The South Carolina Residential Property Disclosure Act
If you are purchasing residential property in Myrtle Beach (or anywhere else in the State), you should receive a Residential Property Disclosure before you sign the contract. Notable exceptions include sales from a personal representative administering an estate or purchases of new homes that have never been inhabited. You can also waive your right to a disclosure.
The Residential Property Disclosure Act creates the disclosure obligation and is designed to protect putative purchasers of residential property in South Carolina. The Act mandates that prospective purchasers receive a disclosure on a form promulgated by the South Carolina Real Estate Commission. The form is available here.
The disclosure is a check-the-box form that requires a seller to answer “yes,” “no,” or “no representation” with respect to a series of questions about the home. For example, the disclosure asks an owner to reveal any defects or issues with respect to the roof, floors, structural components, plumbing, and water supply.
An owner that knowingly violates the Act by making representations that he or she knows to be false, incomplete, or misleading may be found liable for actual damages caused to the purchaser along with court costs. A Court can also award attorneys’ fees in these types of cases.
As important, the representations made on the disclosure form are from the owner, not from the listing agent or any other real estate licensee. But a real estate agent can be held responsible if he or she knew or had reasonable cause to suspect that the information supplied in the disclosure was false, incomplete or misleading.
The Disclosure Statement can be just a part of a purchaser’s due diligence. The Act itself provides that it “does not limit the obligation of the purchaser to inspect the physical condition of the property and improvements.” Ordinary sellers and real estate agents do not have expertise in plumbing, electrical, and construction codes. Most standard South Carolina residential real estate contracts have inspection-related provisions that allow purchasers to utilize an independent professional to inspect their potential new home.
DISCLAIMER: You probably already know this, but you can’t become DuRant & DuRant, P.A.’s client by reading anything (including a blog or a website). This blog doesn’t constitute legal advice. Every situation is different. If you want legal advice about your unique issues, contact a lawyer.
The attorneys at DuRant & DuRant, P.A. located at 2107 Farlow Street, Myrtle Beach, SC 29557 provide real estate legal services, including closing services, to buyers and sellers in Myrtle Beach, South Carolina and the surrounding areas. If you are a purchaser that needs an attorney to close a transaction or if you believe that your seller violated the Act, give Frank DuRant or Julian DuRant a call at 843-448-1541.