Buyers need their attorney to investigate CCR’s and HOA’s either prior to contract or during the due diligence period if the buyer wants the ability to terminate should there be CCR’s or HOA or Condo issues that the buyer does not want (e.g. visitor restrictions, rental restrictions, costs, management, solvency, cannot park RV/boat/tractor trainer on property, restrictions on architecture/landscaping, memberships, animal restrictions, re-sale restrictions).

Easy way to do this:

1. Use SCR311 due diligence so the buyer has time to investigate and obtain legal counsel and timely/properly terminate.

2. Use SCR391 and make it a contingency for the sellers to obtain the CCR’s and HOA and Condo documents and deliver to Buyers inside the Due Diligence Period so the buyer and the buyer’s legal counsel can evaluate.

https://www.screaltors.org/wp-content/uploads/Forms/391.pdf

3. Buyer and buyer’s law firm review and evaluate the documents.

4. Alternatively, buyer hires law firm to obtain and review the documents prior to Contract. SCR300/310: The buyer acknowledges having time to review these documents prior to Contract.

REALTORS® should avoid providing CCR/HOA/Condo documents even if the brokerage obtained these documents the day before closing from another law firm because even in that short time span, important changes could have occurred with the CCR/HOA/Condo documents.

Prudent risk management is to have the law firm obtain and or review the documents (e.g. seller may provide the documents).

SCR listing agreements and residential contracts require the seller to provide a seller disclosure including the owners association addendum. Buyers should receive a complete seller disclosure prior to contract. The owners association addendum asks relevant questions and the seller can attach the proper documents.

http://www.llr.state.sc.us/POL/REC/RECPDF/Residential%20Property%20Condition%20Disclosure%20Statement%20Addendum.pdf

Posted by : Byron King on 8/20/18 (This information is only accurate as of 8/20/18. You must contact SCR for updates and changes to this information after 8/20/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)