Tag Archive for: real estate closing

How Do You Resolve Title Problems Before Closing?

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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.

Termite Letters (CL-100) in Greenville Closings: Requirements and Common Issues

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The process of buying a home in Greenville, South Carolina, is filled with milestones. You find the perfect property, your offer is accepted, and you begin to picture your future. But between the accepted offer and the day you get the keys, there is a series of important steps, one of which often causes unforeseen stress: the Official South Carolina Wood Infestation Report, commonly known as the CL-100 or “termite letter.” For many, this document is a simple checkbox, but when it reveals hidden problems, it can delay or even jeopardize the entire transaction.

Navigating the complexities of real estate transactions requires careful attention to detail.

What Exactly is a CL-100 Report in South Carolina?

A CL-100, often mistakenly referred to as a simple “termite letter,” is in fact a highly specific and comprehensive document. Its official designation is the Official South Carolina Wood Infestation Report, a formal report meticulously prepared by a licensed and qualified pest control operator. This crucial document operates under the stringent oversight of the Department of Pesticide Regulation (DPR) at Clemson University, the authoritative body responsible for regulating all pest control operations within the state of South Carolina.

The core objective of the CL-100 is to provide a detailed account of any visible evidence pertaining to:

  • Active or previous infestations: This includes the presence of subterranean termites or any other wood-destroying insects that may have compromised the structural integrity of a property.
  • Visible damage: The report meticulously documents any discernible damage directly attributable to the destructive activities of these aforementioned organisms.
  • The presence of wood decay fungi (wood rot): This critical component identifies any instances of wood rot, which can significantly weaken wooden structures and create environments conducive to further pest infestations.
  • Adverse moisture conditions: The report also highlights any existing moisture issues that could potentially lead to the development of wood decay fungi or create favorable conditions for termite activity, emphasizing the importance of addressing these conditions to prevent future problems.

It is absolutely imperative to understand the limitations of a CL-100. It serves as a snapshot of conditions at a specific point in time and should not be misconstrued as a warranty or a guarantee that a home will forever remain free from termites or wood rot. The report is strictly confined to the visible and accessible areas for inspection on the day the assessment is conducted. Consequently, any hidden or inaccessible areas, such as those concealed behind walls, beneath flooring, or within insulation, fall outside the scope of this report and are not covered by its findings.

Is a CL-100 Required for Every Greenville Property Sale?

This is a common point of confusion. South Carolina state law does not mandate that a CL-100 inspection be performed for every real estate sale. However, in practice, it is a standard requirement for the vast majority of residential transactions in Greenville and across the Upstate.

The primary driver behind the requirement is the mortgage lender. Most lenders, including those providing FHA, VA, and conventional loans, will not finance a property without a “clear” CL-100 report. They require this documentation to protect their investment from potential structural damage caused by wood-destroying organisms. For this reason, the standard South Carolina Association of Realtors contract includes a clause making the sale contingent on the buyer obtaining a satisfactory report.

What Does a Pest Inspector Look For During a CL-100 Inspection?

A licensed inspector will conduct a thorough visual examination of the readily accessible areas of a home’s structure. This is a hands-on process focused on finding evidence of infestation, damage, or conducive conditions.

The inspector will be looking for:

  • Evidence of Wood-Destroying Insects: This includes live insects, termite shelter tubes on foundation walls, dead insects, wings, or damaged wood.
  • Damage from Wood-Destroying Insects: The inspector will probe wood in the subfloor, sill plates, and joists to check for softness or hollowed-out sections that indicate damage.
  • Presence of Wood Decay Fungi: This fungus, which causes wood to rot and weaken, is reported when visible. Inspectors look for discoloration, softness, or fruiting bodies on the wood.
  • Plumbing Leaks: Any active plumbing leaks in the crawlspace or basement that are wetting the subfloor or foundation are noted.
  • Excessive Moisture Conditions: Using a moisture meter, the inspector will check moisture levels in the substructure. Elevated readings (typically above 20%) must be reported as they create a conducive environment for both termites and wood decay fungi.
  • Inaccessible Areas: The report will specifically list any areas of the subfloor or foundation that could not be inspected due to low clearance, insulation, ductwork, or debris.

