Current Status Bill Number:871 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19980114 Primary Sponsor:Alexander All Sponsors:Alexander Drafted Document Number:jic\5075jm.98 Residing Body:Senate Current Committee:Judiciary Committee 11 SJ Subject:Property condition disclosure statement, written provided upon sale of residential properties; Real estate
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19980114 Introduced, read first time, 11 SJ
referred to Committee
Senate 19971215 Prefiled, referred to Committee 11 SJ
View additional legislative information at the LPITS web site.
TO AMEND TITLE 27, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY AND CONVEYANCES, BY ADDING CHAPTER 49 SO AS TO PROVIDE FOR A WRITTEN PROPERTY CONDITION DISCLOSURE STATEMENT UPON THE SALE OF RESIDENTIAL PROPERTIES, AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 27 of the 1976 Code is amended by adding:
"Section 27-49-10. This chapter applies to the following transfers of residential real property consisting of at least one but not more than four dwelling units, whether or not the transaction is with the assistance of a licensed real estate broker or salesman:
(1) sale or exchange;
(2) installment land sales contract;
(3) option to buy or sell;
(4) sale or exchange of an interest in a vacation timesharing plan or multiple ownership plan; or
(5) sale of partnership interest or share of stock in a corporation where residential real property is the only significant asset.
Section 29-49-20. The following transfers are exempt from the provisions of this chapter:
(1) transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by a receiver, transfers by eminent domain, and transfers resulting from a decree for specific performance;
(2) transfers to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a mortgagee who has acquired the real property at a sale conducted pursuant to a judgment and order foreclosure;
(3) transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(4) transfers from one or more co-owners solely to one or more other co-owners;
(5) transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors;
(6) transfers between spouses resulting from a divorce decree or support order, or marital property distribution order;
(7) transfers made by virtue of the record owner's failure to pay any federal, state, or local taxes;
(8) transfers to or from the federal government;
(9) transfers to the State, its agencies, and departments, and its political subdivisions, including school districts; or
(10) transfers involving the first sale of a dwelling never inhabited, provided builder offers a written home warranty;
(11) lease with option to purchase contracts where the lessee occupies or intends to occupy the dwelling;
(12) real property sold at public auction;
(13) transfers between parties when both parties agree in writing not to complete a residential property disclosure statement.
Section 27-49-30. As used in this chapter:
(1) 'Owner' means each person having recorded present or future interest in real estate that is identified in a real estate contract subject to this chapter, but shall not mean or include the owner or holder of a mortgage, deed of trust, mechanic's or materialman's lien, or other lien or security interest in the real property, or the owner of any easement or license encumbering the real property.
(2) 'Purchaser' means each person or entity named as 'purchaser' or 'purchasers' in a real estate contract subject to this chapter.
(3) 'Real estate contract' means a contract for the transfer of ownership of real property.
(4) 'Real property' means the lot or parcel, and the dwelling unit described in a real estate contract subject to this chapter.
Section 27-49-40. (A) The owner of the real property shall furnish to a purchaser a residential property disclosure statement. The disclosure statement shall contain the language and be in the form set forth in subsection (B) of this section. The statement shall disclose those items that are required to be disclosed relative to the condition of the property and of which the owner has actual knowledge, except as otherwise agreed in the real estate contract.
(B) A residential property disclosure statement shall read as follows:
The South Carolina Residential Property Disclosure Act requires the owner of residential real property consisting of one through four units, whenever the property is to be sold, exchanged, or optioned, to furnish to the purchaser a residential property disclosure statement disclosing certain conditions of the property. Certain transfers of residential property are excluded from this requirement by this act. This disclosure statement is designed to assist the owner in complying with the disclosure requirements and to assist the purchaser in evaluating the property being considered. The listing real estate broker, the selling real estate broker and their respective clients, if applicable, will also rely upon this information when they evaluate, market, and present the owner's property to prospective purchasers. This is a disclosure of the owner's personal knowledge of the condition of the property as of the date signed by the owner and is not a substitute for any inspections or warranties that the purchaser may wish to obtain. This form is not a warranty of any kind by the owner or a warranty or representation by the listing broker, the selling broker, or their agents, if applicable.
