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.
• As of May 1, 2021, the South Carolina Department of Employment and Workforce iniated a statewide online tax lien registry for the filing and indexing of state tax liens. After April 30, 2021, counties will no longer receive state tax liens, satisfgactions or expungements from DEW. A search of the DEW Tax Lien Registry can be conducted at the following url: https://uitax.dew.sc.gov/LienRegistry/registry

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.