What are the Common Wood-Destroying Organisms Found in the Upstate?

While termites get the most attention, the CL-100 covers a range of organisms that can damage a home’s wooden structure. In the Greenville area, the most common findings include:

  • Subterranean Termites: These are the most destructive wood-destroying insects in South Carolina. They live in underground colonies and build mud tubes to access the wood in a home, which is their food source.
  • Powder Post Beetles and Old House Borers: These wood-boring beetles lay eggs in wood, and their larvae tunnel through it as they grow. They can cause significant damage over time, often leaving small, circular exit holes in their wake.
  • Wood Decay Fungi: This is a frequently cited issue on Greenville CL-100 reports. It is a type of fungus that breaks down the structural components of wood, causing it to weaken and rot. It requires moisture to grow and is often found in damp crawl spaces.

How Do Moisture Readings Affect a CL-100 Report?

Moisture is the primary enemy of a home’s wooden substructure. A licensed pest control operator is required to use a moisture meter to test wood in the crawl space or basement. If the moisture content in the wood is found to be at or above a certain percentage (as determined by industry standards), it must be reported on the CL-100.

High moisture readings are a significant red flag for two reasons:

  • They create a conducive environment for subterranean termites, which need moisture to survive.
  • They are a necessary condition for the growth of wood decay fungi.

Common causes for elevated moisture in Greenville homes include poor drainage around the foundation, plumbing leaks, a lack of a proper vapor barrier in the crawl space, or HVAC condensation drainage issues.

What Happens if the CL-100 Report is Not “Clear”?

A “clear” letter is one where the inspector finds no visible evidence of active infestation, wood decay fungi, or disqualifying moisture conditions. If any of these issues are found, the report is considered “not clear.” This finding sets off a chain of events that must be resolved before the closing can proceed.

Common issues that result in a “not clear” report include:

  • An active infestation of termites or other wood-destroying insects.
  • Visible structural damage from a past or present infestation.
  • The presence of wood decay fungi on the subfloor, joists, or sill plates.
  • Elevated moisture readings in the structural wood.
  • Plumbing leaks that are actively wetting the substructure.
  • Earth-to-wood contact (e.g., siding or wood supports touching the ground).
  • Large portions of the substructure being inaccessible for inspection.

When a report is not clear, the mortgage lender will typically halt the loan process until the issues are rectified and properly documented.

Who is Responsible for Repairs and Treatment?

The responsibility for addressing issues found on a CL-100 report is a point of negotiation, but it is typically defined in the real estate contract. Under the standard South Carolina contract, the seller is generally responsible for:

  • Treating any active infestation.
  • Repairing any structural damage noted on the report.

However, the seller’s financial responsibility is often capped at a predetermined amount or percentage of the sales price, which is negotiated when the contract is signed. If the cost of treatment and repairs exceeds this amount, the buyer and seller must renegotiate. The buyer may agree to pay for the excess costs, the seller may agree to cover them to save the deal, or, if no agreement can be reached, the contract may be terminated.

The Re-Inspection Process and Receiving a Clear Letter

Once a seller completes the necessary treatments and repairs, the work is not yet done. The original pest control company must be called back to perform a re-inspection.

During this second visit, the inspector will verify that the active infestation has been treated and that the damaged wood has been repaired according to industry standards. If the work is satisfactory, the company will then issue an updated, “clear” CL-100 or an official letter stating that the conditions on the original report have been corrected. This new documentation is then provided to the closing attorney and the buyer’s lender, allowing the transaction to move forward.

