Overview
K. Hovnanian operates in South Carolina with communities in the Charleston, Myrtle Beach, and other coastal and inland markets. South Carolina is part of the company's Southeast expansion.
South Carolina provides notable protections for new home buyers. The South Carolina Supreme Court's rulings on builder contract provisions, including findings of unconscionability in similar builder contracts, may be relevant to K. Hovnanian buyers in the state.
How South Carolina Law Affects Your Contract
The following analysis examines how K. Hovnanian's documented contract patterns interact with South Carolina consumer protection law.
Habitability Waivers Under South Carolina Law
South Carolina recognizes an implied warranty of habitability for new residential construction. The South Carolina Supreme Court's decision in Smith v. D.R. Horton (2016) found habitability waivers unconscionable in builder purchase agreements. While that case involved a different builder, the legal principles may apply to similar provisions in K. Hovnanian's contracts.
Arbitration Enforceability in South Carolina
The enforceability of mandatory arbitration clauses in South Carolina builder contracts is uncertain following the Smith v. D.R. Horton ruling, which found an arbitration agreement to be a contract of adhesion. K. Hovnanian's arbitration provision may face similar scrutiny in South Carolina courts.
South Carolina Right to Cure Act
The South Carolina Notice and Opportunity to Cure Construction Dwelling Defects Act (S.C. Code § 40-59-810 et seq.) requires homeowners to provide written notice to the builder before filing a construction defect lawsuit. This pre-suit process is mandatory regardless of the purchase agreement terms.
Unfair Trade Practices Act
The South Carolina Unfair Trade Practices Act (S.C. Code § 39-5-10 et seq.) prohibits unfair or deceptive acts in trade or commerce. Buyers who allege misleading sales practices may have remedies under this statute, including treble damages.
South Carolina Legal History
No state-specific litigation involving K. Hovnanian in South Carolina has been identified in public records as of this writing.
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
- Understand South Carolina's strong warranty protections. South Carolina recognizes an implied warranty of habitability for new homes. Court decisions have found similar builder habitability waivers unconscionable in this state.
- Know the Right to Cure Act notice requirement. South Carolina law requires written notice to the builder before filing a construction defect lawsuit. An attorney familiar with this statute can help you comply with the mandatory pre-suit process.
- Review the Smith v. D.R. Horton precedent. The South Carolina Supreme Court's ruling on unconscionable builder contract provisions may be relevant to similar clauses in K. Hovnanian's purchase agreement. Consult an attorney familiar with this case.
- Request independent inspections at key milestones. The purchase agreement may attempt to restrict inspections. South Carolina buyers can generally arrange for independent inspections at pre-drywall, pre-closing, and final walkthrough stages.