Bill > H4584

This bill adds a new section to South Carolina law that regulates the purchase of interests in managing entities that own residential properties, providing key protections for buyers. The bill defines specific terms like "managing entity" (a business that owns residential property) and "residential arrangement" (where a property interest entitles exclusive possession of residential property). The legislation requires that purchase agreements clearly disclose that buyers are purchasing an interest in a business entity, not the property itself, and prohibits agreements from requiring disputes to be resolved outside of state or federal courts. The bill also restricts managing entities from taking actions that would be unlawful if applied directly to real property, such as restricting interest transfers, imposing burdensome maintenance requirements, or refusing to grant interests to qualified persons. Importantly, owners can transfer their interests without managing entity approval, and the managing entity cannot charge fees or share in transfer proceeds. Violations of these provisions are considered unfair or deceptive trade practices, though the law does not apply to timeshare plans. The act will take effect upon the Governor's approval, providing new safeguards for individuals purchasing interests in entities that own residential properties.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=4584&session=126&summary=B