Columbia SC Real Estate Agency Laws – Agency Relationships

This is Part One of a past series of posts that will attempt to perform one of my legal obligations to you. Today…let’s talk about real estate laws and how they impact you.

The South Carolina Real Estate License Law requires real estate licensees (agents) to provide you with a meaningful explanation of Agency Relationships offered by their Company.

When encountering any licensee (whether you meet them at an Open House or a New Construction site such as Lake Carolina) or before you begin to work with a real estate licensee, the licensee should give you an Agency Disclosure Brochure.

It is important for you to know the difference between a Broker-in-Charge and associated licensees. This brochure begins the process of providing a meaningful explanation of agency.

The Broker-in-Charge is the person in charge of a real estate Company. Associated licensees may work only through a Broker-in-Charge. In other words, when you choose to work with any real estate licensee, your business relationship is legally with the Company and not with the associated licensee.

A real estate Company and its associated licensees can provide buyers and sellers valuable real estate services, whether in the form of basic customer services, or through client-level agency representation.

THERE IS A DIFFERENCE BETWEEEN BEING A CUSTOMER & A CLIENT!

In Part Two of this series, I’ll discuss that difference and why you should establish your business relationship with a licensee EARLY in the process.

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The Most Common Question Asked by First Time Home Buyers

“What is the first step in the process of purchasing a home?” This is the most common question asked of me by first time home buyers. My answer is always the same. “You need to hire a team of professionals!”

Have you seen the commercial with a man sitting at his kitchen table while on the phone with his doctor? The doctor starts by saying………

"Hey Bob…… have you disinfected the area?...Good....Now make a three-inch incision between the fourth and fifth abdominal muscles." The worried-looking man on the other end of the phone stares at the knife and says………."Shouldn't you be doing this?"

"It's really straightforward. Listen, I gotta go. I'll talk to you later." The doctor hangs up the telephone and leaves this poor guy to his own devises. Most of you would say….this is an unrealistic commercial. No one would make an attempt to perform that act.

Literally, I would agree with that statement. However, let’s dig a little deeper into that state of mind.

If we had termites or some other serious infestation, wouldn't we hire a pest company to treat the home? If we had a plumbing leak behind our clothes washer that caused water to seep into the walls (personal experience), wouldn’t we hire a plumber?

Not only would we hire these professionals. We’d even agree to pay their fee.

Consider this. There are several first time homebuyers shopping for homes while sitting at their computer with a knife in their hands.

Purchasing a home without hiring a team of professionals could cost you thousands of dollars in repairs, mortgage interest, and home equity. There are several aspects to buying a home.

If you are a first time homebuyer, YOU SHOULD NOT BE WORKING ALONE!

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Looking for Lake Carolina Homes for Sale? - Visit This Site!!

CLICK HERE TO SEARCH HOMES FOR SALE IN LAKE CAROLINA!!

If you are looking for a home priced in the $180,000 - $265,000 range, Berkeley Hall in Lake Carolina could be worth a look. Berkeley Hall is within walking distance of Lake Carolina Elementary, Kelly Mill Middle School and the NEW Northeast YMCA.

Here is one of the Berkeley Hall homes that's listed by my office.............


Our Featured Listing is Four Bedrooms, 2.5 Bathrooms and 2725 Square Feet (priced at $251,200). This home is located on a Cul-de-Sac lot with hardwoods on the lower interior.


The Master Suite has a Trey Ceiling and Sitting Area. The home has fresh interior paint, a screened porch, an automatic sprinkler system and a finished garage.

Identifying the perfect Lake Carolina Home is like looking for a needle in a haystack. If you'd
like help with searching for "the needle", call the HAY line at (803) HAY-9010.


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The Second Most Common Question of First Time Home Buyers

“Is the current market idea for purchasing a home?”

In the current climate of daily foreclosure stories and “experts” using words and phrases like “recession” and “bursting bubbles”, I am going to answer this question and issue my perception of the current real estate market in Northeast Columbia, South Carolina.

