The new-versus-resale conversation usually gets framed as taste: do you want everything new, or do you want mature trees and a neighborhood that's finished settling?
That's a real question, but it's the smaller one. The bigger one is that South Carolina law treats these two purchases differently in at least four places — what has to be disclosed to you, how you pursue a defect, who is legally allowed to have built it, and when your first real tax bill arrives. Those differences are knowable in advance, and a few of them are negotiable only before you close.
For the transaction generally, start with my complete guide to buying a home in Myrtle Beach.
Difference 1: The Disclosure Form You Get With a Resale, and Don't With New
South Carolina's Residential Property Condition Disclosure Act requires a seller to deliver a completed disclosure statement covering the property's known condition. It's one of the most useful documents in a resale transaction — I've written up what it covers and what you're entitled to.
But S.C. Code § 27-50-30 lists fifteen categories of transfer the article doesn't apply to, and number ten is this:
transfers … involving the first sale of a dwelling never inhabited
So on a brand-new home, that form isn't coming. There's no prior owner with a leak history, and the statute doesn't manufacture one.
That is not automatically bad — there's usually less to disclose about a house nobody has lived in. But it does mean the information you'd normally read on a form has to be replaced by something else: your own independent inspection, the builder's warranty document, and the permit and inspection record with the county or municipality. Do not let "it's new" substitute for an inspection. It's the opposite — with no disclosure form, the inspection is your disclosure.
Worth knowing about the same exemption list: number thirteen exempts transfers "between parties when both parties agree in writing not to complete a disclosure statement." If someone asks you to sign that, understand you're giving up the form voluntarily. The fifteen exempt transfers covers the whole list.
Difference 2: How a Defect Claim Actually Works Here
If something is wrong with a new house, South Carolina requires you to follow a procedure before you can sue. It's the South Carolina Notice and Opportunity to Cure Construction Dwelling Defects Act, at S.C. Code § 40-59-810 through § 40-59-860.
The mechanics, from the statute:
| Step | The rule |
|---|---|
| Notice first | § 40-59-840(A): the claimant must, no later than ninety days before filing the action, serve a written notice of claim on the contractor |
| What the notice must say | A statement that you assert a construction defect; a description "in reasonable detail sufficient to determine the general nature" of it; and a description of any results of the defect, if known |
| Clarification | The contractor or subcontractor must advise you within fifteen days if the defect isn't sufficiently stated, and request clarification |
| Their election | § 40-59-850(A): the contractor has thirty days from service to inspect, offer to remedy, offer to settle, or deny — and failure to respond within thirty days is deemed a denial |
| Your response | You must serve a response to any offer within ten days of receiving it |
| If you skip the process | § 40-59-830: if you file suit first, on a party's motion "the court shall stay the action" until you've complied |
| Settlement talk is protected | § 40-59-850(D): offers of settlement, repair, or remedy under the section "are not admissible in an action" |
Two definitions in § 40-59-820 matter to a buyer. "Claimant" expressly includes a subsequent purchaser — so this procedure isn't only for the original buyer from the builder. And "construction defect" is defined to include defective materials or components, a violation of the applicable codes in effect at the time of construction, a design that failed the professional standard of care, and failure to build to accepted trade standards — with the note that compliance with the applicable codes "conclusively establishes construction in accordance with accepted trade standards" for matters those codes specify.
Also worth knowing: § 40-59-860(A) says nothing in the article applies to claims for personal injury or death.
None of this is a reason to avoid new construction. It's a reason to keep every piece of paper — contract, plans, change orders, warranty, punch list, inspection reports — because a notice of claim has to describe the defect in reasonable detail, and two years from now you will not remember.
The eight-year clock, and the one thing to negotiate before it starts
S.C. Code § 15-3-640 is South Carolina's statute of repose:
No actions to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property may be brought more than eight years after substantial completion of the improvement.
The section applies broadly — breach of a construction contract, negligent construction, personal injury or property damage, economic loss, contract or tort, contribution and indemnity, actions against sureties, against prior owners, and against component manufacturers, designers, and builders. The statute describes it as "an outside limitation of eight years… within which normal statutes of limitations continue to run." In other words, eight years is the ceiling, not the ordinary deadline.
For new construction after July 1, 2005, a certificate of occupancy issued by the county or municipality "shall constitute proof of substantial completion," unless the contractor and owner establish a different date by written agreement.
