2024 License Law Updates

New Definitions

• "Salesperson" has been replaced with "Associate" or "Supervised Licensee"
• "Broker-in-Charge": An associate can only have one BIC. A BIC is responsible for day-to-day management, trust accounts, and compliance. These responsibilities cannot be delegated. 

Non-Team Advertising Changes

• You can now advertise other brokerage's listings, including on social media, if you meet the following criteria (40-57-134(E)(1)): 
  • Written authorization from the Listing Brokerage Firm
  • Acknowledge the Listing Brokerage Firm in a clear and conspicuous way
  • Authorization from the Seller, which can come from the Listing Agreement

• When advertising the property owned by someone else or general real estate services, a licensee must (40-57-135(E)(2)): 
  • Identify the full name of the brokerage firm with which the licensee is associated .
  • If advertising online, this can be done also by having a link to the brokerage firm homepage.
  • This item (E)(2) has a 12 MONTH IMPLEMENTATION DELAY, meaning you have until May 2025 to comply. 

Team Advertising Changes

• A real estate team must have the word "team" at the end of its name: "--- Team at --- Brokerage"
• Anywhere it is mentioned, the name of the brokerage must be at least half the size of the team name. For example: if the team name is in size 60 font, the brokerage name must be size 30 font or larger. 
• The name of the brokerage must be on any communication at least half as many times as the name of the team. For example: if the team name is mentioned anywhere 2 times, the brokerage name must be mentioned at least once. 
• This category has a 36 MONTH IMPLEMENTATION DELAY, meaning you have 3 years to come into compliance. 

Wholesaling is Now Banned

• There are only two ways to market a property in South Carolina: 
  • You own the subject property (your name is on the deed). OR
  • You have an active, written listing agreement with the deedholder.
• Marketing a property owned by someone else requires a real estate license. 
• Assisting someone in selling a property that they do not own is grounds for discipline by the Real Estate Commission. 
• Prior to taking a listing, get a copy of the deed for your file!
• This ban on Wholesaling does not: 
  • Prohibit flipping properties if the property is not listed for sale, until a new deed is issued. 
  • Prohibit assigning a contractual right in a contract
  • Prohibit marking an assignment so long as you do not imply, suggest, or purport to be selling, advertising, or marketing the underlying property.
• See the examples below for a better understanding: 

 

New Consumer Protections

• You can read the new law which bans and rules Long Term Marketing Agreements unenforceable here.
• The recording of unfair service agreements (long term marketing agreements) is now prohibited and deemed unfair if they meet certain criteria: 
  • Run with the land and bind future parties
  • Allow for assignment of service without consent
  • Create a recorded encumbrance
• Legal remedies are now provided for those who have been harmed by such agreements such as the ability to recover damages, costs, and attorney's fees from service providers who engage in predatory practices. 
• Agreements longer than a year are considered bad faith, unenforceable, and grounds for discipline. Exceptions are granted for appropriate longer agreements (home warranties, HOA declarations, utility documents).

Other Industry Changes

• The time period for a license to be moved from lapsed to cancelled is now 24 months. 
• Offer Rejection Forms are now due within 48 hours. 
• Brokers-in-Charge are responsible for following up on trust funds even when a law firm is the escrow agent. 
• You must have 5 years of experience to become a Broker-in-Charge, up from the previous requirement of 3 years.
• You can now carryover 4 hours of elective continuing education (CE).
• Artificial Intelligence Language was added to indicate that you are responsible for what is written or done in your name.
• Nonresident licensee benefits were taken away.