SC's New Contract Is Causing Major Changes To Real Estate

When South Carolina flipped the switch to a due-diligence-only purchase contract in mid-June, it didn’t just tweak a few lines of legalese—it rewired how buyers and sellers think about offers, inspections, repairs, and risk. After two months working under the new rules, the host of Selling Greenville reports a clear pattern: money signals (and the timing of those signals) now carry far more weight than the sprawling repair debates of the past.

Below is a practical, story-driven breakdown—drawn entirely from his on-the-ground experience—of what changed, how agents are adapting, and the new levers that decide who wins in multiple-offer situations.

South Carolina New Contract

South Carolina’s new contract approach is simple in concept and profound in impact. Instead of multiple inspection-period options (including the old “repair procedure”), every transaction now centers on one defined due diligence period. During that window, the buyer can back out for any reason—but only by forfeiting a negotiated termination fee. The length of the period and the amount of the fee are both negotiable.

That single structural change cascades through the entire offer strategy:

• Sellers no longer have contractual obligations to make repairs (beyond conveying a clear title).

• Buyers must decide how much risk money to put at stake up front (via the termination fee) if they want the flexibility to walk away.

• Everyone must learn new timing and vocabulary—especially out-of-state buyers who know “due diligence” or “option periods” by different names in their home markets, but not quite like South Carolina uses them.

In other words, the inspection chapter turned into a money chapter. And that has reordered what matters most inside an offer.

Goodbye repair procedure, hello risk calculus

Under the former “repair procedure,” sellers were obligated to address issues in nine defined categories (think: structural, plumbing, electrical, etc.). That framework created endless gray areas—was a failed outlet an “electrical system” failure?—and led to bloated repair requests that were painful to negotiate and even harder to execute well.

Under due diligence, a buyer who finds problems can request repairs, but the seller isn’t required to do them. The buyer’s true leverage is the same lever as their downside: walk away and forfeit the termination fee. That’s why the termination fee has become a headline number—right alongside price and appraisal contingency—when listing agents line up competing offers.

Earnest money vs. termination fee (and why they aren’t equal)

The host stresses a key distinction many buyers miss at first:

• Earnest Money: In South Carolina, the practical norm is about 1% of the purchase price. In most real-world scenarios, buyers ultimately get this back unless they blatantly default.

• Termination Fee: Pure at-risk money if the buyer backs out during due diligence. There’s no haggling it back later—it’s paid as promised. Because of that, most buyers (so far) are offering less than 1% here.

That difference explains why sellers are suddenly laser-focused on the termination fee. It telegraphs the buyer’s commitment in a way earnest money rarely does.

How sellers are actually weighing offers now

From two months of active deals, three variables consistently sit at the top of a seller’s scorecard:

1. Purchase price

2. Appraisal contingency (or no appraisal contingency)

3. Termination fee amount during due diligence

Those three numbers—together—tell a seller how much skin a buyer has in the game. A high price paired with a full appraisal contingency and a token (or zero) termination fee can look flimsy next to a slightly lower price with stronger risk money and cleaner appraisal terms.

A real-world example from the episode: four offers arrived on a listing. One came in dramatically higher than the rest but carried a full appraisal contingency and a zero termination fee. A lower-priced offer with a solid termination fee won—because it showed real commitment, and the higher price likely wouldn’t appraise anyway.

Yes, the termination fee can beat cash

Perhaps the most eye-opening anecdote: a financed buyer landed a home over an equal-price cash offer—something the host had never seen before—because the financed offer paired strong terms with a meaningfully higher termination fee (and waived appraisal). The listing side explicitly said the seller valued the higher due diligence risk money enough to pick it over cash at the same price.

The takeaway for buyers in competitive situations: price is necessary but no longer sufficient. The termination fee is now a second bidding lane.

Strategy is now home-condition-dependent

Because the termination fee is true risk capital, its smart use depends heavily on the actual condition and age of the home:

• Homes in weaker condition

  • Sellers should favor offers with higher termination fees, reducing fallout risk, and compensating them if a deal dies.

