SC Real Estate - State Portion Flashcards

SC Real Estate - State Portion Flashcards Branch OfficeA secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a licensed real estate broker working on behalf of a the broker.Reconstruction Amendments1865, Civil War ended -Amendment 13 - abolished slaveryAmendment 14 - full citizenship to allAmendment 15

• voting rights for all men

Exemptions from License to sell Real Estate OwnerGovernment EmployeesAttorneysForestersTrustees/receivers Real Estate License LawState law enacted to protect the public from fraud, dishonesty and incompetence in the purchase and sale of real estate.Timelines/penalties for TenantsRemedy breach w/in 14 days or get outIf rent not paid w/in

• days, landlord can evict, 3 times rent or 2 times

damages, Landlord can dispose of property under $500 if tenant stopped utilities Enabling ActsState legislation that confers zoning powers on municipal governments as well as other regulations Timelines/penalties for LandlordsReturn security deposit within 30 days14 days to repair/fix problemTenant remedies - recover sec deposit damages 3 times amount wrongfully withheld, 3 months rent, 3 times rent or 2 times damages Protected ClassesRace, Color, Religion, National Origin, Sex, Familial Status, Handicap Real Estate TransactionSale, purchase, exchange or lease of real estate MillOne-tenth of one cent. SC uses a mill rate to compute real estate taxes; for example, a rate of 52 mills would be $.052 tax for each dollar of assessed valuation of a property. May have county and city mills to add together.SC RECCreated in 1956, Purpose is to protect public's interest SC REC Legislature/legal authorityCommission operates under the SC Department of LLR (Labor, Licensing and Regulation)

SC Homestead exemption$50,000 reduction in appraised value if:over 65 years

oldtotally blind100% disabled Time requirement to keep Trust Records5 years Education RequirementsMust be within the last 5 yearsExceptions Juris Doctor (lawyer), Bachelor of Law degree or Bachelors majoring in real estate Tax DeductionsMortgage interest and property tax Associated LicenseesBIC must notify SCREC within 10 days of any change of office name or address

Title VIII of Civil Rights Act of 1968 (Federal Fair Housing Act) Prohibits discrimination in housing based on race, color, religion, or national origin.Issuance after revocatioinProve trustworthy and if education is more than 5 years old, they must take test again LicenseeAn individual currently licensed by the commission Time for Recordkeeping Retention?5 years Real Estate CommisionGroup of individuals charged by law with licensing and regulating practice of RE. Implement and enforce RE Laws License Renewal Penalty$25 per month for up to 6 months and renewal fee, after 6 months, licenses are cancelled.Duties of BICSupervising employees and associated licenseesReviewing/approving all formsMaintaining contact with associated licenseesInstructing licensees on trust fundsBe available to public during normal business hoursTrust AccountsComputerized records have back up locationWritten office policyMay be over more than one company/office with commission approval

SC Consumer Protection ActSCCPC SC Consumer Protection Code 1976:No max

interest rateBuyer can select attorneyIf mortgage is assumed, max assumption fee is 1% or $400, whichever is lessLoan of $180,000 or less can be prepaid with no penaltyDisclosure of credit terms Fines for activity without LicenseMisdemeanor - fined max of $500, prison max of 6 months or both Civil Rights Act of 1866An act that prohibits racial discrimination in the sale and rental of housing.Time-share freehold estateOwnership (fee simple interest) in property and owe annual maintenance fee AbandonmentUnexplained absence of tenant after 15 days of default of rent Disciplinary HearingsSCREC will hold hearings in accordance with the Administrative Procedures Act SalesmanLicensee associated with a BIC Megan's LawFederal legislation that promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children or commits sexually violent crimes.Brokers should not research and refer clients to police department Members of the Real Estate Commission(6) members professionally engaged in the active practice of real state, one from each of the six congressional districts(2) members representing the public, appointed by governor(1) additional member representing the public, active in RE

