The South Carolina Real Estate Commission (SCREC) issued a new guidance letter this week addressing how to handle trust funds held by an outside party (like an attorney or escrow agent) rather than the brokerage.
Here is a quick overview:
The Legal Requirement: Per S.C. Code §40-57-136(H), licensees are legally responsible for ensuring that trust funds are "timely and properly delivered" to the trust fund agent as specified in the contract.
The Problem: The Commission has seen several recent cases where licensees failed to verify that these funds actually reached the outside agent.
The "Best Practice" Recommendation: The Commission strongly recommends getting written confirmation from the escrow agent once they receive the funds. This can be an email, letter, or even a text message.
What the Receipt Should Include: A simple "funds received" is not enough. The confirmation should clearly identify the parties, the property address, the date received, and the exact amount to tie it to the specific transaction.
Record Keeping: While not technically one of the documents required to be kept for five years, the Commission suggests keeping this written proof as a "contemporaneous record" to prove you complied with the law if a dispute arises.
The Bottom Line: If the buyer’s earnest money never hits the attorney’s desk and the deal falls apart, the agent is on the hook unless they have this written receipt to prove they followed up.
Posted by: Byron King on 3/23/26 (This information is only accurate as of 3/23/26. You must contact SCR for updates and changes to this information after 3/23/26, 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.