6.05 Regulation by the South Carolina Real Estate Commission
The South Carolina Real Estate Commission (REC) is responsible for the enforcement and implementation of the VTSPA, and is charged with promulgating regulations for its implementation.94 However, while the VTSPA gives the REC authority to enforce the Act, it is clear, according to the South Carolina Supreme Court that statutory grant of authority does not interfere with the ability to bring a private action to do the same and, a finding by the REC of a statutory violation is not a condition precedent to bringing a private suit under the Act. Finally, the determination of the REC as to whether the Act was violated is not binding on courts.95
The commission has adopted regulations to carry out that directive.96 Persons wishing to sell vacation timesharing plans must register with the commission.97 A seller cannot escape liability for violations of the VTSPA by employing independent contractors. The seller is charged with the duty of supervising, managing, and controlling all aspects of the offering and sale of a vacation timesharing plan and any violation of the VTSPA by a registrant employed by a seller as an independent contractor, either directly or through a third party, in connection with the offering or sale of interests in vacation timesharing plans may be considered to be a violation by the seller — and of the registrant who committed the violation — if the seller knew or should have known of the conduct constituting the violation.98
Every vacation timesharing plan for sale or offered for sale in South Carolina must be registered with the commission.99 There is a fee for registration set by statute.100 The commission reviews applications for registration to determine that:
(1) seller may sell, convey, otherwise transfer, or cause to be sold, conveyed, or otherwise transferred the vacation timesharing plan offered for sale if the purchaser complies with the terms of the offer;
(2) the advertising material and general promotional plan are not false or misleading;
(3) the requirements of [the VTSPA] have been fulfilled;
(4) the seller or its officers, directors, and principals have not been convicted of a crime involving land dispositions, crimes of moral turpitude, securities law violations, fraudulent business activities, or any aspect of the vacation timesharing business in South Carolina, the United States, or another state or foreign country within the past ten years, and have not been subject to an injunction or administrative order within the past ten years restraining a false or misleading promotional plan involving any of theses activities;
(5) interests in accommodations and facilities conveyed to a purchaser are free and clear of all liens, mortgages, and encumbrances of every kind, the existence or foreclosure of which may result in loss or diminution of the purchaser's ownership or use rights, as represented in the vacation timesharing plan.101
Within 30 days from the date the commission receives an application for registration, it must enter an order either registering the vacation timesharing plan or rejecting the registration. If an order of rejection is not entered within 30 days the plan is considered registered unless the applicant has consented in writing to a delay. A reasonable request for an extension of time by the commission may not be withheld.102
The commission is authorized to make public or private investigations...
