Residential Property Interests

2025-2026 Bill 4584: Residential Property Interests - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 4584
STATUS INFORMATION
General Bill
Sponsors: Rep. Edgerton
Document Path: LC-0447SA26.docx
Introduced in the House on January 13, 2026
Currently residing in the House Committee on
Labor, Commerce and Industry
Summary: Residential Property Interests
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/16/2025

House

Prefiled

12/16/2025

House

Referred to Committee on
Labor, Commerce and Industry

1/13/2026

House

Introduced and read first time (
House Journal-page 29
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 29
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION
27-1-80
SO AS TO PROVIDE FOR CERTAIN DISCLOSURES IN THE PURCHASE OF AN INTEREST
IN A MANAGING ENTITY.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
C
hapter 1, Title 27 of the S.C. Code is amended by
adding:

S
ection
27-1-80
.
(
A) As used in this section:

(
1) "Business
entity" means a partnership, corporation, joint venture, limited liability
company, or other business organization or business associa
tion, however organized.

(
2) "Managing
entity" means a business entity that owns residential property used in a
residential arrangement.

(
3) "Residential
arrangement" means an arrangement in which the purchaser of an interest in a
business entity is entitled to exclusive possession of residential property
owned by the entity as long as the purchaser holds the interest in the business
entity.

(
4) "Residential
property" means the real property and improvements for a single-family house,
duplex, triplex, or quadruplex.

(
B)
(
1) An agreement for the purchase of an
interest in a managing entity must disclose to the purchaser that the agreement
is for the purchase of an interest in the entity and not in any residential
property itself.

(
2)
The purchase agreement and any other agreement or rules governing the
residential arrangement or the ownership interest in the entity may not require
that a dispute concerning the arrangement or interest be brought before a
tribunal other than a court established under the laws of this State or the
United States.

(
3)
This subsection does not apply to the sale, rental, or occupancy of a dwelling
that is a single-family house, duplex, triplex, or quadruplex located on a
subdivided lot in a parcel of land twenty-five acres or greater owned by a
religious organization, association, or society, or a nonprofit institution or
organization operated, supervised, or controlled by or in conjunction with a
religious organization, association, or society.

(
C) A
managing entity may not take action with respect to an interest in the entity
in a manner that is a violation of law if the interest in the entity was an
interest in real property, including:

(
1)
restricting the transfer of the interest;

(
2)
imposing requirements to maintain the interest; or

(
3)
refusing to grant an interest to an otherwise qualified person.

(
D)
Notwithstanding any provision in an agreement between the owner and a managing
entity, an owner of an interest in a managing entity may transfer the interest
without approval from the managing entity.

(
E) A
managing entity may not charge a fee for or share in the proceeds of the
transfer of an interest in the managing entity from an owner to a subsequent
purchaser.

(
F) A
violation of this chapter is an unfair or deceptive trade practice pursuant to
Chapter 5, Title 39.

(
G)
This section does not apply to a timeshare plan.

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on January 13, 2026 at 2:42 PM