Current Status Bill Number:1201 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19960229 Primary Sponsor:Martin All Sponsors:Martin Drafted Document Number:res9911.lam Residing Body:Senate Subject:Residential Property Disclosure Act of 1996
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19960430 Committee report: majority 12 SLCI
favorable, with amendment,
minority unfavorable
Senate 19960229 Introduced, read first time, 12 SLCI
referred to Committee
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COMMITTEE REPORT
April 30, 1996
S. 1201
S. Printed 4/30/96--S.
Read the first time February 29, 1996.
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
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.
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:
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.