Common Pitfalls for Greenville Home Buyers and Sellers

The CL-100 process, crucial for real estate transactions, can often be a complex and challenging endeavor if not approached with meticulous attention and care. Both the buyer and the seller involved in a property transaction should be thoroughly informed and acutely aware of the various potential pitfalls and common issues that can arise during this critical phase. Understanding these challenges proactively can help ensure a smoother closing process and prevent unwelcome surprises.

For Buyers

Buyers, in particular, should exercise diligence and thoroughness when reviewing CL-100 reports. Their oversight in key areas can lead to significant problems down the line:

  • Not Reading the Full Report: A common and costly mistake many buyers make is to merely skim the first page of the CL-100 report. They often glance only at the “Yes” or “No” checkboxes, quickly assessing for the presence of termites or other wood-destroying organisms. However, the crucial details and warnings are frequently hidden within the comments section and the accompanying graph. These sections can provide vital information regarding previous, but now inactive, termite issues, or highlight inaccessible areas within the property that could not be fully inspected. Ignoring these details means missing a comprehensive understanding of the property’s history and potential future risks.
  • Assuming No History: A CL-100 letter, while offering a snapshot of the property’s condition, only reflects the findings on the specific day of the inspection. A clear report does not inherently mean that the house has never experienced termite infestations or damage in the past. It simply indicates the absence of active infestations or visible damage at the time of the inspection. Buyers should remain cautious and consider inquiring about the property’s historical pest control records, if available, to gain a more complete picture.
  • Failing to Act: It’s imperative not to dismiss minor-sounding issues noted in the report as unimportant. What might appear as a slight mention of wood decay fungi or high moisture readings can, in fact, be early indicators of a much larger, underlying problem. These issues often precede or accompany significant structural damage or active termite infestations. Promptly addressing these concerns, even if they seem insignificant initially, is crucial to prevent escalation and avoid more extensive and costly repairs in the future.

For Sellers

Sellers also bear significant responsibilities in the CL-100 process, and neglecting these can severely impact the sale of their property:

  • Waiting Too Long: A critical error sellers often make is procrastinating on ordering the CL-100 inspection. Scheduling it just a few days before the closing date leaves virtually no room to maneuver if problems are identified. Discovering active termites or significant wood damage at such a late stage can lead to considerable delays in the sale, potential renegotiations, or even the collapse of the deal, causing financial and logistical headaches.
  • Hiring Unqualified Contractors: Should repairs be necessary after the initial CL-100 inspection, it is paramount that these repairs are conducted by qualified and experienced professionals. A superficial patch job by an unqualified handyman might not meet the stringent requirements for re-inspection and could fail to adequately address the underlying structural issues or pest problems. Proper, lasting repairs are essential to ensure the property passes subsequent inspections and to provide the buyer with confidence in their purchase.
  • Hiding Past Problems: Transparency is key in real estate transactions. Failing to disclose known termite history, previous damage, or past treatment efforts can have severe legal ramifications for sellers after the sale has concluded. Such omissions can lead to lawsuits for misrepresentation or fraud, resulting in significant financial penalties and damage to the seller’s reputation. It is always advisable to be upfront about any known issues to avoid future complications.

How Long is a CL-100 Report Valid in South Carolina?

The Official South Carolina Wood Infestation Report is valid for 30 days from the date of the inspection. This relatively short window is because conditions in a home, particularly moisture levels, can change quickly.

This 30-day validity period makes timing a key factor. The inspection should be scheduled early enough to allow for potential repairs but close enough to the closing date so that it does not expire. If a closing is delayed for any reason and the 30-day mark passes, the lender will require a new CL-100 report, which is an additional cost for the buyer.

Navigating CL-100 Issues in Your Real Estate Closing

While a “not clear” CL-100 can be alarming, it is a common occurrence in real estate. With a proactive approach and professional guidance, these issues can almost always be resolved. A knowledgeable real estate closing attorney plays a vital part in this process by reviewing the report, explaining its implications, and facilitating communication between the buyer, seller, and real estate agents to ensure a solution is reached in accordance with the contract.

