Retail Sales What Can the Retailer Keep?

What Can the Retailer Keep?

Under SC law, the homebuyer may “rescind” the transaction at any time prior to closing.

Two important factors determining what the retailer can keep are:
a) whether there was a “valid agreement,” and
b) whether there is a provision that spells out the conditions under which the dealer is entitled to retain a deposit or down payment.

Here’s what the law says. We reorganized the information below to make it easier to follow.

79-17. Contracts; Deposits and Down Payments; Rescission.

(A) For the purposes of this Regulation, an agreement to purchase a manufactured home will be deemed valid prior to closing if the agreement is in writing, is signed and dated by the buyer and seller on the same date, and meets all other requirements of the Board’s statutes and regulations. Further, the seller’s failure to provide the buyer, as required by the Board’s regulations, with an identical copy of any purported agreement that the seller wishes to enforce shall render the agreement invalid for purposes of this Regulation.

(B) The failure to accurately describe the exact nature of the deposit or down payment with respect to a manufactured home purchase agreement, including cash, real estate, titles, or objects exchanged, will render the agreement invalid for purposes of this Regulation.

(C) Where any manufactured home purchase agreement also obligates the buyer to the purchase or lease of land, the requirements of this Regulation will be deemed applicable to the entire deposit or down payment without regard to any purported allocation of the deposit or down payment between the manufactured home and the land.

(D) In the absence of a valid agreement in accordance with this Regulation, or in the absence of a provision in such an agreement that addresses the conditions under which the seller is entitled to retain a deposit or down payment, the seller must immediately return all cash and other items used as a deposit or down payment if the buyer rescinds the transaction at any time prior to completion of closing; provided, however, that the seller may retain the lesser of the actual financing application fee or fifty dollars where the buyer is rejected for financing.

(E) Where a valid agreement exists, in accordance with this Regulation, notwithstanding any contrary provisions of the agreement, the buyer may rescind the transaction at any time prior to closing; provided, however, that the seller may in such case retain reasonable costs actually incurred because of the buyer’s rescission. Reasonable costs may include, but shall not necessarily be limited to, transportation, installation, decoration, and interest for modified floor plans.

IF THERE IS NO VALID AGREEMENT:

In the absence of a “valid agreement” in accordance with this Regulation,

or

In the absence of a provision in such an agreement that addresses the conditions under which the seller is entitled to retain a deposit or down payment,

“The seller must immediately return all cash and other items used as a deposit or down payment.”

However, the seller may retain the lesser of the actual financing application fee or fifty dollars where the buyer is rejected for financing.

IF THERE IS A VALID AGREEMENT:

Where a valid agreement exists:

“Notwithstanding any contrary provisions of the agreement, the buyer may rescind the transaction at any time prior to closing; provided, however, that the seller may in such case retain reasonable costs actually incurred because of the buyer’s rescission. Reasonable costs may include, but shall not necessarily be limited to, transportation, installation, decoration, and interest for modified floor plans.”

WHAT ARE THE REQUIREMENTS FOR A VALID AGREEMENT?

For the purposes of this Regulation, an agreement to purchase a manufactured home will be deemed valid prior to closing if:

The agreement is in writing,
Is signed and dated by the buyer and seller on the same date, and
Meets all other requirements of the Board’s statutes and regulations.

WHAT OTHER CIRCUMSTANCES WOULD MAKE THE AGREEMENT NOT VALID?

The seller’s failure to provide the buyer, as required by the Board’s regulations, with an identical copy of any purported agreement that the seller wishes to enforce shall render the agreement invalid for purposes of this Regulation.

The failure to accurately describe the exact nature of the deposit or down payment with respect to a manufactured home purchase agreement, including cash, real estate, titles, or objects exchanged, will render the agreement invalid for purposes of this Regulation.

IF LAND IS INCLUDED: Additional Provision

Where any manufactured home purchase agreement also obligates the buyer to purchase or lease of land, the requirements of this Regulation will be deemed applicable to the entire deposit or down payment without regard to any purported allocation of the deposit or down payment between the manufactured home and the land.

Important:

In addition to the wording of Section 79-17 of the SC Code of Regulations, we have reorganized the information in an unofficial outline form. The outline should not be treated as legal advice. Your legal counsel can advise you as to how these provisions would impact your specific company operations.