With so many homes for sale in Columbia South Carolina, it is driving the inventory up, resulting in homes staying on the market much longer. In many cases, the homeowner cannot afford to leave a property vacant and pay two mortgage payments. When homes stay on the market for extended periods of time, homeowners are asking their agent to find a tenant to rent the property.

I think it is important to understand what the real estate agent has been hired to do. Initially, the homeowner wants the property sold, so we have the homeowner sign a listing agreement to market and sell the property. All the legal verbiage needed to market and represent the seller in the sale of their home is included in the listing contract to protect the parties involved.

If the property has not sold within a period of time, many homeowners are asking their agent to help find a tenant to rent the property to offset the expenses of making two mortgage payments. As an agent myself, I know and understand the desire to help our clients in any manner legally allowed. While finding a tenant for your homeowner is not a problem per say, it is outside of our scope of authority as outlined in the listing agreement. Agents would be wise to consult with legal counsel, such as Andy Aun with Aun and McKay Law Firm, to determine ways to manage the additional risk taken on by agents hired to sell a property and later become an agent finding a tenant for the property.

Andy Aun will be discussing this very issue in his monthly “Out Of The Box Marketing” on March 31st, 2011 at Lake Carolina. This seminar is FREE to anyone interested in attending and includes Food and Drinks. If you would like to attend, all you need to do is RSVP by email at angela@aunmckaylaw.com or call Angela at 803-744-0824.

I continue to get the same questions from people all over South Carolina about real estate. Two of the most common questions I get are; 1) Is this a good time to be a real estate agent in South Carolina and 2) Can I be successful practicing as a South Carolina Real Estate Agent? The short answer to both questions is YES!!

Anyone considering a career in real estate cannot be concerned about the “right time” to get a real estate license and begin building a career. There will never be a “right time”. Waiting on the right time is an excuse to procrastinate and not have to make a commitment. The fact of the matter is many SC real estate agents are building strong real estate businesses with great incomes. Everyone knows the SC real estate market is not what is was in 2005 and 2006 but that does not mean one cannot be very successful in the real estate industry today.

As markets change, real estate agents must change the way they do business. Real estate agents that do not evolve with the market/industry will ultimately fail. For example, Short Sales are a very large part of our industry today. This is a specialized segment of real estate but any licensee can do it. Agents that stay ahead of market conditions and get the training necessary to succeed, take training classes and seminars provided by the South Carolina Real Estate School for Success. Don’t let others tell you this is a bad time to get started in Real Estate! Many agents tell me that last year was the best year they have ever had. This comment is being made by agents that have been in the business for ten years or more!

The only way to be successful in any business is to concentrate on “Building Relationships”. No one likes to be around a salesman very long at all. So do not try to be a salesman. Successful SC Real Estate Agents focus their time primarily in two areas. The first area is training and knowledge of the market. In other words, become the expert at what you do! The second area of focus is building relationships (making friends). Those with the most friends do the most business. If you were buying or selling real estate yourself, who would you call for help if you had a friend in the business?

Anyone willing to go out and just meet people, make friends and foster the relationships will be very successful. Do not waste your time looking for someone to buy or sell real estate. That takes too much time with very little return. It’s all about building relationships!! Let your new and old friends refer all the business to you!!

The 1968 Federal Fair Housing Act allows for some home owners to discriminate in housing under certain conditions. Although the 1968 Act allows for discrimination, the Supreme Court Decision of 1968, Jones v. Mayer states that no one may discriminate in housing based on racial grounds. In other words, one cannot discriminate against race, but can discriminate against other protected classes when certain conditions exist. The Protected Classes covered under the Fair Housing Laws include; race, color, sex, religion, national origin, handicap, or familial status.

Exemptions from Fair Housing Laws include:

A. Any Single-Family dwelling sold or rented by owner under the following conditions:
1) Cannot own more than three single-family dwellings at any one time.
2) Must currently reside in the dwelling or be the most previous resident of the dwelling.
3) Cannot use the services of a Real Estate Agent or Company for any reason/manner.
4) Cannot publish or advertise in a way to violate the Act.

B. Rental of Rooms or units.
Rental of rooms or units that are occupied by no more than four family units if the owner actually maintains and occupies one of the units as his/her residence. An example of this could be for a female wishing to rent a room in her house and does not desire to rent to a male. Thus, it would be legal to discriminate against sex.

C. Religious or Church Related Non-Profit Organizations.
Religious organizations may restrict the use of property owned by the organization by only allowing members of that religion to occupy the property. However, religious organizations may not discriminate against who can be a member of the organization.

