What Should You Look for in a Real Estate Purchase Agreement in South Carolina?

Buying a home is often the most significant financial transaction of your life. Whether you are looking at a historic bungalow in North Main, a new build in Simpsonville, or a sprawling estate near Paris Mountain, the excitement of finding the perfect property can sometimes overshadow the legal realities of the transaction. Once an offer is accepted, the Real Estate Purchase Agreement becomes the law of the transaction. It dictates every deadline, every obligation, and every penalty.

The Legal Description vs. The Street Address

Most buyers look at the top of the contract to confirm the street address, for example, 123 Main Street, Greenville, SC. While this is important for mail delivery, it is not sufficient for a legal transfer of property. A robust purchase agreement must include a complete legal description of the property.

In South Carolina, this legal description typically includes the Tax Map Number (TMS#) and a reference to the recorded plat or deed book in the county records. For a property in Greenville County, this information ensures that you are buying exactly what you think you are buying. Reliance solely on a street address can lead to boundary disputes later.

You should verify that the lot size and dimensions listed in the legal description match the listing and your expectations. If the contract includes a larger tract of land, perhaps in Travelers Rest or Greer, a new survey might be necessary to confirm acreage. The purchase agreement should clearly state whether a new survey is required and who is responsible for paying for it.

Purchase Price and Earnest Money Procedures

The purchase price is usually the clearest part of the contract, but how that money changes hands is equally important. You need to review the section detailing the Earnest Money Deposit. These are the funds you put down to demonstrate your serious intent to purchase the property.

In South Carolina, the contract should specify:

The exact amount of the earnest money.
Who will hold the funds in escrow (often the closing attorney or the listing brokerage).
The conditions under which the money is refundable.
The timeline for depositing the funds after the offer is accepted.

Disputes over earnest money are common when transactions fall apart. The language in this section determines whether you get your deposit back if you walk away during the due diligence period or if the seller retains it as liquidated damages. Ensure the contract explicitly states that the earnest money applies toward the purchase price at closing.

Financing Contingencies and Appraisal Gaps

Unless you are paying entirely in cash, your ability to purchase the home depends on securing a mortgage. The financing contingency is a vital protection for buyers. It allows you to back out of the contract without penalty if you cannot obtain the necessary loan.

You should look for specific details in this clause:

Type of Loan: The contract should specify if you are seeking Conventional, FHA, VA, or USDA financing. Each has different requirements for the property condition.
Interest Rate Cap: This protects you if interest rates spike suddenly, making the loan unaffordable.
Timeframe: There will be a deadline by which you must apply for the loan and a separate deadline for obtaining a loan commitment letter.

In today’s competitive market, appraisal gaps are also a frequent issue. If the bank appraisal comes in lower than the agreed-upon purchase price, the lender will only finance the appraised value. The contract should clearly outline what happens in this scenario. Do you have the right to cancel? Are you required to make up the difference in cash? Or does the seller have the option to lower the price? Clear language here prevents a last-minute scramble for funds.

South Carolina Repair Options: Due Diligence vs. Repair Procedure

South Carolina real estate contracts typically offer two distinct pathways for handling property condition and repairs: the Due Diligence clause and the Repair Procedure clause. Selecting the right one is critical, as they function very differently.

Due Diligence Clause

This option is becoming increasingly common in the Upstate. Under a due diligence provision, the buyer pays a negotiated fee (the termination fee) for the right to inspect the property for a set period. During this time, you can cancel the contract for any reason—or no reason at all—provided you pay the termination fee. This offers maximum flexibility. You can negotiate repairs, but if the seller refuses, you can simply walk away.

Repair Procedure Clause

This is the more traditional approach. Under this clause, the buyer and seller agree to a specific repair protocol. Typically, the seller is only obligated to repair specific categories of defects, such as:

Roof leaks.
Structural integrity issues.
Electrical or plumbing systems that are not operational.
HVAC systems that are not functioning.
Environmental hazards like lead paint or asbestos.

Under the repair procedure, you generally cannot walk away simply because you changed your mind or found minor cosmetic issues. You must scrutinize this section to see exactly what the seller is required to fix. If you miss the deadlines for requesting repairs, you may be purchasing the property “As-Is” by default.

The CL-100 Wood Infestation Report

Given the climate in South Carolina, moisture and termites are significant concerns for homeowners. The South Carolina Wood Infestation Report, commonly known as the CL-100, is a standard requirement in most purchase agreements, especially if a lender is involved.

You must verify that the contract places the responsibility on the seller to provide a clear CL-100 letter. This report checks for:

Visible evidence of active or previous subterranean termites.
Powder post beetles.
Old house borers.
Decay fungi (wood rot).
Moisture levels in the crawl space or basement.

If the CL-100 reveals damage, the contract should dictate how that damage is remediated. Often, a seller must repair the damage and provide a clear letter before closing can proceed. If the damage is extensive, such as structural rot in the floor joists, the buyer should have the option to terminate the agreement.

Fixtures, Personal Property, and Conveyance

Confusion often arises over what stays with the house and what goes with the seller. In legal terms, a “fixture” is something physically attached to the property (like a ceiling fan or built-in shelving) and usually conveys with the home. “Personal property” (like a refrigerator or freestanding washer/dryer) usually does not, unless specified.

The purchase agreement should have a dedicated section or addendum listing exactly what items are included in the sale. Do not rely on the MLS listing description or a verbal promise from the seller. If you want the custom window treatments, the storage shed in the backyard, or the smart home thermostat, it must be written in the contract.

Conversely, if the seller plans to take a specific fixture—such as a family heirloom chandelier in the dining room—this must be explicitly excluded in the agreement to avoid a breach of contract claim at the final walkthrough.

