What South Carolina’s 2025-2026 Legislative Session, the Spartanburg County Data Center Litigation and the Silfab Controversy Signal for Real Estate Attorneys

Standard

South Carolina’s 2025-2026 legislative session demonstrated that land use and zoning issues are becoming increasingly prominent in economic development, environmental regulation, and local governance. While relatively few zoning-related bills were enacted, several significant proposals and the ongoing Data Center litigation in Spartanburg County and the Silfab Solar controversy in York County reveal growing tension between economic growth initiatives and community oversight. For South Carolina real estate attorneys, these developments may foreshadow a more active and contentious zoning landscape in the years ahead.

Legislative Efforts to Expand Zoning Oversight

One of the most notable zoning bills introduced during the session was Senate Bill 530. The bill proposed adding Section 6-29-815 to the South Carolina Code and would have required development activity to cease immediately whenever a zoning authority determined that a property’s current or proposed use was not permitted under the applicable zoning classification. The legislation would have invalidated previously issued permits and suspended construction during administrative and judicial appeals unless a court ordered otherwise. Although the bill did not become law, it reflected increasing legislative concern regarding projects that proceed while zoning disputes remain unresolved.

For attorneys representing developers, lenders, and title insurers, S.530 is noteworthy because it would have significantly altered reliance interests associated with permits and approvals. The proposal suggests that lawmakers are closely watching disputes involving local zoning interpretations and vested rights.

The Rise of Data Center Regulation

A major emerging issue during the session was the regulation of data centers. South Carolina continues to attract technology and infrastructure investment, but lawmakers have begun grappling with the substantial impacts data centers can have on utilities, water resources, transportation infrastructure, and surrounding land uses.

Two significant bills were introduced:

  • S.867, the Data Center Development Act, would establish a state permitting framework administered through the Department of Environmental Services and require siting permits, infrastructure adequacy assessments, environmental impact reviews, water-efficiency standards, operational reporting, and coordination with local land-use planning.
  • S.902, the Data Center Siting Act, proposed a similar approach but would place substantial authority with the Public Service Commission, requiring certification before a data center could begin operations and establishing standards addressing infrastructure, environmental impacts, utility costs, buffers, and local planning considerations.

Neither bill became law during the session. However, both are significant because they recognize that traditional local zoning tools may be insufficient to address the statewide implications of large-scale data center development. The introduction of multiple bills targeting the same issue suggests a growing consensus that additional regulatory oversight is likely forthcoming.

For practitioners, future data center projects may require navigating both traditional zoning approvals and additional state-level review processes. Attorneys should anticipate increased scrutiny of utility capacity, water consumption, environmental impacts, and compatibility with surrounding land uses.

The Spartanburg County Data Center Litigation

Another development worth watching is the ongoing litigation involving the proposed Valara Holdings/NorthMark data center project in Spartanburg County. The dispute highlights many of the same issues that lawmakers attempted to address through the proposed data center legislation.

The approximately $3 billion project includes a large-scale data center campus and a proposed 450-megawatt natural gas-fired power generation facility intended to serve the development. Local residents and advocacy groups have challenged both the permitting process and the scope of regulatory review applied to the project.

One lawsuit, filed by the Southern Environmental Law Center on behalf of Concerned Citizens of Spartanburg County, alleges that the project was processed through permits typically used for minor land development rather than being subjected to the county’s major land development review procedures. Opponents contend that classifying the project in this manner limited opportunities for public participation and avoided the level of review ordinarily required for developments of comparable scale.

A separate proceeding before the South Carolina Public Service Commission has raised another significant question: whether the project’s proposed 450-megawatt power plant qualifies as a “major utility facility” subject to review under South Carolina’s Utility Facility Siting and Environmental Protection Act. Project opponents argue that the plain language of the statute requires PSC approval before construction can proceed, while the developer maintains that the generation facility is intended solely for private, on-site use and therefore falls outside the Act’s jurisdiction.

The litigation is particularly important because it reflects growing public concern regarding data centers’ impacts on electricity demand, water usage, noise, environmental resources, and local infrastructure. It also demonstrates that even where local zoning approvals have been obtained, affected citizens are increasingly willing to pursue administrative and judicial challenges when they believe regulatory oversight has been insufficient.

For real estate practitioners, the Spartanburg matter provides a practical example of why future data center developments may require more than conventional zoning and land-use analysis. Questions involving utility regulation, environmental permitting, public participation requirements, and state-level siting authority are increasingly becoming intertwined with local development approvals. Notably, many of the issues now being litigated mirror the concerns addressed in proposed legislation such as the Data Center Development Act (S.867) and the Data Center Siting Act (S.902), suggesting that future legislative efforts may be influenced by the outcome of these disputes.

The Silfab Solar Controversy: A Real-Time Zoning Lesson

My colleague, Vance Brabham provided a detailed description of the Silfab Solar chemical spill and zoning implications in a blog article in May, 2026.  No recent South Carolina development has highlighted zoning challenges more vividly than the ongoing controversy surrounding the Silfab Solar facility in York County.

