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Bill 3560

                    Current Status

Bill Number:                      3560
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010214
Primary Sponsor:                  Edge
All Sponsors:                     Edge
Drafted Document Number:          l:\council\bills\bbm\9916htc01.doc
Companion Bill Number:            232
Residing Body:                    Senate
Current Committee:                Judiciary Committee 11 SJ
Date of Last Amendment:           20010425
Subject:                          Vacation Rental Act, Property, Rental, 
                                  Acts Cited By Popular Name


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
------  20010504  Scrivener's error corrected
Senate  20010426  Introduced, read first time,           11 SJ
                  referred to Committee
House   20010426  Read third time, sent to Senate
House   20010425  Amended, read second time
House   20010419  Debate adjourned until
                  Wednesday, 20010425
House   20010418  Committee report: Favorable with       26 HLCI
                  amendment
------  20010214  Companion Bill No. 232
House   20010214  Introduced, read first time,           26 HLCI
                  referred to Committee


              Versions of This Bill
Revised on April 18, 2001 - Word format
Revised on April 25, 2001 - Word format
Revised on May 4, 2001 - Word format

AMENDED

April 25, 2001

    H. 3560

S. Printed 4/25/01--H.    [SEC 5/4/01 2:44 PM]

Read the first time February 14, 2001.

TO AMEND TITLE 27, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY AND CONVEYANCES BY ADDING CHAPTER 42 ENACTING THE "SOUTH CAROLINA VACATION RENTAL ACT" SO AS TO REGULATE THE BUSINESS OF RENTAL MANAGEMENT OF VACATION TIME RENTAL PROPERTY, TO PROVIDE DEFINITIONS AND EXCEPTIONS WITH REGARD TO THIS REGULATION, TO PROVIDE FOR THE STATUS OF VACATION RENTALS ON TRANSFERRED PROPERTY, TO PROHIBIT A COUNTY OR MUNICIPALITY FROM BANNING VACATION RENTALS EXCEPT PURSUANT TO SPECIFIC AUTHORIZATION FOR SUCH BANS ENACTED BY THE GENERAL ASSEMBLY BY GENERAL LAW, AND TO PROVIDE THAT A TENANT IN POSSESSION OF PROPERTY UNDER A VACATION RENTAL IS SUBJECT TO A MANDATORY EVACUATION ORDER.

    Amend Title To Conform

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 27-42-10.    This chapter may be cited as the 'South Carolina Vacation Rental Act'.

    Section 27-42-20.    (A)    This chapter applies to any rental management company acting on behalf of an owner or to any other persons or entities otherwise engaged in the renting or managing of residential property for vacation rental as defined in this chapter.

    (B)    This chapter does not apply to:

        (1)    lodging provided by hotels, motels, tourist camps, or campgrounds subject to regulation under Title 45, including hotels, motels, or condominiums with multiple owners owning and managing individual units or groups of units that rent units on a daily basis or longer, and provide a front desk or office for customer service, or provide a centralized telephone system, or provide housekeeping services at no additional charge;

        (2)    any vacation timesharing accommodation as defined by Section 27-32-10(7) and (8);

        (3)    rental of residential property on a weekly or monthly basis pursuant to Chapter 40 of this title, the South Carolina Residential Landlord and Tenant Act.

    Section 27-42-30.    As used in this chapter:

    (1)    'Residential property' means an apartment, condominium, single family home, townhouse, cottage, or other property devoted to residential use or occupancy by one or more persons for a definite or indefinite period.

    (2)    'Rental management company' means a licensed property manager-in-charge or broker-in-charge and their associates and employees who manage vacation rentals.

    (3)    'Vacation rental' means the lease, sublease, or other rental of residential property for a period of fewer than ninety days, except that it does not include rental of residential property on a weekly or monthly basis pursuant to Chapter 40 of this title, the South Carolina Residential Landlord and Tenant Act.

    (4)    'Vacation rental agreement' means a written agreement between an owner or the owner's rental management company and a tenant, in which the tenant rents residential property belonging to the owner for a vacation rental. This definition includes electronically transmitted agreements, including, but not limited to, agreements entered into over the internet and electronic facsimiles.

    (5)    'Vacation rental management agreement' means a written agreement between an owner and the owner's rental management company, in which the rental management company manages residential property belonging to the owner for a vacation rental. This definition includes electronically transmitted agreements, including, but not limited to, agreements entered into over the internet and electronic facsimiles.

    Section 27-42-40.    (A)    An owner or rental management company and tenant shall use a written vacation rental agreement for all vacation rentals subject to the provisions of this chapter. No vacation rental agreement is valid and enforceable unless the tenant has accepted the agreement as evidenced by at least one of the following:

        (1)    the tenant's signature on the vacation rental agreement, including electronic signatures transmitted over the internet or other similar medium;

        (2)    the tenant's payment of any monies towards the vacation rental agreement;

        (3)    the tenant's taking possession of the property subject to the vacation rental agreement.

    (B)    A rental management company in a vacation rental agreement shall place in a trust account conforming with the requirements of Section 40-57-135(B) any monies received from the tenant. The rental management company may require the tenant to pay all or part of any required rent, security deposit, or other fees in advance of the tenancy. The terms of these advanced payments, which may be nonrefundable, must be stated in the vacation rental agreement.

    (C)    An owner or rental management company who is a party to a vacation rental who intentionally fails to use a written vacation rental agreement as required by this section commits an unfair trade practice in violation of Chapter 5 of Title 39.

    (D)    A rental management company has a duty to inform each owner under contract with the rental management company of the owner's obligations under this section. If the rental management company has performed this duty, the rental management company is not liable for the owner's refusal or failure to comply with the requirements of this chapter. Nothing in this section may be construed to conflict with, or alter, the rental management company's duties under the rules and regulations of the South Carolina Real Estate Commission.

    Section 27-42-50.    (A)    The grantee of residential property subject to a vacation rental shall take title subject to the vacation rental agreement and the vacation rental management agreement for all vacation rental periods that begin no later than one hundred eighty days after the date the grantee's interest is recorded in the office of the register of deeds. If the vacation rental begins more than one hundred eighty days after the recording of the grantee's interest, then no party has the right to enforce the terms of the vacation rental agreement or occupancy provided for in the agreement, but the tenant is due a refund of any payments towards the agreement within forty-five days of the recording of the transfer of interest.

    (B)    Before ratification of any contract of sale, the grantor shall disclose to the grantee in writing all future time periods that the property is subject to a vacation rental. Not later than fourteen consecutive days after entering into a contract of sale or transfer of interest, whichever is earlier, the grantor shall disclose in writing to the rental management company the grantee's name and address. Not later than fourteen consecutive days after the date of the transfer of interest, the grantor shall disclose in writing to the rental management company the grantee's name, address, and date the transfer of interest was recorded. The failure of a grantor or grantee to comply with the provisions of this section constitutes an unfair trade practice in violation of Chapter 5 of Title 39. No action may be brought against an owner or rental management company by a tenant for any damages or injuries that occur as a result of property defects of which an owner or rental management company had no actual knowledge.

    Section 27-42-60.    If state or local authorities order a mandatory evacuation of an area that includes a residential property subject to a vacation rental, the tenant in possession of the property shall comply with the evacuation order."

SECTION    2.    This act takes effect upon approval by the Governor.

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