Bill 4189

                    Current Status

Bill Number:               4189
Ratification Number:       706
Act Number                 609
Introducing Body:          House
Subject:                   Residency requirement deleted

(A609, R706, H4189)

AN ACT TO AMEND SECTIONS 40-57-90 AND 40-57-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESIDENCY REQUIREMENTS FOR REAL ESTATE SALESMEN, BROKERS, AND PROPERTY MANAGERS, SO AS TO DELETE THE REQUIREMENT THAT IN ORDER TO OBTAIN A REAL ESTATE LICENSE A PERSON MUST BE A RESIDENT OF SOUTH CAROLINA AND TO PROVIDE FOR THE LICENSING AND REGULATION OF NONRESIDENT REAL ESTATE SALESMEN, BROKERS, AND PROPERTY MANAGERS; AND TO PROVIDE FOR A LICENSED NONRESIDENT'S PRELICENSE EDUCATION AND EXAMINATION REQUIREMENTS ON THE EFFECTIVE DATE OF THIS ACT.

Be it enacted by the General Assembly of the State of South Carolina:

Residency requirement deleted

SECTION 1. Section 40-57-90 of the 1976 Code is amended to read:

"Section 40-57-90. Licenses as real estate broker, counsellor, real estate salesman, appraiser, auctioneer, or property manager must be granted only to persons who submit satisfactory proof to the commissioner that they are trustworthy and bear a good reputation for honesty and fair dealing, and are competent to transact the business of a real estate broker, counsellor, real estate salesman, appraiser, auctioneer, or property manager in such manner as to safeguard the interest of the public. A person applying for a license or an examination shall first submit to a credit report and satisfy requirements established by regulation. A real estate salesman must be employed by a real estate broker-in-charge in order to be licensed."

Licensing and regulation of nonresidents

SECTION 2. Section 40-57-140 of the 1976 Code is amended to read:

"Section 40-57-140. (A) A nonresident of this State may become a real estate broker, real estate salesman, or property manager upon complying with all the provisions and conditions of this chapter. A person who is licensed as a real estate broker, real estate salesman, or property manager in another state, territory of the United States, or the District of Columbia shall submit a certificate of licensure from the real estate regulatory authority from the other jurisdictions at the time of filing an application for examination and copies of the records of any disciplinary actions taken against the applicant's license. In the application for examination, all questions of equivalency of academic and experience requirements of other states, territories, or the District of Columbia must be determined by the commission and, at the discretion of the commission, the nonresident applicant must comply with additional requirements specified by the commission.

(B) The commissioner, with concurrence of the commission, may enter into reciprocal agreements with real estate regulatory authorities of other states which provide for waivers of education requirements or examinations if the commission considers the education and examination requirements of another state to be substantially equivalent to the requirements of this chapter and its regulations.

(C) A nonresident real estate salesman license may not be granted to an applicant unless that applicant is affiliated with a resident or nonresident broker licensed by the commission. If a nonresident licensee terminates the affiliation with a broker licensed by the commission, the license of the nonresident is cancelled unless he places the license on inactive status or affiliates with another broker licensed by the commission.

(D) A nonresident is not required to maintain a place of business in this State if he maintains an active place of business in the state of domicile. Every nonresident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside, by the service of a process or pleading, authorized by the laws of this State, on the commissioner, the consent stipulating and agreeing that the service of the process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in the State of South Carolina. If the process or pleadings mentioned in this chapter are served upon the commissioner, it must be by duplicate copies, one of which must be filed in the office of the commission and the other immediately forwarded by the commissioner by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the commission.

(E) (1) A resident licensee who becomes a nonresident, within sixty days, must notify the commission in writing of the change in residency and comply with nonresident requirements or place his license on inactive status to avoid cancellation of his license.

(2) A nonresident licensee who becomes a resident of South Carolina, within sixty days, must notify the commission in writing of the change in residency and comply with the requirements of this chapter or place his license on inactive status to avoid cancellation of his license.

(3) Failure to notify the commission of the change in residency and compliance with the requirements of this section is a violation of the license law subject to the penalties as provided by Section 40-57-170.

(F) All nonresident applicants and licensees must comply with all requirements of commission regulations and of this chapter. The commission may adopt regulations necessary for the regulation of nonresident licensees."

Licensed nonresident on act's effective date

SECTION 3. A nonresident holding a license on the effective date of this act is not required to meet the prelicense education and examination requirements of Sections 40-57-100 and 40-57-110 of the 1976 Code in order to continue to hold a license after that date unless he allows the license to lapse or applies for a license that requires passing a different qualifying examination.

Time effective

SECTION 4. This act takes effect one hundred eighty days after approval by the Governor.