Sea Mist Resort HOA Risk Assessment: Program-leaning

02 The five questions

What the documents decide
before your first guest books.

Five dots is the best answer for an owner who wants to run the unit themselves. One dot is a red flag. Open “What the documents say” under each for the exact words.

Can you rent it your way?

Typical

Whether the deed and rules let you rent short-term on your own terms: no requirement to use the on-site program, no minimum stay that kills weekend bookings, and no rule against saying where the condo is.

Daily/weekly/monthly rentals are expressly protected with no minimum stay and no on-site-program requirement, and self-management or off-site managers are accepted, but managers must carry $1M/$2M/$5M insurance with a COI on file, owners may not use common elements for the rental business, guests must register at the front desk for parking passes, and the mark owner regulates Sea Mist advertising.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated. Units are restricted to residential use by owners, families, guests, licensees and invitees; timeshare/fractional/interval ownership is prohibited. No cap on owner or rental nights. Note Rule 23 ('No trade or business activity may be conducted on Association property or in and around a specific unit unless prior Board approval is obtained') sits alongside the deed's express right to rent daily/weekly/monthly and Rules 34/37, which treat owner-managed and off-site-managed rentals as routine.

RegistrationNo owner registration with the HOA is required to rent. Guests must fill out an 'Offsite rental form' at the Driftwood front desk to receive parking passes. Any rental management company serving owners must furnish the Association proof of general liability insurance ($1,000,000 per occurrence / $2,000,000 aggregate plus $5,000,000 umbrella, Association as additional insured) before operating, and per the rules a COI naming TDO HOA and Sea Mist as additional insured must be on file with HOA management. Service animals require an Advance Notice form sent to HOA/Security one week before check-in. Owners must give HOA management and Security the unit access codes and authorization to enter ($250/month fine if refused).

Advertising rulesThe owner of the 'Sea Mist' / 'Sea Mist Resort' service marks (Sea Mist, Inc.) retains the right to impose rules on how owners and rental managers advertise units for rent, to prevent misleading use of the name and photographs as to inventory size or guest services. No 'For Rent' signs or banners visible from the exterior. Commercial Unit CU-1 holds the exclusive advertising easement over corridors, elevators, building exterior and parking areas and controls all movable-type signage on the common elements.

Vote to change rental rulesGeneral Master Deed amendments: 67% of the undivided interest in the common elements, proposed by a Board majority or 25% of members. The Article XIV commercial-activity restriction (which also contains the owner right to rent daily/weekly/monthly) 'may not be amended without the unanimous vote of all UNIT OWNERS' and Article XIV may be amended only with the express written consent of the owner of Commercial Unit CU-1. Rules and regulations can be changed by the Board at any time (Rules item 40).

What the documents say (11)

“No UNIT or any portion thereof may be submitted to any plan or form of interval or fractional ownership, or any form of timesharing as defined or described in S.C. Code Ann. § 27-32-10, et seq. Provided however, nothing herein shall be construed as limiting the right of any OWNER of any UNIT from renting or leasing his, her, their or its UNIT, subject to all terms and conditions of this Master Deed on a daily, weekly or monthly basis.”Master Deed, Article XIV, p. 14

“RESIDENTIAL UNIT OWNERS may rent their UNITS, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting. Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the OWNER of UNIT CU-1 shall be entitled to use the on premises storage closets and service chases.”Master Deed, Article XIV, p. 14

“no commercial activity or activities shall be conducted within any UNIT, COMMON ELEMENT or LIMITED COMMON ELEMENT, nor shall the same be modified or altered to accommodate any such commercial use, including, but not limited to, operation of general rental management service for the RESIDENTIAL UNITS and related accommodation services such as reservations, key pick up and drop off, front desk, concierge, and cable, movie, internet and telephone services to RESIDENTIAL UNITS”Master Deed, Article XIV, p. 14

“The foregoing restriction on commercial activities may not be amended without the unanimous vote of all UNIT OWNERS.”Master Deed, Article XIV, p. 14

“GRANTOR further discloses that in the case of OWNERS that desire to rent RESIDENTIAL UNITS they own, the owner of the Marks, its successors or assigns, retain rights to impose reasonable rules and regulations concerning the advertisement of UNITS for rent by owners and rental managers to prevent use of the name and photographic images of the Marks in a manner that is misleading to the general public as to the size of inventory of UNITS that is being offered or as to the types of guest services that are available in connection with the rental.”Master Deed, Article VII, p. 11

“The Property is hereby further restricted such that any and all rental management companies providing services to any UNIT OWNERS at Tides/Driftwood/Oasis Horizontal Property Regime shall maintain the following amounts of insurance: General liability coverage in an amount of not less than $1,000,000.00 per occurrence with an aggregate of $2,000,000.00 and an umbrella policy of not less than $5,000,000.00 (provided that such coverage is available at standard rates from a licensed insurer within the State of South Carolina), with the ASSOCIATION named as an additional insured on all such policies. Proof of such coverage shall be furnished to the ASSOCIATION prior to the commencement of operations within the Regime.”Master Deed, Article XV, p. 15

“Additionally, any and all rental management companies providing services to UNIT OWNERS shall prominently display aplacard or other similar materials within each UNIT on their rental program, identifying the name, address, phone number and other contact information for such rental management company and specifically whom to contact for issues regarding the maintenance or cleanliness of the UNIT and/or linen service.”Master Deed, Article XV, p. 15

