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South Carolina · S.C. Code §40-57-136South Carolina earnest money: the 48-hour deposit rule and disputes

In South Carolina, trust funds a licensee receives in a real estate transaction go to the broker-in-charge no later than the following business day (S.C. Code §40-57-136(B)(4)). In a sale, the broker-in-charge deposits them in a separate real estate trust account: cash or certified funds within 48 hours of receipt, and checks within 48 hours after the parties' written acceptance of the offer – excluding Saturday, Sunday and bank holidays in both cases (§40-57-136(D)(1)(a)). The funds stay in the account until the transaction closes or terminates, and undisputed funds are then disbursed as the contract directs, with a full accounting to the parties; disbursing on rejection of an offer, withdrawal of an offer not yet accepted, or at closing satisfies the broker's duty (§40-57-136(D)). If the buyer and seller dispute who gets the deposit and can't resolve it by reasonable interpretation of the contract, it's held until a separate written agreement signed by everyone claiming it, an interpleader, a court order or voluntary mediation (§40-57-136(E)). If the trust funds are held outside the brokerage, the licensee still has to make sure they're delivered to the agent named in the contract on time (§40-57-136(H)).

The rules

  1. 1. Agent to broker (§40-57-136(B)(4))

    By the next business day.

  2. 2. Deposit: 48 hours (§40-57-136(D)(1)(a))

    Cash on receipt; checks from written acceptance; weekends and bank holidays excluded.

  3. 3. Dispute (§40-57-136(E))

    Held until a separate signed agreement, interpleader, court order or mediation.

  4. 4. Held outside the firm (§40-57-136(H))

    The licensee still ensures timely delivery to the named holder.

What the TC can do

  • Note the written acceptance time – a check's 48 hours run from it.
  • Get the deposit receipt from the broker-in-charge or the named escrow holder.
  • If the deal falls apart, ask for a release signed by both sides as a separate document.

Questions about South Carolina earnest money

How fast must a South Carolina broker deposit earnest money?

Within 48 hours, excluding weekends and bank holidays – from receipt for cash or certified funds, and from written acceptance of the offer for checks (S.C. Code §40-57-136(D)(1)(a)).

What happens to disputed earnest money in South Carolina?

It stays in the trust account until a separate written agreement signed by all claimants, an interpleader, a court order or voluntary mediation (§40-57-136(E)).

Related guides

ClosingCode adds an earnest money receipt step to every deal's checklist, with an owner and a due date.

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Source: South Carolina Code §40-57-136 (scstatehouse.gov, read October 26, 2026).

General information, not legal advice. The contract may set its own deposit terms. ClosingCode is software; it is not a law firm or an escrow holder. This guide is not a substitute for the advice or services of an attorney.