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How Do You Resolve Title Problems Before Closing?

July 18, 2026/in Real Estate

You’ve packed the boxes, secured the moving truck, and finalized your loan. The closing date is just days away. Then your phone rings. The title search came back with a problem, and the entire transaction just slammed the brakes. Legal hurdles like these catch buyers and sellers completely off guard. Whether you are purchasing a historic home in Charleston County or a commercial parcel in the Upstate, you expect a smooth transfer of ownership. Instead, you are suddenly dealing with decades-old debts, missing paperwork, or unknown relatives from a previous owner.

What Is a Title Defect in South Carolina Real Estate?

A title defect, often called a cloud on title, is any unresolved legal issue that prevents a property owner from holding clear and marketable ownership. When you purchase real estate, you are not just buying dirt and bricks. You are buying the legal rights to use, possess, and eventually transfer that specific piece of land. A clear chain of title proves that ownership has passed legally and properly from one person to the next over the property’s history. Think of it as a property’s financial DNA.

A defect breaks that chain. It signals that a third party might have a valid legal claim to the property you are trying to buy or sell. South Carolina law requires sellers to provide a marketable title that is free from reasonable doubt. It cannot expose the buyer to future litigation. When a title search uncovers encumbrances, the current owner must cure the defect before the sale can legally close. This process requires identifying the root cause of the cloud and taking specific administrative or legal actions to remove it.

How Do Unreleased Mortgages and Liens Cloud a Property Title?

Unreleased mortgages and liens remain the most frequent roadblocks in South Carolina real estate transactions. This occurs when a previous owner pays off a loan or debt, but the lender fails to officially record the satisfaction of the mortgage with the county Register of Deeds. That administrative failure leaves a formal claim against the property on the public record. Financial claims attached to real estate do not automatically disappear simply because a check was cashed. The creditor must actively file paperwork to release their claim.

Under South Carolina Code § 29-3-310, lenders face strict requirements to enter satisfaction of mortgages within a specific timeframe after full payment. Yet, when banks merge, change names, or simply make a clerical error, that satisfaction document never makes it into the public index.

Several types of liens routinely cloud titles:

Prior Mortgages: Decades-old loans that were paid off but never legally discharged.
Mechanic’s Liens: Claims filed by unpaid contractors or material suppliers. Anyone who provides labor or materials to improve real estate can attach a lien if they remain unpaid.
HOA Liens: Past-due homeowners association assessments that attach directly to the property.
Judgment Liens: Court-ordered debts tied to a previous owner’s assets following a lawsuit.

Clearing an unreleased mortgage often involves tracking down the current successor of the original lending institution. For mechanics’ liens or judgments, a real estate attorney must determine if the statute of limitations has expired or if the debt must be negotiated and paid from the seller’s closing proceeds.

Can Boundary Disputes and Easements Cause Title Flaws Before Closing?

Undisclosed easements and boundary disputes frequently create hidden flaws. You cannot sell land that you do not clearly own. Over time, property lines blur. A neighbor might build a fence three feet over the actual property line. A shared driveway agreement from the 1970s might grant ongoing access rights to an adjacent lot.

If a neighboring property owner, utility company, or local government holds an unrecorded right to use a portion of the land, this encumbrance limits the buyer’s property rights. Easements are legal rights granted to third parties to use a specific portion of your property. While most utility easements are clearly recorded and expected, unrecorded easements can blindside a buyer.

Prescriptive rights are particularly challenging. This happens when someone gains legal use of the land simply by using it openly for a specific number of years without permission.

Resolving a boundary dispute usually requires a new, professional survey. If the survey reveals an encroachment, the property owners must negotiate a resolution. This might involve drafting an encroachment agreement, modifying the property lines through a formal lot line adjustment, or demanding the removal of the trespassing structure.

How Do Errors in Public Records Affect Your Property Ownership Rights?

