Important FAQs from NAR

Please visit the following links for up-to-date information, guidance, and Q & A’s from NAR:

• Coronavirus: A Guide for REALTORS®
• Coronavirus Advocacy FAQs: RE Transactions, Independent Contractors, NAR Grants
• Coronavirus Aid, Relief, and Economic Security Act: Provisions for REALTORS® and Their Consumers
• Coronavirus: SBA CARES Act FAQs
• Coronavirus: Unemployment Assistance CARES Act FAQs
• Coronavirus Resources and Guidance for Employers
• Coronavirus: Resources for Property Owners
  
• REALTOR® Resiliency Report
• Workplace Re-entry Checklist

Forgivable Loans/Grants for REALTORS®

On March 25, 2020, the United States Senate passed the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The CARES Act dramatically increased the role of the Small Business Administration (SBA) in efforts to assist U.S. businesses impacted by the COVID-19 crisis. The two main vehicles for these relief efforts are the SBA 7(b)(2) loans – Economic Injury Disaster Loans – and the SBA 7(a) loan program. Both loans are available to businesses with 500 or fewer employees that have been negatively impacted by the crisis.

For more information, please view the links below:

• SBA Interim Guidelines
• Coronavirus: SBA CARES Act FAQs
• Paycheck Protection Program FAQs
• Paycheck Protection Program FAQs for Small Businesses
• Paycheck Protection Program Resources & Calculator from AICPA
• Coronavirus Emergency Loans Small Business Guide and Checklist
• The 100 most active SBA 7(a) lenders are listed here. You can also check with your bank to see if it is an SBA lender.  
• Washington Post Article: Here’s how to get a small business loan under the $349 billion coronavirus aid bill

Unemployment Benefits for REALTORS®

Guidance from SC DEW regarding unemployment assistance for Independent Contractors (PDF)

On March 25, 2020, the United States Senate passed the Coronavirus Aid, Relief and Economic Security (CARES) Act.

• Self-employed individuals, independent contractors, and other individuals who are unable to work as a direct result of COVID-19 public health emergency, and would not qualify for regular unemployment benefits under state law may be eligible to receive “Pandemic Unemployment Assistance.”
  • This excludes individuals who have an ability to telework with pay or individuals who are receiving sick leave or other paid leave benefits.
• The unemployment assistance is available to individuals who are unemployed, partially unemployed, or unable to work for the weeks impacted as a result of COVID-19 between Jan. 27- December 31, 2020.
• These benefits will be administered by the states, in accordance with this new Federal law.
• There is a maximum of 39 weeks of assistance, where the amount is equal to what is authorized under the state unemployment compensation law, plus an additional $600 per week for up to four months.

• News Release (4/3/2020) from South Carolina Department of Employment & Workforce:  Benefits Paid and More on the Way
• Coronavirus: Unemployment Assistance CARES Act FAQs
• South Carolina Department of Employment & Workforce website
• Guidance from SC DEW regarding unemployment assistance for Independent Contractors

Governor McMaster’s “Home or Work” Order:

The SCR Legal Team has been flooded with calls recently with questions related to Governor McMaster’s recent “Home or Work” order.

Q1. Do REALTORS® need to have special credentials or a letter from their BiC to travel to work and work-related activities?

The short answer is no–the Governor’s Orders require no such credentials.

Here’s the longer version:

Governor McMaster’s “Home or Work” Order: Executive Order 2020-21 went into effect Tuesday, April 7th at 5:00 pm.

• SLED Clarification Regarding Travel Restrictions: Governor McMaster’s orders DO NOT require citizens to possess special credentials to travel to essential work and activities.
• The South Carolina Law Enforcement Division (SLED) issued guidance regarding the enforcement of Governor McMaster’s orders and expressly noted:
• “Law enforcement officers should continue to conduct enforcement activity in accordance with their own agency’s practices and protocols. During the course of these normal operations, if an officer develops reasonable suspicion or probable cause that an individual is in violation of Executive Order 2020-21, or any other Executive Order, the officer may take the appropriate enforcement action. However, there is no requirement in any existing Executive Order that an individual must possess or be able to provide written proof regarding the individual’s activities or travel, essential or otherwise.”
• Nothing is prohibiting a business from issuing employees paperwork that states they are an essential employee and must travel to work at an essential business. Still, the Governor’s executive orders do not require such a credential.

REALTORS® should always have their license pocket card in their possession.

Q2. Can our clients leave their home to look at property at this time?

14. Yes, residents can leave their home to look at property.  The order allows residents to leave their home “for purposes of engaging in Essential Business“ (Section 1, B page 6 of the Governor’s Order.)  Real estate is an essential business. Non-residents (depending on their state of residence) may have to isolate or self-quarantine upon entering our state (Executive Order 2020-14.)

Please remember, while real estate is open for business, it’s not business as usual. Please take every precaution required and necessary to keep yourself, your agents, your clients, and the public as safe as possible.

Download our PDF with information regarding the “Home or Work” order here

Government Offices and Defining Real Estate as an Essential Service

Successfully closing a transaction involves a lot of contact with various county and municipal governments for services such as property inspections, tax payments, and deed recording. Unfortunately, each government office is operating under its own policies at the moment, so it’s unclear just what services are available in each area.Some government offices are still operating under regular policies, some have shut down completely, and many are somewhere in the middle. SCR has been in close contact with the Governor’s office and has requested that real estate be defined as an essential service in upcoming emergency or executive orders. This would allow for continued access to local deed recording offices to keep your transactions in the pipeline, and to make sure they get to the closing table.SCR has also been in regular contact with many statewide organizations including the SC Chamber of Commerce, South Carolina Bar Association, Homebuilders Association of South Carolina, Palmetto Land Title Association, among others, to explain how this patchwork approach is making real estate transactions extremely difficult and to try to work toward a common solution. This will be an ongoing discussion with many facets and we’re working to provide member resources as we’re able to collect that information.In the meantime, the Association of Counties has created a COVID-19 information page which includes updated information for all 46 county operations.

