SC H4584

Requires purchase agreements for interests in "managing entities" (business entities that own residential property) to clearly disclose that buyers are purchasing an ownership interest in the entity, not the real property itself

Prohibits mandatory arbitration clauses that require disputes to be resolved outside of state or federal courts

Bars managing entities from restricting transfer of ownership interests, charging transfer fees, or sharing in proceeds when owners sell their interests to subsequent purchasers

Prevents managing entities from taking discriminatory actions regarding ownership interests that would violate law if the interest were real property (such as restricting transfers, imposing maintenance requirements, or refusing qualified persons)

Classifies violations as unfair or deceptive trade practices under state consumer protection law; exempts timeshare plans and properties owned by religious organizations on parcels of 25+ acres