For risk management reasons, all licensees should get into the habit of properly providing paper or e-doc or link of the SCR110 to consumers at first substantive contact.
This government form SCR110 is known as the LLR SCREC SCDREBR aka the old agency brochure.
https://www.screaltors.org/wp-content/uploads/Forms/110.pdf
One way to help think of SCR110 is to think of your favorite cop show when the arrest is made and the cop always gives the sus crooks their Miranda warning (…you have the right to remain silent, anything you say may be used against you…you have the right to representation).
You are warning the consumer that they are currently unrepresented customers and should be cautious with their communications. They have the right to hire you to represent them in an agency relationship. Transaction brokerage provides limited confidentiality.
Some licensees include a link on their webpages and email footers to help get into the habit of properly providing the SCR110 to consumers in addition to sending e-doc SCR110 or e-link to SCR110 or paper SCR110 and properly explaining SCR110.
(38) "Substantive contact" means contact in which a discussion or dialogue between the consumer and the supervised licensee or broker-in-charge moves from casual introductory talk to a meaningful conversation regarding the selling or buying motives or objectives of the seller or buyer, financial qualifications, and other confidential information that if disclosed could harm the consumer’s bargaining position.
Section 40-57-370. (A) A licensee shall provide at the first practical opportunity to all potential buyers and sellers of real estate with whom the licensee has substantive contact:
(1) a meaningful explanation of brokerage relationships in real estate transactions that are offered by that real estate brokerage firm, including an explanation of customer and client services;
(2) Disclosure of Brokerage Relationships form prescribed by the commission.
(B) An "Acknowledgement of Receipt of the Disclosure of Brokerage Relationships" form must be included in an agency agreement and in a sales contract. In addition, each sales contract must require the buyer and the seller to acknowledge whether they received customer or client service in that real estate transaction.
(C) At the time of first substantive contact, it is presumed that the potential buyer or seller is to be a customer of the real estate brokerage firm and that the real estate brokerage firm will be acting as a transaction broker as defined by this chapter and that the real estate brokerage firm shall offer services to a customer as defined by Section 40-57-350(L) only until the potential buyer or seller signs an agency representation agreement.
(D) If first substantive contact occurs over the telephone or other electronic means, including the Internet and electronic mail, an "Acknowledgement of Receipt of the Disclosure of Brokerage Relationships" form may be sent by electronic means, including the Internet and electronic mail.
(E) For all real estate transactions, no agency relationship between a buyer, seller, landlord, or tenant and a real estate brokerage firm exists unless the buyer, seller, landlord, or tenant and the brokerage company agree, in writing, to the agency relationship. No type of agency relationship may be assumed by a buyer, seller, landlord, tenant, or licensee or created orally or by implication. A real estate brokerage firm may not be considered to have an agency relationship with a party or have agency obligations to a party but is responsible only for exercising reasonable care in the discharge of the real estate brokerage firm’s specified duties, as provided in this chapter, and, in the case of a client, as specified in the agency agreement.
(F) The payment or promise of payment of compensation to a real estate brokerage firm by a seller, buyer, landlord, or tenant does not determine whether an agency relationship has been created between a real estate licensee and a seller, buyer, landlord, or tenant.
(G) The brokerage relationship disclosure requirements of this section do not apply if the:
(1) transaction is regarding the rental or lease of property; or
(2) communication from the licensee is a solicitation of business
Section 40-57-350. (A) A real estate brokerage firm that provides services through an agency agreement for a client is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting as set forth in this chapter. Pursuant to the aforementioned duties owed to a client, a real estate brokerage firm and its subagents are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling. The following are the permissible brokerage relationships a real estate brokerage firm may establish:
(1) seller agency;
(2) buyer agency;
(3) disclosed dual agency;
(4) designated agency; or
(5) transaction brokerage.
Posted by: Byron King on 05/30/24 (This information is only accurate as of 05/30/24. You must contact SCR for updates and changes to this information after 05/30/24 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.