No horsing around with HOA disputes

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Real estate practitioners will not be surprised to hear that neighbors in a well-to-do development with a significant set of covenants and shared easements will sometimes disagree (and even litigate) about how those easements ought to apply to their properties. Our Court of Appeals recently had occasion to hear an appeal related to covenants and easements in an equestrian subdivision in Aiken County, in the case of Richard Viviano v. Fulton Jeffers and Braeloch I Association, Inc., Appellate Case No. 2024-000147, Ct. App., Opinion No. 6120, Filed August 20, 2025.

The underlying dispute in the case concerned an established equestrian community near Aiken named Braeloch. Braeloch has extensive pedestrian and riding trails, and when the subdivision was originally planned, one trail extended all the way around the outer boundaries of the subdivision. The recorded covenants included easements encumbering all the lots around the subdivision’s exterior boundary to account for this trail. The trail easement was also shown on the recorded subdivision plat. Later (in 2002) an additional lot was added (Lot 51) and eventually became the center of a dispute involving Lot 51’s owner, the homeowners association, and the owners of two adjacent existing lots. The neighboring lot owners and Lot 51’s owner disagreed about how the riding trail should be adjusted or relocated in light of Lot 51’s addition. Mr. Viviano was one of those neighboring lot owners. The Court of Appeals opinion implies that personalities clashed, and that the neighboring lot owners questioned the motivation and personal friendships of the HOA officers in making decisions about Lot 51 and the trail. Unfortunately, the parties could not agree at this point, and litigation was filed.      

The main issue presented to the Court of Appeals here, which may be less interesting to real estate practitioners, concerned whether a settlement agreement that the parties signed at the conclusion of mediation would be enforceable. (Spoiler alert: The Court of Appeals said, Yes, it is enforceable.) At the trial court level, the parties had mediated the case and reached a written agreement. The agreement was broad and addressed all the issues in dispute between the parties: relocation of the riding path easement, who would pay to make improvements to the path, compensation to the impacted lot owners, that the parties would sign a mutual non-disparagement agreement, etc. It required formal approval by the full HOA of a few items that the HOA representatives agreed to in mediation; the HOA formally voted and approved those after the fact.

As a worthwhile aside, the mediator (retired Judge Thomas Cooper, Jr.) made a lovely allusion to Aristotle (or the movie “Legally Blonde,” depending on your point of view) when he noted in his mediation report that the attorneys and parties had wisely “recogni[zed] . . . that emotion has to give way to reason to resolve difficult disputes.” We can all benefit from remembering that “law is reason, free from passion.”  

Later, several months after mediation, Mr. Viviano seemed to have regretted the agreement and changed his mind. A couple of the details that he asked the court to consider in support of his motion might be of more interest to dirt lawyers.

Viviano’s argument was basically that the 2002 petition to amend the covenants and easements to add Lot 51 was not valid because it did not have the support of the required number of lot owners. Viviano also argued that there was a “smoking gun” email from the owners’ association acknowledging that they did not have enough signatures on the petition to add Lot 51, and he claimed that this email had been deliberately concealed from him. (He argued that he would not have signed the settlement if he had known about it.) The Court of Appeals found this argument meritless. Without getting into the details of whether or not the Lot 51 admission had been completed correctly, the court pointed out that the Lot 51 admission documents were filed in the Aiken County public records, and therefore available to anyone to review. Viviano’s own complaint in the underlying suit had made an allegation of fact that Lot 51 had been admitted with two thirds vote of the HOA members. The court also noted that Viviano had access to the HOA email acknowledging insufficient signatures on the petition, as it had been produced in discovery more than 2 years prior to mediation, so it was not “concealed” from him. The Court of Appeals also cited established caselaw reinforcing the principle that, once the parties have reached a written settlement agreement, the courts are not inclined to entertain arguments by one party who regrets having agreed to the settlement.   

