Selling a HomeMyrtle Beach Real EstateLegal & Compliance

April 21, 2026

TL;DR: South Carolina law requires sellers of residential property to disclose known material defects before closing. Skipping or understating required disclosures can expose a seller to legal liability even after the sale is complete. Here is what the law requires, what it does not, and why getting it right matters in today's market.

The Disclosure Question Every Seller Eventually Faces

The Coastal Carolinas market is producing real transaction activity heading into spring 2026. According to CCAR MLS (April 2026), single-family pending sales rose 9.8% year over year in March, and the median sales price held at $355,000. More homes are moving, and more contracts are reaching closing tables.

With that activity comes paperwork — and one document that trips up sellers more than almost any other: the residential property disclosure. Many sellers assume the rule is simple: disclose the big things and leave out the rest. In South Carolina, the legal standard is more specific than that. What you are required to tell a buyer, when you have to tell them, and what happens if you miss something — these are questions worth understanding before you list.

Nothing in this post constitutes legal advice. For guidance specific to your property and situation, consult a licensed South Carolina real estate attorney or your listing agent.

What South Carolina Law Actually Requires

South Carolina's Residential Property Condition Disclosure Act is codified at S.C. Code § 27-50-10 et seq. (SC Statehouse). It applies to most residential property transfers — single-family homes, multifamily properties with four or fewer units, and certain other residential structures.

The law requires sellers to complete a written disclosure statement before a buyer makes an offer, or at least before the contract becomes binding. The form covers a broad range of property conditions, including:

Roof condition and any known leaks or prior repairs
Foundation and structural issues
Plumbing, electrical, and HVAC systems
Water source and sewage/septic systems
Presence of hazardous materials (lead paint, asbestos, radon)
Pest infestations or prior treatment
Flooding history and drainage problems
Boundary disputes or easements the seller is aware of
Zoning violations or unpermitted work

The operative phrase throughout is "known material defects." Sellers are not required to investigate or uncover conditions they have no knowledge of. But they are required to disclose conditions they do know about — including ones that have been repaired. A roof that leaked three years ago and was patched is a disclosure item, even if it no longer leaks today.

South Carolina does not require sellers to make any repairs before closing. The disclosure requirement is about information, not remediation. According to the SC Real Estate Commission (LLR), completing the disclosure form honestly — and updating it if conditions change before closing — is a fundamental seller obligation in any covered transaction.

The Exemptions: When Disclosure Is Not Required

The statute does include exemptions. Not every transfer triggers the full disclosure requirement. Transactions that are generally exempt under § 27-50 include:

Court-ordered sales (foreclosures, probate, divorce settlements)
Transfers between co-owners
Sales to a spouse or direct lineal family member
Transfers by a fiduciary in the course of administering an estate or trust
New construction covered by a builder's warranty program

Even in exempt transactions, sellers should exercise caution. Exemption from the statutory form does not create a license to actively misrepresent conditions. Fraud claims based on material misrepresentation can survive even where no statutory disclosure was required.

For standard arm's-length sales — which represent the vast majority of Horry County transactions — the full disclosure requirement applies.

Why This Matters More in a Shifting Market

Market conditions affect disclosure dynamics in ways sellers do not always consider.

According to NAR's REALTORS® Confidence Index (February 2026), 20% of buyers nationally waived the inspection contingency in recent transactions — down from 24% one year prior. That number fluctuates with market temperature. In the current Grand Strand market, where inventory has softened slightly and buyers are exercising more due diligence, fewer buyers are waiving inspections altogether.

That matters for sellers because a buyer who does conduct a home inspection will compare what they find against what the disclosure form says. Any significant gap between the two creates risk — either a negotiated repair request, a contract termination, or in worst-case scenarios, a post-closing legal dispute. If a buyer submits repair requests based on inspection findings, knowing which requests carry real weight — and which ones sellers can reasonably push back on — is a separate but related decision. For a closer look at that dynamic, see Inspection Repair Requests Sellers Should Push Back On in Myrtle Beach.

According to CCAR MLS (April 2026), single-family homes in the region are averaging about 132 days on market. Homes sit longer when conditions are disclosed late, negotiated poorly, or discovered after an inspection the seller did not anticipate. The disclosure form is not just a legal formality. In a market where buyers are doing more homework, it is also a transaction management tool.