The dispute originated with York County’s determination that solar manufacturing was permitted within the facility’s light industrial zoning classification. A subsequent York County Board of Zoning Appeals decision concluded that solar panel manufacturing should instead be treated as a heavy industrial use. Litigation followed concerning the applicability of that determination to Silfab’s project.

The matter intensified in March 2026 when the facility experienced two separate chemical incidents, including releases involving potassium hydroxide and hydrofluoric acid. Following the incidents, the South Carolina Department of Environmental Services ordered the facility to cease operations pending further investigation of safety and chemical-handling protocols.

The response from state and local officials was particularly notable from a zoning perspective. Attorney General Alan Wilson publicly questioned the zoning and permitting process that allowed the facility to be located near Flint Hill Elementary and Middle Schools and demanded information from York County regarding the approvals issued to Silfab. The Attorney General also called for transparency regarding the project’s siting and safety reviews.

York County officials responded by defending the Planning Department’s actions, stating that all zoning approvals and permits were issued in accordance with applicable ordinances and that county staff had provided a zoning verification letter concluding that the use was permissible at the site. County officials further asserted that the county had followed established procedures throughout the approval process.

The Silfab matter demonstrates how zoning decisions can evolve from local administrative determinations into matters of statewide political and public concern, particularly when environmental and public safety issues arise.

What Does This Foreshadow for South Carolina Zoning?

Several themes emerge from the 2025-2026 session and the Silfab controversy.

First, state officials appear increasingly willing to scrutinize local zoning decisions when projects have significant environmental, infrastructure, or public safety implications.

Second, large-scale industrial and technology projects are likely to generate pressure for additional state-level permitting and siting requirements. The data center bills demonstrate that legislators are considering regulatory models that supplement local zoning rather than relying on it alone.

Third, the emphasis on permit validity, vested rights, and enforcement reflected in S.530 suggests that future legislation may seek to limit the ability of disputed projects to continue operating while zoning challenges remain pending.

Finally, the political attention surrounding Silfab indicates that land-use decisions involving schools, residential communities, environmental concerns, and industrial development will likely face heightened public scrutiny moving forward.

Although the 2025-2026 session did not produce sweeping zoning reform, it revealed an unmistakable trend: South Carolina is entering a period of increased attention to land-use regulation. The debates surrounding Silfab Solar in York County, the proposed data center legislation, and the ongoing Spartanburg County data center litigation all point toward greater scrutiny of large-scale projects whose impacts extend beyond traditional zoning considerations. Legislators, regulators, local governments, and courts are increasingly being asked to balance economic development with environmental protection, infrastructure capacity, public participation, and community compatibility. For South Carolina real estate attorneys, these developments suggest that future zoning disputes will involve not only local land-use ordinances but also broader questions of state oversight, permitting authority, and public accountability.

South Carolina Real Estate in 2026: Growth, Reform, and Industry Collaboration

Standard

South Carolina’s real estate market continues to benefit from strong population growth, economic development, and cooperation among industry professionals. During a recent webinar hosted by Chicago Title, SC REALTORS® CEO Nick Kremydas and Chief Legal Officer Byron King discussed market trends, regulatory updates, fraud prevention efforts, and legislative changes shaping the state’s real estate landscape.

South Carolina’s Strong Growth Continues

South Carolina remains one of the fastest-growing states in the nation, adding approximately 80,000 new residents over the past year. Growth has been concentrated in key markets such as Horry, Greenville, Charleston, York, Lexington, Spartanburg, Richland, Beaufort, Berkeley, and Lancaster counties.

This population influx continues to fuel housing demand while supporting economic growth and job creation across the state.

A More Balanced Housing Market

The state’s housing market is transitioning into a healthier, more balanced environment. The median home price is approximately $340,000, with modest year-over-year appreciation. Inventory levels have increased, giving buyers more options and reducing some of the pressures seen during recent competitive market cycles.

Homes are also spending more time on the market, creating additional opportunities for negotiation and helping establish a more predictable transaction environment for buyers, sellers, lenders, and attorneys.

Key Contract and Forms Updates

The South Carolina Association of Realtors has updated its residential forms to reflect changing regulations and industry practices.

One of the most significant changes involves compensation. Rather than including cooperative compensation language within standard contracts, compensation terms are now documented directly through listing agreements, buyer representation agreements, seller concessions, and dedicated compensation forms.

These updates promote greater transparency and help ensure that compensation arrangements are clearly documented before closing.

New Trust Fund Compliance Guidance

The South Carolina Real Estate Commission recently emphasized the importance of documenting earnest money deposits held outside brokerages.

Agents are encouraged to obtain written confirmation from attorneys or title companies whenever trust funds are received. Those confirmations should include:

  • Property address
  • Names of transaction parties
  • Date funds were received
  • Amount received

This documentation creates a clear compliance record and helps reduce misunderstandings throughout the transaction process.

Fraud Prevention Remains a Priority

Seller impersonation fraud and vacant land scams continue to challenge the real estate industry.

Fraudsters frequently target vacant, unencumbered, and non-owner-occupied properties using fake identities, forged documents, and fraudulent listings. Realtors are increasingly using verification tools, identity checks, and property-owner confirmation procedures to detect suspicious activity before a transaction progresses.