“(34) OFFSITE RENTAL AGENCIES: All owners are responsible for insuring you or your agent has properly and adequately posted SIGNAGE notifying guests of these rules and who to call for housekeeping and maintenance. All owners and Offsite Rental Agencies are RESPONSIBLE for enforcing these rules and regulations with their guests as well as assessing fines to their guest to prevent/pay for their owners accruing fines. Per the Master Deed, All Third-party rental companies must have a COI on file with the HOA Management and name the TDO HOA and Sea Mist as other insured.”TDO HOA Rules and Regulations, Rule 34, p. 5

“The ASSOCIATION is not intended to and shall not become involved in the business or practice of rental management of RESIDENTIAL UNITS.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article I, Section 4, p. 61

“Further, no OWNER, or his agent, may place any signs or banners upon the COMMON ELEMENTS, or within his UNIT or the LIMITED COMMON ELEMENTS so as to be visible from the exterior of the UNIT, including, without limitation "For Sale", "For Rent" or other advertising signs.”Master Deed, Article XIX, pp. 17-18

“(23) BUSINESS ACTIVITY: No trade or business activity may be conducted on Association property or in and around a specific unit unless prior Board approval is obtained.”TDO HOA Rules and Regulations, Rule 23, p. 4

Will your guests be treated like guests?

Typical

Whether a guest who booked through you gets the same resort as a guest who booked through the front desk: the same pools, parking, wristbands and check-in, or a second-class version of them.

Off-program guests get the same common-element and key-card access as owners, but the owner handles check-in and key cards, guests must fill out an off-site rental form for parking passes, and the pools are owned by Sea Mist with hours and access outside HOA control and pool decks closable for resort functions.

Amenities for your guestsMost, not all

Off limits to your guestsPool decks may be closed to all unit owners/guests by the CU-1 owner for resort functions for up to 12 consecutive hours with posted notice (Master Deed Art. IV), On-premises storage closets and service chases are reserved to CU-1 (Master Deed Art. XIV), Front desk / concierge / key pick-up services are a CU-1 commercial right, not an HOA service; off-program guests do obtain parking passes at the Driftwood front desk (Rule 37), but the documents do not say whether they receive any check-in, key or concierge service there, Pools and hot tubs are not HOA property ('owned by Sea Mist'); hours and access are 'subject to change' outside HOA control, and pool/hot-tub key-card access is suspended for owners 30 days past due (Rules 32, 37)

Wristbands & parking passesTwo white building/pool key cards are issued per unit for owners/guests and must be left in the room at checkout; replacements cost $50 per card. Vehicles must display a hanging parking pass provided by the Association and/or on-site; all guests must fill out an Offsite rental form at the Driftwood front desk to receive parking passes (procedure since December 26, 2022). Only vehicles fitting in one space; towing enforced; $100 fine for no pass. No wristband system is mentioned.

Check-inowner handles (no HOA check-in; key cards stay in the unit; guests obtain parking passes at the Driftwood front desk via the Offsite rental form; unit access codes must be on file with HOA management/Security)

TrashGuests use trash chutes (middle of each floor in Tides, opposite end from elevators in Driftwood); boxes incl. pizza boxes left by the trash can near the elevator doors; nothing left in hallways ($100 fine). Construction/renovation debris must be removed from the property by the owner/contractor daily ($250 per occurrence; $250 plus compactor repair cost for construction material in chutes). Trash removal is an HOA expense ($75,000 in 2026).

ElevatorsStairs and elevators are common elements accessed from the ground level. No service-elevator-only rule for vendors is stated; contractors may not use the new luggage carts. Elevator maintenance contract $24,720 plus $60,000 elevator update/replacement budgeted for 2026.

Housekeeping & linenOwner's responsibility. Daily or weekly maid service by independent contractors is permitted, but only the CU-1 owner may use on-premises storage closets and service chases; cleaners must sign in at the Driftwood front desk; housekeeping carts and linens may not be stored in hallways; no sweeping into hallways ($100 fine). The deed references 'trash and linen chutes' maintained by the Association. Inside room doors must post manager contact and housekeeping instructions.

What the documents say (7)

“the COMMON ELEMENTS shall be, and the same are hereby declared to be, subject to a perpetual non-exclusive easement in favor of all of the OWNERS of UNITS in the Condominium for their use and the use of their immediate families, guests, licensees and invitees, for all proper and normal non-commercial purposes”Master Deed, Article VII, p. 10

“(iv) the perpetual, appurtenant, exclusive easement over the pool decks, except during limited periods, not to exceed twelve (12) consecutive hours during which other UNIT Owners may be excluded by the Owner of COMMERCIAL UNIT CU-1 for resort functions and parties. Provided however, the Owner of COMMERCIAL UNIT CU-1 or its agents, must post advance notice that a function will be held on such LIMITED COMMON ELEMENTS”Master Deed, Article IV, p. 8

“(32) SWIMMING POOLS: The pool does NOT belong to the association and is owned by Sea Mist. Pool rules, hours of operation and access are subject to change. The HOA Association has NO control over if the facilities are in use or not.”TDO HOA Rules and Regulations, Rule 32, p. 5

“(37) Building /Pool Key cards must be left in Room at Checkout: Two building/pool white key cards are issued to each unit for owners/guests. These Building/Key cards must be left in the room (especially if the rooms are managed by the homeowners or outside management companies). If they are lost or stolen - Key cards are replaceable at $50/per card. Key cards of Owners who are 30 days past due in their HOA Dues will have their access to the pools and hot tubs suspended until paid in full. All guests must fill out an Offsite rental form to receive their parking passes. (Currently at the front desk of Driftwood building beginning December 26, 2022).”TDO HOA Rules and Regulations, Rule 37, p. 6