For those real estate practitioners who represent HOAs, this case might be a good opportunity to remind your association clients about the importance of having counsel assist in the process of amending CCRs. Having an attorney guide an association through the complicated formalities of submitting petitions, calling meetings, sending notices, and being sure to obtain the required number of signatures/votes to amend could avoid costly litigation in the long run! For practitioners who review title and handle real estate closings (and prepare title commitments and policies!), this is also a good reminder to be on the lookout for recorded amendments to covenants, and to carefully review those to determine how they affect the title.          

Privacy Protection Acts set to take effect January 2026

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Our story began when Governor McMaster signed Act 56 of 2023, commonly known as the Law Enforcement Personal Privacy Protection Act and the Judicial Personal Privacy Protection Act. This Act represented a significant legislative development at the intersection of personal privacy and public access to real property records. While the goal of this legislation was to protect the privacy of law enforcement officers and judges, it carried important implications for the practice of real estate law, particularly in how attorneys conduct title examinations, advise clients, and navigate public records. Many other states had enacted similar legislation with mixed results. “The Redaction Bill,” as passed, also imposed significant burdens on county offices. Registrars needed a system of redacting information upon request, yet it was unclear how someone who needed access to the information could obtain it. 

The Redaction Bill grants active and former law enforcement officers and judicial employees to right to request redaction of personal information from publicly accessible state and local government websites. It was designed to protect these public servants from targeted harassment or threats. The redacted information includes names and home addresses, which are vital to maintaining the integrity of real property records. 

For those in the title industry, the Redaction Bill posed an immediate concern: how would the redaction of identifying information affect title searches, chain of title evaluations, or the ability to confirm ownership and encumbrances? County recorders and advocacy groups such as the Palmetto Land Title Association urged the general assembly to slow down and consider changing the bill to accomplish its main objective while minimizing its impact on real estate transactions. Despite these warnings, the legislature pushed the Redaction Bill through to the Governor’s desk with an effective date of July 1, 2024. 

For attorneys handling real estate transactions, the redaction of names and property identifiers raises a number of legal and practical issues. First and foremost is the risk to title integrity. If an individual’s name or parcel ID is redacted from the public record, attorneys may face increased difficulty in confirming ownership, assessing liens, or determining if any litigation is pending involving the property. This difficulty may increase the time and cost of due diligence and could expose clients to hidden encumbrances or title defects.

Moreover, attorneys acting as title agents or representing lenders could be placed in a precarious position when disbursing closing proceeds based on incomplete or obscured information. The redaction of key ownership data may also affect notice requirements under state law. For example, if the name on a deed is completely redacted, then how is a title examiner supposed to verify the ownership of the property they are searching? 

Finally, county officials—such as registrars of deeds and clerks of court—may each adopt different redaction protocols in the absence of a unified state-level system. This lack of consistency could result in a patchwork of record keeping practices, with varying impacts depending on jurisdiction. 

Despite pushing through the Redaction Bill, legislators were amenable to working with concerned groups to address the concerns raised by this bill. Recognizing that a fix was needed, the SC State Senate added a provision to the budget bill delaying the effective date to July 1, 2025, allowing extra time to make the needed changes.  Initially introduced as Senate Bill 126, Act 4 of 2025 (“Fix Bill”) was signed into law just last month.  Most critically, the Fix Bill changed “redaction” to “restriction”. The Fix Bill also limits the definition of “Disclosed Records” to those that are placed on a publicly available internet website. This clarification means that names and tax map numbers must still appear where they are embedded in formal documents—such as deeds, mortgages, easements, and affidavits—even if that information is restricted from online directory search results. This crucial carve-out preserves the reliability of title records and ensures that attorneys can still conduct necessary due diligence using official sources.  The final key change of the Bill is that it named certain people who may still access the restricted information, specifically including title insurers, their affiliates, or title insurance agents and agencies.

The Fix Bill delays the effective date to January 1, 2026, giving government agencies extra time to establish procedures, and ensuring that the real estate legal community has an opportunity to adjust workflows, educate staff, and advise clients on potential implications. It will be interesting to see how each of the counties handles the restriction of information within their own systems.

What Should Attorneys Do Now ?