As artificial intelligence makes impersonation schemes more sophisticated, collaboration between Realtors, attorneys, lenders, and title professionals remains critical to protecting consumers.

Legislative Wins for Property Owners

Several legislative changes emerged from the 2025-2026 session that strengthen property rights and consumer protections.

Senate Bill 822, the Deed Verification and Deed Alert Protection Act, enhances safeguards against deed theft and fraudulent filings. House Bill 3387 creates a faster process for removing unlawful occupants and squatters from private property. House Bill 4477 helps families resolve heirs’ property title issues without triggering unfair tax consequences, making it easier to maintain or transfer inherited property.

The Association also supported efforts to prevent additional fees that could increase housing costs and further affect affordability.

Real Estate Is a Team Effort

The webinar concluded with a reminder that successful transactions depend on strong partnerships among Realtors, attorneys, lenders, title companies, and settlement professionals.

Whether identifying fraud risks, communicating financing updates, or ensuring proper documentation, each participant plays an important role in creating a smooth closing experience. As South Carolina continues to grow, that collaboration will remain essential to protecting consumers and maintaining confidence in the real estate marketplace.

The central message was simple: when real estate professionals work together, transactions run more smoothly, risks are reduced, and South Carolina’s housing market remains strong for everyone involved.

Supreme Court reaffirms longstanding rules governing tax sales

Standard

Sometimes my reaction to a court decision, even a Supreme Court decision, is just a sense of relief that the Court has reaffirmed that the law is what you have always thought it to be. The United States Supreme Court’s recent decision in Estate of Pung v. Isabella County is just that kind of decision. 

While the specific facts of the case contain exactly the kind of bad facts and stubborn behavior that sometimes lead Courts to fashion equitable remedies that really muddy the playing field, the Court focused on bare procedure and historical precedent to arrive at their result essentially affirming 100 years of legal procedure, but leaving the door open to the lower courts to judge the particulars concerning due process.

Scott Pung owned and occupied the home that was the subject of the case, before passing away in 2004. Several years after his death, the tax assessor for Isabella County declined to continue taxing the Pung home as a primary residence because the estate (or its heirs) did not follow proper procedure (as the assessor saw it) to file an affidavit establishing that the heir living in the property still qualified for the partial tax exemption.

The Pung estate successfully challenged the assessor’s decision for the tax years 2007-2011 before a Michigan state tax tribunal.  Despite Pung’s victory, the assessor apparently persisted in her position and denied the partial tax exemption for the 2012 assessment year.[1] The Pungs apparently failed to timely contest the tax assessor’s decision to deny the partial tax exemption again in 2012.

While the Pungs paid the 2012 tax bill assessing the home as a primary residence, but refused to pay the supplemental tax bill of $2,241.93.[2]  The County began proceedings to collect the unpaid tax through sale of the property. While there may be some question as the sufficiency of notices, the Pungs ultimately did not pay the tax, redeem the property, or otherwise take action to stop the sale. The home sold at public auction to a third party for $76,008.00. The appraised tax value of the property was approximately $195,000. 

The Pungs filed suit claiming that the tax sale did not realize the fair market value of the property. [3]  The Pungs asserted that the 5th and 8th Amendments required the state to compensate them for the fair market value if it wished to take their property to meet their tax sale. Astonishingly, the Pungs argued that the County, and by extension any government entity conducting a public sale, must make up the difference between the realized tax sale price at the auction and the fair market value of the property under ideal sale conditions. To put it more clearly, the Pungs argued that the County must pay them the roughly $120,000 dollars difference in what the tax sale actually yielded and what the Pungs asserted was the true value of the property. Essentially, they argued the County should pay them $120,000 for the privilege of collecting their $2,000 deficient tax liability.  

The Court unanimously rejected the Pung’s argument on both constitutional grounds. Citing the fact that the right of the state to liquidate property to pay tax debts dates back to colonial days and perhaps Magna Carta, the Court did not find anything compelling about the Pung’s arguments. 

While a tax sale may inevitably be a distressed sale in most real estate markets, the Court reasoned that the Pungs and any taxpayer has an opportunity to avoid such an outcome. With significant equity in the property, the Court noted that the Pungs could have borrowed money to redeem the property by paying the tax and that they alternately had ample time to market it themselves for a fair price.  

The Pungs may still have an opportunity upon remand to contest whether the County’s procedure was properly carried out and whether its actions were fair under the context of the previous litigation between the parties. But SC dirt lawyers and anxious title underwriters can rest easy knowing that what they understood was the rule forever will remain the rule going forward. Sometimes that’s a pretty good result.  

[1] Justice Thomas’s concurring opinion stated that the County’s advocate could offer no explanation for why the Assessor persisted in denying the partial exemption after the Tribunals reversal as to the prior tax years, but it apparently stemmed from the Pungs continued refusal to submit an affidavit establishing primary residency.

[2] Whether you consider the Pungs apparent refusal to submit the affidavit of residency to the assessor or pay the assessed tax over the next two years to be strongly principled or head-scratchingly foolish might depend on your readings of the facts.