At The DeBruin Law Firm, we are committed to helping individuals and families navigate the complexities of real estate law in Greenville and the surrounding communities. We work diligently to ensure that every aspect of your closing is handled with precision, protecting your investment and your peace of mind.

If you are preparing to buy or sell a home and have questions about the closing process or any other real estate law matter, please contact our office. We are here to provide the clear guidance you need for a successful transaction. Call us today at (864) 982-5930 or send a message online to schedule a consultation.

How Can a Real Estate Lawyer Help You?

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About 5.8 million houses sold in May 2021. That’s 44.6% up from May of last year! Whether you plan on buying or selling this year, there are many legal variables to consider first.

You don’t have to navigate these legal complexities alone. Instead, consider hiring an experienced real estate lawyer. You can rely on their experience and expertise throughout every step of the process.

What is a real estate attorney, exactly, and what do they do? When should you hire an attorney to help? Keep reading to find out!

After reading this guide, you can hire the best real estate lawyer to help you through your next transaction. Identifying the benefits of having a lawyer at your side will help you make a more informed choice.

Read on to learn everything you need to know before buying or selling a property today!

What is a Real Estate Attorney?

First, let’s answer the question that likely brought you here: what is a real estate attorney?

A real estate lawyer can help guide you through the legal process of buying or selling property. They can negotiate the transaction and handle any disputes that occur.

Some states even require you to have a real estate attorney present during the closing process. Even if you live in a state that doesn’t require one, you might want to consider it. After all, a lawyer will have your best interests in mind every step of the way.

They can prepare and review any legal documents or paperwork in advance. They can also advise you if there are any problems or omissions in the documents. Otherwise, you might not realize there’s a problem until after the fact.

Real estate law is a matter for local and state jurisdictions. Make sure to hire an attorney with experience in the area.

You can rely on their experience and expertise to make more informed decisions before buying or selling property.

Real estate law covers selling, buying, or legal issues related to real property.

Make sure to find a lawyer who specializes in real estate transactions. They’ll understand the proper procedures you’ll need to follow. For example, you might want to ask them about:

  • Zoning
  • Titles
  • Estate planning
  • Deeds
  • Property taxes

These laws can vary by local or state government. Make sure to choose a lawyer licensed to practice in the state where the transaction is taking place.

Why Hire a Lawyer?

Remember, you’re required to hire a lawyer in some states. Your lawyer can help prepare or review documents before a transaction takes place. These documents can include:

  • Purchase agreements
  • Title documents
  • Transfer documents
  • Mortgage documents

They’ll also attend the closing (when money is paid and the title is transferred). They’ll make sure the transfer is legal and binding.

You might want to hire a lawyer to ensure the necessary documents are in order. They can also write insurance policies as needed. Otherwise, you might want to hire them to handle the transfer of funds for the purchase.

If you’re financing the purchase, talk to your real estate attorney about the federal HUD-1 Form. Discuss any related transfer of funds documentation for the lender, too.

Appeal to State or Lender Requirements

If you’re buying a home in certain states, you’re required to retain a real estate attorney. These states include:

  • Connecticut
  • Delaware
  • Georgia
  • Massachusetts
  • New York
  • North Carolina
  • South Carolina
  • West Virginia

State law will require you to retain a lawyer for specific parts of the transaction.

Some states require you to have an attorney to provide a title opinion. These states include:

  • Alabama
  • Louisiana
  • Mississippi
  • North Dakota
  • South Dakota

An opinion shows a lawyer reviewed the title abstract or examination. The document indicates they didn’t see any obstacles to the transaction.

Remember, you still might want to hire an attorney even if the state doesn’t require one. They can help if you’re dealing with a tricker type of purchase. They can also assist if there’s an issue regarding property lines.

Some mortgage lenders also require you to hire an attorney as part of the transaction.

