South Carolina H4748 mandates residential builders and specialty contractors to hold client funds in escrow or trust accounts, prohibits misuse, and.

South Carolina H4748 amends the state code to require residential builders and residential specialty contractors to hold client funds in escrow or trust accounts. These accounts must be maintained at federally insured financial institutions, separate from all other accounts, and contain only client funds. Contractors can only use these funds for project-related expenses, payments to subcontractors or suppliers, or returning unused funds to clients. The bill prohibits commingling client funds with personal or business funds, and mandates recordkeeping and reporting requirements.

South Carolina H4748 mandates residential builders and specialty contractors to hold client funds in escrow or trust accounts, prohibits misuse, and.

South Carolina H4748 amends the state code to require residential builders and residential specialty contractors to hold client funds in escrow or trust accounts. These accounts must be maintained at federally insured financial institutions, separate from all other accounts, and contain only client funds. Contractors can only use these funds for project-related expenses, payments to subcontractors or suppliers, or returning unused funds to clients. The bill prohibits commingling client funds with personal or business funds, and mandates recordkeeping and reporting requirements.