Lawyers: Tell your clients, friends and family members!

Standard

South Carolina launched a funded rental and mortgage assistance program

South Carolina’s Housing Authority announced last week a new funded program to assist residents who face financial difficulty in housing as a result of the pandemic.

The program, called SC Stay, has $25 million to be provided on a first-come, first-serve basis to qualified residents for rent and mortgage deficits dating back to February of 2020. Residents may receive up to a total of $7,500 for prior and/or future mortgage or rent payments. The funding is provided through the U.S. Department of Housing and Urban Development’s Community Development Block Grant Program for Coronavirus and is a part of the CARES Act.

To qualify, individuals and families must:

  • Certify that their income is at or below 80% of county medium income adjusted by family size. (A chart reflecting the requirement for each county is attached);
  • Demonstrate that they are unable to make all or part of their rent or mortgage payments or are behind on those payments because of circumstances stemming from COVID. Those circumstances may include layoffs, reduced work hours as well as the inability to work because of infection and quarantine.
  • Have landlord or lender confirmation of their past-due payments and willingness to accept payments on behalf of the tenant or borrower.

The application process can be started here or by calling (833) 985-2929.

Court of Appeals decides Hilton Head easement case

Standard

Real estate cases involving property in Hilton Head Island are almost always interesting, and this one* is no exception. I’m sure my friend, Dick Unger, will be discussing it fully in his upcoming revised treatise on easements for the South Carolina Bar. In the meantime, here’s enough of a description to get this case on your radar.

The case involves a welcome center, a gas station and a shopping complex on Palmetto Bay Road near Sea Pines Circle. Enmark owns the gas station which is adjacent to the welcome center. The shopping complex is located behind the gas station and adjacent to the welcome center. The roadway in question covers a portion of the welcome center property and connects the station to the parking lot on the shopping center property.

The roadway initially forked around a small vegetative island located on the shopping center property and had two connections to the parking lot. The shopping center removed the island and placed a trash dumpster in its place. (That doesn’t sound like something that would have been well received in Hilton Head!) The station’s customers use the roadway as an alternative entrance and exit for the station, and the general public uses it to bypass Sea Pines Circle and access the shopping center.

The case outlines the chains of title for the welcome center and gas station properties. When a dispute about the roadway arose, the property owners entered into a tolling agreement in mid-2013, in which they agreed the owner of the welcome center would file a complaint seeking a declaratory judgment to determine each party’s rights as to the roadway.

The welcome center owner then involved the Town of Hilton Head, which wrote a letter stating the roadway violated Hilton Head’s Land Management Ordinances. The town ordered the road to be removed and replaced with a vegetative buffer.  The gas station owner informed the Hilton Head official about the existence of the tolling agreement and of the importance of the roadway to its business and the public. The town stated that its letter was premature and subsequently decided the roadway was grandfathered into the Land Management Ordinances.

The welcome center owner filed a complaint in August of 2013 seeking an order that the gas station owner had neither an express nor a prescriptive easement. The Master-In-Equity found the existence of a prescriptive easement, and this appeal followed.

The Court of Appeals first eliminated the involvement of the town as a determinative factor in its decision, holding that the 2013 letter was not a final decision.

The Court next outlined the elements of a prescriptive easement: (1) continued and uninterrupted use or enjoyment of the right for a period of twenty years; (2) the identity of the thing enjoyed; and (3) the use or enjoyment which is either adverse or under claim of right.

Citing an earlier case, the Court of Appeals said our Supreme Court had clarified the third element, holding “adverse” and “claim of right” are in effect the same thing. The Supreme Court had simplified the elements stating the claimant must identify the thing enjoyed and show his use has been open, notorious, continuous, uninterrupted, and contrary to the burdened property owner’s rights for a period of twenty years.

The welcome center owner argued that the identity of the thing enjoyed was not established because the roadway is an “easement to nowhere”, not terminating on a public road. The Court held that termination on a public road was not required.