“The Master Declaration provides a method for the reciprocal use by members of the ASSOCIATION, and other owners and occupants of and on the "Land" (as defined in the Master Declaration) of amenities and facilities that are or may be declared by GRANTOR as Master Common Areas or Master Common Easements or, pursuant to agreements or licenses with owners of property not constituting portion of the Land, certain other amenities or facilities, including without limitation swimming pools, saunas, lazy rivers, surface parking and parking structures, walkways, stairways, hallways, elevators, lobbies, public restrooms, trash systems, landscaping, the name "Sea Mist" and the name "Sea Mist Resort."”Master Deed, Article VI, p. 9

“The Master Declaration provides the Master Association with power and authority to eliminate amenities and facilities on properties without obligation to replace them.”Master Deed, Article VI, p. 10

“(11) ALL CONTRACTORS, VISITORS, CLEANERS are REQUIRED to SIGN IN at Driftwood front desk. Contractors, visitors, delivery persons, and cleaning crews are required to sign in at the front lobby of Driftwood. Individuals must indicate what unit they are here to visit/be in and when they are to leave. Sign in is required at the designated area regardless of whether Security / personnel is present. Refusal or neglect to do so: $100 fine per occurrence may apply.”TDO HOA Rules and Regulations, Rule 11, p. 3

How much work lands on you?

Caution

What the rules make the owner personally responsible for: a local contact who answers in minutes, keys and passes, trash, fines for guest behaviour, vendor hours and elevators.

No response-time rule or owner trash hauling, but owners must surrender unit access codes ($250/month fine), post manager signage, get cleaners and contractors signed in and insured, and absorb a fine schedule that starts at $100 and runs to $1,000 per day with owners responsible for enforcing rules on guests.

Local contactNo named local-contact requirement for a self-managing owner, but inside room doors must display the manager's pertinent information and instructions for housekeeping and issues (Rule 24), owners/agents must post signage telling guests the rules and who to call for housekeeping and maintenance (Rule 34), and rental management companies must display a placard with name, address, phone and maintenance/cleanliness/linen contact (Master Deed Art. XV).

Response timeunstated (no response-time rule; violations must be corrected 'in a timely manner (specific to the violation)' or fines follow, Rule 38)

Locks & keysAll owners must give HOA management company (with Security) the unit access codes AND authorization to enter for security, emergencies, pest control and guest/damage issues; $250 per month fine if refused (Rule 9). Master Deed Art. XVII requires a key deposit with the Association if required, and Art. XXI charges the owner the cost of making a key if none is deposited. Two building/pool key cards per unit, $50 replacement.

FinesFines start at $100 per occurrence; general violations up to $1,000 per day or per occurrence; repeat violations accelerate to $1,000/day plus eviction and legal action. Smoking/vaping: one warning then $250 plus eviction. Nuisance: one warning then $100 up to $1,000/day. Throwing items off balcony $250+ plus eviction. Health/safety up to $500. Unauthorized/non-ADA animals $100 per day. No access codes $250/month. Construction material in chutes $250 plus compactor repair. Payment of violations is the final responsibility of the owner; by-laws say the fine is first assessed against the occupant, then the owner on notice. Fines are a lien on the unit; voting and amenity rights may be suspended. Owners and offsite rental agencies are responsible for enforcing rules with guests and collecting guest fines.

Contractors & vendorsContractors, cleaners, visitors and delivery persons must sign in at the Driftwood front desk ($100 fine). Contractors must submit license and insurance to the HOA BEFORE work; COIs must name Sea Mist and TDOHOA as additional insured; must be licensed in Horry County and the City of Myrtle Beach; liability and workers' comp required; structural, plumbing and electrical work only by licensed general contractors with permits and Board pre-approval; handymen must be insured; HOA notified before work with inspections prior, during and after; hours Monday-Saturday 8am-6pm, no Sunday work except emergencies; debris removed daily ($250); contractors may not use new luggage carts. Unit owner liable for contractor damage to common elements. No standard washers/dryers in units not designed for them.

AlsoBalconies: only approved outdoor furniture (deed says white patio furniture), tables 18-24 inches max, solar lights only, no grills, no towels/linens on railings ($100). Window treatments need uniform backing. No alterations (structural, electrical, plumbing, exterior) without written Board approval; unauthorized alterations must be removed within three days of notice. Monthly pest-control spraying inside units. Annual insurance deductible for in-unit items falls on the owner. Association may enter to perform owner-neglected maintenance at owner cost (lien). Luggage carts must be returned immediately ($100). Guests with service animals must submit an Advance Notice form with vaccination records one week before check-in.

What the documents say (10)

“(9) ALL OWNERS MUST (per the Master Deed) gives HOA management company (w/ Security) access codes to room AND authorization to enter room for security, emergencies, pest control, and to take care of any immediate issues with guests or property damages. Fine of $250 per month may apply if Owner refuses or neglects this requirement.”TDO HOA Rules and Regulations, Rule 9, p. 3

“Owners may be subject to fines starting at $100, unless otherwise noted and/or legal action. GROSS Violations of illegal activity will be subject to EVICTION of guests from property. Unit Owners and Third-Party Rental companies, their agents or assigns are responsible for enforcing these rules with their guests.”TDO HOA Rules and Regulations, VIOLATIONS, p. 1

“(1) GENERAL VIOLATIONS: Subject to fines, not to exceed $1,000. per day or per occurrence (up to the maximum allowed by law).”TDO HOA Rules and Regulations, Rule 1, p. 1

“(16) REPEAT VIOLATIONS OF ANY KIND ARE SUBJECT TO ACCELERATION OF FINES up to $1,000/day, EVICTION, and subsequent legal actions.”TDO HOA Rules and Regulations, Rule 16, p. 3

