Bulletin: SC2021001

Dear Associates:

In a recent opinion, Mercury Funding. LLC v. Chesney, Opinion No. 28040, filed June 30, 2021, the Supreme Court of South Carolina found unconstitutional a bill which in part provided "if real property was sold at a delinquent tax sale in 2019 and the twelve-month redemption period has not expired…, then the redemption period for the real property is extended for twelve additional months." No petition for rehearing was filed within the requisite 25 days. (see https://www.sccourts.org/opinions/advSheets/no222021.pdf).

Apparently concerned that the COVID-19 virus could interfere with a defaulting taxpayer’s attempt to redeem their property, the state legislature enacted the one-year extension as a supplement to the statutory one-year redemption period found in S.C. Code Ann. § 12-51-90 (2014).

While the Court acknowledged that this ruling raised “other issues”, it declined to address them until they had been “vetted initially by a trial court.” Stewart anticipates that these related title issues will be litigated or addressed by the legislature in the future and will keep our agents informed regarding important developments.

Effective immediately, Stewart Title will not insure title to property which has been sold at tax sale and redeemed more than one year after the sale, regardless of whether a tax deed has been issued or individual counties issue guidance in conflict with the Court’s ruling.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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