USA - SOUTH CAROLINA Law and Practice Contributed by: Matt Norton and Christian Kolic, K&L Gates
municipalities and developers, gives developers confidence that they will be able to develop the project, and, among other terms, describes the responsibilities of each party for public infra - structure. Fee in Lieu of Taxation Agreements (FILOTs) (S.C. Code Title 12, Chapter 44) are another important tool for developers in South Carolina. FILOTs are granted by, and at the discretion of, the county where the project is located, and are available to industries that invest at least USD2.5 million in South Carolina. FILOTs can result in savings of about 40% on property taxes otherwise due for the project. 2.7 Soil Pollution or Environmental Contamination Purchasers may become liable for environmen - tal contamination simply by acquiring an interest of record in contaminated real property. For this reason, it is critical in South Carolina to conduct environmental assessments of property prior to acquisition. If property is found to be contami - nated, a purchaser may enter into a voluntary clean-up contract with the state that limits the exposure of the purchaser to environmental claims asserted by the state; these voluntary clean-up contracts, however, must be entered into prior to the time the purchaser acquires the real property interest and do not necessarily pro - tect a purchaser against claims asserted under federal law. Generally, purchase and sale agreements pro - vide that the seller is responsible for any clean- up costs and other liabilities arising from con - tamination occurring prior to the transfer of title, with the purchaser being liable for contamination occurring after the transfer of title. In larger trans - actions, purchasers are sometimes required to bear all the risk of contamination and may even
be required to indemnify the seller against liabili - ties relating to such contamination. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Purchasers of South Carolina real estate may either verify directly with the appropriate local zoning authorities the zoning classification of the property or obtain a property zoning report from a third-party supplier. Zoning ordinances and maps are publicly available, and the property’s zoning classification and the resulting permitted uses and restrictions can be directly determined. For appropriate projects, most local authorities will enter into development agreements to facili - tate development of property deemed desirable by the local authorities. Development agree - ments may modify or supersede existing zoning provisions and facilitate development in accord - ance with the peculiarities of the specific project. 2.9 Condemnation, Expropriation or Compulsory Purchase Condemnation is permitted in South Carolina, and it may be exercised by states, counties, municipalities, and utilities. Property may be taken only for true “public uses”, such as roads, airports, ports, and utility facilities; condemna - tion for the benefit of private enterprise or gen - eral redevelopment is not permitted. 2.10 Taxes Applicable to a Transaction South Carolina imposes a transfer tax on real property conveyances. The amount of the tax is USD1.85 for each USD500, or fractional part thereof, of the value of the property transferred. The calculation of the value of the property transferred, however, is fairly technical and dic - tated by statute; the value is sometimes (but not always) based on the consideration paid.
1280 CHAMBERS.COM
Powered by FlippingBook