Buying a condo in Myrtle Beach involves a layer of regulatory and documentation complexity that single-family home buyers rarely encounter. From HOA rules and rental restrictions to state disclosure requirements and building-level financing eligibility, there's a lot to get right before you close. This checklist covers the most important items — and what to watch for at each stage.
Before You Make an Offer: Building-Level Due Diligence
Before submitting an offer on any condo, you should know the answers to several key questions about the building itself. First, is the building warrantable — meaning does it qualify for conventional financing through Fannie Mae or Freddie Mac? Non-warrantable buildings (often those with a high concentration of investor-owned units or hotel-style rental programs) require portfolio lenders or cash purchases, which can affect your financing options and resale market later.
Second, what is the HOA's financial health? Request the most recent reserve study, the current reserve funding percentage, and any history of special assessments. A building with underfunded reserves is a financial risk — the gap will eventually be closed by levying assessments against unit owners. Third, what are the rental restrictions? Some buildings prohibit rentals shorter than 30 days; others require you to use an in-house rental program. These rules affect both your use of the property and its value to future buyers. Understand the range of popular condo types to know what category your target building falls into.
During the Offer Period: What to Include in Your Contract
South Carolina requires sellers to provide HOA documents, including the declaration, bylaws, rules and regulations, and the most recent financial statements, within a specified period after contract ratification. You have the right to review these documents and terminate the contract if you find issues — but you need to know your review deadline and exercise that right within the window.
Your contract should include appropriate contingencies: a financing contingency if you're not paying cash, an inspection contingency, and an HOA document review contingency. If the building has had known issues — pending litigation, recent flooding, a troubled rental program — make sure those are addressed in the due diligence process before you proceed.
The HOA Document Review: What to Look For
When you receive the HOA documents, focus on several key areas. Review the meeting minutes from the past 12–24 months for any discussion of major repairs, litigation, insurance issues, or assessment proposals. Check the financial statements for reserve fund balance, operating fund balance, and any outstanding loans taken by the HOA. Review the rules and regulations carefully for any restrictions on rentals, pets, parking, or modifications that affect how you intend to use the property.
Also check the insurance certificate for the building's master policy — specifically whether it includes "all-in" or "bare walls" coverage, which affects how much individual unit coverage you'll need to carry. Explore the range of Myrtle Beach condo projects to understand the variety of building types and management structures you may encounter.
Rental Program Regulations
If you intend to rent your unit, you need to understand the regulatory environment at every level: state, county, HOA, and building management. South Carolina has regulations governing short-term rentals, and Horry County has its own licensing requirements for rental properties. Your HOA may have additional restrictions. And if your building uses a hotel-style rental program, there are often specific terms governing how units must be furnished, what percentage of rental income goes to the management company, and what blackout periods you can use the unit yourself.
For investors, the choice of rental property management approach is one of the most consequential decisions you'll make — affecting your net income, your time investment, and your relationship with the building management.
Closing and Post-Closing Compliance
At closing, you'll receive a closing disclosure that should reconcile all credits, debits, and pro-rated HOA fees. Make sure the HOA fee proration is accurate based on the closing date. If the unit has an active rental program, understand the transition process — how existing bookings are handled, how rental income is distributed, and when you'll receive your first statement.
Post-closing, register with the HOA as the new owner, obtain the building's master policy certificate to purchase appropriate supplemental insurance, and if applicable, complete any rental licensing requirements through Horry County and the State of South Carolina. Many buyers skip these post-closing steps and encounter complications when they try to rent the unit or make a claim.
Frequently Asked Questions
What is the HOA document review period in South Carolina?
In South Carolina, buyers of resale condos typically have a review period specified in the contract — often five to seven business days from receipt of the HOA documents — during which they can terminate the contract without penalty based on their review. The specific period should be clearly defined in your purchase agreement.
What makes a condo building "non-warrantable"?
Fannie Mae and Freddie Mac have specific requirements for condo building eligibility. Buildings can be non-warrantable for several reasons: a high percentage of units owned by a single investor or entity, a significant portion of units used as commercial rentals (condotels), pending HOA litigation, inadequate insurance coverage, or a building that is not yet fully occupied after construction. Non-warrantable status requires alternative financing arrangements.
Do I need separate insurance if the building has a master policy?
Yes, in almost all cases. The building's master policy covers the common areas and the structure, but individual unit policies cover your personal property, interior improvements, and liability. If the master policy is "bare walls," you also need coverage for fixtures and finishes within your unit. Your insurance agent can review the master policy and advise on appropriate supplemental coverage.