[3] It is the rare foreclosure or distress sale that returns fair market value of a sale conducted under ideal conditions. There are as we know a more limited pool of bidders and title problems associated with these kinds of sales.

Cybersecurity Threats and Their Impact on Real Estate Transactions

Standard

Imagine arriving at your real estate closing only to learn that the county’s property records are unavailable. If the documents can’t be recorded, then the transaction may be left hanging in the air. Depending on lender funding requirements, the closing attorney may not be able to disburse the funds, and the buyer may not be able to receive their keys until recording is available. It sounds far-fetched, but it’s exactly the type of disruption that recent cyber-attacks on county governments have made possible.

Most people never think about their county recording office until they’re buying or selling real estate. Deeds, mortgages, easements, plats, liens, and other documents are quietly recorded every day, creating the public record that establishes who owns property and what interests affect it. It’s a system that has worked for generations because it relies on one simple principle: the public records must be accurate, complete, and accessible.

Recent events in South Carolina serve as a reminder that this system is more fragile than many people realize.

A recent cyber attack disrupted access to property records and other county services, temporarily preventing normal operations. While the details of the investigation continue to emerge, the incident highlights just how dependent modern real estate transactions have become on digital access to public records. Unfortunately, this is not an isolated event. Several South Carolina counties have experienced technology failures, ransomware attacks, or other disruptions in recent years.

Cyber security, however, is only one challenge facing county recording offices.

Many counties across the state operate with limited budgets and skeleton crews. Employees often process hundreds of documents each day while balancing increasing demands and aging technology. Even the most dedicated public servants can struggle when resources are stretched thin. Under staffing and insufficient training increase the likelihood of recording errors, indexing mistakes, or delays in processing documents – all of which can create headaches for property owners years later.

The integrity of the public record is essential because virtually every real estate transaction depends on it.

Before issuing title insurance, conducting a closing, or approving a mortgage loan, attorneys and title professionals examine the public records to confirm ownership and identify any issues affecting the property. They are looking for deeds that properly transferred title, unreleased mortgages, judgments, tax liens, easements, restrictive covenants, and countless other matters that could affect ownership rights.

If those records are unavailable because of a cyber attack, the transaction may be delayed. Buyers may not be able to close on schedule. Sellers may miss contractual deadlines. Lenders may refuse to fund loans until title can be verified. Even a short interruption can create significant inconvenience for everyone involved.

More concerning are situations where records have been altered, corrupted, or improperly indexed. The public recording system functions because people can trust that what they find is complete and accurate. Preserving that trust requires not only secure computer systems but also adequate staffing, proper training, and ongoing investment in the offices that maintain these records.

Although county governments bear much of the responsibility for protecting these systems, cybercriminals often gain access through surprisingly simple methods.

Many cybersecurity incidents begin not with sophisticated hacking tools but with social engineering. Rather than attacking computers directly, criminals manipulate people into providing passwords, opening malicious attachments, or clicking fraudulent links. These phishing emails are designed to look legitimate and frequently impersonate trusted organizations, coworkers, financial institutions, or government agencies.

While this blog focuses on real estate law, cyber attacks and scams aren’t limited to real estate transactions. Anyone, not just government employees, can become a target. A few simple precautions can dramatically reduce the risk of becoming a victim. Be cautious of unexpected emails requesting urgent action. Verify unusual requests through a separate phone call or trusted contact information rather than responding directly to the email. Avoid opening attachments or clicking links unless you are confident they are legitimate. Enable multi-factor authentication (“MFA”) whenever possible, and keep software updated to address known security vulnerabilities.

These habits protect more than your personal information. They help protect the institutions that communities depend upon every day.

County recording offices rarely make headlines when everything is working properly. Yet they perform one of the most important functions in our legal system by preserving the history of property ownership and ensuring that buyers, sellers, lenders, and attorneys can rely on the public record.

As counties continue modernizing their technology, cybersecurity must remain a priority. At the same time, we should not overlook the importance of investing in the people responsible for maintaining these records. Secure systems, well-trained staff, and accurate public records are not simply administrative conveniences: they are essential to protecting property rights and keeping South Carolina’s real estate market functioning smoothly.

HUD changes guidelines for emotional support animals

Standard

The Fair Housing Act prohibits housing providers from discriminating against individuals based on their physical handicaps. In addition, the Act requires that housing providers make reasonable accommodations to their rules and policies when an adjustment of a policy is necessary for a disabled person to have an equal opportunity to use and enjoy the offered housing.    

One fairly uncontroversial example of a reasonable accommodation is the case where a blind person has the assistance of what we might have once called a seeing-eye dog. These are trained animals that provide specific and essential services to persons with clear disabilities. A “no pets” policy cannot be applied to prevent the disabled person from having the assistance of such an animal under the Act.  

But in recent years there have been a growing number of more controversial accommodations requested where the disability of the applicant is not as easy to verify and the support animal itself is not particularly a trained animal specialized to the problem. Many people seeking these accommodations report that they suffer from mental issues such as anxiety, depression or post-traumatic stress and that their issues are much relieved when they have emotional support animals.