Realtors and real estate attorneys will likely be the first to be asked about this bill and how one may avail themselves of this privacy protection. In addition to knowing about this Bill in general, South Carolina closing attorneys should begin reviewing internal procedures and client advisories to prepare for the January 2026 implementation. While we don’t yet know the mechanics each county will be using to restrict information, some key considerations include:

  • Title Search Protocols: Update search procedures to account for redacted records. Train staff to request and cross-reference official document images, not just searchable indexes.
  • Client Education: Inform institutional clients, especially lenders and developers, about the potential for privacy-related gaps in online records and the need for more thorough due diligence.
  • Engagement with Recorders: Develop working relationships with local registers of deeds to understand how each county plans to implement redaction requests and what access will be retained through in-office systems.
  • Legislative Monitoring: Stay informed about any additional regulations or guidance issued by the state to refine implementation, as further clarification may come through administrative rulemaking. 

For real estate attorneys, the Fix Bill introduces both challenges and obligations. While it mitigates the most serious risks to property records, attorneys must remain vigilant in adapting their practices to protect clients and ensure the continued reliability of title. A proactive approach built on awareness, communication, and procedural readiness will be essential as these laws take full effect. This journey also highlights the importance of advocacy groups such as the Palmetto Land Title Association and their work to protect the title industry in South Carolina.

Corporate Transparency Act Whack-a-Mole

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I have written many words about the Beneficial Ownership Information (BOI) reporting requirement of the Corporate Transparency Act (CTA) over the last couple of years and much of my writing has been rendered obsolete by events. So, it came as no surprise on March 21, 2025, when the world changed again, but even I wouldn’t have thought they’d have done the CTA like they done.    

If you want to get to the meat of the latest development, you can skip ahead to the end of this lengthy entry, but for those of you that need a refresher or those that just want to watch me work through my feelings a bit, the next few paragraphs are for you. 

Readers of this blog probably know by now that Congress passed the CTA some years ago for the stated purpose of assisting law enforcement agencies in preventing bad guys (foreign and domestic) from laundering money and hiding assets in the United States using shell companies. In its wisdom, Congress decreed that almost any entity registered with a Secretary of State’s office must file a report detailing the significant stakeholders in the entity and where they might be found.

Under the Biden Administration, the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury, came up with a framework of rules, processes, and penalties covering the duty of entities to report BOI. New companies would have 30 days to report the required BOI information to FinCEN; all existing entities would have to make their report by January 1, 2025. 

However, the whole thing did not go off as smoothly as planned for FinCEN.  Across the country (but most especially in Texas) plaintiffs filed lawsuits challenging the reporting requirement as unconstitutional or at least very inconvenient and burdensome. Before FinCEN could even think about imposing its first fine, a Texas federal court entered an injunction enjoining FinCEN from enforcing the BOI reporting requirement while the parties litigated the constitutionality of the Rule.  Game Off!  

The Government appealed this ruling to the Federal Court of Appeals for the Fifth Circuit, which initially removed the injunction. Game On! 

But, just a few days later, the same Court of Appeals, reinstated the injunction.  Game Off!  

The Government (by this time the Trump Administration) remained dogged in its defense of the reporting requirements and appealed the matter to our highest court. There, the United States Supreme Court ultimately sided with the Government and rescinded the injunction in the first Texas case. Game On!  However, by this time a second Texas federal district court had entered its own nationwide injunction against enforcement of the Act. Game Off!  

More time passed, additional words were written, and additional hearings were held, but eventually this other Texas federal district court decided that despite the impassioned argument of the Plaintiffs it did not have authority to ignore the persuasive authority of the Supreme Court’s previous ruling in a nearly identical case. Subsequently, the Texas court (I would like to imagine) somewhat sulkily rescinded its injunction. Game On! Likely a joyous party continued into the wee hours in the FinCEN offices the day it announced that BOI reporting was back, and that the deadline for reporting would for certain be March 21, 2025.  