Title and Survey Requirements

The seller must be able to provide a “marketable title” to the property. This means they own the property free and clear of undisclosed liens, encumbrances, or title defects that would prevent you from taking full ownership.

The contract should state that the seller will convey the property via a General Warranty Deed. This offers the highest level of protection, as the seller warrants that they have the right to sell the property and will defend the title against claims.

You should also look for language regarding easements and restrictions. In many Greenville neighborhoods, from Alta Vista to Chanticleer, properties are subject to restrictive covenants or homeowners’ association (HOA) rules. The contract should give you time to review these documents. You need to know if an easement allows the utility company to dig up your backyard or if the HOA prohibits the fence you plan to build.

Closing Costs and Prorations

Closing costs in South Carolina can be high, and the contract determines who pays for what. Traditionally, the buyer pays for their loan origination fees, title insurance, and recording fees for the deed and mortgage. The seller typically pays for the deed preparation, the documentary stamps (transfer tax) to the county, and the real estate agent commissions.

However, everything is negotiable. The purchase agreement must clearly outline these responsibilities. Additionally, look for the section on prorations. Property taxes in South Carolina are paid in arrears. This means the tax bill that comes at the end of the year covers the previous 12 months. The contract should stipulate that the seller will credit the buyer for the portion of the year they owned the home. Homeowner association dues and any transfer fees should also be addressed in this section.

The South Carolina Residential Property Condition Disclosure Statement

State law requires sellers of residential real estate to provide a disclosure statement to the buyer, with few exceptions (such as foreclosures or estate sales). This document is often referenced in the purchase agreement or attached as an addendum.

The purchase agreement should acknowledge receipt of this disclosure. In it, the seller must answer a series of questions about the condition of the property, including the roof, foundation, electrical systems, and water supply. While this is not a substitute for a professional home inspection, it is a vital legal representation of the property’s history.

If the seller checks “No Representation” for every item, proceed with caution. The contract should ensure that you have the right to terminate if the seller discloses a material defect after the contract is signed but before closing.

Default and Remedies

What happens if the deal falls apart? The “Default” section of the purchase agreement outlines the penalties for both the buyer and the seller if they fail to fulfill their contractual obligations.

Buyer Default

If you walk away from the deal without a valid legal reason (like a failed inspection or financing denial), the seller’s remedy is usually the forfeiture of your earnest money. You need to check if the contract limits the seller’s remedy to only the earnest money or if they can sue you for further damages.

Seller Default

If the seller decides not to sell or accepts a higher offer after signing your contract, you need protection. The contract should allow you to sue for “specific performance,” which asks the court to force the seller to complete the sale. Alternatively, you should be able to recover your earnest money and potentially your out-of-pocket expenses for inspections and appraisals.

Closing Date and Possession

The closing date is the target, but in the world of real estate, delays happen. The contract generally states that “time is of the essence,” meaning deadlines are strict. However, the agreement may include an automatic extension clause—often for 5 to 10 days—to allow for unforeseen delays in loan processing or title work.

Possession is another critical element. The standard practice is for possession to be transferred at closing and recording of the deed. However, some situations require a “seller leaseback” (where the seller stays for a few days after closing) or “early possession” (where the buyer moves in before closing).

These arrangements are fraught with liability. If the contract allows for possession at any time other than closing, a separate occupancy agreement should be attached to handle issues like insurance, rent, and responsibility for repairs during that interim period.

Identifying “As-Is” Addenda

In some transactions, particularly with investment properties or estate sales, the seller may demand an “As-Is” addendum. This clause significantly alters the standard purchase agreement.

When you agree to buy a property “As-Is,” you are acknowledging that the seller will make no repairs and offer no warranties regarding the condition of the home. However, an “As-Is” clause should not eliminate your right to inspect. You should ensure the contract still grants you a due diligence period to inspect the property and terminate the agreement if the condition is worse than expected. Never sign an “As-Is” contract that waives your right to an inspection unless you are fully prepared for potential structural or environmental liabilities.

Flood Zones and Environmental Hazards

Greenville and the surrounding areas have specific floodplains, particularly near the Reedy River and its tributaries. The purchase agreement should include provisions regarding flood insurance. If the property is located in a federally designated flood zone, your lender will require you to carry flood insurance, which can be expensive.

The contract should allow you to verify the flood zone status during your due diligence period. Additionally, depending on the age and location of the property, you may want contingencies for environmental tests, such as radon gas testing or well water testing if the property is not on public water.

Electronic Signatures and Counter-Offers

In the modern real estate market, contracts are often signed digitally using platforms like Dotloop or DocuSign. The purchase agreement must contain a clause stating that electronic signatures are legally binding.

Furthermore, it is rare for a first offer to be accepted without changes. When a seller sends back a counteroffer—changing the price, closing date, or closing costs—the original offer is technically rejected. The final contract is a compilation of the original document and any initialed changes. Before the deal is considered “ratified,” ensure that every change has been initialed and dated by both parties. A missing initial on a price change can render the contract unenforceable.

The Value of Professional Guidance

A Real Estate Purchase Agreement is not merely a form to be filled out; it is a complex legal instrument that allocates risk between the buyer and seller. Every checkbox and fill-in-the-blank line carries legal weight. Missing a contingency for a septic tank inspection or failing to clarify who pays for the deed stamps can cost you thousands of dollars or saddle you with a property that has significant legal encumbrances. At the De Bruin Law Firm, we believe that an informed buyer is a protected buyer. We are dedicated to ensuring that families and businesses in Greenville approach their real estate closings with confidence, knowing that the legal foundation of their purchase is solid.

If you are preparing to buy or sell real estate and need guidance on the contract or representation for your closing, we invite you to contact us to discuss how we can assist you in securing your investment.