Overview
PulteGroup operates in South Carolina under the Pulte Homes and Del Webb brands, with a notable presence in the Sun City Carolina Lakes community in Indian Land, a large-scale Del Webb active-adult development. The company also builds in the Charleston and Myrtle Beach areas. South Carolina is one of PulteGroup's southeastern growth markets.
South Carolina provides strong consumer protections, including a recognized implied warranty of habitability that courts have held cannot be unconscionably waived, a right-to-repair notice requirement, and the South Carolina Unfair Trade Practices Act. The Bernstein v. Pulte Home Company, LLC class action (D.S.C., 2019) involving alleged foundation defects at Sun City Carolina Lakes illustrates how PulteGroup's contract provisions interact with South Carolina law.
How South Carolina Law Affects Your Contract
The following analysis examines how PulteGroup's documented contract patterns interact with South Carolina consumer protection law.
Implied Warranty of Habitability and Unconscionability
South Carolina courts recognize an implied warranty of habitability for new construction (Lane v. Trenholm Building Co., 229 S.C. 25, 1956). The South Carolina Supreme Court has found habitability waiver clauses unconscionable in disputes involving national homebuilders. PulteGroup's express disclaimer of implied warranties (HAB-001) may face significant enforceability challenges in South Carolina, where courts apply a totality-of-the-circumstances test for unconscionability.
Bernstein v. Pulte and the Class Action Waiver
In Bernstein v. Pulte Home Company, LLC (D.S.C., 2019), residents of Sun City Carolina Lakes filed a proposed class action alleging negligent construction on poorly compacted soils resulting in foundation movement and slab cracking. Pulte moved to compel individual arbitration, invoking the class action waiver (CLA-001) and arbitration provision (ARB-001). This case illustrates the tension between PulteGroup's contract provisions and South Carolina's public-policy interest in allowing class-wide resolution of community-wide defects.
Right to Repair Notice Requirement
South Carolina's notice and opportunity to cure statute (S.C. Code Section 40-59-840 et seq.) 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. This statutory process operates alongside PulteGroup's internal warranty dispute resolution (WAR-002). Buyers should comply with both requirements to preserve all remedies.
Unfair Trade Practices Act and Foundation Defects
The Bernstein complaint alleged that Pulte's practices violated the South Carolina Unfair Trade Practices Act (S.C. Code Section 39-5-10 et seq.), which provides for treble damages and attorney fees. Foundation defects allegedly resulting from construction on poorly compacted soils implicate both the Unfair Trade Practices Act and the implied warranty of habitability. The interaction between these statutory remedies and PulteGroup's arbitration clause is a key legal issue for South Carolina buyers.
South Carolina Legal History
Selected cases and investigations involving PulteGroup in South Carolina.
Bernstein v. Pulte Home Company, LLC
Residents of Sun City Carolina Lakes, a community of approximately 3,000 homes in Indian Land, South Carolina, filed a proposed class action alleging that Pulte was negligent in overseeing construction on poorly compacted soils and ill-designed grading, resulting in excessive foundation movement, slab cracking, and separation. The complaint alleged Pulte failed to disclose the defects and that its practices violated the South Carolina Unfair Trade Practices Act. Pulte moved to compel individual arbitration.
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
- Know that habitability waivers may be unconscionable in South Carolina. South Carolina courts have found implied warranty of habitability waivers unconscionable in disputes with national builders. PulteGroup's contractual disclaimer of implied warranties may not be enforceable in South Carolina, potentially preserving common-law protections for buyers.
- Comply with the statutory notice and opportunity to cure. South Carolina law requires written notice to the builder and an opportunity to inspect and repair before filing a construction defect lawsuit. Send notice via certified mail and document all defects with photographs and written descriptions.
- Investigate soil conditions and foundation adequacy. The Bernstein v. Pulte complaint alleged defects arising from construction on poorly compacted soils in South Carolina. Consider hiring a geotechnical engineer or foundation specialist, particularly in communities built on fill soil or in areas with known soil variability.
- Evaluate the Unfair Trade Practices Act as a remedy. South Carolina's Unfair Trade Practices Act provides for treble damages and attorney fees. If you believe PulteGroup failed to disclose known defect conditions or made misleading representations during the sales process, consult a South Carolina attorney about potential UTPA claims.
- Understand the arbitration clause's impact on class claims. PulteGroup's arbitration clause and class action waiver may prevent participation in class-wide litigation for community-wide defects. If you are in a development where multiple homeowners are experiencing similar issues, seek legal advice about your individual and collective options.