Common disclosure categories and typical documentation to have ready:

  
      Disclosure Category
      What to Document
      Why It Matters
    
      Roof
      Age, repair receipts, permits for replacement
      Buyers and insurers scrutinize roof age closely in coastal SC
    
      Water Intrusion / Flooding
      Prior insurance claims, remediation records
      Coastal and low-lying areas face heightened buyer scrutiny
    
      HVAC Systems
      Service records, equipment age, known issues
      High-use coastal climate accelerates wear
    
      Unpermitted Work
      Any additions, conversions, or improvements without permits
      Can trigger Horry County permit enforcement issues post-sale
    
      Pest/Termite History
      Treatment records, warranty documentation
      SC's warm, humid climate makes this a standard buyer concern

Source: SC Code § 27-50 (SC Statehouse); Horry County Government

What Happens If the Disclosure Is Incomplete

Sellers sometimes omit conditions they believe are minor, or that they hope the buyer will not notice. That calculation carries real risk.

Under South Carolina law, a buyer who discovers an undisclosed material defect after closing may have grounds for a civil claim against the seller. The statute does not eliminate other legal remedies — it supplements them. A seller who made fraudulent misrepresentations on the disclosure form can face liability beyond what a standard real estate dispute might involve.

South Carolina also requires attorneys at residential closings under SC Bar guidelines. That means a licensed SC attorney reviews the transaction before it closes. Sellers should treat the disclosure form with the same care they give the deed and the settlement statement. It is also worth noting that the closing process carries other fraud risks beyond the disclosure form itself — wire fraud targeting real estate transactions is an active concern on the Grand Strand. Before wiring any proceeds or funds related to your closing, review Wire Fraud in Myrtle Beach Real Estate: What Sellers Need to Know.

According to the NAR 2025 Profile of Home Buyers and Sellers, 54% of buyers nationally reported that their real estate agent pointed out unnoticed features or faults with properties they visited. Buyers are looking carefully — and so are the agents representing them. Treating the disclosure as a legal shield rather than a legal obligation is a common — and costly — misreading.

If you are getting ready to sell a home in the Myrtle Beach area and want to understand how disclosure requirements fit into your broader transaction strategy, the team at Carolina Crafted Homes is happy to walk through the process with you. Get in touch to start the conversation.

FAQ SECTION

Q1: Does South Carolina require sellers to disclose all defects, even ones that have been repaired?

Yes. South Carolina's disclosure law under § 27-50 requires sellers to disclose known material defects — including conditions that have been remediated. If a pipe burst and was repaired two years ago, that repair history should appear on the disclosure form. The form covers current and past conditions that a reasonable buyer would consider material to their purchase decision. Consult your listing agent or a licensed SC real estate attorney for guidance on specific situations.

Q2: What properties are exempt from South Carolina's residential disclosure requirement?

Several transaction types are exempt, including court-ordered sales, transfers between co-owners, sales to spouses or direct lineal family members, sales by fiduciaries administering estates or trusts, and new construction covered by a builder's warranty. These exemptions apply to the statutory disclosure form — they do not protect a seller from fraud claims based on active misrepresentation of property conditions. Verify whether your transaction qualifies for an exemption with a licensed professional.

Q3: When does the seller have to provide the disclosure form?

Under South Carolina law, the disclosure should be provided before the buyer makes an offer, or at minimum before the contract becomes binding. Completing the form after an offer is signed can create complications. Best practice is to have the form ready before the listing goes active so buyers receive it during their review period.

Q4: What happens if a buyer discovers an undisclosed defect after closing?

A buyer who finds a material defect not disclosed on the form may have legal grounds for a civil claim against the seller. South Carolina law does not eliminate common-law fraud or misrepresentation claims — it supplements them. The severity of the exposure depends on whether the defect was known to the seller and whether the omission was inadvertent or intentional. Sellers should consult a licensed SC real estate attorney before and during the transaction, not only after a dispute arises.

Q5: Does South Carolina require a seller to fix defects they disclose?

No. Disclosure is about information, not remediation. A seller who discloses a known defect is not automatically required to repair it before closing. The buyer receives the information and then negotiates — they may request a repair, a price reduction, a credit, or they may accept the property as disclosed. According to CCAR MLS (April 2026), sellers in the Coastal Carolinas market are currently receiving about 97.3% of list price on single-family homes, which means negotiating from a position of full disclosure is workable in today's environment.

Q6: Does South Carolina require an attorney at closing, and does that affect disclosure?

Yes. SC Bar guidelines require a licensed South Carolina attorney to be present at residential closings. That attorney reviews transaction documents, including the disclosure form and any amendments. This is an added layer of oversight — another reason sellers should treat the disclosure as a serious legal document rather than routine paperwork.