Overview
Eastwood Homes operates in the Charleston, Greenville, and Columbia markets in South Carolina. The state has been the site of the company's most significant litigation, including the Swygert's Landing contract cancellation case and a roofing defect class action affecting nearly 400 homes.
South Carolina courts have found Eastwood's unilateral seller cancellation clause and damages limitation provision unconscionable and unenforceable. The S.C. Court of Appeals upheld these findings in 2025, and the S.C. Supreme Court denied review, meaning Eastwood lost at every court level. South Carolina's Right to Cure Act and eight-year statute of repose also govern construction defect claims.
How South Carolina Law Affects Your Contract
The following analysis examines how Eastwood Homes's documented contract patterns interact with South Carolina consumer protection law.
Unconscionable Cancellation Clause — Swygert's Landing
In Dawkins v. Eastwood Homes of Columbia, LLC (S.C. Court of Appeals, No. 2025-UP-239), the court upheld a finding that Eastwood's 'Seller Option to Cancel Prior to Closing' provision was unconscionable and unenforceable. Eastwood had canceled nine purchase contracts on the same day and asked buyers to renegotiate at higher market prices. The S.C. Supreme Court denied review in March 2025.
Unconscionable Damages Limitation
The Swygert's Landing court also found that Eastwood's contract provision limiting the builder's liability for damages upon cancellation was unconscionable and violated public policy. This ruling establishes South Carolina precedent that may affect similar provisions in current Eastwood contracts.
South Carolina Right to Cure Act (S.C. Code 40-59-850 et seq.)
South Carolina law requires written notice to the builder before filing suit for construction defects. The builder has the right to inspect and offer to repair. This statutory process applies to the roofing defects alleged in the class action affecting nearly 400 homes.
8-Year Statute of Repose
South Carolina's statute of repose for construction defect claims is eight years from substantial completion (S.C. Code 15-3-640). Given the roofing class action and multiple HOA-led lawsuits, buyers should document and report all defects within this window.
Roofing Defect Class Action
A class action alleges that Eastwood and three roofing subcontractors performed defective roofing work on nearly 400 South Carolina homes, including defective ridge vents, improper shingle underlayment, deficient drip edges, improper fasteners, and use of the racking method rather than the offset method for asphalt shingles.
South Carolina Legal History
Selected cases and investigations involving Eastwood Homes in South Carolina.
Relevant South Carolina Laws
South Carolina courts recognize an implied warranty of habitability for new construction. The South Carolina Supreme Court has held that contractual waivers of this warranty may be unconscionable.
Prohibits unfair or deceptive acts in trade or commerce, with potential for treble damages and attorney fees.
Requires homeowners to provide written notice to the builder and allow an opportunity to inspect and offer a repair before filing a construction defect lawsuit.
South Carolina Key Facts
- 1The South Carolina Supreme Court found habitability waiver clauses unconscionable in Smith v. D.R. Horton (2016).
- 2South Carolina's right-to-repair statute requires written notice before filing a construction defect lawsuit.
- 3Mandatory arbitration clauses have been found unconscionable in some South Carolina cases involving national builders.
- 4South Carolina has a statute of repose of 8 years for construction defect claims.
- 5The Residential Builders Commission licenses and regulates residential builders in South Carolina.
- 6South Carolina courts apply a totality-of-the-circumstances test for unconscionability of contract provisions.
What South Carolina Buyers Should Know
- Review cancellation clauses with an attorney before signing. South Carolina courts have found Eastwood's unilateral cancellation provision unconscionable. While the builder may have revised its contracts, have an attorney review any cancellation language to confirm the builder cannot cancel without cause.
- Schedule a pre-closing roof inspection. The roofing class action alleges defective installation on nearly 400 South Carolina homes. Budget for an independent roof inspection before closing and confirm in writing that the builder will provide access.
- Compare preferred lender terms against independent lenders. Eastwood offers up to $20,000 in closing cost incentives through its preferred lender. Calculate whether the incentive offsets any rate or fee differences over the full loan term.
- Document all specifications and commitments in writing. The Swygert's Landing litigation demonstrates that Eastwood has previously canceled contracts and sought renegotiation at higher prices. Ensure all pricing, specifications, and timelines are documented in signed agreements.
- Confirm deposit refund conditions before signing. Clarify the exact conditions for deposit refund, including financing contingencies, appraisal shortfalls, and builder-caused delays or cancellations.