faith Agreements: Agreements longer than one year are considered in bad faith and unenforceable, with exceptions for home warranties, HOA declarations, and utility documents.

7. Other Industry Changes

  • License Status Period: The time period for a license to move from lapsed to cancelled is now 24 months.
  • Offer Rejection Forms: Must be submitted within 48 hours.
  • Trust Funds Follow-Up: Brokers-in-Charge are responsible for following up on trust funds, even when a law firm is the escrow agent.
  • BIC Experience Requirement: To become a Broker-in-Charge, one now needs five years of experience, up from the previous requirement of three years.
  • Continuing Education Carryover: Licensees can now carry over four hours of elective continuing education.
  • AI Language Responsibility: Licensees are responsible for any actions or writings done in their name, including those involving artificial intelligence.
  • Nonresident Licensee Benefits: These benefits have been removed.

These 2024 updates to South Carolina’s real estate laws introduce significant changes aimed at increasing transparency, consumer protection, and professionalism within the industry. Staying informed and compliant with these new regulations will help ensure the continued success and integrity of your real estate practice. Make sure to adjust your practices accordingly and take advantage of the provided implementation delays to ensure a smooth transition. For more informative and helpful blogs, be sure to check out Pinnacle Real Estate Academy’s Blog Page!

For a detailed video outlining the new license law changes, click here.

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