Key Takeaways
- South Carolina requires the Disclosure of Real Estate Brokerage Relationships form for all consumers
- The disclosure must be provided at first substantive contact, before confidential information is shared
- The form explains agency options available in South Carolina transactions
- Licensees must sign the form; consumer signature acknowledges receipt but is not required
- Failure to provide proper disclosure is a violation of license law
Disclosure of Real Estate Brokerage Relationships
South Carolina requires all real estate licensees to provide consumers with the Disclosure of Real Estate Brokerage Relationships form to ensure they understand the agency options available.
Purpose of the Disclosure
The disclosure form:
- Explains the types of brokerage relationships available in South Carolina
- Clarifies the difference between clients and customers
- Describes duties owed under each relationship type
- Ensures consumers make informed decisions about representation
When to Provide the Disclosure
The disclosure must be provided:
- At first substantive contact with a consumer
- Before any confidential information is shared
- Before discussing specific property details or needs
Timing Guidelines
| Situation | When to Provide |
|---|---|
| Listing presentation | At beginning of meeting |
| Buyer inquiry | Before discussing needs or finances |
| Open house | Before substantive conversation |
| Phone/email inquiry | Before detailed property discussion |
Key Point: Provide the disclosure "as soon as reasonably possible" but always before confidential information is exchanged.
Form Requirements
Licensee Responsibilities
| Requirement | Details |
|---|---|
| Provide form | Give to all consumers at first contact |
| Sign form | Licensee must sign and date |
| Explain contents | Be prepared to explain agency options |
| Keep copy | Maintain copy in transaction file |
Consumer Signature
| Requirement | Status |
|---|---|
| Consumer signature required? | No - not legally required |
| Consumer signature recommended? | Yes - for documentation |
| If consumer refuses | Note refusal on form |
Practice Tip: Although not legally required, obtaining the consumer's signature provides documentation that the disclosure was made.
Contents of the Disclosure Form
The South Carolina Disclosure of Real Estate Brokerage Relationships form (revised December 2024) covers:
1. Definitions
- Brokerage firm - Real estate company providing services
- Client - Person with written agency agreement
- Customer - Person without agency agreement
- Designated agent - Individual agent assigned to client
- Dual agent - Agent representing both parties
2. Types of Relationships Explained
| Relationship | Explanation on Form |
|---|---|
| Customer relationship | Services provided without representation |
| Seller agency | Full representation of seller |
| Buyer agency | Full representation of buyer |
| Dual agency | Representing both parties (with consent) |
| Designated agency | Individual agents for each party |
| Transaction brokerage | Facilitating without representation |
3. Duties Under Each Relationship
The form explains what duties are owed under each type of relationship, helping consumers understand what to expect from their agent.
Company Policy on Agency
In addition to the state-required disclosure, brokerage firms typically have their own agency policy that specifies:
- What types of agency the company practices
- How dual agency is handled
- Procedures for designated agency
- Company-specific guidelines
Consequences of Non-Disclosure
Failure to provide the disclosure form properly can result in:
| Consequence | Description |
|---|---|
| License law violation | Subject to disciplinary action |
| SCREC investigation | Commission may investigate |
| Penalties | Fines, suspension, or revocation |
| Legal liability | Potential civil liability |
Exam Tip: The disclosure form must be provided to ALL consumers - buyers, sellers, landlords, and tenants - at first substantive contact.
When must the Disclosure of Real Estate Brokerage Relationships form be provided?
Is the consumer's signature required on the SC Disclosure of Real Estate Brokerage Relationships form?