Can the seller or realtor be responsible if defects weren’t disclosed or were downplayed during the sale? – South Carolina

Short Answer

Yes. In South Carolina, a home seller can be financially responsible if the seller knowingly failed to perform required disclosure duties or knowingly provided false, incomplete, or misleading material information on the required disclosure statement. A realtor may also face responsibility in narrower situations—especially if the agent knew (or had reason to suspect) the information was false or misleading, or if the agent violated licensing rules—though the disclosure statute provides important protections for agents who reasonably relied on the seller’s disclosure.

Understanding the Problem

In South Carolina, the core question is whether the seller (and sometimes the real estate licensee involved in the transaction) can be held responsible when significant defects are discovered after closing and those defects were not disclosed, were minimized, or were presented in a way that did not match the property’s true condition at the time of sale. The decision point usually turns on what the seller actually knew (or should have known), what was required to be provided in writing before the contract was signed, and whether any statements made during marketing, negotiations, or the walkthrough were materially inaccurate.

Apply the Law

South Carolina’s Residential Property Condition Disclosure Act generally requires an owner-seller in a covered residential transaction to provide a written disclosure statement on the state-required form. The form covers major systems and conditions (like structural components, roof, foundation, plumbing, electrical, HVAC, wood-destroying organisms, and certain environmental issues). The seller’s disclosure duties focus on the seller’s actual knowledge, and the statute creates civil liability when an owner knowingly violates the disclosure duties or knowingly provides materially false, incomplete, or misleading information that causes the buyer’s damages. Real estate licensees have separate duties under licensing regulations, and the statute limits agent liability in certain situations when the agent did not know and had no reasonable cause to suspect the seller’s disclosure was false or misleading.

Key Requirements

Covered transaction and required written disclosure: The seller must provide the required South Carolina disclosure statement in covered residential sales, generally before the buyer and seller sign the contract (unless the contract provides otherwise).
Material inaccuracy tied to the seller’s knowledge: Seller liability under the disclosure statute generally requires a knowing failure to perform a required duty or a knowing disclosure of material information that is false, incomplete, or misleading.
Causation and actual damages: The buyer must connect the nondisclosure or misleading disclosure to actual damages that were proximately caused by the violation (for example, repair costs that would likely have been avoided or negotiated differently if the condition had been accurately disclosed).

What the Statutes Say

S.C. Code Ann. § 27-50-40 (Residential property condition disclosure statement) – Requires a written disclosure statement on the required form and lists categories of conditions/systems covered.
S.C. Code Ann. § 27-50-50 (Delivery timing; effect of failure; licensee responsibility) – Addresses when the disclosure should be delivered and clarifies that failure to provide it does not automatically void the deal; also notes the statute does not limit other remedies.
S.C. Code Ann. § 27-50-60 (Corrected disclosure statements; reasonable repairs before closing) – Requires the owner to promptly correct a material inaccuracy discovered after delivering the disclosure or make reasonable repairs before closing.
S.C. Code Ann. § 27-50-65 (Knowing false/incomplete/misleading disclosure; civil liability) – Creates civil liability for an owner who knowingly violates disclosure duties or knowingly provides materially false, incomplete, or misleading information, including actual damages and possible attorney fees for the prevailing party.
S.C. Code Ann. § 27-50-70 (Listing agent notice duty; limits on agent liability) – Requires the listing agent to inform the owner in writing of disclosure obligations and limits agent liability when the agent did not know and had no reasonable cause to suspect the disclosure was false or misleading.

Analysis

Apply the Rule to the Facts: The facts describe a limited walkthrough, a closing, and then major defects discovered during renovations that a contractor believes should have been caught. Under South Carolina’s disclosure framework, the key legal questions are (1) whether the seller provided the required disclosure statement on time, (2) whether the defects fall within the types of conditions covered by the disclosure form (often structural components and major systems), and (3) whether the seller knowingly failed to disclose or knowingly downplayed a material condition. If the seller truly did not know (and had no reason to know) about a hidden condition, the disclosure statute may be harder to use, but other legal theories may still be evaluated based on what was said and what was withheld during the transaction.

Process & Timing

Who acts first: The buyer (through counsel). Where: Typically outside of court first (demand/records request), then in the appropriate South Carolina Court of Common Pleas if a lawsuit is needed. What: Gather the signed disclosure statement, the contract addenda, MLS/marketing remarks, emails/texts, repair invoices, photos, contractor reports, and any inspection reports. When: As soon as the defects are discovered, because delay can make proof harder and deadlines can run.
Pre-suit evaluation: Compare the discovered defects to what the seller checked or wrote on the disclosure statement, and identify what the seller likely knew (prior repairs, recurring leaks, prior contractor quotes, prior insurance claims, repeated patching, or prior pest/structural work). Evaluate the realtor’s role: what the agent communicated, what documents were shared, and whether the agent had reason to suspect the disclosure was inaccurate.
Resolution path: Many cases start with a written demand seeking a negotiated resolution. If that fails, the next step is filing a civil action seeking actual damages tied to the nondisclosure/misrepresentation theory being pursued, and then using discovery to obtain seller records and communications that show knowledge and materiality.

Exceptions & Pitfalls

“Knowing” is often the battleground: The disclosure statute’s seller-liability provision focuses on knowing violations or knowingly false/incomplete/misleading material information. Proving knowledge often requires documents, prior repair history, and consistent witness testimony—not just the fact that a defect exists.
Agent liability is not automatic: South Carolina law provides protections for real estate licensees who did not know and had no reasonable cause to suspect the seller’s disclosure was false or misleading. Claims against an agent tend to depend on what the agent knew, what the agent observed, and what the agent communicated or failed to communicate.
Failure to receive a disclosure form does not undo the closing by itself: Even if the disclosure form was not provided, the statute says that failure does not automatically void the agreement or create a title defect. A buyer usually still needs a viable damages-based claim and proof tying the violation to the loss.
Evidence can disappear during renovations: Renovation work can remove or alter the very conditions that prove the defect. Photos, videos, saved materials, and written contractor findings taken before major demolition can be critical.

Conclusion

In South Carolina, a seller can be responsible for undisclosed or downplayed defects when the seller knowingly fails to comply with required disclosure duties or knowingly provides materially false, incomplete, or misleading information on the residential property condition disclosure statement, causing actual damages. A realtor may face responsibility in narrower situations, but the statute limits agent liability when the agent lacked knowledge and had no reasonable cause to suspect a problem. A practical next step is to obtain and review the signed disclosure statement and transaction communications promptly and evaluate a written demand before filing in the Court of Common Pleas.

Talk to a Real Estate Attorney

If a South Carolina home purchase revealed major defects that were not disclosed or were minimized during the sale, an attorney can help evaluate whether the seller’s disclosure duties were violated, whether the facts support a claim involving the real estate licensee, and what timelines and evidence preservation steps matter most.

Disclaimer: This article provides general information about South Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed South Carolina attorney.