Homeowner Contract Transparency and Fair Dispute Resolution Act

2025-2026 Bill 5522: Homeowner Contract Transparency and Fair Dispute Resolution Act - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 5522
STATUS INFORMATION
General Bill
Sponsors: Rep. Pope
Document Path: LC-0715WAB26.docx
Introduced in the House on April 14, 2026
Currently residing in the House Committee on
Labor, Commerce and Industry
Summary: Homeowner Contract Transparency and Fair Dispute Resolution Act
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

4/14/2026

House

Introduced and read first time (
House Journal-page 16
)

4/14/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 16
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
04/14/2026

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS by ENACTing THE
"HOMEOWNER CONTRACT TRANSPARENCY AND FAIR DISPUTE RESOLUTION ACT" BY ADDING
ARTICLE 3 TO CHAPTER 50, TITLE 27 SO AS TO REQUIRE SELLERS IN RESIDENTIAL REAL
ESTATE TRANSACTIONS TO PROVIDE CERTAIN ADVANCE DISCLOSURE OF HOME PURCHASE
DOCUMENTS TO BUYERS BEFORE CLOSING, INCLUDING DISPUTE RESOLUTION PROVISIONS AND
LEGAL WAIVERS, TO PROVIDE REMEDIES FOR NONCOMPLIANCE, AND TO IMPOSE AN
AFFIRMATIVE DUTY ON ATTORNEYS WHO CONDUCT CLOSINGS.

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

S
ECTION 1.
This act may be cited as the "Homeowner Contract Transparency and Fair
Dispute Resolution Act."

S
ECTION 2.
C
hapter 50, Title 27 of the S.C. Code is amended by
adding:

A
rticle 3

H
omeowner Contract Transparency and Fair Dispute
Resolutions

S
ection
27-50-310
.
T
he General Assembly finds that:

(
1)
residential real estate transactions are among the most significant financial
transactions entered into by consumers;

(
2)
buyers are frequently presented with important documents containing dispute
resolution provisions and legal waivers for the first time at or near closing;

(
3)
the timing and circumstances of closing may impair a buyer's ability to review,
understand, and voluntarily agree to such provisions; and

(
4)
requiring advance disclosure and clear, accessible dispute resolution
procedures promotes fairness, transparency, and informed consent without
restricting the use of arbitration or other alternative dispute resolution
methods.

S
ection
27-50-320
.
F
or purposes of this article:

(
1)
"Residential real estate transaction" means the sale of real property improved
with one to four dwelling units, including newly constructed homes.

(
2)
"Seller" includes a builder, developer, or any person or entity transferring
residential real property.

(
3)
"Buyer" means a natural person acquiring residential real property for
personal, family, or household use.

(
4)
"Home purchase documents" means all written agreements related to a residential
real estate transaction, including:

(
a)
purchase agreements;

(
b)
construction contracts;

(
c)
warranty documents;

(
d)
closing documents; and

(
e)
any addenda or incorporated materials.

(
5)
"Dispute resolution provision" means any clause requiring arbitration,
mediation, or otherwise limiting or prescribing the forum or method for
resolving disputes.

(
6)
"Legal waiver" includes any provision that waives the right to a jury trial,
the right to bring an action in court, or any other substantive or procedural
right otherwise available under law.

S
ection
27-50-330
.
A
dispute resolution provision in a home
purchase document is unenforceable if it conflicts with another provision of
law regarding:

(
1)
the required forum;

(
2)
the governing rules; or

(
3)
the process for initiating or conducting a claim.

S
ection
27-50-340
.
(
A) A seller shall
provide the buyer with all home purchase documents containing any dispute
resolution provision or legal waiver no later than the earlier of:

(
1)
execution of the purchase agreement; or

(
2)
ten calendar days before closing.

(
B)
Delivery must include the complete and final form of the documents, not
summaries or excerpts.

(
C) A
material change to a dispute resolution provision or legal waiver after
delivery requires:

(
1)
redelivery in compliance with this section; and

(
2)
a new acknowledgment by the buyer.

S
ection
27-50-350
.
(
A) A dispute resolution
provision must:

(
1)
identify a specific forum accessible to the parties;

(
2)
provide sufficient information to initiate a claim, including:

(
a)
name of the administering organization, if any;

(
b)
applicable rules or instructions to access them;

(
c)
a clear method for initiating proceedings; and

(
3)
not impose conditions that make the process impracticable or inaccessible.

(
B) A
dispute resolution provision that does not meet the requirements of subsection
(A) is void and unenforceable.

S
ection
27-50-360
.
(
A) A seller must
provide written disclosure of any legal waiver no later than the earlier of:

(
1)
execution of the purchase agreement; or

(
2)
ten calendar days before closing.

(
B)
Disclosures must:

(
1)
be in a separate, clearly labeled document;

(
2)
use plain language; and

(
3)
identify each legal waiver and its effect.

(
C)
Legal waivers first presented at closing are presumed void and unenforceable
unless the seller proves by clear and convincing evidence that the buyer had
meaningful opportunity to review and voluntarily agreed.

(
D) Any
dispute resolution provision, arbitration clause, or legal waiver not compliant
with this article is void ab initio and unenforceable.

(
E)
Invalidity of a provision does not affect the enforceability of other
nonconflicting provisions.

S
ection
27-50-370
.
(
A) A dispute resolution
provision or legal waiver must be:

(
1)
set forth in a separate document or separately titled section; and

(
2)
signed or initialed separately by the buyer.

(
B)
Inclusion solely within a larger document without separate acknowledgment
renders the provision void and unenforceable.

S
ection
27-50-380
.
(
A) A buyer may bring an
action in circuit court to enforce this article.

(
B)
The court may:

(
1)
declare any noncompliant provision void and unenforceable;

(
2)
award actual damages;

(
3)
award reasonable attorney's fees and costs; and

(
4)
grant any other relief deemed appropriate.

S
ection
27-50-390
.
(
A) An attorney licensed
to conduct a residential real estate closing in this State may not proceed with
a closing unless the seller has complied with all requirements of this article
and may subject the attorney to disciplinary action under the Rules of
Professional Conduct for noncompliance.

(
B) A
closing conducted in violation of this section does not waive the buyer's
rights under this article and may render noncompliant provisions void and
unenforceable.

S
ECTION 3. This act takes effect upon approval
by the Governor and applies to residential real estate transactions entered
into on or after that date.

----XX----

This web page was last updated on April 14, 2026 at 12:48 PM