When you sell your home, it’s not always easy. A lot of work goes into packing up your possessions – and your memories. In such a busy time, it’s easy to overlook parts of the process, especially in the mountain of paperwork that goes along with any major purchase. In South Carolina, a critical part of the selling process is providing the buyer with a resale disclosure. Failure to do so properly can give the buyer license to back out of the purchase, and no one wants that! Read on for more about this critical piece of information.
What is the law about resale disclosure in South Carolina?
South Carolina law is very specific about the information that a seller must provide to a potential buyer and when. The South Carolina Homeowners Association Act is the source of all of that information. Section 27-52-200 requires that the seller must provide the buyer with a written disclosure that says that unit being sold is in a community under the control of a homeowners’ association. The package of information must be given to the buyer within 10 days of written notice of a pending sale. Included in the package are:
  1. The bylaws and rules of the association.
  2. A copy of the declaration that the property is part of a homeowners’ association.
  3. A dated statement containing:
  • Contact info for a principal contact for the association.
  • The amount of regular assessment fees due for the unit, as well amounts of any unpaid fees related to the unit.
  • A statement of any part of the unit that is covered by association insurance.
  • Amount in the association’s reserve fund.
  • Information about any modifications to the property that violate HOA rules.
  • Information about any pending litigation between the association and current owner.
  • Statement to be signed by the buyer, acknowledging that they understand the amount of fees they must pay the association and that failing to pay those fees gives the association the right to foreclose on the property.
  1. Current operating budget for the association.
  2. The association’s most recent annual financial statement.
If all of the above information is not provided to the buyer before a contract is signed, the buyer has the right to cancel the sale.

Is it difficult to order the resale package?
Ordering the documents is actually easy. In communities managed by FirstService Residential, all someone needs to do is go online with the buyer’s name, seller’s name, purchase price, anticipated closing date and unit address.

To learn more about resale packages, what information they include and how to obtain one, check out our interview with resale expert Marlayna Bohrman.

Tuesday April 25, 2017