https://llr.sc.gov/re/News/Wholesaling-Assignment-of-Contracts-Guidance.pdf
November 14, 2024
Advisory Opinion on Exceptions to Wholesaling Under Real Estate Practice Act
SC Code §40-57-10 et seq.
In May 2024 Governor Henry McMaster signed into law the revised Real Estate Practice Act, SC Code § 40-57-5 et seq. which includes a prohibition on the practice known as “wholesaling.” Since the statute’s passage, the Real Estate Commission (REC) has received numerous inquiries regarding possible statutory exceptions to this law. This advisory opinion aims to provide guidance about those exceptions, focusing on the following issues: 1. Distinction between Wholesaling and Assigning a Contractual Interest. 2. Limitations on “Marketing a Contract” under the statute.
Questions: SCR Legal Hotline 803-772-5206
Rule of Thumb: Always have a deeded owner in a proper listing agreement.
Warning: Some attorneys believe they have figured out legal workarounds and may use different terminology even though the same risks may apply.
Posted by: Byron King on 7/3/26 (This information is only accurate as of 7/3/26. You must contact SCR for updates and changes to this information after 7/3/26, as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.