S 1201 Session 111 (1995-1996)
S 1201 General Bill, By Martin
A Bill to amend Title 27, Code of Laws of South Carolina, 1976, relating to
property and conveyances, by adding Chapter 10 so as to enact the "Residential
Property Disclosure Act of 1996".
02/29/96 Senate Introduced and read first time SJ-7
02/29/96 Senate Referred to Committee on Labor, Commerce and
Industry SJ-7
04/30/96 Senate Committee report: Majority favorable with amend.,
minority unfavorable Labor, Commerce and Industry SJ-9
COMMITTEE REPORT
April 30, 1996
S. 1201
Introduced by SENATOR Martin
S. Printed 4/30/96--S.
Read the first time February 29, 1996.
THE COMMITTEE ON
LABOR, COMMERCE AND INDUSTRY
To whom was referred a Bill (S. 1201), to amend Title 27, Code
of Laws of South Carolina, 1976, relating to property and
conveyances, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass with amendment:
Amend the bill, as and if amended, page 1, by striking Section
27-10-10 and inserting in lieu thereof the following:
/Section 27-10-10. This chapter shall be known as and may be
cited as the `Real Property Disclosure Act of 1996.'/
Amend the bill further, as and if amended, page 1, by striking
Section 27-10-20 and inserting in lieu thereof the following:
/Section 27-10-20. The purpose of this chapter is to ensure that
sellers of certain real property disclose to prospective buyers known
facts which materially affect the value of the property if these facts
are not known to the buyer and are not readily observable./
Amend the bill further, as and if amended, page 1, by striking
Section 27-10-30 and inserting in lieu thereof the following:
/Section 27-10-30. Except as provided for in Section 27-10-40,
the provisions of this chapter shall apply to any transfer by sale,
exchange, installment land sale contract, lease with an option to
purchase, or any other option to purchase of:
(1) real property improved with or consisting of not less than
one nor more than four dwelling units; or
(2) any commercial real property transaction./
Amend the bill further, as and if amended, page 2, Section
27-10-40, by striking line 36.
Amend the bill further, as and if amended, page 4, by striking
Section 27-10-80 and inserting in lieu thereof the following:
/Section 27-10-80. the Real Estate Commission shall promulgate
by regulation written forms on which the disclosures required by
this chapter shall be made./
Amend the bill further, as and if amended, page 4, by striking
Section 27-10-100 and inserting in lieu thereof the following:
/Section 27-10-100. The specification of items for disclosure in
the forms adopted by the commission as defined in Section 27-10-80 does not limit or abridge any obligation for disclosure created
under Section 40-57-270 or by any other provision of law or which
may exist in order to avoid fraud or misrepresentation in the
transaction./
Amend title to conform.
Majority favorable. Minority unfavorable.
J. VERNE SMITH GREG RYBERG
For Majority. For Minority.
A BILL
TO AMEND TITLE 27, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PROPERTY AND
CONVEYANCES, BY ADDING CHAPTER 10 SO AS TO
ENACT THE "RESIDENTIAL PROPERTY DISCLOSURE
ACT OF 1996".
Be it enacted by the General Assembly of South Carolina:
SECTION 1. Title 27 of the 1976 Code is amended by adding:
"CHAPTER 10
Section 27-10-10. This chapter shall be known as and may be
cited as the `Residential Property Disclosure Act of 1996'.
Section 27-10-20. The purpose of this chapter is to ensure that
sellers of certain residential real property disclose to prospective
buyers known facts which materially affect the value of the
property if these facts are not known to the buyer and are not
readily observable.
Section 27-10-30. Except as provided for in Section 27-10-40,
the provisions of this chapter shall apply to any transfer by sale,
exchange, installment land sale contract, lease with an option to
purchase, or any other option to purchase of real property improved
with or consisting of not less than one nor more than four dwelling
units. The provisions of this chapter shall not apply to commercial
real property transactions.