Avoid Contractual Issues

Only 5% of all buyers choose to purchase a home directly from the owner. Before going this route, you might want to hire an attorney. Otherwise, you might encounter contractual issues and disagreements.

For example, you might encounter disputes related to:

  • The chain of title
  • Lot line problems
  • Other contract issues

Consider hiring a real estate lawyer if the purchase involves any out-of-the-ordinary elements. Otherwise, these elements might complicate the purchase contract.

An experienced lawyer will take the complexity of your situation into account. If any contractual issues arise, they’ll know how to respond.

Your attorney can help resolve the problem. For example, they can provide legal representation if a dispute ends up in a courtroom.

Your lawyer will gather information from both parties and try to encourage a resolution. They might hire a surveyor or title company to gather additional evidence, too.

Peace of Mind

You never know when something could go wrong. With that in mind, consider hiring an attorney before there’s an issue. Having a lawyer at your side will ensure your bases are covered.

They can provide peace of mind before a transaction goes awry. They’ll also consider your best interests every step of the way.

How to Find a Real Estate Attorney

To find the best real estate lawyer in town, turn to friends, family members, and neighbors. Start developing a list of referrals. Visit your local bar association website online, too.

Look for a real estate attorney with years of local experience in the industry. Their prior experience will give you peace of mind. They’ll have the expertise and know-how necessary to offer the help you need.

Buy or Sell With Ease: Hire a Real Estate Lawyer Today

Buying or selling property doesn’t have to feel stressful. Instead, consider hiring a real estate lawyer. They’ll protect your best interests through every phase of the process.

With their help, you can complete the transaction without unnecessary hassle.

Need help right away? We’re here for you.

Schedule a consultation today to get started.

Buying a Property? Do These 9 Items Before the Real Estate Closing

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So, you’ve finally found your dream home, and you’ve entered into an agreement with the seller. Congratulations!

With the end in sight, now may seem like the perfect time to rest and unwind after the hard work of your real estate search—but not so fast. There’s a reason the average real estate closing takes almost 50 days on average: there’s a lot to do!

Before you let yourself relax, there are a few essential items to take care of. Let’s take a look at the things you’ll need to do before your upcoming closing.

1. Apply for a Loan

Whether you’ve secured pre-approval or not, now is the time to apply for a mortgage loan. This is one of the most important things you’ll want to do before the closing, as nearly half of all closing delays happen because of financing issues!

This will mean doing some research to find the best mortgage lender for your needs. To do this, you’ll need to compare rates as well as any additional fees and requirements. Don’t forget to also lock in your interest rate once you’ve been approved.

2. Hire a Real Estate Attorney

The closing process can be complicated, and having someone look out for your best interests is a great help for most buyers. Even with a helpful closing organizer in hand, buyers often find that the expense of hiring a real estate lawyer pays for itself!

Real estate attorneys can review each of the many contracts and documents involved in the purchase of your home. They can help negotiate on your behalf, watch for elements that could complicate the purchase, and offer peace of mind during any tricky situations you find yourself in moving forward.

3. Get Ready for the Closing Fees

The loan may be the biggest financing issue on your mind, but it’s not the only one. Every real estate closing comes with a host of closing fees, which are payments made to third parties for various services related to the property transfer. These fees can include anything from an appraisal fee to Homeowner’s Association fees.

On average, the total will range from 2% and 7% of the home’s purchase price. This, of course, is shared between the buyer and the seller, with the buyer often paying slightly more, usually 3-4%.

4. Examine the Title

Before you move any further into the home closing process, you’ll need to clear the property title. The last thing you want to learn at this point is that the seller doesn’t own or have the right to sell the house! This can happen when relatives or an ex-spouse claim that they, too, are a legal owner of the home.

Working with a title examiner can ensure that no one aside from the seller can claim ownership of the property. As the buyer, you’ll have the opportunity to choose the real estate attorney or title company you partner with. If needed, seek out recommendations from your lender or real estate agent to be sure you’re working with a reputable expert.