Errors in public property records create significant blind spots in ownership. Human error plays a large role in real estate complications. Every time a property changes hands, new documents are drafted, notarized, and filed with the local Register of Deeds. Clerical mistakes in these South Carolina county offices can break the chain of title. A single typo in a legal description can effectively mean the deed transferred the wrong piece of land.

Common public record errors include:

Misspelled grantor or grantee names that do not match previous deeds.
Omitted signatures or missing notary acknowledgments on official filings.
Incorrect lot numbers or flawed metes-and-bounds descriptions.
Deeds recorded in the wrong county index.

Fixing a minor clerical mistake might only require an attorney to draft and file a corrective deed or a scrivener’s affidavit.

However, if the error fundamentally alters the property lines or ownership rights, resolving it becomes significantly more complicated. The original parties to the flawed transaction may need to be located to sign new documentation. This proves incredibly difficult if those individuals have relocated or passed away decades ago.

Why Are Unknown Heirs a Common Title Problem in South Carolina?

Unknown heirs frequently surface as a massive hurdle, particularly with generational heirs’ property in the state. Property inheritance creates some of the most tangled legal webs imaginable. If a past owner died without a clearly probated will, missing family members may still hold fractional rights to the real estate. This prevents the current occupants from selling the land with a clear title.

When a property owner dies intestate without a will South Carolina law dictates exactly how their assets are divided among surviving family members. If the family never formally opens a probate case to transfer the deed, the property legally belongs to a growing network of heirs. This scenario is incredibly common in the Lowcountry and rural areas of the Upstate. Over several generations, a single parcel of land might legally belong to dozens of distant relatives scattered across the country.

To resolve an heir-related defect, a legal team must trace the family tree back to the original owner of record. They have to identify all living heirs who hold an interest. From there, the attorney must obtain signed quitclaim deeds from each individual releasing their rights, or file the necessary probate actions to establish clear ownership for the seller.

What Are the Risks of Unpaid Property Taxes on a Clear Title?

Unpaid property taxes automatically attach as a primary lien against South Carolina real estate. State and local governments do not forgive unpaid taxes. In South Carolina, property tax liens take priority over almost all other financial claims, including primary mortgages. If a previous owner failed to pay county or municipal property taxes, the government holds a superior claim to the property. When taxes remain delinquent, the county tax collector has the authority to auction the property at a public tax sale to recover the owed revenue.

If a property was previously sold at a tax auction, the title is often highly volatile. South Carolina law provides the original owner a redemption period to pay the taxes and reclaim their land. Even after that period expires, tax deeds are notoriously difficult to insure. The foreclosure process must be executed perfectly by the county for the title to be secure.

Title insurance companies frequently require the new owner to pursue a quiet title action to finalize their legal rights before they will issue a policy for a subsequent sale.

How Does a Professional Title Search Uncover Hidden Encumbrances?

A title search is the investigative foundation of any real estate transaction. You cannot fix a problem you do not know exists. A professional search uncovers hidden encumbrances by tracing the property’s complete ownership history. South Carolina real estate attorneys examine decades of county records, court judgments, and probate filings to identify any outstanding liens, restrictive covenants, or ownership gaps before closing.

The examining attorney reviews the public indexes at the county Register of Deeds. They usually look back at least forty years to establish an unbroken chain of ownership.

The search process involves checking several specific records:

Grantor/Grantee Indexes: To verify every deed transferring ownership.
Mortgage Records: To ensure all past loans have corresponding satisfaction documents.
Judgment Rolls: To check for court orders against any previous owners during their time of ownership.
Plat Maps: To confirm the legal description matches the physical reality of the lot.

When the attorney identifies a gap or an active lien, they issue a title commitment detailing the specific requirements that must be met to issue a clear policy. The seller is then responsible for clearing these specific hurdles before the closing date.

What Is a Quiet Title Action in South Carolina?

Administrative fixes do not work for every problem. When a missing heir refuses to sign a deed, or a defunct mortgage company cannot be located to release an ancient loan, litigation becomes the only path forward. A quiet title action is a formal lawsuit filed in a South Carolina Court of Common Pleas to permanently resolve ownership disputes. This legal process clears severe defects by asking a judge to extinguish invalid claims and legally recognize the true owner of the property.

