The bill H. 4584 aims to amend the South Carolina Code of Laws by adding Section 27-1-80, which establishes specific disclosure requirements for agreements involving the purchase of interests in managing entities that own residential properties. It defines key terms such as "business entity," "managing entity," "residential arrangement," and "residential property." The bill mandates that any purchase agreement must clearly inform the purchaser that they are acquiring an interest in the managing entity rather than the residential property itself. Additionally, it prohibits any requirement that disputes be resolved outside of state or federal courts and exempts certain properties owned by religious organizations from these regulations.

Furthermore, the bill outlines restrictions on managing entities regarding the treatment of ownership interests, including prohibiting them from imposing unreasonable transfer restrictions or fees related to the transfer of interests. It also states that owners can transfer their interests without needing approval from the managing entity. Violations of this section are classified as unfair or deceptive trade practices. The bill will take effect upon the Governor's approval.

Statutes affected:
12/17/2025: 27-1-80
Latest Version: 27-1-80