“THE GOVERNING DOCUMENTS, INCUDING THE MASTER DEED, BY-LAWS AND RULES AND REGULATIONS ARE APPLICABLE TO OWNERS, GUESTS, INVITEES, LEASEES, ETC. PAYMENT OF VIOLATIONS SHALL BE THE FINAL RESPONSIBILITY OF THE OWNER.”TDO HOA Rules and Regulations, p. 1

“(28) CONTRACTORS: MUST submit their license and Insurance information to the HOA BEFORE work begins. COI's must name the Sea Mist and TDOHOA as "other insured". Regardless of what tasks are being performed.”TDO HOA Rules and Regulations, Rule 28, p. 4

“Contractor hours WILL be Monday-Saturday 8am to 6pm. No work is allowed on Sundays unless an emergency has occurred, and HOA is notified first.”TDO HOA Rules and Regulations, Rule 29, p. 5

“(24) SIGNS: No signs shall be displayed to the public on any units or any portion of the Association property unless prior Board approval is obtained. Inside ROOM doors shall have all pertinent information of manager and instructions for all needs, housekeeping and issues posted including that all rooms and building are NON-Smoking.”TDO HOA Rules and Regulations, Rule 24, p. 4

“In the event that any occupant of a UNIT violates the Mastér Deed, By-Laws, or a rule or regulation and a fine is imposed, the fine shall first be assessed against the occupant; provided, however, if the fine is not paid by the occupant within the time period set by the Board, the Owner shall pay the fine upon notice from the ASSOCIATION.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article III, Section 22, p. 71

“To facilitate entry in the event of any such emergency, the OWNER of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Article XVII, p. 16

Is the money healthy?

Caution

Whether the association can pay for the building without surprise bills: reserves, special assessments, insurance deductibles, how fast dues are rising, and how much of the fee passes through to a master association.

Dues fell 3.3% and insurance dropped 32% with no special assessment stated, but reserves are only 6% of budget on 1975/1986 oceanfront buildings with no reserve study or balance disclosed, bad debt ran $400,000 in 2025 and $100,000 in 2026, $60,000 of new legal cost appears, a $150,000 pool-sharing payment goes to an amenity the HOA does not own, and wind-deductible shortfalls can be assessed by the Board without an owner vote.

2026 budget$1,996,140

Dues change-3.3% on the year

Reserves6% of budget

Special assessmentsNone in the documents

InsuranceInsurance Expense budgeted $390,000 for 2026 versus $570,000 in 2025 (down 31.6%). Deed Art. XXI makes owners pay the portion of any in-unit repair that falls within the Association's deductible. Owners may buy their own contents/liability coverage (Art. XXIII). Art. XXIV also makes any uninsured loss or loss within the policy deductible a Common Expense of all owners, and the Board may issue the restoration assessment 'without any consent of the OWNERS' (printed p. 24); with an undisclosed wind/named-storm deductible on an oceanfront building this is the most likely path to a special assessment.

Floodunstated (deed requires the Association's casualty policy to include windstorm, wind-driven rain, water damage and flood damage 'if available'; deed discloses part of the project is seaward of the setback line and may be in the FEMA velocity zone with an erosion rate of -0.68 ft/yr)

Passes through to a master association8% of the budget

DelinquencyHeavy. Bad Debt Expense was budgeted at $400,000 in 2025 (18.5% of that budget) and $100,000 in 2026 (5.0%); Fines/Late Charges income of $100,000 was budgeted in 2025 and $0 in 2026. Deed: assessments in default on the due date; Board may accelerate the annual assessment; interest at the SC legal judgment rate; $25 late fee after 20 days; lien foreclosable like a mortgage with rent and receiver; owner personally liable incl. attorney fees; buyer in a voluntary sale is jointly liable for the seller's unpaid assessments. By-laws: installment delinquent on the 15th. Rules: accounts past 30 days go to the collections attorney; voting, amenity and pool key-card access suspended.

What the documents say (18)

“4000 - Regular Assessments 2,065,256.00 4,996,140.00”TDO HOA 2026 Budget - Approved, Income, p. 1 (the 2026 figure is an OCR misread of $1,996,140.00; see next quotes)

“Total Operating Expense 2,165,256.00 1,996,140.00”TDO HOA 2026 Budget - Approved, p. 2

“Regular Assessments - Operating $1,876, 140.00 Regular Assessments - Reserves $120,000.00 Total Assessments $1,996, 140.00”TDO HOA 2026 Budget - Approved, 2026 Maintenance Assessment Computation, p. 2

“268 Condos 0.003661 572.00 37.00 609.00”TDO HOA 2026 Budget - Approved, 2026 Maintenance Assessment Computation, p. 2 (monthly operating / reserve / total per condo)

“41 Penthouse 0.014644 2,290.00 146.00 2,436.00”TDO HOA 2026 Budget - Approved, 2026 Maintenance Assessment Computation, p. 2

“6150 - Insurance Expense 570,000.00 390,000.00”TDO HOA 2026 Budget - Approved, Administrative, p. 1

“6125 - Bad Debt Expense 400,000.00 100,000.00”TDO HOA 2026 Budget - Approved, Administrative, p. 1

“7000 - Reserves For Capt. Improvement 100,000.00 120,000.00”TDO HOA 2026 Budget - Approved, Other Expenses, p. 2

“5020 - Pool Sharing Expense 216,000.00 450,000.00 Total Pool Maintenance 216,000.00 150,000.00”TDO HOA 2026 Budget - Approved, Pool Maintenance, p. 1

