South Carolina H 4422: A BILL TO AMEND SECTION 27-40-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXCLUSIONS FROM THE RESIDENTIAL LANDLORD AND TENANT ACT, SO AS TO PROVIDE FOR CERTAIN REMEDIES FOR A SELLER OF A DWELLING UNIT OR PROPERTY CONTAINING A DWELLING UNIT IN CERTAIN CIRCUMSTANCES; AND TO AMEND SECTION 27-40-710, RELATING TO NONCOMPLIANCE WITH A RENTAL AGREEMENT, SO AS TO ALLOW A SELLER TO RECOVER ACTUAL DAMAGES AND OBTAIN OTHER FORMS OF RELIEF FROM A PURCHASING PARTY WHO OCCUPIES A DWELLING UNIT PRIOR TO THE COMPLETION OF THE SALE AND FAILS TO MAKE PAYMENTS TO THE SELLER.

Bill Text

2017-2018 Bill 4422 Text of Previous Version (Nov. 9, 2017) - South Carolina Legislature Online 

South Carolina General Assembly

122nd Session, 2017-2018 

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Bill 4422

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Indicates New Matter 

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.) 

A BILL

TO AMEND SECTION 27-40-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXCLUSIONS FROM THE RESIDENTIAL LANDLORD AND TENANT ACT, SO AS TO PROVIDE FOR CERTAIN REMEDIES FOR A SELLER OF A DWELLING UNIT OR PROPERTY CONTAINING A DWELLING UNIT IN CERTAIN CIRCUMSTANCES; AND TO AMEND SECTION 27-40-710, RELATING TO NONCOMPLIANCE WITH A RENTAL AGREEMENT, SO AS TO ALLOW A SELLER TO RECOVER ACTUAL DAMAGES AND OBTAIN OTHER FORMS OF RELIEF FROM A PURCHASING PARTY WHO OCCUPIES A DWELLING UNIT PRIOR TO THE COMPLETION OF THE SALE AND FAILS TO MAKE PAYMENTS TO THE SELLER. 

Whereas, the Residential Landlord Tenant Act does not apply to situations where the purchaser occupies the property as his domicile while the seller maintains the recorded title as security; and 

Whereas, this sort of arrangement is common for a purchaser with either poor or no credit history and allows them to purchase a primary residence; and 

Whereas, current law requires the seller to file a foreclosure action with the Master-In-Equity Court, negatively impacting the purchaser's ability to purchase a home in the future and clogging the court's docket; and 

Whereas, authorizing the seller to utilize the magistrates court for an eviction action would aid in avoiding some of these negative consequences and unclog the court's docket. Now, therefore, 

Be it enacted by the General Assembly of the State of South Carolina: 

SECTION 1. Section 27-40-120 of the 1976 Code is amended to read: 

"Section 27-40-120. The following arrangements are not governed by this chapter: 

(1) residence at an institution, public or private, if incidental to detention or the provision of medical, geriatric, educational, counseling, religious, or similar service; 

(2) occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser or a person who succeeds to his interest, except for the remedies provided for in Section 27-40-710(D); 

(3) occupancy by a member or a fraternal or social organization in the portion of a structure operated for the benefit of the organization; 

(4) transient occupancy in a hotel, motel, or other accommodations subject to the sales tax on accommodations as provided by Section 12-36-920; 

(5) occupancy by an employee of a landlord whose right to occupancy is conditional upon employment in and about the premises; 

(6) occupancy by an owner of a condominium unit or a holder of a proprietary lease in a cooperative; 

(7) occupancy under a rental agreement covering the premises used by the occupant primarily for agricultural purposes; 

(8) occupancy under a rental agreement in a premises regulated by the provisions of Chapter 32 of, Title 27 of the 1976 Code (Vacation Time Sharing Plan Act). 

(9) residence, whether temporary or not, at a charitable or emergency protective shelter, public or private." 

SECTION 2. Section 27-40-710 of the 1976 Code is amended to read: 

"Section 27-40-710. (A) Except as provided in this chapter, if there is a noncompliance by the tenant with the rental agreement other than nonpayment of rent or a noncompliance with Section 27-40-510 materially affecting health and safety or the physical condition of the property, or Section 27-40-540, the landlord may deliver a written notice to the tenant specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon a date not less than fourteen days after receipt of the notice, if the breach is not remedied in fourteen days. The rental agreement terminates as provided in the notice except that: 

(1) if the breach is remediable by repairs or otherwise and the tenant adequately remedies the breach before the date specified in the notice, or 

(2) if the remedy cannot be completed within fourteen days, but is commenced within the fourteen-day period and is pursued in good faith to completion within a reasonable time, the rental agreement may not terminate by reason of the breach. 

(B) If rent is unpaid when due and the tenant fails to pay rent within five days from the date due or the tenant is in violation of Section 27-40-540, the landlord may terminate the rental agreement provided the landlord has given the tenant written notice of nonpayment and his intention to terminate the rental agreement if the rent is not paid within that period. The landlord's obligation to provide notice under this section is satisfied for any lease term after the landlord has given one such notice to the tenant or if the notice is contained in conspicuous language in a written rental agreement. The written notice req