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South Carolina · S.C. Code §§40-57-30(44), 40-57-350South Carolina wholesaling rules: what counts, and why brokerages must stay out

South Carolina defines wholesaling as having a contractual interest in buying residential real estate from an owner and then marketing the property for sale to a different buyer before taking legal ownership; advertising or marketing real estate owned by someone else with the expectation of compensation falls under the definition of broker and requires a license – but assigning or offering to assign a contractual right to buy residential real estate is not wholesaling (S.C. Code §40-57-30(44)). The same line appears in the advertising rules: marketing real property is distinguished from marketing a contractual position in a sales agreement, and an advertisement that markets a contractual position, without implying that it sells or markets the underlying property, is permissible (§40-57-135(E)(1)). Real estate brokerage firms and their subagents are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling, both toward clients and toward customers (§40-57-350).

The rules

  1. 1. Wholesaling (§40-57-30(44))

    Marketing the property to another buyer before taking ownership.

  2. 2. License needed

    Marketing someone else's property for compensation is brokerage.

  3. 3. Not wholesaling

    Assigning or offering to assign the contractual right to buy.

  4. 4. Brokerages (§40-57-350)

    May not engage in, represent or assist wholesaling.

What the TC can do

  • If a deal involves an assignment, check with the broker-in-charge before the firm takes part.
  • Note whether the other side marketed the property itself or only the contract position.
  • Keep the assignment documents in the file.

Questions about South Carolina wholesaling

Is assigning a purchase contract wholesaling in South Carolina?

No – assigning or offering to assign a contractual right to buy residential real estate isn't wholesaling under §40-57-30(44); marketing the property itself before owning it is.

Can a South Carolina brokerage help with a wholesale deal?

No – brokerage firms and their subagents may not engage in, represent others in, or assist others in wholesaling (S.C. Code §40-57-350).

Related guides

Add a task in ClosingCode for the broker-in-charge's review of an assignment, with an owner and a due date.

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Source: South Carolina Code §§40-57-30(44), 40-57-135(E)(1) and 40-57-350 (scstatehouse.gov, read October 26, 2026).

General information, not legal advice. Ask the broker-in-charge or a South Carolina attorney about a specific deal. ClosingCode is software; it is not a law firm. This guide is not a substitute for the advice or services of an attorney.