DCA webinar: How South Carolina's HOA laws work, how to get records and where to go for help

Zach Passmore, an enforcement attorney at the Department of Consumer Affairs, outlined what homeowners and condo owners need to know about HOA law in South Carolina during a department webinar.

Passmore said three separate bodies of law can apply depending on how an association is organized: the South Carolina Homeowners Association Act, the South Carolina Nonprofit Corporation Act and the South Carolina Horizontal Property Act. "There's generally two buckets of information that a homeowners association can look to," he said, pointing to state law and the association's governing documents.

Why it matters: those different laws determine whether members can inspect records, how meetings and votes must be noticed, and which court handles disputes. Passmore emphasized that governing documentsthe declaration, master deed and bylawsoften set day-to-day rules on landscaping, pets, assessments, special fees and elections.

Key rules and remedies
- Filing and recording: Documents in effect before May 17, 2018 remain effective; any governing documents adopted or amended must be recorded in the county by January 10 of the year following adoption for enforcement. Passmore cautioned attendees to check county recording offices when researching an association.
- Access to records: Members generally have rights to inspect budgets, minutes and certain corporate records when an HOA is a nonprofit corporation under the Nonprofit Corporation Act. Passmore said, "Members of the HOA under this act have a right to inspect and copy records held by the corporation." For non-incorporated associations, access depends on the HOA's own governing documents.
- Enforcement venues: Monetary disputes under the Homeowners Association Act go to magistrate court if the amount is $7,500 or less; other enforcement matters may require circuit court proceedings. The department does not have authority to compel an HOA to produce a particular outcome.

Department role and complaint process
Passmore described the Department of Consumer Affairs' role as educational and administrative: the agency collects specified HOA complaint data, compiles reports for the governor and the General Assembly, and offers voluntary mediation. "We do not administer the Homeowners Association Act nor can we enforce the HOA Act," he said. The department requires a supplemental HOA questionnaire for complaints; complaints missing that form cannot be processed.

Practical advice for homeowners
Passmore urged prospective buyers to obtain copies of governing documents, request the prior 12 months of meeting minutes, and ask for written confirmation that a property is not in violation of HOA rules before closing. If records or access are delayed or denied, homeowners may consider magistrate or circuit court or seek private counsel depending on the issue.

Resources and follow-up
Passmore pointed listeners to the DCA complaint portal at consumer.sc.gov, the HOA education page (with links to the three acts and the DCA's five-year report), and archived webinars on the department's YouTube channel. He also encouraged contacting the South Carolina Bar Association's lawyer referral service for attorney referrals.

The webinar closed with a question-and-answer period where Passmore addressed specific scenarios such as short-term rental bans, transfer of developer control, budget updates and voting classes. He reiterated multiple times that complex legal questions may require private counsel and that pending bills he discussed were not yet law.