Under South Carolina Code § 15-67-10, anyone with a potential interest in the property can be forced to come forward and prove their claim in court. An attorney files a formal complaint in the county where the property sits.

Notice of the lawsuit is served to all known parties. It is also published in local newspapers to alert any unknown claimants.

If no one successfully defends a competing claim, the judge issues an order quieting the title. This court order officially breaks the invalid claims and establishes a pristine, marketable title that can be safely insured and transferred to a new buyer.

How Does Title Insurance Protect Your Real Estate Investment?

Title insurance protects real estate buyers and lenders from financial loss caused by undiscovered title defects. Even the most meticulous title search cannot uncover everything. Forged signatures on historical documents, clerical indexing errors that hide existing liens, or heirs who were intentionally left out of a probate filing can remain entirely invisible in the public record.

If an unknown heir, forged document, or unrecorded lien surfaces after a South Carolina closing, an owner’s title insurance policy covers the legal costs required to defend the property rights.

There are two distinct types of title insurance:

Lender’s Policy: Protects the bank’s financial interest in the property up to the value of the loan. Almost all mortgage lenders require this policy, but it offers zero protection to the actual homeowner.
Owner’s Policy: Protects the buyer’s financial investment and equity. It requires a one-time premium paid at closing and remains effective for as long as you or your heirs own the property.

If a long-lost relative of a previous owner suddenly files a lawsuit claiming they own half of your Spartanburg property, an owner’s policy requires the insurance company to hire legal counsel to defend your title and covers any financial losses up to the policy limit.

Why Should You Retain a South Carolina Real Estate Attorney for Title Issues?

South Carolina is an attorney-closing state, meaning a licensed lawyer must oversee the real estate transaction. However, the value of dedicated legal representation goes far beyond simply drafting the final settlement statement. Retaining a real estate attorney ensures that complex title issues are accurately identified and legally resolved before closing.

When a defect threatens your closing, having a knowledgeable legal advocate makes the difference between saving the deal and walking away empty-handed. An attorney handles the title search, negotiates with lienholders, and files necessary court actions to secure a marketable title. They communicate with the title insurance underwriters to determine exactly what evidence is required to cure the defect.

They track down missing lienholders, draft corrective affidavits, and navigate the local Court of Common Pleas if litigation is required. Your property rights depend entirely on the accuracy of these legal maneuvers.

Talk to a South Carolina Real Estate Attorney

Property disputes demand clear, strategic legal guidance. At De Bruin Law Firm, we represent families across South Carolina on real estate, probate, and estate planning matters. Our experienced attorneys handle transactions and disputes throughout the state, ensuring your investments are protected. We coordinate with personal representatives, draft corrective deeds, and travel for hearings when in-court appearances are required.

To schedule a consultation, contact us today. We are ready to talk with families anywhere in South Carolina, including Greenville, Spartanburg, Charleston County, and the broader Lowcountry.

Frequently Asked Questions

How long does it take to clear a title defect in South Carolina?

The timeline depends entirely on the nature of the defect. Simple clerical errors or unpaid local taxes can often be resolved in a few days or weeks by filing the correct paperwork and paying the required fees. Severe defects involving missing heirs or unreleased mortgages from defunct banks may require a quiet title action, which can take several months to litigate in court.

Can I sell my property if it has a cloud on the title?

You generally cannot complete a traditional sale if your property has a significant cloud on the title because a buyer’s lender will not approve the mortgage, and a title insurance company will not issue a clear policy. You must cure the defect by paying off the outstanding lien, securing a release, or obtaining a court order before the transaction can legally close.

Does a quitclaim deed fix a broken chain of title?

A quitclaim deed can fix certain gaps in a chain of title, but it only transfers whatever interest the person signing it actually holds. If an attorney locates the missing heir or former owner who caused the gap, having them sign a quitclaim deed successfully releases their potential claim and clears the specific defect.

Who pays to fix title issues before closing?

The seller is almost always responsible for the financial costs associated with clearing a clouded title to ensure they can deliver a marketable title to the buyer. This includes paying off past-due taxes, satisfying old mechanic’s liens, and covering the legal fees required to draft corrective deeds or file a quiet title lawsuit.

What happens if a title defect is found after closing?

If a hidden defect emerges after the transaction is complete, you should immediately file a claim with your title insurance company under your owner’s policy. The insurance company is responsible for hiring legal counsel to defend your ownership rights and covering the financial costs necessary to resolve the claim against your property.

What’s on a Real Estate Closing Statement?

March 23, 2022/in Real Estate, Resources

Home sales in 2021 increased by 8.5 percent from 2020.

Each time someone buys a home, they work through many steps before closing on it. A few days before closing on a house purchase, the buyer and seller receive a real estate closing statement.

What is this statement, and what information can you find on it?

Here is a guide to help you know what a real estate closing statement is, how to read it, and the information you’ll find on it.

Understanding Your South Carolina Real Estate Closing Statement

A real estate transaction, particularly the final act known as “closing” or “settlement,” is a complex culmination of agreements, negotiations, and financial transfers. At the heart of this intricate process in South Carolina lies the real estate closing statement – a pivotal document that distills all financial activity into a digestible summary for both buyer and seller. Far more than just a receipt, it serves as the official financial reconciliation of the entire deal, providing transparency and clarity regarding every dollar spent and received.

The Essence of the Closing Statement

Fundamentally, a real estate closing statement in South Carolina is a detailed accounting of all monies involved in the property transfer. It enumerates every cost, credit, and adjustment pertaining to the transaction, ensuring that both parties fully understand their financial obligations and benefits. Its primary function is to arrive at the precise “bottom line” – the exact amount the buyer must bring to the closing table and the exact net proceeds the seller will walk away with.

In South Carolina, it’s common for the closing firm, typically a law firm due to the state’s “attorney closing” requirement, to prepare this document. Depending on their internal practices or the complexity of the transaction, they may opt for a single, consolidated statement that outlines the finances for both buyer and seller side-by-side.

Alternatively, they might generate two distinct statements: one specifically itemizing the buyer’s debits and credits, and another exclusively for the seller’s financial breakdown. Regardless of the format, the purpose remains identical: to provide a comprehensive and accurate record of financial flow. Reviewing this statement diligently is crucial, as it provides each party with a clear, line-by-line understanding of how their final financial obligations or receipts were calculated.

The concluding section of the statement is arguably the most anticipated part for both parties. For the buyer, it reveals the precise sum of funds they need to provide to finalize the purchase. For the seller, it specifies the exact amount of money they will receive from the sale after all expenses and payoffs are accounted for. This clear finality is what makes the closing statement such an indispensable document.

Decoding the Information: What You’ll Find on a Closing Statement

A typical real estate closing statement, while dense with figures and line items, is meticulously organized to categorize the various financial components. Let’s break down the main categories you’ll encounter:

The Costs for the Buyer: Debits and Deductions

The buyer’s section of the closing statement—or their dedicated statement—will meticulously detail every expense they incur in acquiring the home. While the most substantial cost is, naturally, the agreed-upon purchase price of the property, numerous other associated fees and charges contribute to the overall expenditure. These are typically listed as “debits,” indicating money owed by the buyer.

The Agreed-Upon Selling Price: This is the foundational debit, representing the negotiated cost of the property itself.
Lender Charges (Loan Origination Fees): If the buyer is financing the purchase, the lender will levy various fees for processing and underwriting the loan. These can include:
- Loan Origination Fee: A percentage of the loan amount, charged by the lender for processing the mortgage application.
- Discount Points: Fees paid upfront to the lender in exchange for a lower interest rate.
- Underwriting Fee: Covers the cost of evaluating the loan application and borrower’s creditworthiness.
- Processing Fee: For the administrative work involved in handling the loan.
- Appraisal Fee: Paid to an independent appraiser to determine the property’s market value.
- Credit Report Fee: For obtaining the buyer’s credit history.
- Flood Certification Fee: To determine if the property is in a flood zone.
- Tax Service Fee: Paid to a third-party service that monitors property tax payments to ensure they are current.
Prepaid Items & Escrow Setup: These are expenses the buyer pays at closing that cover periods after closing or are set aside for future recurring costs.
- Prepaid Interest: Interest on the new loan from the closing date to the end of the month.
- Property Taxes (Initial Escrow Deposit): Lenders often require an initial deposit into an escrow account to cover future property tax payments. This ensures funds are available when taxes are due.
- Homeowner’s Insurance Premium: The first year’s premium is typically paid in full at closing, and an initial escrow deposit for future premiums is also common.
- Mortgage Insurance (PMI/MIP): If applicable, a portion of the premium may be due at closing, along with an initial escrow deposit.
Third-Party Service Fees: These are charges for services essential to the transaction but not directly related to the lender or seller.
- Home Inspection Fees: For a professional assessment of the property’s condition.
- Pest Inspection Fee: To check for termites or other wood-destroying organisms.
- Survey Fee: If a new property survey is required to verify boundary lines.
Title-Related Fees: In South Carolina, these fees are particularly prominent due to the attorney-led closing process.
- Title Insurance Premiums: Often comprising two parts:
  - Lender’s Title Insurance: Protects the lender’s interest in the property.
  - Owner’s Title Insurance: Protects the buyer against defects in the title (highly recommended).
- Title Search/Examination Fee: For researching the property’s history to ensure a clear title.
- Closing/Settlement Fee (Attorney Fees): Paid to the closing attorney for coordinating the closing, preparing documents, and facilitating the transfer of funds. This is a significant cost in SC.
- Recording Fees: Paid to the county to officially record the deed and mortgage.
Prorations (Buyer’s Share): While often a credit for taxes, if the buyer is taking over something prepaid by the seller (less common), they might have a small debit. For example, if the seller already paid HOA dues for the month of closing, the buyer would owe the seller for their portion.

The Credits for the Buyer: Reducing the Out-of-Pocket Expense

Just as the buyer has costs, they also receive “credits” that reduce the total amount of money they need to bring to closing. These are funds or adjustments that work in the buyer’s favor.

Earnest Money Deposit: This is the initial deposit the buyer made to show their serious intent to purchase the home. It’s held in an escrow account and then applied as a credit towards the purchase price at closing.
Down Payment: The significant portion of the purchase price that the buyer pays upfront, reducing the amount of the mortgage loan. This is a direct credit against the purchase price.
Loan Proceeds: The actual amount of money the lender is providing for the mortgage. This is a major credit that offsets the purchase price and other costs.
Prorated Property Taxes: This is a common and often substantial credit for the buyer. Property taxes are typically paid in arrears or for a specific tax year. If the seller has occupied the home for a portion of the current tax period, they are responsible for their share of the taxes up to the closing date. The buyer receives a credit for this amount, effectively reducing their closing costs, as they will be responsible for paying the full tax bill when it comes due.
Seller Concessions/Credits: Sometimes, as part of the negotiation, the seller agrees to pay a portion of the buyer’s closing costs or provide a credit for repairs. These negotiated amounts will appear as credits on the buyer’s statement.
Prorated HOA Dues/Other Dues: Similar to property taxes, if the seller has prepaid homeowner’s association dues beyond the closing date, the buyer will receive a credit for the unused portion.

The Costs for the Seller: Expenses of Selling

The seller’s side of the statement, while typically less extensive in terms of individual line items compared to the buyer’s, still outlines several significant expenses that reduce their net proceeds from the sale. These are also listed as debits.