However, this is the year 2025, and this the Corporate Transparency Act we are talking about, so it was not so simple for the good folks at FinCEN. On February 21, 2025, FinCEN issued a press release indicating that despite the Government’s vigorous effort to defend the Rule all the way the Supreme Court, that it did not plan to enforce the Rule. The press release indicated that FinCEN planned to issue an Interim Rule before the March deadline, but the FinCEN website still promised fines and penalties for anyone failing to comply. Game Off?

On March 21st, FinCEN issued an Interim Rule that dramatically changed the scope and application of the Rule. First, the Interim Rule specifically exempts United States entities from BOI reporting requirements.  Second, the Interim Rule provides that foreign entities registered to do business in the United States need not report any information about its beneficial owners that are United States individuals. Third, the reporting deadline for foreign entities to file BOI reports was extended to 30 days from the effective date of the Interim Rule.

The Interim Rule certainly reduces the theoretical usefulness of BOI reporting to law enforcement as FinCEN’s database will now only contain information about foreign entities that register in the United States and their foreign beneficial owners. Criminals inclined to set up shell companies to hide their illicit assets probably would be well advised to use entities formed in the United States if that isn’t what they were doing before. Perhaps, the Interim Rule is arguably not what Congress intended, but there is a lot of that going around.

Practically, the reduction in the scope of the Rule will diminish the relevance of the CTA to real estate lawyers. Those attorneys that represent foreign entities doing business in the United States will need to be prepared to advise clients of the reporting requirements that go along with registering their foreign entity in the U.S., but those attorneys representing entities formed in the United States can likely breathe a long sigh of relief.  At least for the moment.

Next steps …

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It is difficult to follow Claire Manning in any aspect of her distinguished career, but it is a truly daunting task to step in for the author of the blog of record for the South Carolina real estate community. Every week, Claire wrote about a diverse range of topics with her unique brand of clarity, style and wit and that is quite a lot for anyone to live up to.

Filling this void with just one person seemed impossible, so Chicago Title has dedicated a entire legion of our best men and women to this task. The Chicago Title underwriting team will now collectively try to add up to one Claire. A daunting task, but this is the business we’ve chosen and these are the subjects that are most dear to our professional hearts.  

We hope that our team’s eclectic set of work experiences and interest, will come together to keep you informed, entertained and engaged in the current happenings impacting dirt law in South Carolina and beyond. 

Thank you, Claire

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For more than three decades, Claire Manning has been a trusted voice in South Carolina’s real estate law community. Ten years ago, Claire decided to start writing a real estate law blog she titled “Let’s Talk Dirt” to educate and engage lawyers, paralegals, and title agents on the ever-evolving landscape of real estate law and title insurance. With an impressive 518 posts and 284,000 views, her dedication to keeping the industry informed is nothing short of remarkable. In fact, Claire has continued to blog regularly even after she retired in 2021!

Now, as she steps away from her role as blog editor and hands the reins over to the Chicago Title South Carolina underwriters, we want to take a moment to say: Thank you, Claire.

A Legacy of Knowledge and Service

Claire’s ability to break down complex legal topics into clear, digestible insights has been invaluable. Whether it was legislative updates, case law interpretations, or practical guidance on day-to-day title issues, her posts provided a reliable resource for professionals across the state.

Her writing was more than just informative—it was engaging and relatable. She had a way of making even the driest legal topics feel approachable, sprinkling in humor and real-world applications that made learning enjoyable. It’s no surprise that Let’s Talk Dirt became a go-to source for so many in the industry.

More Than a Blog—A Community

One of Claire’s greatest accomplishments was fostering a sense of community. Through her blog, she created a space where real estate professionals could stay connected, share insights, and navigate challenges together. She never shied away from tackling tough topics, and she always welcomed discussion and questions.

Her impact goes beyond the blog itself. Claire has been a mentor, a leader, and a resource to so many in the industry. She has always been generous with her knowledge and time, ensuring that South Carolina’s real estate professionals had the tools and information they needed to serve their clients with confidence.

The Future of Let’s Talk Dirt

Though Claire is stepping away as editor, her legacy continues. Chicago Title’s South Carolina underwriters and attorneys will carry on the blog’s mission, ensuring that the industry remains informed and engaged. And while Claire may no longer be writing the posts, her influence will still be felt in every update and insight shared.