We all have goals and dreams for our lives. Some of the items on my “Bucket List” or “Goddard’s List” include visiting all 50 states in The Union, competing on a game show and becoming one of the most trusted real estate professionals in South Carolina.

In my opinion...Anytime is a great time to realize your dream!

If you are looking to own a home and experience the “American Dream” of home ownership, REMEMBER…….Anytime is a great time to realize your dream!

Would you like some facts that support my answer?

In Northeast Columbia during 2007, the number of HOMES SOLD did decrease by about 10% in comparison to 2006 numbers. HOWEVER………….

While those numbers decreased, the average sales price INCREASED by about 4.69%. What does that mean to you?

If you were thinking about buying a home in 2007 and decided that the “television and news experts” were right about your waiting to purchase a home, you LOSS about $8400 in equity through natural appreciation.

Do you need some more convincing? Nibble on these numbers…….

These are the raw Consolidated MLS numbers for Northeast Columbia Zip Codes:
(Zip Codes: 29223 -- 29229 -- 29016)

Year----------Closed Sales----------Average Sales Price
2007__________ 2700_______________ $192,714
2006__________ 3091_______________ $184,072
2005__________ 2929_______________ $168,566
2004__________ 2517_______________ $169,245
2003__________ 2129_______________ $163,100

What do these numbers say?

If you had bought your home in 2003, you could have gained about $30,000 in home equity. Here’s a question for you?

How hard would it be for you to save $30,000 within four years?

In summary, if you are buying a HOME (and not primarily for investment purposes) and you are working with a team of real estate professionals…. Anytime is a great time to realize your dream!

For the most common first time home buyer question, visit my Most Common Question post.

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First Time Home Buyers Should Know Their Buying Power

One of the biggest frustrations for both parties (buyers and sellers) in a real estate transaction occurs when home buyers are not properly approved and thoroughly educated about their mortgage.

For example, a buyer made a full price offer on a $160,000 home that was accepted by the seller. The lender had pre-approved the buyer for the loan. However, the lender had not communicated the monthly payment on a $160,000 mortgage to the buyer.

When receiving that piece of information about three weeks after entering into the contract, the buyer was floored and nervous about making the purchase.

Needless to say, the buyer did not complete the purchase. Understandably, the seller was less than ecstatic about this turn of events.

Before making an offer on a home, always obtain a copy of the Good Faith Estimate that is required to be given to you by your lender within three days after completing a mortgage application.

What did you say? "You don’t have a lender."

"You haven't applied for a home mortgage by completing a Uniform Residential Loan Application (Fannie Mae Form 1003)."

"You didn’t receive a Good Faith Estimate before shopping for a home."

Do any of the previous statements read like Greek to you (and you don’t speak Greek)?

If any of these statements are true for your situation, you are not properly prepared to purchase a home. You might want to hire a team of professionals that will properly educate and guide you successfully through the process.

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First Time Home Buyers Need a Reputable Mortgage Officer

After reading a post from my Guest Contributor Jorge Merlos, I had an epiphany. I hadn’t given you a real life example of a reputable loan officer in the Columbia area. Hence….this post is dedicated to correcting my faux pas.

There is a lady that is unique in several ways and brings her artistic creativity to the world of mortgage lending.

Let me introduce you to Leah Avery with Bank of America. She can be reached at (803) 255-7759 or you can email her at LEAH.AVERY@BANKOFAMERICA.COM


Patterson Group has teamed with Leah and her fellow loan officers to market a full range of banking products and real estate services to Columbia, South Carolina real estate home buyers.

Leah is a Columbia native and a Graduate of The University of South Carolina. Yes…Clemson Fans. Leah will still get you a great mortgage for your home.

Leah will meet to discuss your financial needs and analyze your credit and financial information in preparation to obtain the best mortgage option for your purchase while minimizing closing costs.

Leah sends this list of items to post. These are some items needed to assist her efforts to help you.