Mortgage Payoff: This is often the largest single debit for the seller. If they have an existing mortgage on the property, the outstanding balance, including any interest accrued up to the closing date and potentially a prepayment penalty (though less common now), must be paid off at closing. This amount directly reduces the funds the seller receives.
Real Estate Commissions: The commissions paid to the real estate agents (both the seller’s agent and the buyer’s agent) are a primary expense for the seller. This is usually a percentage of the final sales price and can be a substantial sum. The commission is typically split between the two brokerages involved.
Prorated Property Taxes: From the seller’s perspective, they are debited for the property taxes owed for the period they owned the home up to the closing date. This is the flip side of the buyer’s credit for prorated taxes.
Transfer Taxes/Deed Stamps: In South Carolina, there is a deed recording fee (often referred to as deed stamps) that is usually the seller’s responsibility. This is calculated based on the sales price.
Attorney Fees (Seller’s Portion): The seller will incur legal fees for the attorney preparing the deed, handling the payoff, and overseeing their side of the closing.
Title Insurance (Seller’s Responsibility): While the buyer often pays for the lender’s and owner’s title insurance, the seller might be responsible for clearing previous title issues or providing certain title-related documents.
HOA Fees/Other Dues (Prorated): The seller is responsible for their share of any homeowner’s association dues, special assessments, or other recurring charges up to the closing date.
Seller Concessions: Any closing costs or repair credits that the seller agreed to pay on behalf of the buyer will appear as debits on the seller’s statement.
Home Warranty: If the seller agreed to purchase a home warranty for the buyer as part of the deal, the cost of this warranty will be debited from the seller’s proceeds.
Lien Payoffs: If there are any outstanding liens on the property (e.g., judgments, mechanic’s liens), these must be paid off at closing and will appear as debits.

The Credits for the Seller: Funds Received

The seller’s credits typically simplify to one primary source, though others can occasionally appear.

The Home’s Sales Price: This is the most significant credit for the seller, representing the total amount for which the property was sold. This is the starting point from which all seller costs are subtracted.
Prorated Prepaids (Less Common): In rare instances, if the seller had significantly prepaid certain expenses (like a full year of HOA dues) that extend far beyond the closing date, they might receive a small credit back from the buyer for the unused portion.

The Bottom Line: Final Figures and Financial Exchange

The “bottom line” is the summation of all the financial machinations detailed above, providing the ultimate figures for the actual money exchange at closing.

For the buyer, the closing statement’s final calculation involves adding up all the debits (costs) and then subtracting all the credits. The resulting figure is the precise amount of money the buyer must bring to the closing appointment.

This amount typically needs to be in the form of a cashier’s check or a wire transfer, as personal checks are rarely accepted for such large sums to ensure funds are immediately available. The closing attorney’s office will provide detailed instructions on the acceptable payment methods and amounts well in advance.

For the seller, the calculation is essentially the reverse. The closing firm adds up all the credits the seller receives (primarily the sales price) and then subtracts all the seller’s associated costs and payoffs. The final number represents the net proceeds the seller will receive from the sale. This amount is usually disbursed to the seller via a direct wire transfer to their bank account or a check issued by the closing attorney’s office immediately after the closing is completed and all documents are recorded.

Therefore, the real estate closing statement serves as the definitive financial ledger for the transaction. It clearly illustrates to the buyer how much they need to contribute to complete the purchase, and it transparently shows the seller precisely how much they will gain after all their obligations and expenses are settled.

Its accuracy and the detailed breakdown it provide are crucial for a smooth and legally sound transfer of property ownership in South Carolina. Buyers and sellers are strongly advised to review this document carefully, ideally with their real estate agent or attorney, prior to the closing date to clarify any questions and ensure all figures align with their understanding and agreements.

A Real Estate Closing Statement Is A Summary

The best way to explain a real estate closing statement is to know that it summarizes the financial details of a real estate deal.

In some cases, the firm handling the closing creates one statement that includes the information for the buyer and seller.

In other cases, they create two statements: one for the buyer’s information and the other for the seller’s information.

The closing statement summarizes all the money coming and going for the buyer and seller, and each party can read through it to see the transaction details.

