Property Disclosure Legal Requirements

Summary

South Carolina law requires sellers to disclose material facts affecting property use or value, even with an as-is clause. You may renegotiate or terminate the contract if non-disclosure occurs. Consult a real estate attorney to explore legal options and understand applicable laws, such as the South Carolina Residential Property Condition Disclosure Act and the Unfair Trade Practices Act.

Full Conversation

You are in a contract to purchase a property past the due diligence period, and after further investigation, you discovered that the lot is not buildable due to space restrictions. The seller did not provide an updated survey (only an outdated one from the 1990s) and is selling the property "as-is," which includes a clause indicating they will not make further disclosures or repairs. However, South Carolina law requires sellers to disclose material facts affecting the property’s use or value, such as zoning or building limitations, regardless of an "as-is" clause. Since the seller may have omitted or failed to disclose a key fact about the property’s limitations, you may have grounds for contract renegotiation or termination based on non-disclosure of material issues essential to your intended use (building a home). Consulting a real estate attorney is recommended to explore how these non-disclosures might legally support backing out without penalty.
Hi ****,
To assist you better, could you confirm if the property is intended for residential purposes? Understanding this will help provide relevant information regarding South Carolina's disclosure laws and possible legal steps.
it's a land property, intended to be built on. This is for the state of south carolina
Hi ****,
Thank you for confirming. Here are a few key points regarding your situation:
- South Carolina law requires sellers to disclose material facts that affect the property’s use or value.
- An "as-is" clause does not exempt the seller from disclosing these facts.
- You may have grounds to renegotiate or terminate the contract due to non-disclosure.
Consulting a real estate attorney is strongly recommended to explore your legal options.
can you share with me the links so SC laws that states this
Hi ****,
Here are the relevant South Carolina laws that pertain to your situation:
- **South Carolina Residential Property Condition Disclosure Act**: This law requires sellers to disclose known material facts about the property.
- [South Carolina Code of Laws Title *, Chapter *](https://www.scstatehouse.gov/code/t27c050.php)
- **Material Facts Disclosure Requirement**: Even with an "as-is" clause, sellers must disclose any known issues that affect the property’s use or value.
- [South Carolina Code of Laws Title *, Chapter *](https://www.scstatehouse.gov/code/t40c057.php)
Consulting a real estate attorney is recommended to understand how these laws apply to your specific situation.
what other laws I can use?
Hi ****,
Apart from the laws mentioned, you might also consider:
- **South Carolina Unfair Trade Practices Act**: Prohibits deceptive practices in property sales.
- [South Carolina Code of Laws Title *, Chapter *](https://www.scstatehouse.gov/code/t39c005.php)
- **South Carolina Statute of Frauds**: Requires certain contracts, including those for the sale of land, to be in writing.
- [South Carolina Code of Laws Title *, Chapter *](https://www.scstatehouse.gov/code/t32c003.php)
Consulting a real estate attorney can provide specific guidance on leveraging these laws.
can I still back out of the contract if it is past due diligence?
Hi ****,
Yes, you may have the option to back out of the contract past the due diligence period if the seller failed to disclose material facts affecting the property’s use or value. Consulting a real estate attorney is crucial to determine if non-disclosure laws apply to your situation and to explore your legal options.