Current Status Introducing Body:House Bill Number:4733 Ratification Number:601 Act Number:451 Primary Sponsor:Clyborne Type of Legislation:GB Subject:Property manager, real estate transaction Date Bill Passed both Bodies:19940531 Computer Document Number:BBM/10859JM.94 Governor's Action:S Date of Governor's Action:19940616 Introduced Date:19940215 Date of Last Amendment:19940525 Last History Body:------ Last History Date:19940616 Last History Type:Act No. 451 Scope of Legislation:Statewide All Sponsors:Clyborne Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved ---- ------ ------------ ------------------------------ --- ------------ 4733 ------ 19940616 Act No. 451 4733 ------ 19940616 Signed by Governor 4733 ------ 19940602 Ratified R 601 4733 House 19940531 Concurred in Senate amendment, enrolled for ratification 4733 Senate 19940526 Read third time, returned to House with amendment 4733 Senate 19940525 Amended, read second time 4733 Senate 19940524 Committee Report: Favorable 12 with amendment 4733 Senate 19940414 Introduced, read first time, 12 referred to Committee 4733 House 19940413 Read third time, sent to Senate 4733 House 19940412 Amended, read second time 4733 House 19940330 Committee Report: Favorable 26 with amendment 4733 House 19940215 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
(A451, R601, H4733)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-57-280 SO AS TO PROVIDE THAT ALL MONIES RECEIVED BY A PROPERTY MANAGER AS AGENT FOR HIS PRINCIPAL IN A REAL ESTATE TRANSACTION MUST BE DEPOSITED WITHIN FORTY-EIGHT HOURS OF RECEIPT, EXCLUDING SATURDAYS, SUNDAYS, AND BANK HOLIDAYS, IN A SEPARATE ESCROW OR REAL ESTATE TRUST ACCOUNT SO DESIGNATED, AND PROVIDE FOR RELATED MATTERS; AND TO AMEND SECTION 40-57-170, AS AMENDED, RELATING TO REAL ESTATE BROKERS AND OTHER REAL ESTATE PRACTITIONERS AND INVESTIGATIONS, SUSPENSION OR REVOCATION OF LICENSES, ASSESSMENT OF FINES, AND ISSUANCE OF CEASE AND DESIST ORDERS AND OTHER ORDERS, SO AS TO PERMIT DISCIPLINARY ACTION AS TO A BROKER FOR THE BROKER'S FAILING TO PLACE, WITHIN FORTY-EIGHT HOURS OF RECEIPT, EXCLUDING SATURDAYS, SUNDAYS, AND BANK HOLIDAYS, ANY DEPOSIT MONEY OR OTHER MONEY RECEIVED BY HIM IN A REAL ESTATE TRANSACTION IN A SEPARATE TRUST OR ESCROW ACCOUNT MAINTAINED BY HIM IN A BANKING INSTITUTION AUTHORIZED TO DO BUSINESS IN THIS STATE, AND SO AS TO PERMIT DISCIPLINARY ACTION AS TO A BROKER OR PROPERTY MANAGER FOR THE BROKER'S OR PROPERTY MANAGER'S FAILING TO DEPOSIT ALL SECURITY DEPOSITS, DAMAGE DEPOSITS, ADVANCE FEES, AND RENTAL PROCEEDS RECEIVED BY THE BROKER OR PROPERTY MANAGER WITHIN FORTY-EIGHT HOURS OF RECEIPT, EXCLUDING SATURDAYS, SUNDAYS, AND BANK HOLIDAYS, IN A SEPARATE ESCROW OR REAL ESTATE TRUST ACCOUNT SO DESIGNATED.
Be it enacted by the General Assembly of the State of South Carolina:
Deposit of real estate transaction monies; etc.
SECTION 1. The 1976 Code is amended by adding:
"Section 40-57-280. Notwithstanding any other provision of law:
(1) All monies received by a property manager as agent for his principal in a real estate transaction must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, in a separate escrow or real estate trust account so designated.
(2) All monies received by a broker as agent for his principal in a real estate transaction must be deposited in a separate escrow or real estate trust account so designated as follows:
(a) all cash monies or certified funds must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays;
(b) all other monies must be deposited within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays.
(3) All monies received by a broker or property manager and deposited in the escrow or real estate trust account as provided for above must remain there until consummation or termination of the transaction, at which time the broker or property manager shall make a full accounting of it to his principal."
Time for placement, deposit of monies changed
SECTION 2. Section 40-57-170(A)(13) of the 1976 Code is amended to read:
"(13) failing, if a broker, to place, within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, any deposit money or other money received by him in a real estate transaction in a separate real estate trust or escrow account maintained by him in a banking institution authorized to do business in this State, wherein the funds must be kept until the transaction is consummated or otherwise terminated, at which time a full accounting thereof must be made by the broker. Records relative to the deposit, maintenance, and withdrawal of the funds must be properly maintained and made available to a representative of the South Carolina Real Estate Commission upon request;"
Time for deposit of monies changed
SECTION 3. Section 40-57-170(A)(15) of the 1976 Code is amended to read:
"(15) failing, if a broker or property manager, to deposit all security deposits, damage deposits, advance fees, and rental proceeds received by the broker or property manager within forty-eight hours of receipt, excluding Saturdays, Sundays, and bank holidays, in a separate escrow or real estate trust account so designated. All these funds except rental proceeds shall remain until the lease or rental transaction expires or is terminated, at which time a full accounting must be made by the broker or property manager. Rental proceeds must be disbursed within a reasonable time after deposit and clearance of the deposit by the bank. Records relative to the receipt, deposit, maintenance, and withdrawal of the funds must be properly maintained and made available to a representative of the South Carolina Real Estate Commission upon request;"
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 16th day of June, 1994.