*2 years W-2s...Most loan programs will require that the borrower provide only the previous year’s W-2 statement. However, some government programs will want to review two years. If you are self employed, you’ll need to bring your entire return for the previous 2 years.

*Bank Statements...Lenders require a 60 day history of all active bank accounts. It is with these documents that funds to close are verified, etc.

*Current pay stub...Pay stub(s) will assist the lender in verifying monthly gross income, as well as what the borrower has earned year to date. Most loan programs will require only one pay stub, while several government programs request pay stubs for the previous 30 days.

*Driver’s License...Your lender will verify your name, address, etc. with your driver’s license. Please be sure to take your license to closing as the attorney may also verify your information.

*Other Income...If your qualification is based on other forms of income including child support payments, bring documentation (cancelled checks, etc.) to prove verification of such income.

The process of applying for a mortgage can be the source of much anxiety.

If you plan to meet with any lender in the near future, these aforementioned documents should be with you upon arriving at the lender’s office. This will contribute to expediting approval of your mortgage application.



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Fiduciary Duties are Important to First Time Home Buyers

This is Part 4 in my series on Columbia SC real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship. In Part Two, I wrote about the difference between being a Customer and a Client. Part Three discussed the importance of some sellers and all home buyers becoming Clients.

This installment will discuss your expectations of a real estate agent and their fiduciary duties to you.

If you enter into a written agency agreement, as a Client, you can expect the real estate agent and her/his real estate Company to provide the following client-level services:

1. OBEDIENCE - If, and only if, you have SIGNED an agency agreement with an agent and/or real estate company, the agent is obligated to promptly and efficiently obey all of your LEGAL instructions. HOWEVER, you MUST HAVE a signed agreement to receive this level of client services.


2. LOYALTY - This fiduciary duty obligates a real estate agent to operate and negotiate in your best interest. Unless you have a SIGNED agency agreement with an agent or real estate company, the agent/real estate company is not required to be loyal to you. Therefore, when you walk on that new construction site and begin to sign documentation, remember this................

If you do not have representation with you, the on-site agent is not required to work for your best interest!


3. DISCLOSURE - An agent must disclose all known relevant and material information. For example, your agent should educate you about any factor that might affect the value or desirability of the home being considered for purchase.

By the way, NEVER ENTER INTO A CONTRACT without reviewing the Sellers Property Condition Disclosure Statement. If you are looking at new construction, this property will not be available to you for obvious reasons.

(NOTE -- Not all homes are required to have this document. For a list of exemptions, please feel free to email me at blogger@davidpatterson.net)


4. CONFIDENTIALITY - Unless you give consent, an agent is obligated to safeguard your personal information and your ability/willingness to pay more for a home than your offer price. However, if you do not have a signed agency agreement with a real estate agent or company.....

"ANYTHING YOU SAY CAN BE USED AGAINST YOU........" (Know Your Rights!)


5. ACCOUNTING - An agent and their real estate company is obligated to account for all money, deeds, documents and/or any other property given to them by you. For example, I have a client from Virginia that is moving to our area. In an effort for me to work on her behalf, she entrust me and Russell & Jeffcoat with $1250. This money is to be held in earnest and for payment of required inspections.

When hiring an agent, you must hire someone trustworthy! $1250 is not a trivial amount to being handing over to any Tom, Teresa, Dick, Denise, Harry or Harriet!


6. Reasonable Care and Skill - This is the most ignored duty by first time home buyers! Just because you have a friend or acquaintance that has their real estate license, that does not equate to possessing the skill necessary to fulfill this and the aforementioned fiduciary duties.

An agent is obligated to use reasonable care and diligence when representing you. You should expect a standard of care that only a COMPETENT real estate PROFESSIONAL can exhibit.

You should hire someone with superior skill and knowledge of the real estate market. No agent can possess superior skill AND knowledge by having closed only 1-4 transactions in their career.

You need to hire professionals such as an Accredited Buyer Representative, a Certified Residential Specialist or a real estate professional that has closed at least 25 transactions.