Here's the part almost nobody uses. The same section says a building permit must carry notice, in bold type, of the owner's right "to contract for a guarantee of the structure being free from defective or unsafe conditions beyond eight years after substantial completion," and expressly permits a contractual agreement entered into prior to substantial completion extending a guarantee past eight years.
If you are buying a house that is still being built, that right exists while you still have leverage. Ask your closing attorney whether it's worth pursuing in your contract. Once the house is substantially complete, that window has closed.
Difference 3: Who Is Legally Allowed to Have Built It
South Carolina licenses residential builders through the South Carolina Residential Builders Commission, under the Department of Labor, Licensing and Regulation, at S.C. Code Title 40, Chapter 59.
Per § 40-59-20(6), a "residential builder" is one who constructs or superintends construction, repair, or improvement of a residential building not over three floors and not more than sixteen units per apartment building, when the cost of the undertaking exceeds five thousand dollars. Residential specialty contractors — plumbers and the other listed trades — are covered separately at a $500 threshold, and a specialty contractor "is not authorized to construct additions to residential buildings or structures without supervision by a residential builder or other appropriately licensed person or entity."
§ 40-59-30 puts real weight behind it:
- Engaging in the business without registering or holding a valid license is a misdemeanor, punishable on conviction by a fine of not less than $500 or more than $10,000, or imprisonment of not less than thirty days, or both.
- And the commercial consequence: an unlicensed person or firm "may not file a mechanics' lien or bring an action at law or in equity to enforce the provisions of a contract for residential building or residential specialty contracting which the person or firm entered into in violation of this chapter."
This matters most for two situations: a smaller local builder you haven't heard of, and post-purchase renovation work on a resale. Ask for the license, and verify it with LLR rather than taking a business card at face value.
Difference 4: Your First Tax Bill Will Mislead You
This is the one that catches new-construction buyers financially, and it's a two-line statute.
S.C. Code § 12-37-670(A): "No new structure must be listed or assessed for property tax until it is completed and fit for the use for which it is intended."
And § 12-37-670(B) lets a county governing body provide by ordinance that previously untaxed improvements be listed with the assessor by the first day of the next calendar quarter after a certificate of occupancy is issued. Where such an ordinance exists, "additional property tax attributable to improvements listed with the county assessor accrues beginning on the listing date and is due and payable when taxes are due on the property for that property tax year" — and expressly, that additional tax is due "without regard to any tax receipt issued for that parcel for the tax year that does not reflect the value of the improvements." If a county enacts it, the election binds all municipalities in that county that levy property tax.
Translation for a buyer: a first bill that reflects a bare lot is not your steady-state bill, and an additional assessment can arrive for the same tax year. Ask the county assessor directly what your address will be assessed at once the improvement is on the books, and budget from that.
That's on top of the ordinary trap that applies to any purchase here: the 4% owner-occupied ratio is an application you file, not a default. The 4% vs 6% assessment ratio and the application and the deadline that catches new owners.
Financing Differences Worth Knowing
USDA has a new-construction haircut. Under 7 CFR § 3555.103(c), a newly constructed dwelling that doesn't meet the program's definition of an existing dwelling and can't meet its inspection and warranty requirements "is limited to 90 percent of the present market value," and must meet or exceed the International Energy Conservation Code in effect at the time of construction. If you're using USDA on new construction inland, confirm the builder can satisfy those requirements.
Construction timelines get their own disclosure rule. 12 CFR § 1026.19(e)(3)(iv)(F) lets a creditor issue revised disclosures on a new-construction transaction where settlement is reasonably expected more than 60 days out — but only if the original Loan Estimate "state[s] clearly and conspicuously that at any time prior to 60 days before consummation, the creditor may issue revised disclosures." If that sentence isn't there, the creditor may not issue revised disclosures on that basis. Read your Loan Estimate for it.
Some assistance is builder-routed. SC Housing's Made It Home! program — up to $25,000 in forgivable down payment and closing cost assistance, structured as a zero-interest second mortgage fully forgiven after ten years if you stay — starts by contacting a participating builder directly, and the assistance can't be combined with other SC Housing down payment programs. Check the map before you count on it, though: the participating builders SC Housing currently lists are in Columbia, Darlington, Sumter, Rock Hill and Spartanburg — none on the Grand Strand. It's worth asking whether that list has grown, but as it stands this is an argument for new construction elsewhere in the state, not here. See my first-time buyer's guide.
