In South Carolina, real estate brokers-in-charge (BIC) and property managers-in-charge (PMIC) are mandated to retain specific records related to real estate transactions for a minimum of five years. While the South Carolina Code of Laws does not explicitly mention text messages, any communication—including text messages—that pertains to the documents listed below should be preserved as part of the transaction record.

1. Record Retention Requirements in South Carolina

Retention Period:

• BICs and PMICs must maintain records for at least five years from the date of the transaction's closure or the expiration of the listing agreement. citeturn0search0

Records to Be Retained:

• Leases

• Contracts of sale and any addenda

• Listing contracts or buyer agency agreements

• Transaction broker agreements

• Option contracts

• Property management agreements

• Residential property disclosure forms

These requirements are outlined in Section 40-57-135(D)(1) of the South Carolina Code of Laws. citeturn0search5

2. Inclusion of Text Messages

Material Communications: While not explicitly stated, text messages that involve:

• Negotiations, offers, or counteroffers

• Discussions regarding terms, fees, or conditions

• Client instructions or approvals

• Amendments, disclosures, or other transaction-related agreements

should be retained as part of the transaction documentation. The South Carolina Department of Archives and History advises that text messages are subject to retention based on their content and should be preserved accordingly. citeturn0search3

3. Methods for Archiving Text Messages

Acceptable Archiving Practices:

• Manual Archiving: Export and save text messages digitally or print them for inclusion in transaction files.

• Automated Tools: Utilize software solutions designed to capture and archive text messages automatically.

• Centralized Recordkeeping: Ensure all records, including text messages, are securely stored and accessible for the required retention period.

The South Carolina Uniform Electronic Transactions Act permits electronic records to satisfy retention requirements, provided they accurately reflect the original information and remain accessible for later reference. citeturn0search8

4. Oversight and Inspections

Audit Authority:

• The South Carolina Real Estate Commission has the authority to request and inspect a BIC's or PMIC's transaction records to ensure compliance. citeturn0search0

Broker Responsibility:

• BICs and PMICs are responsible for maintaining all required records, including pertinent text messages, for the statutory retention period.

5. Consequences of Non-Compliance

Regulatory Penalties:

• Failure to retain required records may result in disciplinary actions by the South Carolina Real Estate Commission, including fines or license suspension/revocation.

Legal Risks:

• Incomplete records can lead to legal disputes, claims of misrepresentation, or other liabilities.

6. Best Practices for Compliance

• Establish a Policy: Develop a comprehensive policy outlining the retention of all transaction-related communications, including text messages.

• Use Technology: Implement tools and software that facilitate the automatic archiving of electronic communications.

• Educate Agents: Train agents to recognize and preserve all material communications pertinent to transactions.

• Perform Regular Audits: Conduct periodic reviews to ensure adherence to the brokerage's retention policies and identify any deficiencies.

Summary

In South Carolina, BICs and PMICs are required to retain specific transaction-related documents for a minimum of five years. While text messages are not explicitly mentioned, any communication that contains material information related to a transaction should be preserved as part of the official record. Implementing clear policies, utilizing appropriate archiving solutions, and conducting regular audits can help ensure compliance with South Carolina's record-keeping requirements and mitigate potential risks.

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Sample: Text Archive for Real Estate

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