Currently, the SCR310 and SCR300 are due diligence legal agreements.

For over ten years, many licensees have had thousands of clients where due diligence was utilized in the parties’ best interests (e.g., seller gets the due diligence termination dollars if the buyer timely/properly walks, seller gets lukewarm buyers out of the way faster, buyer can timely/properly terminate if desired) and so these agents are very familiar with due diligence procedures.

SCR offers many forms training videos at the SC REALTORS® Youtube Channel.

SCR offers forms training either Zoom or live. Contact SCR to schedule.

It is general human nature to resist change. So, you may have some agents who have not used due diligence and want to use "repair procedure" and "as is" as they have used in the past. This is now a risk for them and you.

You may want to communicate with these agents and get them trained on the advantages of due diligence.

There are thousands of SC licensed brokers. If a small or large portion of these brokers decide to hire attorneys to draft brokerage forms to use instead of SCR310 due diligence, those potentially hundreds or thousands of non-standard forms introduced into the SC real estate marketplace will require upfront SC lawyer involvement with offers and counter offers and acceptance and rejection. Real estate agents will not be able to act as lawyers and interpret non-standard forms for their clients in offers, counteroffers, acceptanced. Only lawyers can do this.

Real estate agents should not write in phrases or sentences into legal agreements without lawyer oversight. Writing in phrases or sentences without lawyer oversight runs the risks of unauthorized practice of law.

Unauthorized practice of law can be a felony crime arrest.

Unauthorized practice of law can be a lawsuit for the agent, team, brokerage and broker.

Unauthorized practice of law can be an ethics violation and license law violation for the agent and broker.

Unauthorized practice of law can result in upset clients, loss of future business, and bad reviews.

SC law changed many years ago on unauthorized practice of law. Prior to that change, writing phrases or sentences into legal documents was less an unauthorized practice of law risk than now.

Hotline reports that there are some high risk agent behaviors occurring:

1. Writing in phrases or sentences into SCR310 without lawyer oversight. Many of these additions could have used SCR addenda forms instead.

2. Trying to change the cooperative compensation in the MLS using the offer. Do not do this. Use SCR120 compensation agreement prior to submitting the offer instead.

3. Trying to use AS IS instead of due diligence. SCR310 and SCR300 are due diligence forms now. Use due diligence in lieu of AS IS because sellers and buyers generally have different ideas of what AS IS means. Buyers generally believe they can walk on AS IS if the property condition is poor. Sellers generally do not sue buyers. Sellers generally do not realize that SCR310 can have many contingencies that override AS IS (e.g., financing contingency).

Some helpful reminders:

The due diligence termination fee is never paid if the deal closes.

There are other contingencies and sections in SCR300/310 that can be agreed upon and then can operate during or after the due diligence period depending on dates and checkboxes (e.g., financing contingency, appraisal contingency, wood infestation section, SCR504 sale of other real estate).

LLR SCREC does not want BIC escrow agents to disburse earnest money without a proper disbursement agreement or a court disbursement order. The broker’s disbursing administration can take time. So, there is risk trying to use this earnest money for the due diligence termination fee which has a deadline.

Since lawyer escrow agents are not regulated by the LLR SCREC, some lawyer escrow agents might use an escrow agreement executed with the parties at deposit time which allows for using earnest money for the due diligence termination fee.

It may be a risk management strategy for due diligence terminating buyers to timely/properly pay the due diligence termination fee to the seller, then worry about the earnest money disbursement (e.g., paper check, e-pay).

SCR525 repair addendum sunsets the due diligence period upon SCR525 agreement and execution.

If either party may have breached the contract, the parties talk to their trial lawyers asap about potential remedies.

Contact the SCR hotline anytime there are legal issues or questions.

Posted by: Byron King on 06/23/22 (This information is only accurate as of 06/23/22. You must contact SCR for updates and changes to this information after 06/23/22 as laws and regulations may change over time. SCR 803-772-5206 or email info at or email byron at

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.