5. Do the Home Inspection

At some point during the escrow period, you’ll want to have a professional come out to do a home inspection. Most major lenders require this, but even if yours doesn’t, it’s still a good idea.

This preventative measure can help ensure that there are no issues with the home before the official property transfer. An inspector will look for major problems with the building’s structure, wiring, plumbing, and more—all of which could be costly to fix.

If the home inspection uncovers any previously unknown problems, you can choose whether or not you wish to continue moving forward with the closing. If you decide to move forward, you can negotiate with the seller to have them pay to fix the issues.

6. Have the Home Appraised

Again, this is a service any major lender will require. An appraisal will determine how much money the property is worth, which keeps your lender from loaning you the wrong amount of money. It can also help keep you from overpaying for the loan.

This process is often separate from the home inspection, and you or your real estate agent will need to reach out to an appraiser to set it up.

7. Get Homeowners insurance

Before the home closing is complete, you’ll need to show proof that you’ve taken out a homeowners insurance policy on your new home.

Beyond this requirement, it’s simply a good idea to have a policy in advance. This type of insurance will help cover exterior and interior damage to your home, as well as the loss or theft of your belongings and any injuries that happen on the property.

You have multiple options available to you when it comes to finding the right policy and coverage, so allow yourself plenty of time to research your choices and weigh the pros and cons.

8. Do a Final Walk-Through

This step isn’t to be confused with the home inspection process above. A final walk-through happens in the days leading up to the closing, and both the seller and buyer should be present for it.

During this walk-through, you’ll have one last chance to inspect the property. Take the opportunity to check everything from the big-ticket appliances to the doors and windows. If the status of any part of the property doesn’t mind its agreed-upon condition, you’ll want to bring it up now.

9. Get Ready to Sign

Bring your favorite pen and flex your fingers: you’ll be signing a lot of documents and contracts!

Before you head to the closing table, prepare in advance by grabbing your proof of homeowners’ insurance, your home inspection reports, the paperwork for your home loan, a photo ID, and a copy of your contract with the seller. Your attorney will help guide you through the signing process from there.

Let Us Help Prepare for Your Real Estate Closing

There are few worse things than allowing your dream home to slip through your fingers on a technicality. Following the steps above can help you make the most of your real estate closing process, securing your new property for the future.

If you’re looking for further expert help during your closing, partner with our team! Our experts can help you review your contract, secure title insurance, and much more. Learn more about our services or reach out today for a no-obligation consultation.

13 Simple Steps to Closing on a House in South Carolina: The Ultimate 2026 Guide

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Purchasing a home is one of the most significant financial and emotional milestones of your life. However, navigating the real estate market is increasingly complex. According to recent data from the National Association of Realtors (NAR), first-time buyers make up just 21% of the market—an all-time low driven by tight inventory, high home prices, and shifting interest rates. Furthermore, the median down payment for first-time buyers has risen to 10%.

If you are entering this landscape for the first time, the closing process can feel both daunting and exciting. While your real estate agent will guide you, understanding the sequence of events is crucial to a successful purchase.

Because South Carolina has unique legal mandates for real estate transactions, you cannot rely on generic national advice. In the Palmetto State, the legal framework is designed to protect all parties, but it requires strict adherence to local statutes. Here is the updated, comprehensive, step-by-step chronological guide to closing on a home in South Carolina in 2026.

1. Sign a Buyer Representation Agreement

Before you start looking at homes, you must partner with a licensed real estate agent. Following the landmark NAR settlement, standard practices in 2026 dictate that you must sign a written Buyer Representation Agreement before touring any properties—whether in-person or virtually.

