South Carolina REALTORS Clarifies Rules on Residential Real Estate Agreements Exceeding One Year
Most residential real estate agreements handled through the South Carolina REALTORS framework will not trigger the state’s strict anti-NTRAPS statutes, largely because the vast majority of these documents are never officially recorded. According to an advisory update published by Byron King, the distinction hinges heavily on the lifespan of the contract and how the property rights are handled over time.
The state regulatory framework draws a hard line at the twelve-month mark. Any residential real estate agreement intended to remain in effect for greater than one year faces immediate legal jeopardy if it contains specific restrictive clauses. As outlined in the regulatory notice, agreements that cross this one-year threshold are deemed unenforceable and enacted in bad faith if they attempt to bind future owners, tie down heirs, run with the land, or establish a security interest without proper statutory adherence.
South Carolina Law Targets Problematic Real Estate Clauses
The problematic clauses include:
- Agreements that run with the land or attempt to bind future owners or heirs of the residential real estate.
- Provisions that allow for the assignment of the right to provide service without giving explicit notice to, and securing the consent of, the property owner.
- Terms that create a lien, encumbrance, or other real property security interest, or any agreement that is otherwise recorded in public land records.
Because typical listing agreements and short-term brokerage engagements wrap up well within a year and are rarely recorded in county land records, they generally bypass these specific statutory tripwires.
Practical Next Steps and Compliance for Practitioners
The guidance issued by screaltors.org emphasizes that this information serves strictly as general background rather than formal legal counsel. Because real estate statutes and commission policies shift over time, professionals managing complex transactions are urged to consult directly with qualified legal counsel or reach out to South Carolina REALTORS at 803-772-5206, or via email at info@screaltors.org or byron@screaltors.org, to verify rule changes following the October 29, 2026 update.
Ensuring that agreements spanning more than one year do not inadvertently attempt to encumber title or bypass owner consent remains critical to maintaining a clean compliance record with the state commission.
