Overview
Sabal Homes is headquartered in Mount Pleasant, South Carolina, and operates exclusively in the Lowcountry region, building custom and semi-custom homes in Charleston, Mount Pleasant, and Summerville. Founded in 2004, the company closes approximately 200 to 400 homes per year.
South Carolina is a critical state for new construction contract analysis. The South Carolina Supreme Court's 2016 decision in Smith v. D.R. Horton, Inc. found several standard builder contract provisions unconscionable, establishing precedent that affects all South Carolina builders, including Sabal Homes. Buyers in this state have stronger legal protections against one-sided contract terms than buyers in many other states.
How South Carolina Law Affects Your Contract
The following analysis examines how Sabal Homes's documented contract patterns interact with South Carolina consumer protection law.
Habitability Waivers After Smith v. D.R. Horton
The South Carolina Supreme Court ruled in Smith v. D.R. Horton, Inc. (2016) that the builder's waiver of the implied warranty of habitability was unconscionable. The court found an extreme imbalance of bargaining power between the builder and individual homebuyers. This precedent means habitability waiver clauses in Sabal Homes contracts may be unenforceable in South Carolina.
Arbitration Provisions in South Carolina
In Smith v. D.R. Horton, the South Carolina Supreme Court found the arbitration agreement was a contract of adhesion, noting the extreme disparity in bargaining power. While arbitration clauses are not automatically invalid in South Carolina, the Smith decision provides precedent for challenging overly one-sided arbitration provisions in builder contracts.
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 before filing a construction defect lawsuit. This statutory requirement applies independently of any notice provisions in the purchase agreement.
South Carolina Unfair Trade Practices Act
The South Carolina Unfair Trade Practices Act (S.C. Code Section 39-5-10 et seq.) provides remedies including treble damages if a builder engages in unfair or deceptive acts during the sales process. This statute can apply to misrepresentations about home quality, features, or contract terms.
South Carolina Legal History
No state-specific litigation involving Sabal Homes 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
- Know the Smith v. D.R. Horton precedent. The South Carolina Supreme Court found several standard builder contract provisions unconscionable in 2016. This precedent may strengthen your position if you need to challenge similar provisions in your Sabal Homes purchase agreement.
- Understand that habitability waivers may be unenforceable. South Carolina courts have held that the implied warranty of habitability cannot be waived by contract when there is a significant disparity in bargaining power between the builder and buyer.
- Comply with the right-to-repair notice requirement. South Carolina law requires written notice to the builder before filing a construction defect lawsuit. Document all defects carefully and send notice via certified mail.
- Consider the Unfair Trade Practices Act for deceptive conduct. The South Carolina Unfair Trade Practices Act provides remedies including treble damages if a builder engages in unfair or deceptive acts during the sales process.
- Have a South Carolina real estate attorney review the contract. An attorney familiar with the Smith v. D.R. Horton precedent can identify which provisions in your Sabal Homes contract may be unenforceable under current South Carolina law.