Key Takeaways
- South Carolina recognizes single agency, designated agency, dual agency, and transaction brokerage
- The Disclosure of Real Estate Brokerage Relationships form must be provided to all consumers
- Clients have an agency relationship with written agreement; customers do not
- Transaction brokers provide customer service without representing either party
- Designated agency allows individual agents to represent different clients within the same brokerage
South Carolina Agency Relationships
South Carolina law defines the types of agency relationships that real estate licensees may have with consumers, distinguishing between clients and customers.
Clients vs. Customers
Clients
A client is a buyer or seller who has entered into a written agency agreement with a brokerage firm:
| Client Rights | Description |
|---|---|
| Full representation | Agent promotes client's best interest |
| Fiduciary duties | Loyalty, confidentiality, full disclosure |
| Negotiation assistance | Agent helps negotiate price and terms |
| Advice and counsel | Agent provides guidance on decisions |
Customers
A customer is a buyer or seller who has NOT entered into an agency relationship:
| Customer Rights | Description |
|---|---|
| Limited service | No agency representation |
| Basic duties only | Honesty, fairness, accurate information |
| No advocacy | Agent doesn't promote customer's best interest |
| Limited confidentiality | Only certain confidentiality protections |
Key Point: Until a written agency agreement is signed, consumers are treated as customers, not clients.
Types of Agency Relationships
Single Agency
A single agent represents only one party in a transaction:
| Single Agent Role | Represents |
|---|---|
| Seller's agent | Seller only |
| Buyer's agent | Buyer only |
Single agent duties include:
- Undivided loyalty to the client
- Confidentiality of client information
- Full disclosure of material facts to client
- Obedience to lawful instructions
- Accounting for all funds
- Reasonable care and diligence
Dual Agency
Dual agency occurs when a brokerage firm (or individual licensee) represents both the buyer and seller in the same transaction:
| Requirement | Description |
|---|---|
| Disclosure required | Both parties must be informed |
| Written consent | Both parties must consent in writing |
| Limited advocacy | Cannot fully advocate for either party |
| Neutral position | Must treat both parties fairly |
Warning: In dual agency, the agent cannot disclose confidential information about one party to the other, such as the highest price a buyer will pay or the lowest price a seller will accept.
Designated Agency
Designated agency (per S.C. Code Section 40-57-350) allows a broker-in-charge to designate individual licensees to represent different clients:
| Feature | Description |
|---|---|
| Individual representation | Each designated agent represents only their client |
| Full advocacy | Designated agents can fully promote their client's interest |
| BIC role | Broker-in-charge remains a disclosed dual agent |
| Information barrier | Designated agents cannot share client confidences with each other |
Transaction Brokerage
A transaction broker provides customer service to one or both parties without representing either:
| Feature | Description |
|---|---|
| No agency relationship | Neither buyer nor seller is a client |
| Facilitation only | Helps facilitate the transaction |
| Limited duties | Basic duties of honesty and fairness |
| No advocacy | Does not promote either party's best interest |
Duties Owed to ALL Parties (Clients and Customers)
South Carolina law requires licensees to provide these services to all parties:
| Duty | Description |
|---|---|
| Present all offers | Present all written offers in a timely manner |
| Account for funds | Account for money or property received |
| Explain services | Provide explanation of scope of services |
| Be fair and honest | Provide accurate information |
| Limited confidentiality | Maintain certain confidential information |
In South Carolina, what is the difference between a client and a customer?
In designated agency, what role does the broker-in-charge play?
Which service must South Carolina licensees provide to ALL parties, regardless of agency relationship?