“6160 - Legal Services Expense — General 0.00 60,000.00”TDO HOA 2026 Budget - Approved, Administrative, p. 1

“51611 $87,500 0.3661% 51612 $87,500 0.3661% 51613 $87,500 0.3661% $80,078 0.3351% $20,000 0.0837% Total Statutory $23,900,078.00 100.0000%”Master Deed, Exhibit C, printed p. 58 (PDF p. 78; only legible rows of the percentage schedule)

“Based upon this investigation, Grantor will make an initial contribution in the amount of $400,000.00 to the ASSOCIATION as reserves for replacements and repairs of components of the buildings to help insure that adequate reserves for such repairs and replacements are available.”Master Deed, Article XXXVII, p. 39

“Further, a late fee of $25.00 shall be assessed for each installment not paid within twenty (20) days after the due date thereof.”Master Deed, Article XXVII.G, p. 28

“This reciprocal use arrangement requires the payment by a property owners association or other owner using amenities available for reciprocal use of a share of the operating expenses of those amenities and facilities.”Master Deed, Article VI, p. 10

“the Master Association is hereby granted a lien upon each UNIT and its appurtenant undivided interest in the COMMON ELEMENTS, which lien shall secure and does secure the monies due for all assessments now or hereafter levied against the ASSOCIATION by the Master Association”Master Deed, Article VI, p. 10

“UNPAID ASSESSMENTS: Subject to penalty, interest, and liens, suspension of voting rights until members’ accounts are returned to good standing (not more than 30 days overdue). Accounts past 30 days will go to the collection’s attorney.”TDO HOA Rules and Regulations, p. 1

“If the damage to the Regime Property is not insured or if the amount of the loss is within the deductible provisions of the insurance policy or if the proceeds of insurance or condemnation are insufficient to cover the cost of reconstruction or repair, the deficiency shall be a Common Expense of all Co-owners”Master Deed, Article XXIV, p. 24

“The Board of Directors of the ASSOCIATION shall approve and issue, without any consent of the OWNERS, any assessment for Common Expenses necessary for the restoration or repair of Regime Property in accordance with this Article.”Master Deed, Article XXIV, p. 24

Who's really in charge?

Caution

Who holds the power the documents hand out: an owner-elected board, or a developer or commercial-unit owner with deed-level rights over rentals, guest services and the building's name.

Four of five directors are now owner-elected, but the resort commercial unit keeps an appointed seat, a veto over all Board actions and a quadruple vote while Class II membership lasts (no later than October 1, 2030, termination status unstated), no recusal duty on resort-HOA contracts, and perpetual deed-level exclusive rights to front desk, rental management, advertising, food and beverage and pool-deck closures that change only with its consent plus a unanimous owner vote; the developer also retains phase-addition and demolition rights until October 1, 2030.

StructureTwo tiers: a master association above this one

Master associationSea Mist Master Homeowners' Association, Inc.

Commercial unitYes, with its own deed rights

On-site operatorNot named as a company in the deed. The deed grants the resort-operator rights to the OWNER of Commercial Unit CU-1 (lobby, maintenance areas, roofs, front desk/rental-management/food-and-beverage/advertising easements). The service marks 'Sea Mist' and 'Sea Mist Resort' belong to Sea Mist, Inc.; the rules say the pools are 'owned by Sea Mist'. The grantor/converter was Condo Conversions SM, LLC. The HOA's management company per the rules is Inlet HOA Management Services, LLC.

BoardFive directors after the Class II Control Period: four elected by the members (initially two for three-year and two for two-year terms, then two-year terms) and a fifth appointed by the Class II member (owner of Commercial Unit CU-1) until Class II membership ends, after which the fifth is elected. Directors need not be owners. Removal with or without cause by majority vote of the membership. The initial three-person board was appointed by the CU-1 owner for a ten-year Control Period from the April 2006 filing (so through about April 2016). After Class II ends, the CU-1 owner may still appoint a non-voting ex officio director. Board meetings are open to members; at least two per year. Annual audited report required within 120 days of fiscal year end. The Board may borrow for repairs or budget shortfalls without a member vote unless the loan funds new/modified amenities or exceeds 10% of budgeted gross expenses (then a majority member vote is needed); management contracts are capped at two years and the Grantor or an affiliate may serve as managing agent (By-Laws Art. III Secs. 18, 20).

Developer rightsGrantor (Condo Conversions SM, LLC, successors and assigns) may add Phases II-XII (up to 360 residential and 5 commercial units per phase, on common elements or land within one mile) by unilateral amendment until October 1, 2030, including demolishing the CU-2 improvements to build a tower, removing/relocating parking, balconies and landscaping, and closing pool/parking facilities temporarily during construction. Grantor controls PUD zoning amendments while it can add phases, may amend the deed for scrivener/lender changes, keeps sales/model/signage rights while it owns any unit, and its reserved rights can only be amended with its written consent. Rules that affect the Grantor or Commercial Units do not bind them without written consent.

