By Paul Samuels
Real Estate Q & A

Q. I recently listened to a radio real estate program hosted by a local real estate broker. He was offering a “safe and guaranteed way to earn an 8-16 percent return” on my investment “secured by real estate.” Is this for real? How is this possible?

A. I’m not quite sure which way to respond to your questions. I think I will begin by saying yes, it is possible, but everything depends on financing and the real estate sales and rental market.

It is possible, but “safe and guaranteed?” The State of South Carolina and I both have problems with that kind of statement.

While it may well be possible, the real estate broadcaster has crossed the line in the way he presented it. If someone chooses to take his advice, and the advice doesn’t meet the expectation presented, they may decide to file a complaint with the S.C. Real Estate Commission.

Section 40-57-145 of the S.C. Real Estate License code contains the grounds for denial of issuance of a license and disciplinary action, some of which include: substantial misrepresentation-action involving a real estate transaction; false promises of a character likely to influence, persuade, or induce; and (an action that) guarantees or authorizes and permits any associated licensee to guarantee future profits from the resale of real estate.

Q. A local real estate agent has asked me if I would help him as an assistant at his real estate office. Since I don’t plan on getting a real estate license, what can I do for the agent and not get either of us in trouble?

A. Many people go to work in real estate offices and end up doing things that require a real estate license. The result is that the agent, the employee, the broker-in-charge and the owners could get into trouble. In addition to the Real Estate Commission laws listed below, the Charleston Trident Association of Realtors also has rules and hefty fines, up to and including loss of membership, should an agent give an assistant a lockbox key to let a potential buyer into a listed property.

The law states, amended Jan. 5, 2005, that: “For all types of real estate transactions, including leases and sales, an unlicensed employee of the owner or an unlicensed individual working under the supervision of a licensee may not:

• Discuss, negotiate or explain a contract, listing, buyer agency, lease, agreement, or other real estate document;

• Vary or deviate from the rental price or other terms and conditions previously established by the owner or licensee when supplying relevant information concerning the rental of property;

• Approve applications or leases or settle or arrange the terms and conditions of a lease;

• Indicate to the public that the unlicensed individual is in a position of authority, which has the managerial responsibility of the rental property;

• Conduct or host an open house or manage an on-site sales office;

• Show real property;

• Answer questions regarding company listings, title, financing, and closing issues, except for information that is otherwise publicly available;

• Be paid solely on the basis of real estate activity including, but not limited to, a percentage of commission or any amount based on the listing or sales compensation or commission;

• Negotiate or agree to compensation on commission including, but not limited to, commission splits, management fees, or referral fees on behalf of a licensee; or

• Engage in an activity requiring a real estate license as required and defined by LLR.”

Paul Samuels is the owner and president of Fortune Academy Charleston. He has been a real estate broker in South Carolina since 1980 and is an Accredited Buyer’s Representative and an Accredited Real Estate Professional. Send your questions to fortuneacademy@comcast.net.

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