Continuous use was established through tacking the periods of use by prior owners in the gas station’s chain of title. The welcome center argued the use was interrupted by three threatening letters (dated 1994, 2008 and 2012, respectively), plus the placement by the shopping center of the garbage bin. The Court held that the letters were too late to interrupt the required twenty-year period, and the placement of the garbage bin was irrelevant because it was not placed by the owner of the burdened estate.

The owner of the welcome center raised multiple arguments as to the lack of adverse use, but it conceded in its post-trial brief that the existence of the easement would not be presumed “only if the use of the (roadway) during the entire prescriptive period was uninterrupted”, an issue upon which the Court had previously ruled.

I give you this case as an interesting discussion of prescriptive easement law in South Carolina and wait with you to hear Dick Unger’s words of wisdom!

 

*Carolina Center Building Corp. v. Enmark Stations, Inc., South Carolina Court of Appeals Opinion 5804 (February 10, 2021).

ALTA/NSPS Survey Standards have been revised

Standard

Changes will take effect February 23, 2021

Almost every commercial transaction requires an ALTA/NSPS survey, so commercial practitioners are familiar with the most recent 2016 guidelines. Those guidelines are reviewed every five years, and a new version will be in effect beginning February 23, 2021.

You can review the new standards in their entirety, including a red-lined version, here.

The changes were made primarily to make the standards easier to understand and to correct a few inconsistencies. One change was made as a result of the 1995 U.S. Supreme Court case, Gutierrez de Martinez v. Lamagno, which held the word “shall” is a false imperative that actually means “may”. As a result, the word “shall” in the standards was changed to the word “must” to indicate an obligation or imperative.

Section 5.E was revised to clarify that the surveyor must only note observed evidence of easements, servitudes and other uses which are “on or across” the surveyed property instead of those which affect the surveyed property. This section also changes the necessity to locate utility poles within ten feet of the surveyed property from the prior requirement of five feet.

A change to Section 6.C states that if the surveyor becomes aware of a recorded easement not listed in the title evidence, the surveyor must advise the title company (in our case, the closing attorney) of the easement. If evidence of the easement isn’t provided to the surveyor, the easement must be shown or explained. This section was also revised to allow the surveyor to omit matters of record that are not survey related from the summary of title matters.

The introductory paragraph of Table A optional items has been revised to clarify that the wording of a Table A item may be negotiated. Item 6 of Table A was modified to clarify that zoning information must be provided to the surveyor. Item 11 regarding underground utilities has been simplified to two choices: (a) plans and/or reports provided by the client; or (b) markings coordinated by the surveyor pursuant to a private utility request. Item 18 (wetlands) was deleted. If a wetlands delineation is required, it must now be negotiated as an additional Table A, item 20. Item 19 was revised to allow for off-site easements appurtenant to be surveyed in their entirety.

We have a couple of weeks to become fully familiar with the new standards.

South Carolina REALTORS® announces record year

Standard

South Carolina real estate practitioners, if you thought 2020 was outrageously busy, there was an excellent reason for that. In the middle of a global pandemic, our state had a record year in home sales.

South Carolina REALTORS® (SCR) recently issued a press release reflecting the market data as of the close of 2020, stating that the number of sales closed in South Carolina in 2020 was 101,500, representing a 20% increase in closed sales, an increase in median price sales of 13% and a decrease in inventory of 40%.

SCR’s press release touted its efforts in fighting for real estate to be deemed an “essential service”. We want you to be aware that Chicago Title fought for that designation, too.

Despite these phenomenal numbers, it was clear that inventory was an issue through 2020 and remains an issue in early 2021. SCR’s press release states that as of the end of December, there were only 16,480 active home listings in our entire state, compared to 118,667 at the end of 2019.

And we all know that home prices were up. It was indeed a seller’s market! SCR reports that the overall median sales price increased in South Carolina by 12% to $245,000, and that sellers received, on average, 98% of their original list price. This represents a year-over-year improvement of 0.6%.

As we prepare for 2021, it appears to us that the trends of low inventory and higher prices in housing will continue at least through mid-year.

We’re hoping for continued good news in our marketplace as our population gets vaccinated and we are all able to move around more freely.

Here’s wishing for each of you a healthy, happy and prosperous 2021. And here’s wishing for the end of COVID for all of us sooner rather than later!