Commercial-unit rightsCommercial Unit CU-1 (lobby, maintenance areas, roofs of both wings, loading drives) holds perpetual exclusive easements for advertising over corridors/elevators/exterior/parking, food and beverage sales and tables/chairs on pool and sun decks and all common elements, live/recorded music on pool and sun decks 9:00 a.m. to midnight, exclusion of owners from pool decks up to 12 hours for functions, telephone/cable TV/internet service to the Regime (switchboard remains CU-1 property), control of movable signage, and rooftop antennas. CU-1 alone may run rental management, front desk, concierge, key pick-up/drop-off, guest laundries, restaurant, lounge, spa, night club etc. and use the storage closets and service chases; CU-1 may alter its unit and limited common elements without Board consent; CU-1 may specifically enforce Art. XIV with attorney's fees; a CU-1 representative on the Board or as a member need not recuse on contracts between CU-1 and the Association. Class II vote weight is four times CU-1's percentage interest. Class II veto over all Board/committee actions for as long as Class II membership exists (terminable earlier by CU-1; ends no later than October 1, 2030); Master Deed Art. XXXII ties the approval right to the period the Grantor can add phases. Article XIV, Article XXII (maintenance) and Article XXXII, plus any CU-1 right, may be amended only with CU-1's written consent. CU-2 (gift shop, Oasis, pool, pool building and Lighthouse Lounge) may be demolished/reconfigured at the owner's discretion. The pool is not HOA property.

VotesOne vote per unit weighted by percentage interest in the common elements (condos 0.3661% each, Penthouse 1.4644%, CU-1 0.3351% but 4x during Class II, CU-2 0.0837%). Quorum 51% of the total vote; majority means more than 50% of total percentage interest; proxies must be delivered 48 hours before the meeting. Multiple owners of a unit designate one Voting Member.

Changing the deedMaster Deed: 67% of the undivided interest in common elements at a special meeting called on a Board-majority or 25%-member proposal; percentage-interest/assessment-basis changes need all owners and mortgagees; Art. XIV commercial restriction needs a unanimous owner vote and CU-1 consent; Grantor and CU-1 reserved rights need their written consent; mortgagee rights need all mortgagees. By-Laws: 67% of total votes including Grantor-owned units, subject to the same Grantor/CU-1 consent carve-outs. Termination of the regime: unanimous owners and lienholders. Rules: Board (and Master and Horizontal HOA directors) may change at any time.

Disputes or lawsuitsNo lawsuit, complaint or minutes are in the set. Indicators only: Legal Services Expense budgeted at $60,000 for 2026 versus $0 in 2025, Professional Services $45,000 new in 2026, Bad Debt Expense $400,000 in 2025 and $100,000 in 2026 (collections activity). The Master Deed requires binding arbitration in Horry County and waives jury trial for all disputes under the deed and construction/condition claims, with fee-shifting to the prevailing party; assessment collection suits and CU-1's Art. XIV enforcement suits are carved out of arbitration.

What the documents say (15)

“The Class II member shall for a period of ten (10) years from the filing of the Master Deed (the “Control Period”) in the Horry County Register of Deeds Office, to designate and select the persons who shall serve as members of the Board of Directors of the ASSOCIATION in accordance with Article III, Section 2 herein. After expiration of the Control Period, the OWNER of the COMMERCIAL UNIT CU-1 shall have the right to designate and select one (1) person to serve as a member of the Board of Directors of the ASSOCIATION so long as Class II membership has not expired or been terminated. The OWNER of the COMMERCIAL UNIT CU-1 shall have the right at any time to terminate Class II membership by filing an instrument in the records of Horry County, South Carolina so doing, and in any event the Class II membership shall terminate no later than October 1, 2030.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article II, Section 2 (Class II), p. 62

“So long as the Class "II" membership exists, the Class "II" member shall have a veto power over all actions of the Board and any committee, as is more fully provided in this Section.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article III, Section 3 (Veto), p. 65

“At the first annual meeting of the ASSOCIATION following the expiration or sooner termination of the Class II Control Period, four (4) Directors shall be elected and a fifth Director shall be appointed by the Class II member.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article III, Section 5, p. 66

“Any representative of the OWNER of the COMMERCIAL UNIT serving on the Board of Directors of the ASSOCIATION shall not be required to disqualify himself upon any vote on any management contract or other matter between the OWNER of the COMMERCIAL UNIT and the ASSOCIATION where the OWNER of the COMMERCIAL UNIT may have a pecuniary or other interest.”Master Deed, Article XXXII, p. 35

“In addition to the right to appoint the Directors during the Control Period, the OWNER of COMMERCIAL UNIT CU-1 shall have the right, for so long as the GRANTOR has the right to add an additional Phase(s) as set forth in Article III, to approve actions by the Board of Directors for the ASSOCIATION as set forth in the By-Laws.”Master Deed, Article XXXII, p. 35

“(i) the perpetual, appurtenant, exclusive easement for advertising reserved over the corridors, passageways, elevators, building exterior, parking areas and other COMMON ELEMENTS for the exclusive use and benefit of COMMERCIAL UNIT CU-1 and the OWNER thereof; (ii) the perpetual, appurtenant, exclusive easement for food and beverage sales and the placement of tables and chairs reserved over the pool decks, sun decks and other COMMON ELEMENTS for the exclusive use and benefit of COMMERCIAL UNIT CU-1 and the OWNER thereof; (iii) the perpetual, appurtenant, exclusive easement for the right to play live and recorded music reserved over the pool decks, sun decks and other COMMON ELEMENTS”Master Deed, Article IV, p. 8

“"COMMERCIAL UNIT" means the two (2) separately designated UNITS on which and through which commercial activities may be conducted as set forth in this Master Deed. Without limiting the commercial activities reserved in favor of the COMMERCIAL UNIT as set forth in this Master Deed, the COMMERCIAL UNIT may be used for all legal residential, commercial and business purposes including, but not limited to, purposes of general rental management service for the UNITS and other rental property and related accommodation services such as reservations, key pick up and drop off, front desk, concierge, commercial laundry, and cable, movie, internet and telephone services to UNITS, shops, stores, sales, gaming machines if permitted by law, cell towers, guest laundries, meeting rooms, restaurant, lounge, game room, real estate sales, accommodations, health spa, pool bar, night clubs or any combination of such uses related to any Phase.”Master Deed, Article XXXVI.B, p. 37

