Should Brokers in Charge (BICs) have a copy of the deed of every property the company lists?

While it is not a strict statutory requirement in South Carolina to keep a copy of the recorded deed on file for every listing, SCR recommends it as a best practice and a vital risk management tool for several reasons:

1. Verifying Ownership & Authority

Before spending time and money marketing a property, a Broker-in-Charge (BIC) should ensure the client actually has the legal right to sell it.

  • Identify All Owners: The deed reveals if the property is owned by a single individual, a married couple, an LLC, or a trust.
  • Proper Signatures: Every person or entity listed on the deed must sign the Listing Agreement. If a spouse or a co-investor is on the deed but didn’t sign the paperwork, the listing contract may be invalid.
  • Avoid "Surprise" Heirs: In cases of inheritance, the deed determines if the "seller" has the legal authority to sign or if probate documents are needed.
  • Gold Standard: While the deed is the best document to use for ownership verification, there are other options too (insurance statement, 1098 tax forms, Forewarn, etc.)

2. Accuracy of the Listing Data

The deed is the "source of truth" for the property’s technical details:

  • Legal Description: The BIC can cross-reference the metes and bounds or lot/block info with the tax records to ensure the brokerage doesn’t accidentally list a neighbor’s parcel or omit a subdivided portion of the land.
  • Easements & Restrictions: While a full title search happens later, a quick look at the deed can alert the BIC to shared driveways, utility easements, or deed restrictions that must be disclosed as "material facts."

3. SC Record Retention Laws

Under S.C. Code § 40-57-136(F)(1), a BIC is required to maintain "complete records and copies of any document used in connection with a real estate transaction" for a minimum of five years.

  • If the BIC used the deed to verify the legal description for the MLS or to confirm ownership for the contract, it becomes a "document used in connection with the transaction" and should be kept in the digital or paper file

4. SC Real Estate Commission (REC)

The REC clearly intends for BICs to verify and retain property deeds–it’s included as part of their BIC audit checklist. The SCREC’s Office of Investigations and Enforcement (OIE) uses a specific inspection checklist to ensure firms comply with state law. While the deed is a public record, the Commission expects it to be part of the BIC’s internal transaction file to prove due diligence was performed.

In summary, SCR recommends that BICs obtain a copy of the deed for their company listings as a best practice and a vital risk management tool.

Posted by: Byron King on 4/6/26 (This information is only accurate as of 4/6/26. You must contact SCR for updates and changes to this information after 4/6/26, 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.