This is not just a formality; it is a federal and state regulatory requirement. Under South Carolina law, specifically S.C. Code Ann. § 40-57-350(E)(1), a buyer’s agent must perform the duties of a written brokerage agreement. No agency relationship may be assumed or created orally. The agreement clearly outlines:

  • The exact services your broker will provide.
  • The broker’s compensation rate (which must be a clearly defined percentage or flat fee, not an open-ended number).
  • How that compensation will be paid (e.g., whether you will cover it directly, ask the seller to pay it via concessions, or use a combination of both).

Pro-Tip for 2026: Do not sign this agreement blindly. Ensure you negotiate terms that align with your budget and clarify what happens if you find a home where the seller is not offering a buyer-agent commission.

2. Get Pre-Approval for Your Mortgage

Before falling in love with a property, you need to know exactly what you can afford. A pre-approval letter from a reputable lender shows sellers you are a serious buyer with verified purchasing power.

To obtain a pre-approval, your lender will conduct a rigorous evaluation of your financial history. You will need to provide:

  • Tax returns from the past two years.
  • Recent W-2 forms and pay stubs.
  • Bank statements showing your assets and down payment funds.
  • A hard pull of your credit score.

In a competitive market like South Carolina, having your pre-approval ready is often the difference between an accepted offer and a missed opportunity. It sets your maximum budget and ensures you do not waste time viewing properties outside your financial reach.

3. Partner with a South Carolina Real Estate Attorney

Unlike many states that use independent, non-attorney title or escrow companies, South Carolina is strictly an “attorney closing state.” Under state supreme court rulings, a licensed South Carolina real estate attorney must oversee the transaction, perform the title search, and conduct the closing.

It is best to choose your closing attorney early in the process—ideally as soon as you have your pre-approval. Your attorney will:

  • Review the purchase offer and contract before you sign it to ensure your legal rights are protected.
  • Receive and secure your earnest money deposit.
  • Coordinate with your lender to assemble closing documents.
  • Act as the neutral clearinghouse for all funds.

Choosing a local attorney who knows the county-level registry rules where you are buying is highly advantageous.

4. Lock in Your Interest Rate

With the fluctuating interest rate environment of 2026, securing a predictable monthly payment is vital. Once you have a specific property under contract, work with your lender to lock in your interest rate.

Rate locks typically last 30 to 60 days. This lock protects you from sudden upward market spikes while your loan goes through underwriting.

  • What if rates drop? Ask your lender about a “float-down option,” which allows you to take advantage of lower rates if they drop significantly during your escrow period.
  • What if the lock expires? If your closing is delayed past the lock expiration date, you may have to pay fee extensions to maintain your locked rate, making a timely closing crucial.

5. Open an Escrow Account

Once your offer is accepted, you must submit “earnest money” (typically 1% to 2% of the purchase price) to prove your commitment to the deal. These funds, along with all crucial transaction documents, will be held in a neutral escrow account—typically managed by your closing attorney or the buyer’s brokerage—until the day of closing.

The management of real estate trust funds in South Carolina is strictly regulated under S.C. Code Ann. § 40-57-135, which mandates that earnest money must be deposited in a designated, interest-free trust account and held securely until the transaction is closed or terminated by mutual written agreement of the parties.

The escrow holder acts as an impartial third party. They ensure that neither the buyer nor the seller can access or manipulate the funds without mutual written consent or a completed transaction. If the deal goes through, this money is credited directly toward your down payment and closing costs.

6. Perform a Title Search and Secure Title Insurance

Your South Carolina closing attorney will conduct a thorough title search, looking back through the property’s history (typically 30 to 40 years) to ensure there are no unresolved issues. They will look for:

  • Unpaid property taxes or utility bills.
  • Unresolved contractor liens (mechanic’s liens).
  • Easements or boundary disputes.
  • Heir property issues or undisclosed co-owners.

To protect your investment against any hidden issues that a physical search might miss, you will purchase Title Insurance. There are two types:

  1. Lender’s Policy: Required by your mortgage company to protect their financial interest in the property.
  2. Owner’s Policy: Highly recommended for you, the buyer. This one-time premium protects your equity and legal ownership of the home for as long as you or your heirs own it.