In my opinion, I would not want to be in the courtroom with an attorney that has never represented someone on trial for their freedom. That same mindset should be used in hiring a real estate agent.

In Part Five of this series, we will discuss Columbia SC Real Estate Types of Agency.

First Time Home Buyers Should Be Clients

This is Part 3 in my series on Columbia South Carolina real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship. In Part Two, I wrote about the difference between being a Customer and a Client.

This installment will discuss the importance of some sellers and all home buyers becoming Clients. Clients receive more services from real estate licensees than customers.

If you are a first time home buyer, I STRONGLY ENCOURAGE YOU to hire an Accredited Buyer Representative (ABR). There are ABR's that will work with you for FREE*! How can you beat that?

A seller becomes a client of a real estate company by signing a formal listing agreement with the Company. For a seller to become a client, this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the seller and the Company which becomes the agent for the seller.

A buyer becomes a client of a real estate Company by signing a formal buyer agency agreement with the Company. For a buyer to become a client, this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the buyer and the Company which becomes the agent for the buyer.

Let me take a moment and place emphasis on the previous paragraph. If you do not have a signed agreement from a real estate company or associated licensee, they are not required to work in your best interests!

For example, if you visit a new construction site and meet the on-site agent, they are talking to you with the best interest of the builder/seller in mind. Why do I know this? It's their Fiduciary Responsibility to represent the best interests of the builder/seller.

If you give that on-site agent information about yourself without representation, that agent has a legal duty to share it with the builder/seller. What you don't know about how they use your information could hurt you!

There are several examples of current homeowners that would never buy a new home again without the help of an Accredited Buyer Representative or Certified Residential Specialist. The ABR and CRS Designee is trained on representing and negotiating for your best interests!

Let me say this again...............If you are looking to buy a home, GET REPRESENTATION! Bad things can happen to you that could take years and thousands of dollars to correct.


In Part Four, we will discuss the fiduciary services that Clients should receive from their licensee (agent) and the real estate Company.



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43 Years Young - Russell and Jeffcoat Realtors

In 1965, Bob Russell announced the opening of Bob Russell Realty and Abb Jeffcoat, Jr. became a member of the Russell Realty Team. Over 40 years later, Russell and Jeffcoat has become the largest listing and selling real estate company in metropolitan Columbia, South Carolina.

Russell and Jeffcoat is also recognized as one of the leading independent residential real estate firms in the Southeast Region of the United States.

Below is a commercial released by Russell and Jeffcoat

You Are A Customer - Columbia SC Real Estate Agency Laws

This is Part Two in my series on Columbia South Carolina real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship.

Unless you have signed an Agency Agreement with a real estate licensee, you are a Customer.

South Carolina license law defines customers as buyers or sellers who choose NOT to establish an agency relationship. The law requires real estate licensees to perform the following basic duties when dealing with any real estate buyer or seller as Customers:

• Present all offers in a timely manner
• Account for money or other property received on your behalf
• Provide an explanation of the scope of services to be provided
• Be fair and honest and provide accurate information
• Disclose "adverse material facts" about the property or the transaction which are within the licensee's knowledge

Unless or until you enter into a written agreement with a real estate Company for agency representation, you are considered a "Customer" and a real estate Company or a licensee will not act as your agent!

As a Customer, you should NOT expect the Company or its licensees to promote your best interest, or to keep your bargaining information confidential.

In Part Three of this series, I'll discuss the importance of establishing a client relationship with a licensee EARLY in the process.




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Get A Home Warranty!

For homeowners, selling a home can be a challenging task. For home buyers, purchasing a home is a major investment and a big step in their lives. For both, most systems are hidden from view and are easily taken for granted until something goes wrong. That is when your asset/investment can become a major headache! Hence, home warranties are becoming a fundamental part of all real estate transactions.

Homeowner Advantages

Sellers give themselves a marketing advantage and are protected from unexpected bills on covered systems and appliances during the listing period. Sellers also reduce their after-sale liability. In this litigious society, that type of protection speaks for itself.

