S.C. Code Ann. § 27-40-450
Limitation of liability
Operative Text
(a) Unless otherwise agreed, a landlord who conveys the premises that include a dwelling unit subject to a rental agreement in a good faith sale to a bona fide purchaser is relieved of liability under the rental agreement and this chapter as to events occurring after written notice to the tenant of the conveyance. However, he remains liable to the tenant for security recoverable by the tenant under SECTION 27-40-410, unless the security deposit is transferred from the seller to the purchaser and the tenant is notified in writing a reasonable time after the transaction in which case the purchaser is liable under SECTION 27-40-410. (b) Unless otherwise agreed, a manager of the premises that includes a dwelling unit is relieved of liability under the rental agreement and this chapter as to events occurring after written notice to the tenant of the termination of his management.
Under S.C. Code Ann. § 27-40-450, when a landlord sells a rental property in a genuine, good-faith transaction, their legal obligations under the rental agreement and South Carolina's residential landlord-tenant law generally end once the tenant receives written notice of the sale. However, the selling landlord remains responsible for returning the tenant's security deposit unless that deposit is transferred to the new owner and the tenant is notified in writing within a reasonable time, at which point the new owner takes on that responsibility. Similarly, a property manager's liability under the rental agreement and state law ends once the tenant receives written written notice that the management relationship has been terminated.
Plain English — not legal advice.
Property owners and managers operating under S.C. Code Ann. § 27-40-450 generally protect themselves by providing tenants with prompt written notice whenever ownership or management of a rental property changes hands. In a sale, compliant sellers typically ensure that any held security deposits are formally transferred to the purchaser and that tenants receive written confirmation of that transfer within a reasonable time, so that liability for those funds shifts to the new owner. Property managers who are ending their role similarly document and deliver written termination notices to tenants to establish a clear cutoff for their ongoing obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
S.C. Code Ann. § 27-40-450 preserves certain tenant rights during ownership or management transitions, most notably the right to have a security deposit properly accounted for. If a tenant does not receive written notice that their security deposit was transferred to a new owner, the original landlord may remain on the hook for its return under § 27-40-410. Tenants who believe their deposit was mishandled during a sale or management change may consider consulting a tenant-rights organization or reviewing the complaint and dispute-resolution options available under South Carolina's residential landlord-tenant framework.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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