What Doesn't Change
The coastal layer applies to both, and buyers sometimes assume a new house is exempt from it:
- Wind and hail may still be a separate policy with its own deductible. Newer construction and mitigation features can matter to pricing — ask. Wind insurance in coastal South Carolina.
- Flood zone is determined by the map, not the build date. Why the zone decides what your lender can do.
- If it's oceanfront, the Beachfront Management Act's baseline and setback line govern what can be built there at all. What to look for when buying a home near the beach.
- An attorney runs your closing either way, per SC Bar Ethics Advisory Opinion 05-16.
- An HOA is an HOA. In a new community, the declarant typically still controls the association — ask when control transfers to owners, what the budget assumes, and what's still unbuilt. If it's a condo regime, the reserve study and financial documents matter even more when there's no operating history.
The Honest Trade-Off
| New construction | Resale | |
|---|---|---|
| Statutory disclosure form | Exempt — § 27-50-30(10), first sale of a dwelling never inhabited | Required, subject to the exemption list |
| Condition information | Comes from your inspection, the warranty, and the permit record | Comes from the disclosure form plus your inspection |
| Defect recourse | Notice and Opportunity to Cure Act procedure; 8-year outside limit from substantial completion | Same procedure applies to a subsequent purchaser, but the 8-year clock started at the original substantial completion |
| Extended guarantee | Can be contracted for before substantial completion | That window has already closed |
| Property taxes | First bill may not reflect the improvement; additional assessment can follow | Bill reflects the improvement, but the seller's ratio may not be yours |
| Community | Unbuilt lots, declarant-controlled HOA, amenities that may not exist yet | Finished streets, an association with an operating history, visible neighbors |
| Negotiation | Often on upgrades and incentives rather than price | Usually on price, repairs, and terms |
Neither column wins. What decides it is which risks you'd rather manage — unknown workmanship you can inspect and pursue, or known age you can see and price.
Frequently Asked Questions
Do I get a seller's disclosure on a new home? No. § 27-50-30(10) exempts the first sale of a dwelling never inhabited from the disclosure article.
Should I still get an inspection on new construction? Yes — more so, precisely because there's no disclosure form. Consider inspecting at stages if the contract allows it, and inspect again before the warranty period lapses.
How long is the builder responsible? Distinguish the contractual warranty from the legal deadline. § 15-3-640 sets an outside limit of eight years after substantial completion for actions arising out of a defective or unsafe condition, with normal statutes of limitations running inside that. Your written warranty may be much shorter — read it.
When does "substantial completion" start? For new construction after July 1, 2005, a certificate of occupancy issued by the county or municipality constitutes proof of substantial completion, unless the contractor and owner agree in writing to a different date.
Can I sue the builder right away if something's wrong? Not without notice. § 40-59-840(A) requires a written notice of claim served no later than ninety days before filing, and § 40-59-830 requires a court to stay an action filed without complying.
Does this protect me if I bought the house from the original owner? The Notice and Opportunity to Cure Act's definition of "claimant" expressly includes a subsequent purchaser. What doesn't reset is the § 15-3-640 clock — it runs from the original substantial completion.
How do I check a builder's license? Residential builders and specialty contractors are licensed through the South Carolina Residential Builders Commission under LLR. Ask for the license and verify it with the agency; an unlicensed builder can't even enforce its own contract or file a mechanics' lien under § 40-59-30(B).
Will my taxes go up after the first year on a new build? Very possibly. § 12-37-670 keeps a new structure off the tax roll until it's completed and fit for its intended use, and a county ordinance can list improvements by the quarter after the certificate of occupancy with additional tax accruing from the listing date. Ask the assessor what the assessed value will be once the improvement is listed.
Let's Compare Two Real Options
The most useful version of this comparison isn't abstract — it's a specific new-construction community and a specific resale, priced with the same tax assumptions and the same insurance quotes, side by side.
That's a good afternoon's work and it usually settles the question. Get in touch and we'll set it up. My resources page lists the inspectors and closing attorneys I work with, and you can browse current listings to pick the resale side of the comparison.
One note specific to this topic: the right to contract for a guarantee beyond eight years exists only before substantial completion, and the terms of a builder's written warranty are contract terms, not statutory ones. Both are worth putting in front of your closing attorney while you can still negotiate them.
Thinking about making the move to the Grand Strand?
Whether you're relocating from up north or planning your retirement on the South Carolina coast, I'd love to help you get there. Follow me on Facebook for more local tips, search Grand Strand listings right here on my site, and join one of my Facebook groups built specifically for people making this move:
