SC Underwriting Summary

Search/Exam

• Search and Exam are Practice of Law. Attorney supervised search required.
• Minimum Search Requirements -- No statutory minimum, most attorneys search 40 – 60 years pursuant to SC Bar guidance
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- N/A
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? --
• Survey Requirements --
  • Purchase – yes if new construction
  • Refinance – no
• UPL Hot Button Issues -- Extreme caution required for SC Transactions; WFG approved attorney is Mark Keegan; closing with any other attorney requires written approval from Compliance.

UPL

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

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

In Matrix Financial Services Corp. v. Frazer, 394 S.C. 134; 714 S.E.2d 532 (2011) the Supreme Court held that a mortgage loan not closed by a South Carolina licensed attorney could be denied equitable relief in a foreclosure action.

More details on SC UPL

This is a good explanation of how to do this correctly for National Agents

Vesting

• S.C. does not recognize Tenancy by the Entirety.
• Statute recognizes JTROS. Specific creation language recognized per SC 27-7-40 "as joint tenants with rights of survivorship, and not as tenants in common"
• Also recognizes tenants in common

Witness Requirements

• Deeds, mortgages, and powers of attorney require two witnesses and must be notarized.
• Notary may serve as one of witnesses
• 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).

Spousal Joinder Requirements/Homestead

• Spouses not in title not required to join in the execution of deeds or mortgages.

• South Carolina does not recognized civil unions.

Probate

• S.C. does not rely on Affidavits of Heirship

Who May Serve As Trustee On Deed Of Trust

• S.C. is a mortgage state. Deeds of trust are not permitted.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 10 years (unless appeal pending -- case has "active energy")
• Lis Pendens -- 5 Years
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens -- 10 years
• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- 6 months if suit is not filed
• Financing Statements -- 5 years + 6 Months, can be renewed for additional 5 year terms
• Mortgages -- 20 years from maturity
• HOA Liens -- 10 years
• Condominium assessments --
• DSS for Child Support Liens – 6 years
• Mental Health Liens -- 10 years (may be perpetual)

Some Counties have hospital liens, environmental liens and Miscellaneous liens

Updated per Clint Yarborough 7-12-17

Odd Stuff

• 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.

• 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.