Buyer Advantages

After making your down payment, covering your closing costs, paying for moving and incurring all incidentals, your home should provide comfort and joy, not the surprises of extra (and expensive) repair bills on major systems and appliances.

Beginning on the day of closing, your year-long home warranty provides for the repair or replacement of mechanical systems and major appliances that break down due to normal wear and tear. Plus, if you like the peace of mind that is provided by your home warranty, you have the option of renewing your warranty on an annual basis.

For more detailed information about your Home Warranty options, please feel free to email me at blogger@davidpatterson.net

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A Columbia South Carolina Real Estate Agent....and more

My name is David Patterson and I am the architect of this blog. Let me take a moment to tell you about me, my experiences, hobbies and my professional mission statement.

I’m a 36 year-old West Virginia native. I attended Mount View High School in Welch where I was the Football Defensive Captain of the first playoff team in MVHS Golden Knight history. How would I rate our first defensive performance? Mount View 12 -- #4 Martinsburg ZERO! I can’t believe that we’re approaching the 20th anniversary of that team. Time flies……

After graduating from Mount View, I obtained my Bachelor of Arts Degree in Mathematics from Queens University in Charlotte, North Carolina. Queens is truly a community and an extended family of diverse backgrounds (we miss you Dr. Billy O. Wireman).

While going to school and briefly living in Charlotte, I had an opportunity to experience the birth of the Carolina Panthers. Hence….I am an original fan (in 2007….that’s a hard fact to admit).

Currently, I am a real estate Broker with Keller Williams Realty in Columbia, South Carolina. My mission statement is to become one of the most trusted, best trained, solutions oriented real estate broker in South Carolina. What makes me qualified to publish this blog?

I have been awarded the prestigious Certified Residential Specialist (CRS) Designation by the largest not-for-profit affiliate of the National Association of Realtors.

DAVID PATTERSON LOVES HELPING FIRST TIME HOME BUYERS IN COLUMBIA, SOUTH CAROLINA!

I’ve been awarded the Certificate of Professionalism by the Greater Columbia Association of Realtors. GCAR recognizes some of its members for their participation in educational opportunities which sets us apart as professionals with the knowledge and skills to provide clients with the best possible service.

Also, I am a licensed real estate instructor with the Real Estate School for Success. If you are interested in getting your real estate license, read Darleen McCullen’s post on obtaining your real estate license. Who knows…..I might have a role on my team for you.

Enough about my business side! What does David do for fun?

Like the O’Jays……….I LOVE MUSIC! All types…..Old and new! RIP....Gerald Levert!

If you're interested in some of my favorite songs, VISIT MY SQUIDOO LENS.

I’m an avid sports fan! Some of my favorites include:

Kevin Garnett – Could this be the year for him and the Boston Celtics?

The Atlanta Braves – Let’s get back to the glorious days known as the 1990s.

The Pittsburgh Steelers – BORN & RAISED a Steeler fan.

I can’t claim too many hobbies. However, I enjoy……

Old game shows such as Match Game, Family Feud, the bonus game on the $100,000 Pyramid. One day…..I’d like for you to see me achieve my goal of appearing on a game show.

Playing Golf…..However, it is hard to play as much as I like. What’s my handicap? My drive off the tee!

Traveling - I will save my Top 10 Destinations for a future blog post.

Spending time with my friends and family. My mother has 9 brothers and 5 sisters. Family reunions and holidays are truly fun. Oh…I don’t want to forget one of my favorite members of my family. Introducing my niece Amaya Jade Martin


She’s going to be a superstar! In what field? Whatever she chooses!

That’s me in a nutshell. If you’d like to know more, execute Luke 11:10

10For every one that asketh receiveth; and he that seeketh findeth; and to him that knocketh it shall be opened.”

If I can ever help you with anything or if you’d like for me to discuss a topic on my blog, please don’t hesitate to email me at blogger@davidpatterson.net or call me at (803) 960-5231.

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