Just like a traffic ticket citation, the ethics citation recipient can pay the fine and take the driver’s education hours and settle the matter.
Or just like a traffic ticket citation, the ethics citation recipient can request their traffic ticket be heard in court (e.g., before the REALTORS® serving as the Professional Standards Committee hearing panel).
Citation Panels of REALTORS® can only offer an ethics citation for what are considered the lesser ethics offenses in the NAR Code of Ethics.
Many people choose to pay their fine and take the drivers ed course rather than go to court for the same reasons that many REALTORS® choose to pay their fine and take the education course rather than go to a REALTOR® ethics hearing. Stacking citations can change that thought process.
Here is the 2022 SCR Legal and Ethical Group Chair Daniel Moskowitz providing a few minutes video overview of the REALTOR® citation.
https://www.youtube.com/watch?v=robjXMJrKXA
Here is the SCR Citation Policy below.
As you can read, the citations are for portions of NAR ethics articles 1, 3, 4, 5, 6, and especially 12, and the part of 16 dealing with posting signs.
Citations are one way that anonymous complaints to the respondents can operate, especially for advertising issues. Otherwise with articles other than article 12, the facts of the complaint point to the complainant. But with advertising, an anonymous complaint to the respondent does not point to the complainant.
With advertising, the complaint might include a screenshot of an online/email advertisement or a paper advertising mailer or a photo of a sign/billboard that potentially violates NAR ethics article 12.
All complaints must have a complainant, but a complainant can request anonymity from the respondent and if the respondent takes the citation, that is the end of the issue. However if the respondent wants to defend themselves in an NAR ethics hearing, the complainant must decide to drop the complaint or go to the hearing as the complainant.
If the complainant drops the complaint, the SCR Grievance Committee might decide to become the complainant.
South Carolina REALTORS® Citation Policy
This Citation Policy shall establish a Citation Panel, comprised of at least three (3) individuals, who will review complaints to determine eligibility for the citation program and the appropriate citations. It is recommended that the Citation Panel be a subset of the South Carolina REALTORS (SCR) Professional Standards Committee, and that the individuals on the Citation Panel have a high level of experience in hearing professional standards cases.
Complaints must be filed within one hundred eighty (180) days after the facts constituting the matter complained of could have been known in the exercise of reasonable diligence or within one hundred eighty (180) days after the conclusion of the transaction or event, whichever is later.
Citation Panels cannot cite violations based on Articles or Standards of Practice other than those spelled out in this policy, cannot impose fines in excess of those in the policy, and cannot be utilized more frequently than provided for in this policy.
Initial Review by Grievance Committee and Citation Panel
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When a Grievance Committee receives a written ethics complaint, it will review the complaint consistent with the current NAR Code of Ethics and Arbitration Manual. The Grievance Committee may add or delete articles or respondents at this stage in the proceedings.
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If the Grievance Committee determines that the complaint should be forwarded for a hearing, the Grievance Committee will first forward the complaint to the Citation Panel to determine if it includes allegations covered by the Citation Schedule, i.e., if it is a “citable offense”.
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If the complaint does not include alleged violations included in the Citation Schedule, or it includes some covered by the Citation Schedule and some that are not, the complaint shall be referred to the Professional Standards Committee for hearing consistent with the policies and procedures set forth in the Code of Ethics and Arbitration Manual for ethics hearings.
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If the complaint includes only allegations of violations included in the Citation Schedule, the Citation Panel will issue a citation and impose discipline consistent with the SCR Citation Schedule. In the event the members of the Citation Panel determine the conduct described in the complaint is sufficiently egregious to warrant a hearing rather than a citation, the complaint shall be referred to the Professional Standards Committee for hearing consistent with the policies and procedures set forth in the Code of Ethics and Arbitration Manual for ethics hearings.
Issuance of Citations
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Citations will be sent to respondents. A copy of the citation shall also be sent to the REALTOR® principal of respondents’ office. If the respondent changes firms before or after the complaint is filed but before the citation is issued, both the former and current REALTOR® principal will receive a copy of the citation.
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Staff will prepare a written summary of the complaint and the summary will be included with the citation, including the identity of the complainant, to give the respondent sufficient information to understand the basis of the citation.
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The respondent will have twenty (20) days from receipt of the citation to request a full due process hearing on the complaint.
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If the respondent does not reply within ten (10) days of receiving the citation, a notice shall be issued to the respondent reminding the respondent of the deadline for requesting a hearing.
