Members sometimes wonder why the SCR Hotline says that the REALTOR® must recommend the parties obtain legal counsel.
Here is one reason, the NAR Code of Ethics. See SOP 1-8 and Article 13 and Article 1 below.
SHALL means a REALTOR® will do something or potentially face an ethics complaint.
REALTORS®, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated. (Adopted 1/93, Amended 1/22)
The SCR legal hotline when stating a REALTOR® shall recommend the parties obtain legal counsel, what that means is to recommend the hiring and consulting of the trial lawyers who will either conduct legal actions in pursuit of court orders/money for you/others as the plaintiff, or conduct legal actions for you/others as the defendant target of lawsuits and/or counter claims against the plaintiff seeking court orders/money from you/others.
• Standard of Practice 1-8 REALTORS®, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Upon the written request of the listing broker who submits a counter-offer to the buyer’s/tenant’s broker, the buyer’s/tenant’s broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counteroffer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. REALTORS®, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated. (Adopted 1/93, Amended 1/22)
Article 13 REALTORS® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.
[Warning: the unauthorized practice of law (UPL) is a felony in SC and UPL may include giving legal information/advice to others.]
Article 1 When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)
Posted by: Byron King on 12/20/21 (This information is only accurate as of 12/20/21. You must contact SCR for updates and changes to this information after 12/20/21 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.