Section 27-10-40. The provisions of this chapter do not apply
to:
(1) transfers pursuant to court order, including, but not limited
to, transfers ordered by a probate court in the administration of an
estate, transfers pursuant to a writ of execution, transfers by any
foreclosure sale, transfers by a trustee in bankruptcy, transfers by
eminent domain, and transfers resulting from a decree for specific
performance;
(2) transfers to a mortgagee by a mortgagor or successor in
interest who is in default; transfers to a beneficiary of a deed of
trust by a trustor or successor in interest who is in default; transfers
by any foreclosure sale after default, in an obligation secured by a
mortgage; transfers by a sale under a power of sale or any
foreclosure sale under a decree of foreclosure after default in an
obligation secured by a deed of trust or secured by any other
instrument containing a power of sale; or transfers by a mortgagee
or a beneficiary under a deed of trust who has acquired the real
property at a sale conducted pursuant to a power of sale under a
mortgage or deed of trust or a sale pursuant to a decree of
foreclosure, or has acquired the real property by a deed in lieu of
foreclosure;
(3) transfer by a bank, savings and loan, mortgage banker, or
other lender who has acquired the property through foreclosure or
deed in lieu of foreclosure;
(4) transfers of time sharing units, as defined in Section
27-32-10, condominiums, and cooperatives;
(5) transfers by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) transfers from one co-owner to one or more other
co-owners;
(7) transfers made to a spouse or to a person or persons related
by consanguinity to one or more of the transferors;
(8) transfers between spouses resulting from a decree of
dissolution of marriage or a decree of legal separation or from a
property settlement agreement incidental to such a decree;
(9) transfers under Title 12 of the South Carolina Code, as a
result of failure to pay property taxes;
(10) transfers or exchanges to or from any governmental entity;
(11) transfers or exchanges to or from a mortgage guaranty
insurer or reinsurer;
(12) transfers by a licensed contractor of a newly constructed
residence;
(13) commercial real property transactions.
Section 27-10-50. The owner of any real property subject to this
chapter shall deliver to the prospective buyer the written disclosure
statement as required by this chapter. The written statement shall be
delivered prior to the time the buyer signs any contractual offer,
exchange, or option agreement. Upon delivery, the prospective
buyer shall sign and acknowledge having received the written
disclosure statement.
Section 27-10-60. (A) The owner shall not be liable for any
error, inaccuracy, or omission of any information delivered pursuant
to this chapter if the error, inaccuracy, or omission was not known
or should not have been known by the owner or the error,
inaccuracy, or omission was based on information timely provided
by public agencies or by other persons providing information as
specified in subsection (D) that is required to be disclosed pursuant
to this chapter, and ordinary care was exercised in obtaining and
transmitting it.
(B) If a real estate licensee provides to or otherwise obtains for
a prospective buyer the written disclosure statement described in
Section 27-10-80, such licensee is not liable for any error,
inaccuracy, or omission of any information in the disclosure, unless
the licensee knew or should have known of the error, inaccuracy, or
omission.
(C) The delivery of any information required to be disclosed by
this chapter to a prospective buyer by a public agency or other
person providing information required to be disclosed by this
chapter shall be deemed to comply with the requirement of this
chapter and shall relieve the owner of further duty under this
chapter with respect to that item of information.
(D) The delivery of a report or opinion prepared by a licensed
engineer, land surveyor, geologist, pest control operator, home
inspector, contractor, or other expert, dealing with matters within
the scope of the professional's license or expertise, shall be
sufficient compliance for application of the exemption provided by
subsection (A), if the information is provided to the prospective
buyer pursuant to a request therefor, whether written or oral. In
responding to such a request, an expert may indicate, in writing, an
understanding that the information provided will be used in
fulfilling the requirements of Section 27-10-80 and, if so, shall
indicate the required disclosures, or parts thereof, to which the
information being furnished is applicable. Where such a statement is
furnished, the expert shall not be responsible for any items of
information, or parts thereof, other than those expressly set forth in
the statement.
Section 27-10-70. (A) If information disclosed in accordance
with this part is subsequently rendered inaccurate as a result of any
act, occurrence, or agreement subsequent to the delivery of the
written disclosure statement, the inaccuracy resulting therefrom does
not constitute a violation of this part. The owner shall notify the
prospective buyer, in writing within 5 business days, if any
information contained in the written disclosure statement becomes
inaccurate in any way during the term of any pending purchases by
the prospective buyer.
(B) If, at the time the written disclosure statement is required to
be provided to a prospective buyer, an item of information required
to be disclosed is unknown or not reasonably available to the
owner, and the owner may in good faith state that the item of
information is unknown or not reasonably available to the owner,
provided the statement is clearly identified as such, is reasonable, is
made in good faith, is based on the best information available to the
owner and is not used for the purpose of circumventing or evading
this part.
Section 27-10-80. The Real Estate Commission shall
promulgate by regulation a written form on which the disclosures
required by this section shall be made.
Section 27-10-90. Nothing in this chapter relieves a prospective
buyer of the duty to exercise reasonable diligence to protect himself
or herself, including those facts which are known to or readily
observable to the prospective buyer.
Section 27-10-100. The specification of items for disclosure in
the form adopted by the commission as defined in Section 27-10-80
does not limit or abridge any obligation for disclosure created under
Section 40-57-270 or by any other provision of law or which may
exist in order to avoid fraud or misrepresentation in the transaction.
Section 27-10-110. No transfer subject to this chapter shall be
invalidated solely because of the failure of any person to comply
with the provisions of this chapter. However, any person who
willfully or negligently violates or fails to perform any duty
prescribed by any provision of this chapter shall be liable in the
amount of actual damages suffered by the buyer."
SECTION 2. This act takes effect January 1, 1997.
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