Landlords and management companies have had a great deal of trouble determining where the line lies between untrained “support animals” and simple pets. It’s become something of a cliché in comedy and pop culture. For instance, Homer Simpson’s emotional support pig, Plopper, who went from pet to emotional support animal in order to avoid his wife Marge’s urge to declutter.   

HUD’s previous guidance on the subject placed the housing providers in a precarious position as both medical providers and online services have made obtaining emotional support certifications for untrained animals reportedly fairly easy to obtain.  Landlords who attempted to enforce “no pets” policies were thus placed in the position of facing the cost and time of justifying their accommodation denials in HUD enforcement actions.

At the end of May HUD announced that it was amending its policy concerning reasonable accommodations for support animals.  According to the new directive, HUD’s Office of Fair Housing and Equal Opportunity will now pursue charges only in those reasonable accommodation requests involving trained support animals that perform specific tasks for disabled persons.  

While the guidance only applies to the way HUD will process complaints and does not affect the ability of individuals to pursue their own lawsuits under the Act, the change in guidance likely will significantly decrease the number of agency level actions against housing providers by the Department. Certainly it would seem likely that fewer individuals will have the resources or desire to pursue lawsuits on their own.  The change in HUD’s guidance may give some insight as to how future rulemaking may develop and it may well impact the way that Courts interpret the Act. 

Surfside Beach and the Continuing Threat of Business Email Compromise

Standard

According to news reports, the town of Surfside Beach may be one of the latest victims of a business email compromise-type fraud attack. Unfortunately, early reports suggest that the town may have lost over half a million dollars to scammers. South Carolina’s State Law Enforcement Division is actively investigating this incident, so the information we have is limited and unproven, but if true this amount would represent a loss of funds equal to approximately 2.6% of the town’s 2025-2026 budget.

Wildcat Construction was engaged by the town to do some work on its public utilities, and one of its bills, in the amount of $545,598.30, was due for payment. On March 13, 2026, the town indicates it initiated an ACH payment to what they thought was an account belonging to Wildcat, but Wildcat says that it has no such account and that it had requested payment by check. The town released a public statement in which it acknowledged it had “identified a potential cybersecurity incident involving its email environment,” and reported the incident to law enforcement. Details about what exactly may have happened internally at the town level are pretty scant. While SLED is investigating, Wildcat maintains that it has not received the funds, and that it is still entitled to be paid. It is easy to imagine how a scammer might have sent a “spoofed” email to a Town employee, pretending to be an accounts receivable clerk for Wildcat, with a fake set of payment instructions for the Wildcat invoice. The same type of “spoof” attack happens all too often in real estate deals where the closing attorney is gathering invoices and payment instructions. If the Town employee failed to properly verify those payment instructions, then just like the danger of wire fraud in a real estate transaction, the funds could have been sent to a fraudster instead of the correct party.

Data published by the FBI’s Internet Crime Complaint Center, which tracks and reports cyber-crime involving US interests, indicates that both the number of cyber-crimes against, and the amount of property lost by, Americans continues to skyrocket. The IC3 reports that in 2025, it received a total 1,008,597 of cyber-crime complaints for all types of cyber-crime, and it tracked over $20.8 Billion in total losses related to cyber-crimes. The clear indication here is that cyber-criminals are increasing their attacks on our businesses, and are succeeding in stealing more of our money.  

This incident is yet another example highlighting the importance of verifying payment instructions with a known, trusted contact. That includes not only the routing/account numbers, but also the form of payment. In this example, Wildcat says it told Surfside they wanted a check, but the payment was made via ACH to an account that Wildcat says it did not provide to the Town.

While the “worst case scenario” impact on Surfside Beach, even if these funds are permanently lost, looks like it would be below 3% of the town’s overall annual budget, the risk to South Carolina lawyers of wire fraud and business email compromise is potentially much more dire. For a small or solo real estate-focused law firm whose annual fee revenues might be closer to the $1,000,000.00-mark, loss of funds for a mortgage payoff could be much higher as a percentage of the firm’s budget. If we assume that a typical mortgage payoff for a SC home might be around $250,000.00, then it’s easy to see how that amount, when targeted by fraudsters, could be a devastating loss for a small firm. And, while this particular example was not a real estate law firm, it demonstrates that the fraudsters are out there actively targeting anyone they think they can, and that no one is immune to their attacks.

Stay vigilant out there, folks!

A Zoning Battle Ignites in Fort Mill over Silfab Solar

Standard

There is yet another hot button zoning conflict in the Palmetto state that has attracted much public attention in Fort Mill, SC. It has spawned several lawsuits, an Attorney General inquiry, and legislators filing bills up at the State House that certainly would have major impact on S.C. dirt lawyers if they were to pass. 

The controversy centers around Silfab Solar’s ongoing construction of a solar panel manufacturing factory near Fort Mill, SC. The company is renovating a warehouse in an existing industrial park there that is jointly operated by York and Chester counties. The industrial park is located near several residential developments, but most notable in recent press coverage is the elementary school located on the adjacent parcel to the proposed Silfab site.  

