Because a house is such an important purchase, it’s crucial that you take the time to determine how much you can afford, what neighborhood you want to live in, and what features you need or want. You should also be aware of the relevant law when it comes to issues such as seller disclosures, purchase contracts, and other legal matters.
With proper preparation, careful choice of a real estate agent, and prudent use of other qualified professionals, buying a home in South Carolina can be a positive experience.
One of the first steps in buying a house, condo, townhouse, or other property in South Carolina is to find a real estate agent, who can offer:
Your agent should be able to guide you at every step, from drafting your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing. Your real estate agent should also help you locate other professionals to assist you in the home buying process, such as mortgage brokers and home inspectors.
The good news is that working with a real estate agent shouldon’t cost you anything. The seller usually pays the entire commission (typically 5% to 6% of the house sale price, split between the seller’s agent and yours).
Personal referrals from other home buyers are usually the best way to select a real estate agent. You can find licensed South Carolina real estate agents at the South Carolina Department of Labor, Licensing and Regulation. Other useful resources include real estate websites such as Zillow and Trulia, which have customer reviews of real estate agents.
Be sure to choose an agent who has experience representing buyers, excellent references, and qualifications to meet your house buying needs in terms of your ideal location, type of property, and budget.
State law in South Carolina (South Carolina Code § 27-50-40) requires that sellers provide buyers a written, filled-out disclosure form (unless both parties expressly agree that no disclosure form is needed (see South Carolina Code § 27-50-40(13)), which includes the seller's knowledge of the following details on the property:
Disclosures must be on a Residential Property Condition Disclosure Statement form created by the South Carolina Real Estate Commission.
Receiving seller disclosures is important for you as a buyer, since just looking at a property may not tell you what problems its owner encountered with it while living there.
In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
For more details on seller disclosures, see How to Sell Your House: The Key Steps.
Buyers should not rely solely on the seller's disclosures but should hire an independent home inspector to verify the information from the seller's disclosure and discover any unknown issues or defects the house might have. The inspector will look at everything from the house's foundation to the heating and plumbing systems.
In addition to the home inspection, your mortgage lender in South Carolina might require you to obtain a "wood inspection." This evaluates whether the house is free of wood-destroying pests, such as termites or fungi. In some cases, the home seller might pay for this report.
Many buyers make their offer contingent upon satisfactory inspection reports to be sure no material defects exist on the property. If material defects are found, the buyer can either renegotiate the deal or walk away from the sale.
See Reasons to Get a Pre-Closing Home Inspection for details.
A purchase agreement is a legal document that contains the material terms and conditions of a real estate transaction. It must be in writing and signed by the parties (buyers and sellers), and include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property.
See the South Carolina Association of Realtors Purchase Agreement for a sample. You will likely fill this out first and then give it to the seller as your purchase offer.
South Carolina law requires the buyer to hire a lawyer to perform a title search before purchasing a house (see State v. Buyers Service Co., 357 S.E.2d 15 (S.C. 1986); In re Lester, 578 S.E.2d 7 (S.C. 2003); In re Pstrak, 591 S.E.2d 623 (S.C. 2003)). The lawyer searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that may affect the property.
If the lawyer turns up problems, the buyer should require the seller to correct these as a condition to closing.
Mortgage companies usually require the buyer to purchase a title insurance policy as a condition to funding the loan. This insurance protects the title to the property against adverse claims by third parties or any clouds on the title missed by the title search.
If your mortgage company does not require you to buy title insurance, consider doing so anyway so you can be protected.
As mentioned above, South Carolina requires lawyers to be involved in every house buying transaction. Your lawyer will oversee the closing process and run the title search (see the South Carolina Bar Association for more information).
In addition to the lawyer's legally required duties, you may want to consider hiring a lawyer in unusual situations, such as if you are purchasing a house jointly with others and need help structuring your co-buyer agreement.
Check out our lawyer directory, to find an experienced real estate attorney in South Carolina.
The Residential Real Estate section of this site includes a variety of useful articles on all aspects of the house buying process, including advice on getting a mortgage; figuring out what price, contingencies, and other terms to offer; arranging home inspections; and closing the deal.
