If you have a buyer or seller or landlord or tenant involved with a property transaction involving a dam and the related body of water, recommend they obtain legal counsel and dam/flood counsel and insurance counsel asap. Contact the SCR legal hotline.

Recommend parties investigate all dam issues either prior to contract or during due diligence.

DHEC reports about 2,300 dams in SC. DHEC ranks dams by their risk factors and reports inspecting high risk dams once every two years using the 16 DHEC staff assigned to dam monitoring.

Dams can impact transactions in a number of ways:

Dams might be on the property.

Dams might be related to the property legally via the owners association or private legal agreements even if off-site.

Dams might be off-site and "upstream" from the property so that if the dam fails then damages and injuries and death and flooding might occur at the "downstream" property.

Dams create bodies of water that can be enjoyed and/or create risks. Risk management can be expensive.

Dams can create costs for maintenance, security, improvement, removal, insurance, and water issues both now and in the future. Dam issues can be expensive.

Dams can have past legal issues and costs and insurance issues that can be expensive.

Parties should alert their legal counsel of all dam issues involved.

While the seller disclosure is a useful document, recommend parties investigate all dam/water issues and hire all relevant dam/water experts to investigate all dam and water issues either pre-contract or during due diligence to manage risks and expectations and needs and financial issues.

These dam/water issues can also impact commercial properties and new home developments.

Posted by: Byron King on 8/30/21 (This information is only accurate as of 8/30/21. You must contact SCR for updates and changes to this information after 8/30/21 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)