D. Private Clubs.
Private clubs providing lodging which it owns or operates for other than a commercial purpose, may limit rental or occupancy to its members and give preference to its members.

None of the above mentioned exemptions apply to Real Estate Agents or Real Estate Companies. Those that meet the requirements above can discriminate so long as they do not use the services of Real Estate Agents in any capacity. Real Estate Agents and Companies will face significant fines and penalties for violating Fair Housing Laws.

Those penalties will include:

Real Estate Companies

1) First Offense - $10,000
2) Second Offense - $25,000 (if within five years of first)
3) Third Offense - $50,000 (if within seven years of first)

Individual Agents

Same as above, but time limitations do not apply.

Fair Housing Complaints can be filed at the State or Federal Level. Complaints filed at the Federal level must be filed with HUD within one year from the time of discrimination. HUD will attempt to mediate and reconcile the differences out of court. Should this not be possible, the complainant will have up to two years to file action in court. Complaints filed at the State level must be filed with the South Carolina Human Affairs Commission (SCHAC) within six months from time of the discrimination. The SCHAC will attempt to reconcile the differences out of court. If this is not possible, the complainant will have up to one year to file action in court.

Procedures for filing a complaint with the SC Human Affairs Commission (SCHAC):

1) Must file complaint in writing within six months of the alleged incident.
2) Upon receipt of complaint, the SCHAC will give notice to all parties.
3) SCHAC must initiate the investigation within 30 days and complete the investigation within 100 days.
4) SCHAC will attempt to resolve the matter by conciliation.
5) Complainant may elect to seek relief through the courts within one year from the date of the alleged discriminatory housing practice.

Dual agency exists when the same Broker-in-charge is representing the buyer and the seller in the same transaction. Note that I said Broker-in-charge, not a real estate agent. You may find that one real estate agent is representing the seller and another real estate agent is representing the buyer, but, if both real estate agents work for the same broker-in-charge, it will be a dual agency transaction. Dual agency is legal in South Carolina as long as there is informed and written consent from all parties prior to entering into negotiations.

The critical aspect of dual agency that must be understood is that the broker-in-charge owes both buyer and seller the same fiduciary duties consisting of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. Except under dual agency, some of these duties are limited. The duties that will be limited included loyalty, obedience and disclosure. Although some duties are limited, they are limited to both the buyer and seller. In essence, both buyer and seller will receive the same amount of representation as the other. The key duty that will never be limited to either party is confidentiality. For example, the agent may know the seller is willing to take less than the listing price, but the agent cannot tell the buyer client. Or the agent may know the buyer client may be willing to pay more than the offered price, but the agent cannot tell the seller client.

In January 2005, South Carolina passed a law making DESIGNATED AGENCY legal. This is a new option available to real estate consumers if they are not comfortable with Dual Agency. In the cases where one real estate agent would be representing both the buyer and the seller, occasionally one or both parties may not be comfortable with the situation. The party uncomfortable with this situation can request designated agency. By doing so, the Broker-in-charge will designate another real estate agent from within the office to represent the buyer while the original real estate agent will continue to represent the seller. This way, both the buyer and seller will have exclusive representation by their own real estate agent. Although designated agency is still a form of dual agency since the Broker-in-charge is still representing buyer and seller, it does allow for exclusive representation for the buyer and seller. Real estate agents are prohibited by law to discuss confidential information among each other. So buyers and sellers will have their confidential information protected.

Are you interested in getting your SC real estate license or broker license? Learn how to get started in a Career in Real Estate today.

Many real estate agents and home buyers or sellers do not know the difference between a REALTOR® and a Real Estate Agent. They are often used interchangeably and that is not correct. There are differences between the two. You often see real estate agents that are not REALTORS® using the trademark. This goes to show how this important trademark goes unseen. Let’s start as real estate agents understanding the importance of being REALTORS® versus being a real estate agent. We need to let our clients know that we truly are working for their best interest. To become a REALTOR®, one must join the National Association of REALTORS®. You may view the code of Ethics by clicking on the following link:

Code of Ethics

REALTORS® are held to a Code of Ethics that real estate agents are not. Being a REALTOR® proves to the public that you are a professional. The more we understand the importance of becoming a REALTOR®, the better we can educate the public on the professionalism that most think real estate agents lack.
The local Association of REALTORS® is the Greater Columbia Association of REALTORS®. Their mission: “Our mission is to be the organization in the Midlands that represents the standard for the real estate sales professional through the organization’s Code of Ethics, educational offerings, information systems and involvement in local government issues.” You can read more about the association by clicking on the link below:

Great Columbia Association of Realtors