Overview
Toll Brothers operates in the Charleston and coastal South Carolina markets, building luxury single-family homes and master-planned communities. The Lowcountry and coastal resort markets represent Toll Brothers' primary presence in the state.
South Carolina's Right to Cure Act and the state's evolving case law on unconscionability in builder contracts create a specific legal landscape for evaluating Toll Brothers' purchase agreements. The South Carolina Supreme Court's willingness to find builder contract provisions unconscionable, as demonstrated in cases involving other national builders, is relevant context for Toll Brothers buyers.
How South Carolina Law Affects Your Contract
The following analysis examines how Toll Brothers's documented contract patterns interact with South Carolina consumer protection law.
South Carolina Right to Cure Act
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. The builder has the right to inspect and offer to repair. This statutory process applies to claims arising under Toll Brothers' warranty (WAR-001) and operates independently of the contract's dispute resolution provisions.
Unconscionability Standards in South Carolina
The South Carolina Supreme Court has found national builder contract provisions unconscionable in cases involving extreme imbalances of bargaining power. While these rulings involved other builders, the legal principles apply to Toll Brothers' one-sided arbitration clause (ARB-001) and limitation of liability provisions (DAM-001). South Carolina courts evaluate adhesion contracts for both procedural and substantive unconscionability.
Implied Warranty of Habitability in South Carolina
South Carolina recognizes an implied warranty of habitability in new home construction. Toll Brothers' express warranty (WAR-001), which limits structural coverage and designates itself as the exclusive remedy, must be evaluated alongside this implied warranty. South Carolina courts have addressed whether such waivers are enforceable in the context of national builder contracts.
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 for unfair or deceptive acts in consumer transactions. Toll Brothers' limitation of liability provision (DAM-001) cannot waive protections under this statute.
South Carolina Legal History
No state-specific litigation involving Toll Brothers 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
- Follow the Right to Cure Act notice requirements. South Carolina law requires written notice to the builder before filing a construction defect claim. Document all defects with photographs and send notice via certified mail to comply with this statutory requirement.
- Understand unconscionability protections in South Carolina. South Carolina courts have found national builder contract provisions unconscionable when there is an extreme imbalance of bargaining power. This precedent may apply to one-sided arbitration clauses (ARB-001) and liability limitations (DAM-001) in Toll Brothers contracts.
- Know your rights under the Unfair Trade Practices Act. South Carolina's UTPA provides treble damages for deceptive practices. These protections cannot be waived by contract and apply to the home purchase process.
- Hire an inspector experienced with Lowcountry construction. South Carolina's coastal environment presents specific challenges including humidity, salt air exposure, and flood zone considerations. An inspector familiar with these conditions can identify issues specific to Lowcountry construction.