To Claire—thank you for your years of dedication, your expertise, and your passion for educating the real estate law community. Your contributions have made a lasting impact, and your work will continue to benefit professionals across the state for years to come.

We wish you all the best in your next chapter and hope you take great pride in the incredible resource you’ve built. Let’s Talk Dirt wouldn’t be what it is today without you!

“Mutual” will with third wife fails to defeat fourth wife’s omitted spouse claim

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Early in my career, I practiced briefly in the area of estate planning. I attended week-long seminars and poured over tax laws. I even drafted a few irrevocable trusts for wealthy clients. But I was also representing real estate developers, and, at some point decided that I couldn’t keep up in both areas. So, I dropped estate planning in favor of real estate.

But real estate lawyers need to know enough about estate planning to figure out who gets the real estate at the death of the owner, so the two areas often overlap, and I was often thankful I had a background in estate planning.

I found a recent Court of Appeals case involving an omitted spouse claim by a fourth wife fascinating. Ward v. Ward* involved a mutual will and related documents between Stephen Ward and his third wife, Nancy.

The spouses generally intended that the death of one would cause their assets to “pour over” into a trust controlled by the other. After the death of the surviving spouse, any remaining assets would be disbursed among each spouse’s children and heirs as detailed in their wills and trust documents. Both parties agreed that they would not amend the documents after the death of the first spouse.

Those documents were executed in 2005. Nancy died in 2011. Later that year, Stephen began dating Mary, and they married in 2013. At the time of marriage, Stephen was 69 and Mary was 88. Stephen died in 2016.

After Stephen’s death, his children sought to probate his estate, and Mary filed a petition seeking to have herself declared an omitted spouse.

Several witnesses testified that Stephen’s intent when he executed the estate planning documents was to have those documents enforced as written, and that his estate plan would not be altered by a subsequent marriage.

The Court of Appeals agreed that a testator’s intention, as expressed in his will, governs the construction of the will if it does not conflict with law or public policy. But the Court held that the testator’s intent must fail when it conflicts with the probate codes’ protection of a surviving spouse.

Mary had only to prove that Stephen’s will was executed prior to their marriage and that it did not provide for her. Her claim to an omitted spouse’s share was affirmed.

Justice Geathers dissented, stating that the only evidence in the present case shows that years before he met Mary, Stephen made it clear that he meant to leave a subsequent spouse nothing.

Interesting case! I wonder whether our Supreme Court will have the chance to weigh in.

*South Carolina Court of Appeals Opinion 6073 (July 24, 2024).

Alabama Federal Court finds Corporate Transparency Act unconstitutional

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While real estate practitioners are struggling to implement office procedures to accommodate the reporting requirements of the new Federal Corporate Transparency Act (CTA), one court has held the Act to be unconstitutional.

National Small Business Association v. Yellen, Case 5:22-cv-1448-LCB (U.S. District Court, Northern District of Alabama, March 1, 2024) held that the Constitution does not give Congress the power to regulate millions of entities and their stakeholders the moment they obtain formal corporate status from a state.  The government had argued that the foreign affairs power and the Commerce Clause grant the requisite authority because the purpose of the CTA is to prevent money laundering and tax evasion, especially by offshore actors.

The case begins with this language, “The late Justice Antonin Scalia once remarked that federal judges should have a rubber stamp that says STUPID BUT CONSTITUTIONAL.”  In other words, the Constitution does not allow judges to strike down a law merely because it is burdensome, foolish, or offensive. This opinion states that the inverse is also true—the wisdom of a policy is no guarantee of its constitutionality. Even in the pursuit of sensible and praiseworthy ends, Congress may enact smart laws that violate the Constitution. This case illustrates that principle, according to the Northern District of Alabama.

We’ll have to wait and see how appellate courts address this issue. In the meantime, we’ll have to comply!

