Court of appeals reverses order compelling real estate sale

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The South Carolina Court of Appeals overturned a Master in Equity’s decree that had ordered a seller to convey rural property to a buyer.

Writing for the panel, Judge Paula H. Thomas ruled that the master misapplied both equitable principles and the parties’ written contract. The court held the buyer could not invoke equitable estoppel to defeat the seller’s Statute-of-Frauds defense because her reliance on his alleged promise to furnish a right-of-way survey was unreasonable: the contract itself directed her to obtain any desired survey, and she produced no evidence that she spent money, gave up other opportunities, or otherwise changed her position because of that promise.

The panel likewise rejected the master’s award of specific performance. The agreement declared that “time is of the essence,” merged all prior negotiations, and disclaimed reliance on outside representations. It required the buyer to pay the $400,000 purchase price — including an unfinanced $100,000 — on the scheduled closing date or within a five-day grace period. She offered no proof that she possessed the unfinanced cash, an appraisal, mortgage title insurance, or any other closing prerequisite, and she never tendered payment. Responsibility for obtaining a survey appeared only in a separate brokerage agreement to which the seller was not a party, so the master erred in using parol evidence to shift that obligation to the seller.

Finding neither a viable equitable theory nor a contractual basis for relief, the Court of Appeals vacated the decree and entered judgment for the seller.

The 10-page opinion is Anderson v. Pearson, I.C., Lawyers Weekly No. 011-017-25.