Caveat Emptor: Buying Real Estate in South Carolina
In South Carolina, the doctrine of caveat emptor (“let the buyer beware”) generally governs real estate transactions, meaning that the buyer assumes the risk for any issues with the property unless there is fraud or misrepresentation by the seller. This doctrine places the onus on the buyer to protect their interests through covenants in the deed and thorough due diligence, including title searches and inspections.
To protect against potential title issues, buyers can rely on title insurance, which covers defects or encumbrances on the title that exist at the time of purchase. Title insurance is retrospective, protecting the buyer from losses due to pre-existing issues with the title. Additionally, South Carolina law requires that real estate and mortgage loan closings be conducted under the supervision of an attorney, who is responsible for identifying and addressing potential problems, such as existing judgments or liens against the property Inglese v. Beal, 403 S.C. 290, Boone v. Quicken Loans, Inc., 420 S.C. 452.
If there are code violations, South Carolina law mandates that sellers provide a written disclosure statement to buyers, detailing various property conditions, including compliance with zoning laws, building codes, and other land-use restrictions § 27-50-40. Disclosure statements. This disclosure helps buyers identify any existing code violations before completing the purchase. Furthermore, buyers' counsel should ensure that all required searches, including municipal searches, are conducted to confirm there are no open permits or violations for the property.
In summary, while the doctrine of caveat emptor places significant responsibility on the buyer, South Carolina law provides mechanisms such as title insurance, attorney supervision, and mandatory disclosure statements to help protect buyers from potential title issues and code violations.
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