South Carolina Legislative Bills

As of June 1, 2024, South Carolina enforces HB 4754, which defines wholesaling as a brokerage activity requiring a real estate license. This legislation effectively prohibits unlicensed wholesaling by making South Carolina’s anti-wholesaling laws among the strictest in the country.

Yes. Under HB 4754, contract assignment itself is NOT defined as wholesaling. This means that investors can assign contracts without a real estate license, provided they do not engage in activities classified as brokerage.

No. The law explicitly prohibits brokerage firms and their subagents from engaging in wholesaling activities, aiming to prevent conflicts of interest and maintain strict regulatory compliance.

The goal was to regulate the rapidly growing wholesaling market and protect consumers from unlicensed brokerage activities. HB 4754 closed loopholes by requiring licensure for wholesaling activities, ensuring higher transparency and accountability in real estate investing in South Carolina.

Yes. In January 2024, H 4321 was proposed to define wholesaling under state real estate law, offering exemptions from full licensing for registered wholesalers. However, it failed and was superseded by the stricter HB 4754.

Wholesalers must avoid acting as unlicensed brokers. They should focus on assigning contracts instead of negotiating deals or representing buyers/sellers without a license. Obtaining a real estate license is also an option for those wanting to engage fully in wholesaling activities.

Investors interested in South Carolina real estate wholesaling must now adhere to licensing requirements or limit their activities strictly to non-brokerage contract assignments. This adds regulatory oversight but also protects all parties involved by promoting ethical investing practices.

Unlicensed wholesaling functioning as brokerage is effectively banned. However, contract assignments without brokerage activity remain legal, allowing investors to continue wholesaling within the legal framework.

To legally wholesale in South Carolina, consider enrolling in real estate licensing courses approved by the South Carolina Real Estate Commission and staying updated on regulatory changes affecting real estate investing in South Carolina.

South Carolina's HB 4754 is considered the strictest anti-wholesaling law in the U.S., requiring licensure for most wholesaling activities unlike many states where wholesaling is lightly regulated or exempt from licensing. This FAQ helps real estate investors and wholesalers navigate the complex landscape of South Carolina real estate wholesaling laws to remain compliant and successful in their investments.