News

How The CL-100 Contingency Works By: Scott Umstead Confusion persists among many agents, parties and even attorneys with regard to the CL-100 “contingency.”  Frankly, the contingency is not at all normal and doesn’t afford the buyer the safety of a true contingency.      Paragraph 11 (titled Wood Infestation Report) of the current version of the standard […]

The Threat of an Imposter Seller By: Scott Umstead Those of you who have been in the real estate business for a few years remember when wire fraud was just talk, but it didn’t take long for it to become a reality here on the Grand Strand.  Now we have a new and rapidly emerging

Early Occupancy By: Scott Umstead Oftentimes, a buyer will ask a seller’s permission to occupy the home prior to the closing   When an “early occupancy” request is made, there are several things to consider.  The question almost always arises just before closing when one party or the other is unable to perform the contract on

Deeds By: Scott Umstead In South Carolina, there are three (3) types of deeds.  Each type fully conveys the interest of the grantor (Seller); the differences between/among the deeds is the level of warranty the grantor offers:   General Warranty Deed: This is by far the most common deed.  It offers the best protection to

When The Owner Of Real Property Dies, How Can The Property Be Sold? By: Scott Umstead When a property owner dies, the property can certainly be sold, but it is possible an estate will first have to be opened and just as possible the sale won’t be immediate. The situation will almost surely fall into

Buyer Breach Of Contract By: Scott Umstead What happens when a buyer breaches the contract?     It is worth noting it is not always clear whether or not a party has breached.  For this article, we will assume the buyer did breach and the seller stood ready to perform.  The current SC Real Estate Commission

Seller Breach Of Contract By: Scott Umstead A seller breach can take many forms (e.g. failure to allow inspections, failure to make required repairs, failure to deliver vacant premises, failure to deliver marketable title, etc.).  The question above concerns a seller’s absolute refusal to close – this form of breach brings the transaction to a

The “New” Due Diligence Procedure – Part 2 By: Scott Umstead Though the “new” contract presents the due diligence procedure without alternatives, the parties can alter or eliminate the due diligence procedure through an addendum. As-Is Offers: To begin, the buyer can make an as-is offer.  If this is the Buyer’s wish, simply strike through

The “New” Due Diligence Procedure – Part 1 By: Scott Umstead The “new” contract going into common use on June 13th is actually the same contract Horry County agents have been using, except the “repair procedure” and “as-is” options in paragraph 8 are gone.  The “newness” is that “due diligence” is brought into the mainstream. 

Solar Panels By: Scott Umstead Click here to Print Article Solar Panel Purchase/Lease Plans and How They’re Handled at Closing     The existence of solar panels will probably not be found in a title search because solar panel agreements are not recorded at the courthouse.  Solar panels very definitely should be addressed in the transaction

Tenant Estoppel By: Scott Umstead What is a Tenant Estoppel?     A “tenant estoppel” is a document signed by an existing tenant in which the tenant acknowledges certain things about the status of the lease and the landlord-tenant relationship.  It is significant because a purchaser of the property will step into the seller’s shoes and

Electronic Signatures By: Scott Umstead Are Electronic Signatures Binding?    First, let me explain the controlling law.  A version the Uniform Electronic Transactions Act was adopted in South Carolina several years ago and appears as SC Code §26-6-10 et seq.  This Act governs electronic signatures, which are defined in the Act as “an electronic sound,

Allowable V. Non-Allowable Costs By: Scott Umstead What Are FHA/VA Allowable v. Non-Allowable Costs?    “Allowable” and “non-allowable” are terms unique to FHA and VA loans (also USDA, but we don’t see many of those).  An “allowable” cost in a VA loan is a cost the veteran is allowed to pay, whereas a “non-allowable cost”

Tax Sale Deed By: Scott Umstead What is a Tax Sale Deed?   A “tax deed” is issued by the Delinquent Tax Office – it is not a warranty deed and title is not deemed to be either “marketable” or “insurable.”  You own the property subject to any imperfectionsin the tax sale process.  The tax

Seller Financing And Private Third-Party Financing Under The Dodd-Frank Act By: Scott Umstead Click here to Print Article The Dodd-Frank Act (“Act”) limits the situations in which seller-financing and/or private third-party financing may make take place.  Under the Act, any person who offers and/or negotiates the terms of a residential mortgage loan is deemed to

The Vacation Rental Act (SC Code §27-50-210 Et Seq.) By: Scott Umstead A “vacation rental” refers to a rental period of less than 90 days in duration.  Most commonly, “vacation rental” situations are weekly rentals of a resort condominium.  The sale of residential property rented for periods of less than 90 days where that/those rental(s)

Short-Term Rentals (Managed) By: Scott Umstead NOTE: Even though “short-term” can refer to any rental period of 90 days or less, this memo deals only with true vacation rentals in which rentals are weekly or monthly.  If the rental periods are greater than this, refer to the memo on “Long-Term Leases (Managed)”   Things to Know:

Short- Term Rentals (Unmanaged) By: Scott Umstead NOTE: Even though “short-term” can refer to any rental period of 90 days or less, this memo deals only with true vacation rentals in which rentals are weekly or monthly.  If the rental periods are greater than this, refer to the memo on “Long-Term Leases (Managed)”   Things to

Long-Term Leases (Managed) By: Scott Umstead Things to Know: The Management Agreement will continue to control after closing. If the buyer wishes to have another company manage the property, the buyer will need to know whether the existing Management Agreement can be terminated. Some Management Agreements can be terminated upon written notice, but others cannot

Long-Term Leases (Unmanaged) By: Scott Umstead Things to Know: The buyer steps into the seller’s shoes as landlord. This means the buyer will be: a) subject to a claim by the tenant that the seller has breached (i.e. failed to repair, etc.); and b) is responsible for the Security Deposit at the end of the

Joint Ownership In South Carolina By: Scott Umstead Where there is more than one purchaser, those purchasers must decide how they will hold title.  Some may wish to hold title in the name of an LLC in which they are members, but where they wish to hold title in their individual names, title is “joint”

They Lied!! | Evaluating Fraud In A Real Estate Transaction By: Scott Umstead Some people will lie to get what they want and some of those people want you to buy their home.  Over many years of legal practice, I have consulted with many clients who believed they were victims of fraud.  Each situation turns

Can Real Estate Agents Give Gifts To Clients? By: Scott Umstead This office has been asked about the following rumor: As with most rumors, it is followed with, “I heard about a guy …(insert tragic ending)” “A real estate agent cannot legally give a gift to a client.”  A variation of the rumor is an

Crackdown On Fraudulent Primary Residence Exemptions By: Scott Umstead As in most places, Horry County residents enjoy a reduced property tax on their primary residence.  That’s as it should be.  What’s not as it should be is the fraudulent claim of primary residence in order to pay less taxes than the law requires.  Specifically, Horry