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If the respondent accepts the citation, or if the respondent does not request a hearing within twenty (20) days of receipt of the citation, this shall be deemed to be a final resolution of the complaint, which shall not be appealable or subject to any further review.
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If the respondent accepts the citation, or if the respondent does not request a hearing within twenty (20) days of receipt of the citation, payment must be received by the SCR no later than five (5) days after the date of acceptance or time period to request a hearing has elapsed.
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The case will be deemed to be closed upon receipt of payment, and notice will be provided to the complainant that a citation has been issued and paid.
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Failure to pay the citation amount within five (5) days after the date of acceptance or after the time period to request a hearing has expired will result in the automatic suspension of membership until the citation has been paid.
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If the respondent requests a hearing within the time specified, the complaint shall be referred for hearing. The complainant who initially filed the complaint shall be given the option to proceed as the complainant for the purposes of the hearing, and will be afforded all due process rights provided for in the Code of Ethics and Arbitration Manual. Should the complainant be a member of the public who refuses or is unable to participate in the hearing, or should the complainant be a REALTOR® member who refuses or is unable to participate in the hearing, the provisions in the NAR Code of Ethics and Arbitration Manual shall apply.
Limitations
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Any REALTOR® is limited in the number and type of citations that he/she may receive, according to the following rules:
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No more than two (2) citations will be issued to a member within a consecutive twelve (12) month period, starting on the date the first complaint was filed.
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No more than three (3) citations will be issued to a member within a consecutive thirty-six (36) month period, starting on the date the first complaint was filed.
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No additional citations are permitted where the cumulative fine for the citations issued would be more than $5,000 in any three (3) year period.
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In the case of a repeat offender an escalating fine schedule may be used. The citation panel may only consider the past citations for the particular conduct alleged in the complaint and may only propose an escalated citation if the SCR citation schedule allows for it.
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In the case of multiple respondents when citations are offered, all respondents must accept the citations or all respondents will be sent to a hearing. (added 2/28/17)
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The fact that a respondent has previously been issued a citation for any violation – whether or not it was paid – shall not be admissible in any ethics or arbitration hearing, including a hearing to consider a complaint where the respondent rejected a citation and requested a hearing. A hearing panel may consider citations previously issued to the respondent for the purpose of determining appropriate discipline as provided in Subsection IV below.
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Citations will not be considered in any publication of violations should such rules be adopted by SCR.
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Where a hearing panel finds a violation of the Code of Ethics after a hearing, it may consider past citations in determining an appropriate sanction only if the citation was issued for the same violation at issue in the hearing. By way of example, if a citation was issued for a Standard of Practice of a give Article that citation could not be considered if a hearing panel later found a violation of that Article unless it was related to the same Standard of Practice which the Respondent had previously been cited for. Hearing panels will not be informed of past citations for other violations not related to the hearing.
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SCR staff will track the number of citations issued, the number of citations paid, and the violations for which citations were issued. This information may be provided in the aggregate to the Board of Directors, but will not include details about the complaints, nor identify the complainants or respondents.
South Carolina REALTORS® Citation Schedule of Fines
Applicable Article and Standard of Practice |
Fine |
Ethics Training available in lieu of or in addition to fine? |
|
Article 1 |
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Failure to fully disclose and obtain consent from both parties when representing both the seller/landlord and buyer/tenant in the same transaction |
Article 1, supported by Standard of Practice 1-5 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Failure to submit offers and counter-offers objectively and as quickly as possible |
Article 1, supported by Standard of Practice 1-6 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Failure to advise sellers/landlords of information specified in Standard of Practice 1-12 prior to entering into a listing contract |
Article 1, supported by Standard of Practice 1-12 |
$250 |
2 hours CE |
Failure to advise buyers/tenants of information specified in Standard of Practice 1-13 prior to entering into a buyer/tenant agreement |
Article 1, supported by Standard of Practice 1-13 |
$250 |
2 hours CE |
Accessing or using, or allowing others to access or use, a property managed or listed on terms other than those authorized by the owner or seller |
Article 1, supported by Standard of Practice 1-16 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Article 3 |
|||
Failure to communicate a change in compensation for cooperative services prior to the time that REALTOR® submits an offer to purchase/lease the property |
Article 3, supported by Standard of Practice 3-2 |
$350 |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