In 2022, in connection with recruitment by the S.C. Department of Commerce, Silfab requested zoning verification from York County that its proposed operation would be in compliance with local zoning ordinances. The York County zoning staff ultimately determined that the manufacture of solar panels fit within the permitted use of “computer and electronic productions manufacturing” which was permitted in the “Light Industrial” zoning classification assigned to the industrial park. Notably, there was no appeal of the zoning verification.

With the zoning verification in hand, Silfab decided to move forward with the project and entered into a fee in lieu of tax (FILOT) Agreement with York County. The County passed an ordinance approving the FILOT agreement in September 2023, in effect ratifying the proposed project at its proposed location. Silfab thereafter obtained building and environmental permits and started construction at the site

But at some point in the process, the public became aware of the project and that hazardous gases and chemicals would be used as part of the manufacturing process of the panels. As concerns grew, a neighboring landowner filed a request for a zoning interpretation inquiring whether solar panel manufacturing was actually a permissible use under the zoning ordinance. In 2024, the York County Board of Zoning Appeals (BZA) found that solar panel manufacture is not permitted within the Light Industrial zoning classification, which effectively overruled the prior determination of the zoning staff. 

Silfab appealed the BZA ruling but construction has continued under the existing zoning verification and permits. In response to growing public outcry, York County issued statements that its interpretation of state law and its ordinance is that BZA zoning interpretations only apply prospectively and that the County does not have authority to revoke previously given permits or to issue a stop work order.

But the controversy really expanded into an issue of statewide concern in March when Silfab reported two separate chemical leaks within a three day period. While the leaks were contained and were reportedly of no danger to the outside community, DHEC ordered Silfab to pause its use of previously permitted chemicals pending a review. Silfab has since entered into an agreement with DHEC not to bring any more dangerous chemicals into its site or proceed with manufacturing until the investigation is completed.

The leaks also drew the attention of Attorney General Alan Wilson who issued inquiries to York County concerning the propriety of the zoning approval and to Silfab concerning the cause and extend of the leaks. The gubernatorial candidate appears to be closely monitoring the situation as events unfold.

The South Carolina General Assembly is also involved in the debate. Local legislators have introduced proposed bills in the House and Senate that would amend the Code to give Counties the power to revoke permits and stop work on projects when the project is found to be in violation of zoning ordinances. 

While these bills are unlikely to pass before the end of the current session, there have been a number of other bills advanced in the State House in recent years that have sought to give local authorities the ability to have something of a “do-over” concerning prior approvals of development. Often these bills have been provoked by growing public outrage over major projects that were passed by local authorities without much initial fanfare.  

While the Court’s pending review of the BZA appeal may result in restoring the original zoning interpretation and making much of the present controversy moot, there is always the chance of additional appeals. Further, with the national debate over data centers expanding into South Carolina in recent months the salience of the Silfab controversy may impact future debates concerning whether government entities should be able to change their mind about prior zoning decisions even after property owner’s have formed plans and made investments relying upon them. 

The 2026 ALTA Survey Standards Are Here

Standard

What South Carolina Real Estate Attorneys Need to Know

As of February 23, 2026, the 2026 ALTA/NSPS Minimum Standard Detail Requirements for Land Title Surveys officially replaced the 2021 standards. These updates may appear technical at first glance, but for South Carolina real estate attorneys—particularly those handling commercial transactions, development work, and lender representation—the changes carry meaningful legal and practical consequences.

The 2026 Standards reflect evolving technology, shifting risk allocation, and mounting expectations from title insurers and lenders. Attorneys who understand these changes will be better positioned to manage risk, avoid closing delays, and advise clients with confidence.

In South Carolina, ALTA/NSPS Land Title Surveys are a cornerstone of development due diligence, commercial financing and title insurance underwriting. While surveyors perform the fieldwork, attorneys are often the gatekeepers—reviewing surveys for compliance, identifying red flags, and reconciling survey matters with title commitments.

Any change to the ALTA Standards therefore ripples directly into:

  • Title objection and resolution strategies
  • Closing timelines
  • Survey exceptions and endorsements
  • Risk allocation among buyers, lenders, and insurers

The 2026 Standards were jointly adopted by ALTA and the National Society of Professional Surveyors (NSPS) in October 2025 after several years of committee work, with the stated goal of improving clarity, consistency, and adaptability.

A Clear Effective Date—with Transitional Traps

The effective date for the new standards is February 23, 2026. Any ALTA/NSPS Land Title Survey contracted for on or after that date must comply with the 2026 Standards unless the parties agree otherwise in writing. Surveys contracted before the effective date may still be governed by the 2021 Standards, even if completed later—but only if that is clearly addressed in the engagement agreement.

For attorneys, this means:

  • Engagement letters and contracts should specify which ALTA standard applies
  • “Survey updates” or revised plats may trigger new standard requirements
  • Ambiguity can expose clients—and counsel—to disputes with lenders or insurers

Technology Is Now Explicitly Embraced

One of the most forward‑looking changes is the shift from requiring information obtained strictly “on the ground” to allowing “practices generally recognized as acceptable” in both fieldwork and mapping. This expressly accommodates modern tools such as drones, LiDAR (Light Detection and Ranging), and other remote‑sensing technologies, without tying the standards to any specific method.  