  • Buyers should be cautious with the amount—they may discover issues that make walking away the right call, and a large termination fee would sting.

• Homes in strong condition

  • Sellers can be flexible on the termination fee if the house is clean and well-kept, since buyers are less likely to bail. Zero still raises red flags, but the absolute number matters less.

  • Buyers can justify a higher termination fee if signs point to few surprises. The host often previews roofs, HVAC ages, crawlspace conditions, etc., during showings to help buyers calibrate risk with eyes open.

Age matters as well. Newer homes (the episode cites a roughly five-year-old property) tend to carry lower hidden-defect risk than older homes—even if older homes present well. Code changes, end-of-life systems, and invisible issues tend to pile up with age.

The CL-100 stays separate—and still matters

One contingency remains outside the due diligence tug-of-war: wood infestation (CL-100). The host adamantly recommends never waiving it. In that five-year-old example above, an inspector found active termites. They hadn’t caused structural damage yet, and the seller treated the problem. The point stands: even “newer” houses benefit from that modest, highly specific inspection because South Carolina’s climate makes moisture and wood pests a recurring storyline—especially on crawlspace homes (and worth checking even on slabs).

Repair requests are shorter—and saner

A surprising cultural shift has followed the contract change. Instead of sending five-page repair lists because “the contract says you must,” buyers are narrowing requests to what truly matters to them. Sellers, meanwhile, are often behaving reasonably—agreeing to some or all of those focused items even without an obligation to do so. That emerging “honor system” vibe keeps deals moving and avoids the resentment that used to come with marathon punch lists.

The host’s advice to both sides:

• Buyers: Ask for the few things that genuinely matter; don’t bury the seller in noise.

• Sellers: If the buyer is reasonable, meet reasonable with reasonable. It preserves goodwill—and your closing date.

Confusion is normal (especially for out-of-state buyers)

Because every state names and structures these periods differently, out-of-state clients often arrive with partial analogies: “Is this like our option period? ” The honest answer is that South Carolina’s version is its own thing. Expect a learning curve around how earnest money, due diligence timing, and the termination fee interact.

At a high level, the new standard shifts the conversation from “What repairs can we force?” to “What risk are we each willing to carry, and when?”

Market cycle will decide who the system favors

The host is blunt about the contract’s neutrality: due diligence tilts with the market.

• In a seller’s market (like now), higher termination fees help buyers stand out and win multiple-offer battles.

• In a future buyer’s market, zero-dollar termination fees could become common because sellers won’t have the leverage to demand more. Multiple-offer situations won’t vanish entirely, but they’ll be rarer—and the balance of power will look different.

Either way, the termination-fee lane is here to stay. It will just be driven faster—or slower—depending on who holds the leverage at that moment.

Quick guide: Building a smarter offer under SC’s due diligence-only contract

• Anchor your numbers around three pillars: price, appraisal terms, and termination fee.

• Right-size the termination fee to the real house condition and your personal cash comfort.

• Keep earnest money around ~1%, understanding it’s not the same signal sellers are reading now.

• Never skip the CL-100, even on slabs or “newish” homes.

• Trim repair asks to essential items; quality beats quantity.

• Expect to explain it all—especially if you’re coming from another state with different lingo.

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Bottom Line

South Carolina’s mid-June shift to a due-diligence-only contract replaced repair-list wrangling with a cleaner, starker trade: flexibility for risk money. In practice, that means sellers now judge offers by price, appraisal terms, and—crucially—the termination fee. Buyers who grasp that dynamic win, even against cash, when they calibrate risk to the home’s condition and put real commitment on the table. Sellers who reward focused requests keep deals smooth, even without a repair mandate. The contract itself isn’t buyer- or seller-friendly; the market cycle decides that. But the new playbook is clear: understand the money signals, keep the CL-100, and make every term match the reality of the house in front of you.

Ien Araneta

Journal & Podcast Editor | Selling Greenville