2022-2024 South Carolina Core: Disclose, Disclose, Disclose!
The purpose of license law 40-57 is to protect the consumer when involved in a real estate transaction. In this chapter, we will look at parts of 40-57-135, which pertain to the disclosure of personal interests in real estate. You will learn about the duties you owe customers and clients, including the duty of disclosure. In particular, we will review when and how disclosure must be made if you have a personal interest in a property that you are buying, selling, or renting.
We will continue to review the disclosure laws from 40-57 that pertain to advertising. Another important disclosure that you need to make is regarding agency relationships. It’s important to understand the different types of agency and what they mean to customers versus clients. Not only do you need to have consumers sign a Disclosure of Brokerage Relationships form, but certain types of agency also require additional forms to be completed.
As a licensee, you have a responsibility to ensure that material facts are disclosed. According to SC statute, a seller must furnish to the buyer a written disclosure statement, and it may be delivered electronically through the Internet or other similar methods. It is important for you to understand what is considered a material fact and know your responsibilities when it comes to their disclosure.
There are many other disclosures that you must be aware of as a licensee. It is important to make sure that the parties to the transaction are aware of anything that could impact their decision to ratify the contract. This includes knowing when fees are being paid by multiple parties, multiple buyers in a transaction, or if a licensee wishes to purchase a company listing. Other disclosures that you should be aware of include environmental hazards and health risks. We will wrap up the course with a discussion about the disciplinary action that may be taken against a licensee when disclosures are not properly made.