The bottom of the statement shows the final amounts for the buyer and seller. It shows how much money the seller receives at closing and the amount of money the buyer must bring to the closing.

The Importance Of Reading It Before Attending The Appointment

Whether you’re buying a house or selling one, hiring a real estate attorney is an essential step you shouldn’t forego. Your attorney handles the closing work for you and ensures its accuracy.

You should receive a copy of the closing statement a few days before the scheduled appointment. When you get it, you should read it through line by line.

All the documents you sign at the closing come from the information on this one document. So if you find errors, you shouldn’t close on the deal until they fix them.

If you find mistakes, fixing them before closing is much simpler than fixing them afterward.

For example, suppose the statement doesn’t include the earnest money you paid when you wrote the offer. If this happens, you’ll pay more for the house than you should, as your earnest money reduces the amount you need.

Use A Real Estate Lawyer For Assistance

Learning about a real estate closing statement can help you prepare for buying or selling a home. Then, when you hire a real estate lawyer for help, you’ll have the legal protection and assistance you need for the sale.

If you need a real estate lawyer in Greenville, SC, contact us at De Bruin Law Firm. We can help you with any type of real estate sale!

Residential Real Estate Closing Process

November 15, 2017/in Real Estate

The closing process must be navigated efficiently and properly to consummate a residential real estate closing in South Carolina. Our Greenville residential real estate attorneys guide our clients through the entire buying and selling process skillfully navigating potential pitfalls that can unravel a successful transaction. A review of some of these pitfalls reveals the importance of legal representation during the entire residential real estate transaction.

Real Estate Contract

After a buyer has identified a property for purchase, an offer will usually be made in the form of a contract. Buyers and sellers both need to understand the importance of this offer-acceptance process. Both parties are bound by the terms of the contract once the offer has been formally accepted. While many parties focus entirely on the price, the document will include a multitude of terms and conditions that should be understood and considered.

Contract Changes

If the seller is represented by an agent after receiving an offer, or either party has an realtor after receiving a counter-offer, the agent might suggest changes to terms other than the price to protect a client’s interests. The realtor also can explain the rest of the terms because this contract will govern the entire real estate transaction. After the parties have signed the contract, they are both stuck with the terms and conditions unless they mutually agree to changes in writing. Since the other party knows that the contract is binding, he or she might require additional money to be paid to secure any modifications.

Buyer and Lender Contract

The buyer usually will have to agree to another contractual relationship with a lender. This contractual relationship based on a promissory note and security agreement might include unforeseen costs beyond the down payment and loan payments. These fees, which could include survey fees, loan fees, interest and tax escrows, insurance premiums, and closing attorney fees, can add up, so unwelcome surprising can be a problem. The lender should explain these fees and other terms. However, the advantage of having your attorney review and explain any issues and fees will be apparent if you know anyone who experienced sharp lending practices during the mortgage meltdown.

Settlement Agent and Title Search

If you are the buyer, your attorney also will handle the “title search,” which is critically important to protect the buyer’s interests. This process will be conducted to identify any title defects. At some point during the process, a survey usually will be conducted to confirm that the boundary description in the public records conforms to the property boundaries. The lender typically will require title insurance that normally will be secured by the buyer’s attorney. Title insurance confirms that the lender has a proper mortgage lien that is not impaired by any title defects.

The closing attorney will supervise the formal execution of the relevant documents at the closing. Both parties benefit from having their agent help guide them through the entire process. Potential roadblocks to a residential purchase or sale can derail the transaction at every stage of the process. For example, a party might use the other party’s failure to comply with a term or condition of the contract to get out of the transaction. Even more concerning, unrepresented parties to a residential real estate transaction might complete the sale only to encounter boundary disputes, onerous loan terms, hidden costs, undiscovered property defects, and other issues that impact a party’s desire to complete the transaction or the value of the property. In South Carolina however, a licensed attorney is required to handle and supervise many of the legal aspects involved in transferring property. If the transaction does run into trouble, our Greenville real estate closing attorneys have the experience to assist you in getting out of the deal or to push it forward.