“The GRANTOR may elect to exercise this right or option as to Phases II through XII_no later than October 1, 2030.”Master Deed, Article III, p. 5

“Additionally, and without limiting the foregoing, GRANTOR hereby reserves the right and all easements necessary to remove the existing improvements contained within COMMERCIAL UNIT CU-2 in Phase I and to construct thereon an additional condominium tower, which may or may not-be connected to the Phase I building and may be built partially upon COMMON ELEMENTS contained in Phase I”Master Deed, Article III, p. 3

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of MEMBERS owning at least sixty-seven (67%) percent of the undivided interest in the COMMON ELEMENTS of the Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, p. 32

“iii) any amendment of Article XIV, which may be amended only with the express written consent of the OWNER of COMMERCIAL UNIT CU-1; iv) any amendment of Article XXXII, which may be amended only with the express written consent of the OWNER of COMMERCIAL UNIT CU-1”Master Deed, Article XXIX, p. 31

“Provided, however, any such rules or regulations that purport to diminish, abrogate or in any way affect the COMMERCIAL UNITS, including the LIMITED COMMON ELEMENTS appurtenant thereto or other rights reserved herein in favor of such COMMERCIAL UNITS or the OWNERS thereof shall not be binding upon the OWNER of such COMMERCIAL UNIT, its successors and assigns, unless and until such OWNER consents in writing to the same.”Master Deed, Article XV, p. 15

“GRANTOR HEREBY DECLARES, ON BEHALF OF ITSELF, THE ASSOCIATION, AND ANY OWNER OF A UNIT, THAT ANY AND ALL RIGHT TO TRIAL BY JURY SHALL BE WAIVED BY GRANTOR, THE ASSOCIATION, OR ANY OWNER OF A UNIT IN ANY DISPUTE, PROCEEDING, CASE OR CONTROVERSY ARISING UNDER OR RELATED TO THE WITHIN MASTER DEED.”Master Deed, Article XXXVIII, p. 39

“The ASSOCIATION (as hereinafter defined) shall be subject and subordinate to the provisions of the Master Declaration, the Bylaws of Sea Mist Master Homeowners’ Association, Inc. (the “Master Association”), and to rules and actions adopted or undertaken thereunder, and no action of the Board of Directors or any OWNER of a UNIT within the Condominium shall be in contradiction, abrogation or substitution of the provisions, rules or actions thereof.”Master Deed, Article VI, p. 9

“The Board of Directors shall have the power to borrow money for the purpose of repair or restoration of the COMMON ELEMENTs or for the purpose of funding budgetary shortfalls, without the approval of the membership; provided, however, the Board shall obtain prior Voting Member approval by majority vote for special assessments in the event that the proposed borrowing is for the purpose of modifying, improving, or adding amenities, or the total amount of such borrowing exceeds or would exceed ten (10%) percent of the budgeted gross expenses of the ASSOCIATION for that fiscal year.”By-Laws of Tides/Driftwood/Oasis Homeowners' Association, Inc., Article III, Section 20, p. 71

03 Pros and cons

For the owner who runs it themselves.

The same building reads very differently to an owner on the rental program and an owner on Airbnb. This list is for the second one.

Working for you

The deed expressly protects an owner's right to rent on a daily, weekly or monthly basis with no minimum stay, no owner-use cap and no requirement to join an on-site program (Master Deed, Art. XIV, p. 14)
The rules openly contemplate units 'managed by the homeowners or outside management companies' and off-site rental agencies, so self-management and third-party managers are accepted practice (TDO HOA Rules, Rules 34 and 37, pp. 5-6)
The HOA is barred from going into the rental-management business itself, so there is no association-run program competing with owners (By-Laws, Art. I Sec. 4, p. 61)
Guests of any owner share the same common-element easement as owners, and the HOA issues two building/pool key cards per unit; parking passes for off-site rental guests are handled at the Driftwood front desk (Master Deed Art. VII p. 10; Rules 37, p. 6)
2026 regular assessments fell about 3.3% ($2,065,256 to $1,996,140) and the insurance line dropped 31.6% ($570,000 to $390,000); a standard condo pays $609/month (TDO HOA 2026 Budget, pp. 1-2)
No special assessment is stated in the set; the 2025 'Special Projects' line of $118,817 is gone in 2026, and reserves rose from $100,000 to $120,000 (TDO HOA 2026 Budget, pp. 1-2)
Dues bundle cable TV, water/sewer, trash, monthly in-unit pest control, 24-hour security and the master insurance policy on units and common elements (TDO HOA 2026 Budget, p. 1-2; Master Deed Art. XXIV, p. 21)
The control period for the commercial-unit owner expired ten years after the April 2006 filing, so four of five directors are now owner-elected and removable by majority vote; board meetings are open and an audited annual report is required (By-Laws Art. III Secs. 5-6, 15, 19(g), pp. 66-71)
The deed obliges the Association to keep a replacement reserve, have the common elements inspected annually by a qualified professional, and the converter seeded reserves with $400,000 (Master Deed Arts. XXII, XXVII.D, XXXVII, pp. 20, 27, 39)
Fines must follow written notice, a 10-day challenge window and a hearing with appeal to the Board, and are first assessed against the occupant (By-Laws Art. III Sec. 22, pp. 71-72)