Attorney and Closing Mitigation

Reports from across the state indicate that attorneys are working within virus mitigation strategies that limit access to local government offices. These mitigation strategies vary from office-to-office and are affecting closing processes.SCR is hearing of offices closing for deep cleaning, while some are offering electronic filing and recording. Other law offices are implementing virus mitigation strategies when it comes to in-person closings such as social distancing between the parties (e.g., buyer and seller in separate rooms with separate paperwork and pens, personal hygiene). And, some are handling things remotely as much as they can in accordance with state law with the parties signing and notarizing separately off-site. Unfortunately, some are reportedly closing down for business altogether.SCR has been working with the Bar Association on ensuring that closing services are available as widely as possible. We will continue to work with them to provide additional information to members.SCR recommends you call your closing attorney today and ask what procedures and limitations the law firm is utilizing and experiencing. If one attorney cannot accommodate a closing, it may be necessary to seek out counsel who can close the transaction.

Forms and Extensions

There are a lot of transactions hitting speed bumps due to the unavailability of resources and/or service providers. Many members have been drafting some sort of contract extension language and have been asking SCR for a coronavirus addendum or form.The SCR Forms Committee, and staff counsel met to review various forms options.Without getting into all the details, the committee decided there’s a delicate balance between speed and comprehensiveness, and we want to make sure we’re not going to write something that actually adds confusion to the market. SCR’s Legal department has published a short legal update on the coronavirus and offers some practical advice on how to address issues that may arise.If your transaction needs extended time frames, there’s already a form for that. The two best ways to extend a deadline include doing a pen and ink change on the actual form, or using Form 390. Be sure to have both parties initial and date the change. Form 390 can also be used for any change that needs to be made to a contract. If you need to extend a deadline the best practice is to copy the relevant language from the contract and simply change the date. Remember to not draft any language without having it cleared by legal counsel.Do not use COVID-19 contract language found on the internet, on social media, or from colleagues unless your attorney reviews and approves the language.

License Renewal and Continuing Education

As of April 1st, the SC LLR are extending the license renewal deadline for licenses, registrations and permits scheduled to renew during the months of April, May, June, July and August.  The new renewal deadline will now be extended to September 30, 2020.  Additionally, continuing education requirements may be obtained throughout the entirety of this extended renewal period.

Renewals will be open on their regularly scheduled dates, so you are welcome to renew now if that is more convenient for you, but you are not required to do so. Additionally, renewing now may be preferable to those who are required to provide proof of current licensure to other regulatory authorities or to your employers.

For more information, visit llr.sc.gov/renewalupdates.

Open House Guidance

NAR has issued guidance on open houses during the COVID-19 outbreak.

Coronavirus Aid, Relief and Economic Security Act

Click here for details on provisions for REALTORS^® and Consumers. 

FREE Online Mediation Now Available

Now more than ever, it’s important to try and work through differences. SCR is here for you, and so are your fellow Realtor® mediators. The following volunteers are currently offering FREE socially-distanced video conference mediation as an alternative dispute resolution. SCR sends a special thank you to these Realtor® members who are using their own equipment and time to offer this FREE assistance during these difficult times. Click here to view the list.

Additional Resources

• NAR Coronavirus Resources
• Coronavirus: A Guide for REALTORS^®
• Coronavirus: Resources for Property Owners
• COVID-19 Resources and Information for Property Managers
• American Society of Home Inspectors Recommendations for Inspection Process
• Appraisal Institute COVID-19 Guidance
• US Small Business Administration Loan Information
• Q & A Regarding NAR COVID-19 Federal Advocacy
• Sample Preparedness Plan: Do you know how to handle the situation if an agent/licensee or staff of a brokerage reports a case of COVID-19? NAR has prepared a Sample Preparedness Plan for these circumstances that any real estate brokerage may adopt and implement in their workplace.
• Coronavirus: A Guide for REALTOR^® Associations
• CDC’s website for the latest updates
• US Department of Housing & Urban Development COVID-19 Information and Resources
• Freddie Mac Selling Guidance Related to COVID-19
• Fannie Mae Guidance on Appraisals
• Department of Veterans Affairs Valuation Practices during COVID-19
• Title, Settlement Companies Develop Safe Closing Protocols
• South Carolina Governor Press Releases
• South Carolina Department of Labor, Licensing and Regulation
• South Carolina S.C. Department of Health and Environmental Control 
• South Carolina Department of Employment & Workforce
• South Carolina Emergency Management Division – Closings and Delays
• South Carolina Association of Counties COVID-19 Information Page
• FHA/HUD Foreclosure and Eviction Moratorium
• FDIC COVID-19 Information for Banks and Consumers
• Mortgage Bankers Association COVID-19 Resources
• CCIM Coronavirus (COVID-19) Resources & Guidance
• NAR Coronavirus Guidance: Commercial Real Estate
• Video Conferencing Best Practices from SCR (PDF)
• South Carolina REALTORS® Youtube Channel for recordings of webinars & town-halls.
• Legal Update: Governors Home or Work Order (PDF)
• Protect your Investment: A Guide for At Risk Homeowners (PDF)