Court of Appeals grants DeBordieu right to intervene in Baruch litigation

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The Belle W. Baruch Foundation (Baruch) owns approximately 8,000 acres of high ground in Georgetown County. Baruch brought a declaratory judgment action* against the State of South Carolina, claiming it also holds title to 8,000 acres of adjoining marshland.

The State answered, asserting its status as the presumptive titleholder of all marshlands, and counterclaimed that the public holds a presumptive easement over the marshlands. Alternatively, the State claimed that the property had been dedicated to the public.

DeBordieu is an upscale private coastal community which shares a boundary with the disputed marshlands.

Anyone familiar with Georgetown County history knows that Belle Baruch was the daughter of Bernard Baruch, a wealthy landowner and statesman who advised President Wilson during World War I and President Roosevelt during World War II.

Baruch owned Hobcaw Barony, a former rice plantation, and surrounding real estate. President Roosevelt famously convalesced during one of his illnesses at the property. Belle Baruch inherited much of the property and donated it to the Foundation as a nature and research preserve.

Hobcaw has relationships with the University of South Carolina and Clemson University for the purposes of conservation and other research. The property is also the location for delightful Lowcountry tours and events like oyster roasts and holiday parties. I learned on one of these tours that Belle Baruch was interested in preserving the real estate, but not the buildings. The funds she left were not intended for the upkeep of the buildings. The Foundation raises money for that purpose.

I highly recommend that locals and tourists take the time to visit Hobcaw. It’s a beautiful property that reminds me of George Washington’s Mount Vernon. If funds had been left to preserve the buildings, Hobcaw would likely be as impressive as Mount Vernon.

According to the lawsuit, DeBordieu’s members have a history of using the marshland for shellfish harvesting, crabbing, wade fishing and similar recreational activities. In the early 1970’s, DeBordieu created a system of creeks and canals allowing its members access to the marshland and to the Atlantic Ocean. DeBordieu has periodically dredged its canals to maintain its access to the marshland.

DeBordieu sought intervention as a matter of right or, alternatively, permissive intervention. The circuit court denied intervention under both theories.

The Court of Appeals reversed, stating that precedent and Rule 24(a) of the South Carolina Rules of Civil Procedure set a liberal standard for intervention. Although the State and DeBordieu similarly claim that if Baruch owns the disputed property, the marshlands are encumbered by the States and/or DeBordieu’s easements, it is not accurate to classify those easement claims as the same interest in the property.

The State’s and DeBordieu’s claims are independent of each other and require different proof, according to the Court.

The Court also addressed the practical effect of denying the motion to intervene. A declaratory judgment must name all parties having a claim or interest in the matter and must not prejudice the rights of persons who are not parties to the proceeding. The Court concluded that a judgment valid against the State but not against others claiming an interest in the marshlands would not be an efficient use of judicial resources.

DeBordieu is allowed to intervene, and the litigation will proceed. We will keep you posted.

*The Belle W. Baruch Foundation v. The State of South Carolina, South Carolina Court of Appeals Opinion 6043 (January 17, 2024.)

News on MV Realty

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This blog has previously discussed MV Realty PBC, LLC. South Carolina title examiners report they are discovering “Homeowner Benefit Agreements”, or “Exclusive Listing Agreements” filed in the public records as mortgages or memoranda of agreement. The duration of the agreements purports to be forty years, and a quick search revealed hundreds of these unusual documents filed in several South Carolina counties. The documents indicate that they create liens against the real estate in question.

The company behind these documents is MV Realty PBC, LLC which appears to be doing business in the Palmetto State as MV Realty of South Carolina, LLC. The company’s website indicates the company will pay a homeowner between $300 and $5,000 in connection with its Homeowner Benefit Program. In return for the payment, the homeowner agrees to use the company’s services as listing agent if the decision is made to sell the property during the term of the agreement. The agreements typically provide that the homeowner may elect to pay an early termination fee to avoid listing the property in question with MV Realty.

