One Year Later- Is Your HOA In Compliance with the 2018 SC Homeowners Association Law?

It has been approximately one year since the South Carolina Homeowners Association Act (SCHAA) was enacted. The SCHAA imposed significant changes to the previous regulations governing homeowners associations.

The 2018 South Carolina Homeowners Association Act

The SCHAA imposed additional stringent requirements on homeowners associations and created a new department in consumer affairs with the goal of increasing transparency and access to information for association members and prospective homeowners.

Changes to Homeowners Association Requirements

• The SCHAA requires associations to write and record their governing documents publicly with the clerk of court’s or register of deeds office in the county where the property is located.
• Rules, regulations, and amendments to rules and regulations must also be made accessible to members and recorded with the clerk of court’s or register of deeds office in the county in which the property is located by January 10th of each year following rule adoption or amendment in order for that rule, regulation or amendment to be enforceable under the SCHAA.
• Homeowners associations which are not incorporated such as nonprofits must provide notice to homeowners at least forty-eight hours in advance of any meeting in which a decision to raise annual budget is made under the SCHAA.
  • However, homeowners associations that are incorporated as nonprofits under the South Carolina Nonprofit Corporation Act are exempt from providing the forty-eight hour notice.
• Additionally, under provisions of the SCHAA, a seller of any piece of property must tell the buyer whether the land or home is governed by a homeowners association.

Department of Consumer Affairs Services for Homeowners and Homeowners Associations Created

• The Department is authorized to include homeowners and homeowners association information, governance information, and educational materials about homeowners associations and their related components on the department’s website.
• The SCHAA also requires the Department to document complaints and responses from homeowners and homeowners associations. The department then compiles a report of data collected which is publicly produced on the department website.

Homeowners Association Law Issues

• Homeowners associations, homeowners association boards, homeowners, condominium associations, community associations, and property managers should be aware of and comply with current South Carolina homeowners association governing law.
• The Pearce Law Group provides general representation, outside counsel, director or officer liability, deed review, contract draft and review, covenant and by-laws enforcements, litigation, collections, opinion letters, and compliance consultation services related to a wide variety of homeowners association issues. If you are not in compliance with the current law governing homeowners associations or have other questions related to homeowners associations, please contract The Pearce Law Group.
• If you are a homeowner, board member, or third-party management or association, please contact The Pearce Law Group for a consultation of your homeowners association law issue.

More Information

• The SCHAA must be read in compliance with the South Carolina Nonprofit Corporation Act which is available at https://www.scstatehouse.gov/code/t33c031.php.
• The SCHAA is available at https://www.scstatehouse.gov/code/t27c030.php.
• The South Carolina Department of Consumer Affairs website includes a homeowners association section that contains publicly available information pursuant to the Department of Consumer Affairs Services for Homeowners and Homeowners Associations Act. The site is also the location to file complaints about homeowners associations. The information and complaint forms are available at https://consumer.sc.gov/HOA-reports.

Please note that none of the information above constitutes legal advice or should be construed as legal advice in any way. If you have any questions or concerns, please contact attorneys Chris Pearce, Charlie Jordan or Kerry Jardine at The Pearce Law Group at 843-839-3210.