Stigmatized PropertyA property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness or personal tragedy.Some states restrict the disclosure of information about stigmatized properties.Promulgate regulationsSCREC suggests changes to legislature and publicizes regualations Equal Housing Opportunity PosterPoster should be displayed in office Commission powers and dutiesStandards for licensure, setting/enforcing license fees and non renewal penalties Coastal Zone Management ActProtect quality of the coastal environment. The OCRM (Ocean and Coastal Resource Management) is part of the SC DEHEC (Department of Health and Environmental Control) PMIC Qualifications21 years old, licensed broker or qualified as such, have ownership interest in company or actively engaged in mgt, credit report ReassessmentCounties must revalue property every 5 years, can't increase by more than 15% or ATI (assessable transfer of interest) Protected ClassAny group of people designated as such by the Department of Housing and Urban Development (HUD) in consideration of federal and state civil rights legislation. Currently includes ethnic minorities, women, religious groups, the handicapped and others.Types of DamagesCompensatory- actual damagesPunitive- punishmentLiquidated- dollar amount SC Fair Housing LawSC's own fair housing lawSCHAC - SC Human Affairs Commission has initial enforcement authority180 days to file a complaint, 1 year to file suitCivil penalties - $16,000 to

$65,000

Real EstateLand, buildings and other appurtenances, including all interests in land whether corporeal, incorporeal, freehold, or non freehold in or outside of state Exemptions to Federal Fair Housing LawSale of single family home from person with 3 or fewer homesRental in owner occupied 1-4 family dwellingReligious OrganizationsPrivate ClubsRetirement Communities - 62 or older, 80% 55 or older or housing for elderly RulingsSuspension, revocation and finesCease and desist ordersOther penalties Property Manager Qualifications18 years old, credit report, high school grad, 30 hours of classroom instruction, pass exam Associated LicenseeLicensee who is affiliated with a BIC

Lead PaintApplies to residential housing prior to 1978Exclusions

are:Rentals less than 100 daysRetirement communities

unless child under 6 living thereEfficiency unitsPreviously disclosed lease renewalsCommercial PropertyProperty that's been inspected and no lead paintCivil fines can run as high as $11,000 Tax CalculationMarket Value X assessment rate (4% or 6%) X millage =

annual tax. Example:$100,000 m.v. X 4% primary = $4,000

assessed value X 200 mills = $800 annual tax. (100,000 X

.04 X .200 = 800)

Bootmoney or property given to make up any difference in value or equity between two properties in an exchange (1031) Police Power GeneralThe government's right to impose laws, statutes and ordinances, including zoning ordinances and building codes, to protect the public health, safety and welfare.Inactive licenseCan go on inactive indefinitely, just must renew every 2 years on June 30th SC Real Property Assessment RatesPrimary residence = 4%Other residential and rental/investment = 6%Agricultural = 4% rollback Truth in AdvertisingAdministered by the Federal Trade Commission. Cannot make deceptive or misleading claims Capital GainProfit from the sale of an asset. $250,000 per person,

$500,000 per coupleChapter 3: Finance

Receipt and Deposit of Earnest MoneyCash, checks, certified, other all must be deposited in 48 hours SCREC doesn't get involved in?Commission disputes and Trust funds disputes Exempt from CE1st year post licensing taken, inactive status, instructors of approved courses, broker over 65 who's been licensed 25 years or more BIC Qualifications21 years old, licensed broker or qualified as such, have ownership interest in company or actively engaged in mgt, credit report RedliningThe illegal practice of a lending institution denying loans or restriction their number for certain areas of a community.1031 Tax Deferred ExchangeReferred to as "like-kind" properties, can defer capital gains tax Master PlanA comprehensive plan to guide the long-term physical development of a particular area.SCREC InvestigationsIf they have knowledge, must initiate an investigation within 30 days Jones vs. MayerFamous case in 1965 that upheld the Civil Rights Act of 1866 saying it applied to private sales, not just government Antitrust LawsLaws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most