Property Address/Description:
The undersigned owner of the real property described above discloses the following present conditions of the real property of which the owner has actual knowledge with regard to:
1. Any defect in the plumbing, water supply, or sanitary sewage disposal systems:
[ ] Yes [ ] None known
If yes, please describe
2. Any defect in the roof, chimneys, floors, foundation, basement, or load-bearing walls, or any leak in the roof or basement:
[ ] Yes [ ] None known
If yes, please describe
3. Any defect in the electrical, heating, or cooling systems:
[ ] Yes [ ] None known
If yes, please describe
4. Present infestation of termites, or other wood-destroying insects or organisms or past infestation for which the damage has not been repaired:
[ ] Yes [ ] None Known
If Yes, please describe
5. The real property's violation of zoning laws, restrictive covenants or building codes; any encroachment of the real property from adjacent real property, or projections onto adjacent property; or notice from any governmental agency affecting this real property:
[ ] Yes [ ] None Known
If Yes, please describe
6. Presence of lead-based paint, asbestos, radon gas, methane gas, underground storage tank, hazardous material or toxic material, or any report affecting these items (whether buried or covered):
[ ] Yes [ ] None Known
If Yes, please describe
The undersigned Owner represents that the information set forth in the foregoing disclosure statement is accurate and complete to the best of Owner's personal knowledge. Owner hereby authorizes Broker, if applicable, to provide this information to prospective Purchasers of the property and to real estate brokers and salespeople. The Owner has a duty to disclose to Purchaser any material inaccuracy in this statement or any material change in the real property that is discovered between the date of this statement and the closing of the transaction. The Owner(s) acknowledge receipt of a copy of this disclosure statement and further acknowledge that they have examined it before signing below:
Owner Date Owner Date
Broker Date
The undersigned Purchaser has carefully inspected the property. Purchaser is advised to have the property examined by professional inspectors. Purchaser acknowledges that neither any broker nor agent, if applicable, involved in this transaction is an expert at detecting or repairing physical defects in the property. Purchaser states that no representations concerning the condition of the property are being relied upon by Purchaser except as disclosed above. The Purchaser(s) acknowledge receipt of a copy of this disclosure statement and further acknowledge that they have examined it before signing below:
Purchaser Date Purchaser Date'
Section 27-49-50. (A) The owner of real property subject to this chapter shall deliver to the purchaser the written disclosures required by this chapter no later than the time the purchaser makes an offer consistent with Section 27-49-10. The residential property disclosure statement may be included in the real estate contract, in an addendum, or in a separate document.
(B) If the disclosure statement required by this chapter is not delivered to the purchaser prior to or at the time the purchaser makes an offer, the purchaser may cancel any resulting real estate contract. The purchaser's right to cancel shall expire if not exercised prior to the following, whichever occurs first:
(1) the end of the third calendar day following the purchaser's receipt of the disclosure statement; or
(2) the end of the third calendar day following the date the contract was made; or
(3) settlement or occupancy by the purchaser in case of a sale or exchange.
Any right of the purchaser to cancel the contract provided by this subsection is waived conclusively if not exercised in the manner required by this subsection.
In order to terminate a real estate contract when permitted by this section, the purchaser shall, within the time required above, give written notice to the owner or the owner's agent either by hand delivery or by depositing into the United States mail, postage prepaid, and properly addressed to the owner or the owner's agent. If the purchaser cancels a real estate contract in compliance with this subsection, the cancellation shall be without penalty to the purchaser, and the purchaser shall be entitled to a refund of any deposit the purchaser may have paid. Any rights of the purchaser to cancel or terminate the contract for reasons other than those set forth in this subsection are not affected by this subsection.
Section 27-49-60. The owner may discharge the duty to disclose imposed by this chapter by providing a written report attached to the residential property disclosure statement by a public agency or by an engineer, land surveyor, geologist, pest control operator, contractor, home inspector or other expert, dealing with matters within the scope of the public agency's functions or the expert's license or expertise. The owner shall not be liable for any error, inaccuracy, or omission of any information delivered pursuant to this section if the error, inaccuracy, or omission was made in reasonable reliance upon the information provided by the public agency or expert and the owner was not grossly negligent in obtaining the information or transmitting it.
Section 27-49-70. If, subsequent to the owner's delivery of a residential property disclosure statement to a purchaser, the owner discovers a material inaccuracy in the disclosure statement, or the disclosure is rendered inaccurate in a material way by the occurrence of some event or circumstance, the owner shall promptly correct the inaccuracy by delivering a corrected disclosure statement to the purchaser. Failure to deliver the corrected disclosure statement or to make the repairs made necessary by the event or circumstance shall result in such remedies for the Purchaser as are provided for by law in the event the sale agreement requires the property to be in substantially the same condition at closing as on the date of the offer to purchase, reasonable wear and tear excepted.
Section 27-49-80. A real estate broker or salesman acting as an agent in a residential real estate transaction has a duty to inform each of the clients of the real estate broker or salesman of the client's rights and obligations under this chapter. If the owner's real estate broker or salesman has performed this duty, the broker or salesman shall not be responsible for the owner's wilful refusal to provide a prospective purchaser with a residential property disclosure statement. Nothing in this chapter shall be construed to conflict with, or alter, the broker's or salesman's duties under Chapter 57 of Title 40.
Section 27-49-90. This chapter shall not affect the landlord-tenant relationship between the parties to a lease with an option-to-purchase contract during the term of the lease, and the rights of the landlords and tenants under the South Carolina Residential Landlord and Tenant Act shall remain in effect until transfer of ownership of the property to the purchaser.
Section 27-49-100. The South Carolina Real Estate Commission may prepare, or cause to be prepared, forms for use pursuant to this chapter. The commission may charge a fee not to exceed twenty-five cents per form plus the costs of postage."
SECTION 2. This act takes effect January 1, 1999, and applies to contracts entered into on or after that date.