South Carolina’s 2024 changes to its real estate licensing law created a lot of confusion — and a lot of bad advice. These are the questions I’m asked most, answered as carefully as I can. I’m a South Carolina investor, not an attorney, and none of this is legal advice.
If you want the full context, read wholesaling in South Carolina first, then the statute, section by section. If you’re looking at the topic nationally, my wholesaling laws overview explains how to check any state. For anything specific to your situation, talk to a South Carolina real estate attorney or check the South Carolina Real Estate Commission. And if you have a question that isn’t here, contact me.
Straight answers
Is wholesaling legal in South Carolina?
South Carolina doesn’t frame it as a yes or no. The revised Real Estate Practice Act defines wholesaling, and marketing residential property you don’t own with an expectation of compensation falls within broker activity that requires a license. Whether your specific process fits the law is a question for a South Carolina real estate attorney.
What law changed wholesaling in South Carolina?
The revised Real Estate Practice Act, S.C. Code § 40-57-5 et seq., signed by Governor McMaster in May 2024. The definition is in § 40-57-30(44), and § 40-57-135 addresses advertising a contractual position.
How does South Carolina define wholesaling?
Section 40-57-30(44) defines it as having a contractual interest in purchasing residential real estate from a property owner, then marketing the property for sale to a different buyer prior to taking legal ownership. Read it section by section.
Do I need a license to wholesale in SC?
Under the statute, advertising or marketing real estate owned by another with the expectation of compensation falls under the definition of broker and requires licensure. The revised Act also bars licensed firms from engaging in wholesaling. Talk to a South Carolina real estate attorney before you act.
Can you assign a contract in SC?
The definition says wholesaling does not refer to assigning or offering to assign a contractual right to purchase residential real estate. But the Real Estate Commission reads the definition as a whole, and an assignment can still be wholesaling when there’s marketing before ownership and an expectation of compensation.
What are the four elements the Real Estate Commission looks for?
Its November 14, 2024 advisory lists a contractual interest, marketing or advertising before taking ownership, an expectation of compensation, and a legal instrument such as an assignment transferring the interest.
What counts as marketing under the South Carolina rules?
The Commission reads marketing broadly: the MLS, social media, print, Facebook groups, private email groups and verbal communication.
Can I advertise just my contract, not the property?
Section 40-57-135 allows advertising a contractual position without marketing the underlying property, but the Commission calls that practically impossible. Including photos, plats, beds and baths, square footage, year built, condition, address, TMS number, rental history, neighborhood or any property detail would likely violate it.
Which assignments does the Commission say are not wholesaling?
Its examples include assigning to a spouse, to your own entity, or to another person with no marketing, advertising or expectation of compensation.
What options do South Carolina investors discuss now?
Getting licensed, taking title first and marketing only after ownership, listing through a licensed brokerage, partnering with a licensed agent, and documented joint ventures. None is automatically right for you. See the options investors discuss and talk to an attorney.
How can a seller tell whether a buyer is a wholesaler?
Ask whether they’ll close in their own name with their own funds or financing, whether they plan to assign the contract, and which closing attorney is handling it. Read the contract for “and/or assigns” or an assignment clause. More on selling to a wholesaler in South Carolina.
How does Ben Lovro buy in South Carolina?
I buy and close as a principal, I follow counsel, and I’d rather lose a deal than cut a corner. Owners, licensed agents and investors who own a property can send it to me.