Watch-outs

Budget OCR shows 2026 Regular Assessments as '4,996,140.00' (and Total Operating Income '41,996,140.00'); this is the dollar sign read as a 4. Total expense is 1,996,140, net income is 0, the assessment computation states $1,996,140, and 268 condos x $609 x 12 plus the other three unit types sums to exactly $1,996,140, so assessments did NOT more than double; they fell 3.3%. Verify against the original PDF (TDO HOA 2026 Budget, pp. 1-2)
Reserves are only $120,000, 6.0% of the budget, for a 1975 Tides Wing and 1986 Driftwood Wing on the oceanfront; no reserve balance or reserve study is in the set, and 2026 adds a $60,000 elevator update, $25,000 Johnson Fire Control and $25,000 building R&M lines (TDO HOA 2026 Budget, pp. 1-2; Master Deed Art. XXXVII, p. 38)
Collections are a serious problem: bad debt was budgeted at $400,000 in 2025 (18.5% of that budget) and $100,000 in 2026, and $60,000 of new legal expense appears in 2026; paying owners carry the shortfall (TDO HOA 2026 Budget, p. 1)
The pools and hot tubs are not HOA property; the HOA pays a $150,000 'Pool Sharing Expense' to Sea Mist, pool hours and access 'are subject to change', the HOA 'has NO control', and the Master Association may eliminate amenities without replacing them (Rules 32, p. 5; Master Deed Art. VI, p. 10; Budget p. 1)
The commercial-unit (resort) owner holds perpetual exclusive rights to front desk, concierge, key pick-up, rental management, food and beverage, advertising, music and even closing the pool decks for up to 12 hours; owners may not use any common element 'to engage in the business of renting', and this cannot change without a unanimous owner vote plus the commercial owner's consent (Master Deed Arts. IV, XIV, XXIX, pp. 8, 14, 31)
The commercial-unit owner may still hold a veto over every Board action and an appointed board seat until Class II membership ends (no later than October 1, 2030), has a quadruple-weighted vote, and its board representative need not recuse on contracts between the resort and the HOA; whether Class II has been terminated is not stated (By-Laws Art. II Sec. 2, Art. III Sec. 3, pp. 62-65; Master Deed Art. XXXII, p. 35)
The developer may still add up to eleven phases of up to 360 units each until October 1, 2030, demolish the Oasis/pool/gift-shop area (CU-2) to build a tower, relocate parking and temporarily close pools and parking during construction (Master Deed Art. III, pp. 3-5; Exhibit A, p. 45)
Owners must hand the HOA management company and Security their unit access codes and blanket authority to enter, with a $250 per month fine for refusing (TDO HOA Rules, Rule 9, p. 3)
Fines are steep and land on the owner: $100 minimum, up to $1,000 per day, acceleration for repeats, eviction of guests, and owners and their off-site agents are expected to enforce the rules and collect fines from guests (TDO HOA Rules, pp. 1-6)
Any rental manager you hire must carry $1M/$2M general liability plus a $5M umbrella naming the Association (and per the rules, Sea Mist) as additional insured and file a COI before operating, which rules out many small managers (Master Deed Art. XV, p. 15; Rules 34, p. 5)
The trademark owner can regulate how you advertise with the 'Sea Mist' name and photos, and 'For Rent' signage is banned (Master Deed Arts. VII and XIX, pp. 11, 17-18)
No pets at all, including renters' pets ('Any RENTER with animals will be turned away'), and service animals need a form filed a week before arrival; this limits the guest pool (Master Deed Art. XV, p. 15; Rules 4-5, pp. 1-2)
Contractor and cleaner requirements are heavy: Driftwood front-desk sign-in, license and COI naming Sea Mist and TDOHOA, Horry County and City of Myrtle Beach licensing, Mon-Sat 8-6 only, HOA notice and inspections before, during and after work (TDO HOA Rules, Rules 11, 28-31, pp. 3-5)
Part of the project sits seaward of the state setback line in a possible FEMA velocity zone with a -0.68 ft/yr erosion rate; the deed requires flood coverage only 'if available', wind/flood deductibles are not disclosed anywhere in the set, and any loss inside the deductible becomes a Common Expense the Board may assess without owner consent (Master Deed Arts. I and XXIV, pp. 2, 22, 24)
All disputes under the deed go to binding arbitration with jury trial waived and loser-pays fees, and the resort owner's enforcement suits are exempt from arbitration (Master Deed Arts. XXXVIII-XXXIX, pp. 39-42)
The Master Association can levy assessments secured by a lien on your unit, but no Master Declaration, master budget or master dues figure is in the set (Master Deed Art. VI, pp. 9-10)
Occupancy appears capped at 4 persons per unit per Rule 17 ('not to exceed the number specified by law (4)'), which would restrict family bookings in larger units if enforced as written (TDO HOA Rules, Rule 17, p. 3)
The deed's Common Expense definition includes 'electricity charges for lighting, heating and air conditioning all units' but the budget only carries 'Electricity (Common Area)', so confirm who pays in-unit electric before underwriting (Master Deed Art. XXXVI.G, p. 37; Budget p. 2)

Unit type	Per month	Per year
Condo (268 units, 0.3661% interest each)	$609	$7,308
Penthouse (0.014644 / 1.4644% interest; budget count column garbled as '41', deed lists a single Penthouse UNIT)	$2,436	$29,232
Commercial Unit CU-1 (0.3351% interest; budget count column garbled as '4')	$558	$6,696
Commercial Unit CU-2 (0.0837% interest)	$139	$1,668

Sea Mist Resort.

The documents behind this page.

What the documents decide
before your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2026

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents read
for the building you are weighing.

Sea Mist Resort.

The documents behind this page.

What the documents decidebefore your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2026

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents readfor the building you are weighing.

What the documents decide
before your first guest books.

Have the documents read
for the building you are weighing.