Patricia is purchasing a newly constructed home in Bluffton, South Carolina. The builder provides a one-year builder's warranty covering workmanship and materials. Patricia's agent tells her the Property Condition Disclosure Statement is not required in this transaction. Under the SC Residential Property Condition Disclosure Act, is the agent's statement correct?
Correct Answer
A) Yes, the agent is correct — new construction covered by a builder's warranty is exempt from the disclosure requirement
Under S.C. Code Ann. § 27-50-30, new construction that is covered by a builder's warranty is among the transactions exempt from the SC Residential Property Condition Disclosure Act's requirements. The rationale is that the builder's warranty provides the buyer with equivalent or superior protection regarding the condition of the newly constructed property. The agent's statement is therefore correct.
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