After closing on a home in Sumter, South Carolina, the buyer discovers that the seller knew about a severe termite infestation but intentionally left that section of the Property Condition Disclosure Statement blank rather than checking 'yes' or 'no.' The buyer seeks legal advice. Under the SC Residential Property Condition Disclosure Act, which statement best describes the seller's liability in this situation?

Correct Answer

B) The seller may be liable for fraud or misrepresentation because intentionally leaving a known material defect blank on the disclosure is equivalent to a false statement

Under S.C. Code Ann. §§ 27-50-10 et seq., the purpose of the Property Condition Disclosure Statement is to require sellers to reveal known material defects. Intentionally leaving a section blank when the seller has actual knowledge of a material condition — such as a severe termite infestation — is treated as a fraudulent concealment or misrepresentation under South Carolina law. Courts and the SCREC recognize that deliberate omissions made with knowledge of a defect are functionally equivalent to false affirmative statements. The seller may face civil liability for fraud, misrepresentation, and damages beyond mere earnest money return.