For attorneys, this reinforces the need to:

  • Review surveys for completeness, not methodology
  • Understand that aerial or remote data may now support certain depictions
  • Counsel clients that innovation alone is not grounds for objection

Expanded Documentation of Possession and Occupation

Perhaps the most practically significant change is the requirement that evidence of possession or occupation be noted along the entire perimeter of the property, regardless of proximity to boundary lines. This exceeds prior standards, which often focused only on near‑boundary features.

This change:

  • Increases the likelihood that surveys will reveal fence lines, uses, or improvements suggesting potential boundary or prescriptive issues
  • Elevates the importance of attorney review and follow‑up
  • May increase survey‑related title objections and negotiation

Parol Statements Must Be Noted

Closely tied to evidence of possession and occupation, under the 2026 Standards, surveyors must note any verbal (“parol”) statements made by landowners or occupants relating to title or boundary issues.

For attorneys, this is a double‑edged sword:

  • It may surface issues earlier in the transaction
  • It also introduces non‑record information that may complicate underwriting, disclosures, and risk tolerance

These notations do not constitute legal opinions, but they should never be ignored during diligence.

Title Evidence and Research Responsibilities Are Clarified

The 2026 Standards expand guidance on how surveyors source title evidence when a current title commitment is unavailable, and they more clearly acknowledge shared responsibility between surveyors and title professionals for obtaining certain documents.

South Carolina attorneys should:

  • Provide current title commitments early whenever possible
  • Clearly communicate expectations regarding easement depiction
  • Coordinate closely with surveyors on complex tracts or non‑fee interests

Table A Gets a Notable Update

The optional Table A items remain a critical tool for tailoring survey scope. In 2026:

  • Item 15 was clarified to allow certain depictions via aerial or satellite imagery if agreed to in writing
  • A new Item 20 requires a summary table of conditions and potential encroachments on the face of the survey—intended as a factual summary, not a legal conclusion
  • The former “catch‑all” or blank item has been renumbered as Item 21

Attorneys should carefully align Table A selections with lender and client expectations.

Practice Takeaways for South Carolina Real Estate Attorneys

The 2026 Standards raise the bar—not by radical change, but by greater disclosure and clearer expectations. Attorneys should update internal checklists, educate clients, and adjust survey review practices accordingly.

Hilton Head Dredging and the Question of Public Benefit

Standard

Now that Rory McElroy’s repeat victory at the Masters is in the books[1], the golfing world will turn its attention to scenic Hilton Head Island. It is there that the Harbour Town Golf Links at Sea Pines Resort will host the 58th edition of the RBC Heritage golf tournament later this week. For a long time, the Heritage was the only permanent PGA event in South Carolina[2] and quite a few South Carolina residents and golf fanatics from across the world make the trek down to Sea Pines to take in the action each year.  

That makes today’s blog a particularly appropriate time to discuss the ongoing legal battle over public funding for the dredging of the waterways around Sea Pines Resort, which made news again this month. If you have ever worked or vacationed around Hilton Head Island, you are probably aware that boating culture is a significant part of overall appeal of the Island and it also figures nicely into the presentation of the televised golf tournament.

The controversy is somewhat simple. The physics of the waterways around the Harbour Town Yacht Basin and nearby Braddock Cove Creek are such that periodic dredging of the waters is necessary to allow navigation of the waters in all tides.  

For a time, the cost of the dredging was born by the South Island Dredging Association (SIDA), a coalition of various Sea Pines owners’ associations, private slip owners, and marinas located in or near the local waterways. However, recent rounds of dredgings have become controversial both for the impact on the surrounding Calibogue Sound and the Town of Hilton Head’s decision in the last few rounds to start allocating public funds towards the project.

In 2022, resident Ryan McAvoy filed suit seeking to enjoin the Town from contributing $600,000 in public funds towards the next round of dredging. McAvoy claims that the Town’s allocation of the funds to the project violated the South Carolina Constitution because it allocated public funds primarily for the benefit of private gated communities, private owners of homes and boating slips, and private marinas from which the public is barred.

While there is no doubt that that the waterways in question are contiguous to the private communities contained within Sea Pines and contain private marinas that are restricted from public use, the Town of Hilton Head argues the waterways in question are navigable waters of the United States that are themselves open to the public and that the Town and its residents benefit from the use of the improved waterways and from the resulting tourism generated from the boating community being able to use the waters to access public areas.

In 2024, a Circuit Court judge granted the Town’s motion to dismiss McAvoy’s lawsuit on the ground that the waters to be dredged are public waterways. However, the breaking news from last week is that the Court of Appeals reversed the decision and ordered a new trial finding that the Circuit Court had mistakenly focused its decision on whether the waterways were public vs private. Instead, the trial court should have determined whether there is a public benefit to the Town’s action. The Court of Appeals found sufficient evidence in the record supporting McAvoy’s argument that the dredging primarily accrued to the benefit of private interests for the matter to continue towards a full trial. 

