South Carolina Real Estate Practices

South Carolina is a traditional attorney-state which defines the closing of real estate transactions as the practice of law. Specifically, the SC Supreme Court has identified five functions which constitute the practice of law:

(1) Supervision of the title search and title examination;
(2) Review of closing documents;
(3) Supervision of the closing (Note: paralegals may not conduct closings);
(4) Supervision of the recording of documents;
(5) Supervision of the disbursement of funds.

It should be noted that in the case of Matrix Financial Services Corp. v. Frazer, 394 S.C. 134; 714 S.E.2d 532 (2011) the Supreme Court indicated that if a mortgage loan closing was done without a South Carolina licensed attorney being involved as stated above, the lender may be denied equitable relief in a foreclosure action.

Cancellation and commitment fees are neither required nor prohibited.

The attorney who paid off a mortgage loan may satisfy the mortgage by affidavit if he or she has a written payoff statement from the lender and the cancelled check or proof of wire transfer for the proceeds paid to the lender.

Residential property is customarily conveyed by general warranty deed while commercial property is customarily conveyed by limited warranty deed. General warranty, limited warranty, and quit claim deeds are insurable. Tax deeds or Sheriff’s deeds may only be insured in limited circumstances, and will require local underwriter approval.

Yes, Rule 1.15(f) (9-4-19)

There is no necessity for spouses not in title to join in the execution of deeds or mortgages.
South Carolina does not recognized civil unions.

None.

(a) Owner’s Policy: Buyer

(b) Transfer Tax & Recording Fee: Transfer Taxes (Deed Stamps) are customarily paid by the seller; seller customarily pays for recording of satisfactions for any outstanding mortgages on the property; the other recording fees are customarily paid by the buyer.

(c) Survey Charges: Buyer

(d) Closing/Settlement Fees: The attorney does charge a closing or settlement fee. This typically is a buyer’s charge.

All of the above are merely customary and any or all may be negotiated.

The issuing agent will sign the policy jacket. The signing agent must be licensed in South Carolina even for direct issue by Stewart Title.

Ad valorem taxes on real property are paid annually in arrears; with taxes for the preceding year being due on January 15th of the following year. Tax bills are issued by each county in October.

Please consult with a local underwriter for information relating to real estate taxes on the subject property.

(A) No
(B) No
(C) No

There are no statutory or regulatory requirements which specify a minimum period for title searches.

Title search and title examination fees are customarily stated separately from the title insurance premium.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Mortgage. Deeds of Trust are not permitted.

The standard exceptions are:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters, which would be disclosed by an accurate survey or inspection of the Land.

Any discrepancies, conflicts or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of the improvements.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

None.

All title insurance forms and rates must be submitted to and approved by the SC Department of Insurance. www.doi.sc.gov

Transfer taxes are paid in the form of deed stamps. Deed stamps cost $3.70 per thousand dollars of consideration. Odd consideration amounts are rounded up to the next $500. These rates are uniform state-wide.

Usury coverage is available.

There is no general usury limits on non-consumer transactions. Interest on consumer credit transactions are limited by S.C. Code Ann. Section 37-2-201.

Closing attorneys are required to withhold a percentage of the gain recognized by non-resident sellers. The amount of gain is specified by the seller in an affidavit, which the attorney and buyer may rely upon. The withholding rate is 7% of gain for individuals and 5% of gain for corporations and other entities.

Deeds, mortgages, and powers of attorney require two witnesses and must be notarized. The notary may use either an acknowledgment or probate (the probate being a South Carolina method of authenticating a document whereby the witnesses attest to the validity).