(A) In addition to Section 40-1-110, the commission may deny issuance of a license to an applicant or may take disciplinary action against a licensee who:
(1) makes a substantial misrepresentation on an application for a real estate license;
(2) makes a substantial misrepresentation involving a real estate transaction;
(3) makes false promises likely to influence, persuade, or induce;
(4) pursues a continued and flagrant course of misrepresentation or makes false and misleading promises through any medium of advertising or otherwise;
(5) in the practice of real estate, demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner as to endanger the interest of the public;
(6) represents a real estate broker other than the broker-in-charge or property manager-in-charge with whom they are licensed;
(7) guarantees or authorizes and permits an associated licensee to guarantee future profits from the resale of real estate;
(8) makes a dual set of contracts, written or otherwise, by stating a sales price other than the actual sales price;
(9) is convicted of violating the federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or has been convicted of a felony sex-related, felony drug-related, felony real estate-related, felony financial, or felony violent offense, or pleading guilty or nolo contendere to such an offense in a court of competent jurisdiction of this State, another state, or a federal court;
(10) fails to report to the commission in writing by certified mail, within ten days, notice of conviction of a crime provided in item (9);
(11) fails, within a reasonable time, to account for or to remit trust funds coming into his possession which belong to others;
(12) pays a commission or compensation to an unlicensed individual for activities requiring a license under this chapter. Notwithstanding this section, a licensee may not pay or offer to pay a referral fee or finder's fee to an unlicensed individual who is not a party in the real estate sales or rental transaction;
(13) violates a provision of law relating to the freedom of a buyer or seller to choose an attorney, insurance agent, title insurance agent, or another service provider to facilitate the real estate transaction;
(14) fails to disclose in accordance with Section 40-57-370 the party or parties for whom the licensee will be acting as an agent in a real estate transaction, if any;
(15) receives compensation in a real estate transaction or directly resulting from a real estate transaction from more than one party except with the full knowledge and written disclosure to all parties;
(16) represents more than one party in a real estate transaction without the full written knowledge and consent of all parties;
(17) acts as an undisclosed principal in a real estate transaction;
(18) accepts deposit money which is to be delivered to the licensee's principal in a real estate transaction without informing the payor and having the payor acknowledge in writing who will hold the money received by the licensee;
(19) issues a check in connection with his real estate business which is returned for insufficient funds or closed account;
(20) fails to disclose in accordance with Section 40-57-350 a known material fact concerning a real estate transaction;
(21) violates a provision of this chapter or a regulation promulgated under this chapter;
(22) violates a rule or order of the commission;
(23) knowingly gives false information to an investigator or inspector;
(24) engages in a practice or takes action inconsistent with the agency relationship that other real estate licensees have established with their clients;
(25) fails to make all records required to be maintained under this chapter available to the commission for inspection and copying by the commission upon request of an investigator of the commission, fails to appear for an interview with an investigator of the commission without due cause, or provides false information upon direct inquiry by the investigator or inspector;
(26) fails to promptly submit all offers and counteroffers in a real estate sales transaction;
(27) fails to provide current contact information to the commission;
(28) allows or creates an unreasonable delay in the closing of a transaction or act in a manner which causes failure or termination of a transaction due solely to a dispute among participating licensees concerning the division of a commission; or
(29) fails to disclose civil judgments brought on grounds of fraud, misrepresentation, or deceit.
(B) If after an investigation, charges of a violation are brought against a licensee, the broker-in-charge or property manager-in-charge must be notified of the charges.
HISTORY: 1997 Act No. 24, Section 1; 2004 Act No. 218, Sections 20, 21; 2006 Act No. 352, Section 1; 2014 Act No. 258 (S.75), Section 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 July 1, 2020.
Code Commissioner's Note
At the direction of the Code Commissioner, the reference in (A)(20) to Section 40-57-530 was changed to Section 40-57-350 to correct a typographical error.
Editor's Note
Prior Laws:1956 (49) 2046; 1969 (56) 762; 1972 (57) 2649; 1962 Code Section 56-1545.16; 1983 Act No. 94 Section 2; 1986 Act No. 353, Section 11; 1991 Act No. 12, Section 10; 1993 Act No. 181, Section 931; 1994 Act No. 385, Section 13; 1994 Act No. 451, Sections 2, 3; 1976 Code Section 40-57-170.
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 effect on July 1, 2020, and with respect to license renewals is only applicable to renewals initially due after June 30, 2020."
Effect of Amendment
2014 Act No. 258, Section 3, rewrote subsection (A)(8).
2016 Act No. 170, Section 1, rewrote the section.
2017 Act No. 60, Section 3, in (A), added (29), relating to failure to disclose civil judgments brought on grounds of fraud, misrepresentation, or deceit.
Structure South Carolina Code of Laws
Title 40 - Professions and Occupations
Chapter 57 - Real Estate Brokers, Salesmen, And Property Managers
Section 40-57-5. Applicability of chapter; conflicts of laws.
Section 40-57-10. South Carolina Real Estate Commission created; purpose.
Section 40-57-30. Definitions.
Section 40-57-40. Membership; terms of appointment.
Section 40-57-50. Election of officers; seal; rules and procedures.
Section 40-57-60. Powers and duties of commission.
Section 40-57-65. Annual report.
Section 40-57-70. Application and license fees; allocation of fees; annual report.
Section 40-57-90. Application for examination or licensure; form and fees.
Section 40-57-110. Issuance and classification of license; inactive status; renewal; lapse.
Section 40-57-120. Nonresident licensees; change in residency; referral fees by resident licensees.
Section 40-57-136. Trust accounts; disputes; records.
Section 40-57-240. Applicability of chapter.
Section 40-57-310. Qualifications for licensure.
Section 40-57-320. Conditions for license application; education; examination; fees.
Section 40-57-360. Broker-in-charge responsible for team supervision.
Section 40-57-370. Duty of licensee to provide disclosure of brokerage relationships; exceptions.
Section 40-57-510. Manager or property manager-in-charge license.
Section 40-57-520. Management of residential multiunit rental locations.
Section 40-57-730. Licensure after revocation.
Section 40-57-750. Costs of investigation and prosecution of violations.
Section 40-57-760. Imposition of costs; collection.
Section 40-57-770. Confidentiality and privileged communications.
Section 40-57-780. Failure to renew or register license; penalties.
Section 40-57-790. Civil actions.