This recent case is just the latest example of the controversy that can come from using public funds in support of what some in the community may see as providing limited or tangential benefit to the public at large. The balance between determining private vs public benefit can often be tricky to quantify. Similar arguments (and lawsuits) have erupted in the past over the public benefit of beach renourishment, government funding of infrastructure for private businesses, and is not so far removed from past controversies concerning government use of the power of eminent domain to further private redevelopment. Whenever the public perceives that the beneficiary of government action is a private entity or a group of private parties, you can bet that there will be drama and oftentimes litigation.

While we will have to wait and see the ultimate outcome for the boaters of Hilton Head, real estate professionals and developers alike must consider the possible implications of public opposition whenever it brings in the government for assistance in these kinds of projects.

[1] My children’s rooting interests died with Scottie Scheffler’s parade of “near miss” pars that fell just a swing stroke short. It has been an up and down month of sports fandom for our household. 

[2] My colleague David Hicks reminds me that the third annual Myrtle Beach Classic will tee off in May.

Sullivan’s Island, Fractional Ownership, and the Limits of Zoning Law

Standard

We all know that South Carolina has some of the most beautiful natural scenery in the nation.  As the weather gradually improves, and with Spring Break underway for many and the summer rental season right around the corner, tourists begin flocking to our beautiful beaches.

In February 2026, a legal dispute[1] on Sullivan’s Island quietly reshaped the conversation around property rights, zoning enforcement, and the future of residential ownership models in South Carolina’s coastal communities. At the center of the case was 2 SC Lighthouse, LLC, a property owner, and Pacaso, Inc., a company that facilitates fractional homeownership. On the other side stood the Town of Sullivan’s Island, determined to enforce its long‑standing restrictions on short‑term rentals.  While the case involved a single property, its implications reach far beyond one address.

Sullivan’s Island has long maintained strict zoning rules designed to preserve its residential character. Among those rules are limits on short‑term vacation rentals, which town officials argue can disrupt neighborhoods and strain local infrastructure. As new real estate models have emerged, the town has taken a close look at how these arrangements fit within existing ordinances.

That scrutiny intensified when a home owned by 2 SC Lighthouse, LLC was used in partnership with Pacaso. Pacaso’s model allows multiple buyers to purchase fractional ownership interests (in this instance, one‑eighth shares) in a single property. Each owner receives scheduled access throughout the year, and Pacaso manages maintenance and logistics. However, unlike a true rental property, occupants do not pay nightly or weekly fees to stay in the home; they are staying in a property they legally own.

Town officials concluded that the arrangement functioned like a vacation rental in practice, even if it was structured differently on paper. The Town’s Zoning Administrator issued a violation, asserting that the property was being used as a prohibited short‑term rental under Sullivan’s Island zoning laws. That decision was upheld by the Town’s Board of Zoning Appeals (BZA).

2 SC Lighthouse and Pacaso appealed to the Charleston County Circuit Court. The court sided with the Town, effectively agreeing that the zoning authorities’ interpretation of the ordinance should stand.

The property owner and Pacaso appealed, arguing that a fractional ownership is not a rental, and that the Town was stretching the definition of “short‑term rental” beyond what its ordinance actually said.

On February 18, 2026, the South Carolina Court of Appeals reversed the circuit court’s decision, siding with 2 SC Lighthouse and Pacaso. The ruling turned on the critical distinction between ownership and renting. The court emphasized that the individuals staying in the home were owners, not tenants. Without a rental transaction (no landlord‑tenant relationship and no payment for temporary lodging), the court found that the town’s definition of a short‑term rental did not apply.

In making its ruling, the court clarified that interpreting a zoning ordinance is a question of law rather than a factual determination entitled to broad deference. While zoning boards are given leeway in applying ordinances, they cannot rewrite or expand those ordinances. If a municipality wants to regulate fractional ownership, it must do so explicitly.

Although the ruling is an unpublished opinion and is not binding precedent, its practical impact is significant. For Sullivan’s Island, the decision places limits on enforcement under current zoning language. The town may still regulate short‑term rentals aggressively, but it cannot treat fractional ownership arrangements as rentals unless its ordinances are amended to say so.

For other South Carolina coastal communities, the case serves as a warning and a roadmap. Many towns face similar tensions between preserving neighborhood character and responding to evolving real estate practices. The decision signals that courts will closely scrutinize attempts to regulate new ownership models using old definitions.

For property owners, the ruling reinforces a core principle of land‑use law: property rights cannot be curtailed by implication. Restrictions must be clearly stated, not inferred based on policy concerns alone.

The decision does not end the debate over fractional ownership on Sullivan’s Island or elsewhere. Municipalities may respond by revising zoning ordinances to directly address co‑ownership models. Developers and property owners, meanwhile, will likely continue testing the boundaries of traditional zoning frameworks.

This case highlights the broader reality that zoning laws written decades ago are being asked to govern a rapidly changing housing market. As ownership models evolve, so too must the rules that regulate them—through legislation, not interpretation.

For now, 2 SC Lighthouse, LLC’s victory stands as a reminder that in land‑use law, words matter, and towns must play by the rules they have written.

[1] Pacaso, Inc. & 2 SC Lighthouse, LLC v. Town of Sullivan’s Island, South Carolina, Appellate Case No. 2024‑000134, 2026‑UP‑078 (S.C. Ct. App. Feb. 18, 2026) (unpublished).