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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-5-125 SO AS TO PROHIBIT THE ISSUANCE OF A CERTIFICATE OF OCCUPANCY FOR AN IMPROVEMENT TO REAL ESTATE AGAINST WHICH A VALID, RECORDED MECHANIC'S LIEN EXISTS, AND TO PROVIDE THAT THE OWNER OF THE REAL ESTATE MUST ALSO FILE WITH THE OFFICE ISSUING THE CERTIFICATE OF OCCUPANCY AN AFFIDAVIT STATING THAT ALL SUBCONTRACTORS WHO PERFORMED WORK ON THE IMPROVEMENTS HAVE BEEN PAID IN FULL, AND THIS AFFIDAVIT IS REQUIRED BEFORE THE CERTIFICATE OF OCCUPANCY MAY BE ISSUED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 5, Title 29 of the 1976 Code is amended by adding:
"Section 29-5-125. (A)(1) A certificate of occupancy for an improvement to real estate may not issue to the owner of the improvement against which a valid lien, acquired pursuant to Section 29-5-20, exists on the public records of the county in which the subject real estate is located.
(2) For purposes of issuing the certificate of occupancy described in item (1), the lien may be released only pursuant to this chapter.
(B) The owner of the real estate must also file with the office issuing the certificate of occupancy an affidavit stating that all subcontractors who performed work on the improvements have been paid in full. This affidavit is required before the certificate of occupancy may be issued."
SECTION 2. This act takes effect upon approval by the Governor.
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