As a listing broker, attempting to unilaterally modify the offered compensation with respect to a cooperative transaction after a REALTOR® has submitted an offer to purchase or lease that property |
Article 3, supported by Standard of Practice 3-2 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Failing to disclose existence of dual or variable rate commission arrangements |
Article 3, supported by Standard of Practice 3-4 |
$250 |
2 hours CE |
Failure to disclose to cooperating brokers differential that would result in dual or variable rate commission arrangement if sale/lease results through efforts of seller/landlord |
Article 3, supported by Standard of Practice 3-4 |
$250 1st Offense $350 2nd Offense |
2 hours CE 1st Offense 4 hours CE 2nd Offense |
Failing to disclose existence of accepted offers, including offers with unresolved contingencies, to cooperating brokers |
Article 3, supported by Standard of Practice 3-6 |
$250 1st Offense $350 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Misrepresenting the availability of access to show or inspect a listed property |
Article 3, supported by Standard of Practice 3-8 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Providing access to listed property on terms other than those established by the owner or the listing broker |
Article 3, supported by Standard of Practice 3-9 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Article 4 |
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Failing to disclose REALTOR®’s ownership or other interest in writing to the purchaser or their representative |
Article 4 (second sentence) |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Article 5 |
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Providing professional services without disclosing REALTOR®’s present interest in property |
Article 5 (limited to present interest, not contemplated) |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Article 6 |
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Accepting any commission, rebate, or profit on expenditures without client’s knowledge or consent |
Article 6 (first paragraph) |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Failure to disclose to a client or customer REALTOR®’s financial benefits or fees received as a direct result of recommending real estate products or services |
Article 6 (second paragraph) |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Failure to disclose REALTOR®’s direct interest in an organization or business entity when recommending to a client or customer that they use the services of that organization or business entity |
Article 6, supported by Standard of Practice 6-1 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Article 12 |
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Failing to present a true picture in real estate communications and advertising |
Article 12 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Failing to disclose status as real estate professional in advertising and other representations |
Article 12 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Failure to provide all terms governing availability of a “free” product or service in an advertisement or other representation |
Article 12, supported by Standard of Practice 12-1 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Failure to disclose potential to obtain a benefit from third party when REALTOR® represents their services as “free” or without cost |
Article 12, supported by Standard of Practice 12-2 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Failure to exercise care and candor when communicating the terms and conditions of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease |
Article 12, supported by Standard of Practice 12-3 |
$350 1st Offense $500 2nd Offense |
4 hours CE 1st Offense 6 hours CE 2nd Offense |
Advertising property for sale/lease without authority of owner or listing broker |
Article 12, supported by Standard of Practice 12-4 |
Not offered |
|
Failing to disclose name of firm in advertisement for listed property |
Article 12, supported by Standard of Practice 12-5 |
$250 1st Offense $350 2nd Offense |
2 hour CE 1st Offense 4 hours CE 2nd Offense |
Failing to disclose status as both owner/landlord and REALTOR® or licensee when advertising property in which REALTOR® has ownership |
Article 12, supported by Standard of Practice 12-6 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Falsely claiming to have “sold” property |
Article 12, supported by Standard of Practice 12-7 |
$500 |
6 hours CE 2nd Offense Not Offered |
Failure to take corrective action when it becomes apparent that information on a REALTOR®’s website is no longer current or accurate |
Article 12, supported by second sentence of Standard of Practice 12-8 |
$250 |
2 hours CE |
Failure to disclose firm name and state of licensure on REALTOR® firm website |
Article 12, supported by Standard of Practice 12-9 |
$250 |
2 hours CE |
Misleading consumers through deceptive framing, manipulating content, deceptively diverting internet traffic, or presenting other’s content without attribution or permission |
Article 12, supported by Standard of Practice 12-10 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Registering or using of deceptive URL or domain name |
Article 12, supported by Standard of Practice 12-12 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Representing that the REALTOR® has a designation, certification, or other credential they are not entitled to use |
Article 12, supported by Standard of Practice 12-13 |
$500 2nd Offense Not Offered |
6 hours CE 2nd Offense Not Offered |
Article 14 |
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Failing to cooperate in a professional standard proceeding or investigation in circumstances when cooperation has been demanded by the association and association has advised REALTOR® failure to cooperate could result in an allegation of a violation of Article 14 |
Article 14 |
Not offered |
|
Article 16 |
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Conditioning submission of a buyer’s offer on additional compensation from a listing broker |
Article 16, supported by Standard of Practice 16-16 |
Not offered |
|
Placing for sale/lease sign on property without permission of seller/landlord |
Article 16, supported by Standard of Practice 16-19 |
$500 |
6 hours CE 2nd Offense Not Offered |
Posted by: Byron King on 11/29/22 (This information is only accurate as of 11/29/22. You must contact SCR for updates and changes to this information after 11/29/22 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.