Here is SC license law on material adverse facts.
Obviously, timely/proper disclosure is a risk management strategy. Because the RPCDS and RPCDS addendum aka "seller disclosure" statute and case law provides a strong risk management liability for sellers and real estate licensees, SCR generally recommends that all listing brokerages require a seller disclosure and post/provide the seller disclosure in a timely/proper manner which could include posting the seller disclosure to the MLS listing documents and/or putting seller disclosure copies into the listing property where buyers and buyer reps can read and take a copy and/or delivering to buyer/buyer reps prior to contract.
(16) ‘Material adverse fact’ means:
(a) a condition or occurrence that is generally recognized as:
(i) significantly and adversely affecting the value of the real estate;
(ii) significantly reducing the structural integrity of improvements to real estate; or
(iii) presenting a significant health risk to occupants of the real estate; or
(b) information that indicates that a party to a transaction is not able to or does not intend to meet an obligation under a contract or agreement made concerning the transaction.
(iii) disclosing to the seller all material adverse facts concerning the transaction which are actually known to the seller’s agent except as directed otherwise in this section;
(iii) disclosing to the buyer all material adverse facts concerning the transaction which are actually known to the licensee except as directed otherwise in this section. Nothing in this chapter may limit a buyer’s obligation to inspect the physical condition of the property which the buyer may purchase;
(2) Licensees operating as transaction brokers are required to disclose to buyers and sellers their role and duties in offering customer services to the consumer that shall include the following:
(a) honesty and fair dealing;
(b) accounting for all funds;
(c) using skill, care and diligence in the transaction;
(d) disclosing material adverse facts that affect the transaction, or the value or condition of the real property and that are not readily ascertainable;
(e) promptly presenting all written offers and counteroffers;
(f) limited confidentiality, unless waived in writing by a party. This limited confidentiality prohibits disclosing:
(i) information concerning a buyer’s motivation to buy or the buyer’s willingness to make a higher offer than the price submitted in a written offer;
(ii) factors motivating a seller to sell or the seller’s willingness to accept an offer less than the list price;
(iii) that a seller or buyer will agree to financing terms other than those offered; and
(iv) information requested by a party to remain confidential, except information required by law to be disclosed;
(g) additional duties that are entered into by separate agreement.
Posted by : Byron King on 5/7/18 (This information is only accurate as of 5/7/18. You must contact SCR for updates and changes to this information after 5/7/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)