In response to numerous underwriting questions on the topic, Chicago Title sent an underwriting memorandum last year to its agents entitled “Exclusive Listing Agreements”. Chicago Title’s position on the topic was set out in its memorandum as follows: “Pending further guidance, Chicago Title requires that you treat recordings of this kind like any other lien or mortgage. You should obtain a release or satisfaction of the recording as part of the closing or take an exception to the recorded document in your commitments and final policies.”

Several states have sued this company or passed legislation making the contracts unenforceable. South Carolina is not one of those states. On September 6, United States Senators Casey, Brown and Wyden (Chairmen of Special Committee on Aging, Committee on Banking, Housing, and Urban Affairs and Committee on Finance, respectively) wrote a comprehensive letter setting out the legal concerns and seeking information. You can read the letter in its entirety here.

Now, MV Realty of South Carolina has filed for Chapter 11 Bankruptcy reporting assets of $1 – $10 million and debts of $1-$50 million.

Dirt lawyers, pay attention to this situation. We will certainly see updates. If you see these contracts in your chains of title in the meantime, contact your underwriting counsel for guidance.

Update on legislative restrictions on foreign ownership of real estate

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Pending legislation in South Carolina may affect your transactions

In April, this blog discussed proposed Texas legislation that limits the purchase of real estate by some foreigners. Remember the Chinese surveillance balloon the United States shot down off the coast of the Palmetto State in February? That incident and other rising tensions between our government and China over several issues (the war in Ukraine, recognition of Taiwan, to name only two) have resulted in politicians proposing to broaden state law bans on foreign ownership of real estate.

According to a New York Times article dated February 7, entitled “How U.S-China Tensions Could Affect Who Buys the House Next Door”, legislation in Texas was proposed after a Chinese billionaire with plans to create a wind farm bought more than 130,000 acres of land near a U.S. Air Force base.

Similar legislation in Florida went into effect July 1. The Florida legislation bans nearly all purchases by Chinese nationals and China-based companies. It also bans buyers from what the legislation calls “countries of concern,” including Venezuela and Russia, from purchasing agricultural land and any real estate within 10 miles of military and critical infrastructure facilities. Those facilities include airports, seaports, electrical power plants, water treatment plants, gas plants, and certain manufacturing facilities. Many of these facilities are located near urban centers and residential communities, making it difficult those in the real estate market to understand what properties are off limits.

At least one lawsuit is on appeal in Florida on constitutionality grounds.

Proposed legislation is also pending in California and now South Carolina to restrict ownership of real estate by “hostile nations” or “foreign adversaries.” Some have suggested that such bills may run afoul of due process and equal protection issues.

Chicago Title published an Underwriting Memorandum on April 5 entitled “Foreign Ownership of Property in South Carolina” to advise agents of the pending legislation in our state.

You may recall that we have an existing statute (S.C. Code §27-13-30) prohibiting any “alien” or corporation controlled by an “alien” from owning or controlling more than 500,000 acres of land in South Carolina. Recently, the South Carolina Senate passed Senate Bill 576 that amends the existing statute by expressly prohibiting any citizen of a foreign adversary or corporation controlled by a foreign adversary from acquiring any interest in South Carolina property.  The proposed legislation will now be considered by the House.

The term “foreign adversary” is defined in the bill as “any foreign government or nongovernment person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or the security and safety of United States citizens.”

And there are other bills pending along the same lines.

Senate Bill 392 would amend our existing statute to reduce the amount of property allowed to be owned by an “alien” to 1,000 acres. House Bill 3566 would add a statute to reduce to 1,000 acres the amount of land that can be owned or controlled by China, the Chinese Communist Party, or an entity whose principal place of business is located within China.  House Bill 3118 would prohibit any company owned or controlled by China or the Chinese Communist Party or that has a principal place of business in China from owning, leasing, possessing, or exercising any control over real estate located within 50 miles of a state or federal military base for the purpose of installing or erecting any type of telecommunications or broadcasting tower.

All dirt lawyers will know immediately that all versions of the proposed legislation will create uncertainty in our market. I have only two pieces of advice at this point. First, let’s all monitor the proposed legislation. And second, let’s pay attention to guidance provided by our excellent title insurance underwriters.