Only use SCR313 comfortably when your buyer is timely/properly terminating under SCR311 due diligence.

https://www.screaltors.org/wp-content/uploads/Forms/313.pdf

For all other uses of SCR313, you should be very worried and always recommend your buyer seek legal counsel asap before taking any actions or submitting any SCR313 or communicating any termination to the other side (e.g. seller, seller’s rep).

For earnest money disbursement, only use SCR518 release/disbursement or SCR517 disbursement agreement without release…preferably use SCR518 because a release will help ensure no future lawsuits arise from the failed transaction.

https://www.screaltors.org/wp-content/uploads/Forms/518.pdf

https://www.screaltors.org/wp-content/uploads/Forms/517.pdf

SCR311 due diligence can help avoid the earnest money dispute too! Simply make the SCR310 contract earnest money due AFTER the due diligence period expires. Terminate timely/property with SCR313 under due diligence SCR311 and voila, earnest money never becomes due.

Best practice is to never add any phrases or sentences to any SCR form without lawyer oversight.

Writing in phrases about earnest money into SCR313 is never a good idea.

First, you can just use SCR518 alongside SCR313 and not have to type phrases and sentences about the earnest money into the SCR313.

Second, you do not risk you and your broker being arrested for felony crime – unauthorized practice of law by adding phrases/sentences to SCR forms.

Third, you do not risk you and your broker being sued for unauthorized practice of law damages by adding phrases/sentences to SCR forms

Fourth, you do not risk you and your broker facing ethics complaints based on the unauthorized practice of law (Article 13) by adding phrases/sentences to SCR forms.

Fifth, you do not risk you and your broker facing license law complaints related to the unauthorized practice of law by adding phrases/sentences to SCR forms.

In summary, best practice is to only be comfortable using SCR313 with timely/properly SCR311 due diligence termination. Otherwise, only use SCR313 with lawyer oversight. SCR313 is like a loaded gun. Useful when used correctly. Can cause catastrophic harm when not used correctly,

Beware the SCR313.

SCR518 is your friend.

Posted by : Byron King on 8/13/18 (This information is only accurate as of 8/13/18. You must contact SCR for updates and changes to this information after 8/13/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)