South Carolina’s recently enacted “anti-squatter” law provides real estate practitioners with a valuable tool to help property owners quickly regain possession of residential property from certain unauthorized occupants. The legislation creates an expedited process for removing true squatters while preserving existing protections for legitimate tenants. It also strengthens landlords’ rights during eviction appeals. For reference, the text of the Act can be found here.
Why does this matter to real estate clients? Before this law, an owner who discovered an unauthorized occupant in what was supposed to be a vacant home often faced a lengthy and expensive court process to evict the occupant. Under the new statute, property owners may seek expedited relief through magistrate court when an individual occupies residential property without permission and has no legitimate tenancy rights. As long as the property owner can provide a verified (signed by the property owner on his or her own knowledge) petition to file, the new law authorizes a magistrate to order a quick (potentially as quickly as same-day) ex parte eviction of a true squatter – someone who has no legitimate right – such as a residential lease – to be in the property.
For South Carolina real estate attorneys and paralegals, this could open up opportunities to provide practical value to clients. For example:
• Assisting sellers who discover unauthorized occupants in their residential investment property.
• Helping purchasers of vacant homes, inherited property, foreclosed/REO houses, or investment properties, to evict unauthorized folks and obtain possession more quickly. Care still needs to be taken in investigating whether the occupant may have a legitimate lease agreement from the former owner.
• Advising landlords on whether an occupant is a true squatter or should instead be handled through traditional residential landlord-tenant eviction procedures.
• Lender’s counsel may want to discuss with their lender or servicer clients who could be dealing with vacant collateral residential properties.
Actual possession remains an important issue during underwriting and closing. Title agents should continue to ask about any occupants in possession at closing, and discuss with an underwriter if needed.
The new law also addresses an older existing issue in which tenants who were appealing an eviction could effectively “game” the system by staying in the property without paying rent while their appeal was pending. Now, tenants who have appealed an eviction order are required to sign an affidavit that they will continue paying rent, or face prompt eviction if they do not do so.
An additional provision of the new law applies to RV park operators and opens up more robust actions the operators may take to remove park guests who violate park rules, do not pay, use illegal drugs, or disturb other guests.
The bottom line is that the new law provides a faster and more practical path for removing unauthorized occupants and should be viewed as another tool in the real estate practitioner’s toolbox. Attorneys and paralegals who understand the distinction between squatters and tenants, and who proactively educate clients about the new procedure, will be in a good position to help protect real estate transactions, reduce delays, and strengthen long-term client relationships, while remaining mindful of the title and possession issues that may still arise.