7. Order a Professional Home Inspection

A general home inspection is your opportunity to evaluate the home’s physical condition. A certified inspector will spend several hours examining:

  • Structural integrity (foundation, framing, crawlspace).
  • Major systems (HVAC, electrical panel, plumbing lines).
  • Roofing materials and flashing.
  • Appliance functionality.

In South Carolina, standard contracts feature a Due Diligence period. If the inspector finds major structural or safety issues, you can use this window to:

  • Negotiate a lower sale price.
  • Ask the seller to repair the issues before closing.
  • Request seller concessions to cover the cost of repairs after closing.
  • Back out of the contract entirely and receive your earnest money back safely.

8. Obtain a CL-100 Wood Infestation Report

In South Carolina, a standard pest inspection is much more detailed than in other states due to the warm, humid climate. You will need to obtain an official South Carolina Wood Infestation Report, universally known as a CL-100 letter.

This report is a regulatory requirement under the South Carolina Pesticide Control Act, codified at S.C. Code Ann. § 46-13-10, and is explicitly governed by Clemson University’s Department of Pesticide Regulation under S.C. Code of Regulations § 27-1085.

The CL-100 report must be completed within 30 days of closing by a licensed, certified commercial applicator. The inspector will physically inspect the home (especially the crawlspace) to check for:

  • Active termites or other wood-destroying insects (like powderpost beetles).
  • Evidence of past termite infestations or prior termite treatments.
  • Wood rot and decay fungi (often called “wet rot”).
  • High moisture readings in the crawlspace subfloor are exceeding 20%.

If the CL-100 is not “clear,” the seller must typically pay to treat the infestation, lower the moisture levels, or repair structural wood rot before the lender will agree to release your funds.

9. Get a Home Appraisal

Your lender will hire an independent, licensed appraiser to determine the fair market value of the property. Lenders will not loan you more money than the home is actually worth.

Once the appraiser evaluates the property and reviews recent comparable home sales (comps) in the neighborhood, they will issue a report.

  • If the home appraises at or above the purchase price: Your loan moves forward smoothly.
  • If the home appraises lower than the purchase price: You face an “appraisal gap.” You must either negotiate a lower price with the seller, pay the difference out of pocket (cash), submit an appraisal rebuttal with your lender, or walk away from the deal using your appraisal contingency.

10. Negotiate Closing Costs and Commission Concessions

Closing costs generally run between 2% and 5% of your total loan amount. These fees cover attorney services, recording fees, transfer taxes, origination fees, and prepaid items like homeowners’ insurance and property tax escrows.

Under 2026 real estate rules, you can negotiate for the seller to pay seller concessions. These concessions can be used to:

  • Directly offset your lender and closing fees.
  • Pay down your interest rate (rate buy-down).
  • Cover the buyer-agent commission fee that you agreed to in Step 1.

Negotiating concessions is a powerful tool to preserve your liquid cash during the transaction, especially when down payments are at historic highs.

11. Satisfy and Remove Contract Contingencies

Most real estate contracts are bound by contingencies—such as financing, home sale, or appraisal clauses. These clauses protect you by allowing you to cancel the deal if certain conditions are not met.

As you complete your due diligence, inspections, and appraisal, your agent will help you formally remove these contingencies in writing.

  • Warning: In South Carolina, missing these critical contract deadlines can result in the automatic waiver of your rights or the forfeiture of your earnest money deposit to the seller. Keep a detailed calendar of all contingency expiration dates.

12. Arrange and Secure Payments Safely

A few days before closing, your lender will send you a Closing Disclosure (CD) detailing the exact amount of cash you need to bring to the table. You will need to arrange for a wire transfer or a certified cashier’s check.

Crucial 2026 Security Warning: Wire fraud in real estate transactions is at an all-time high. Cybercriminals frequently spoof email addresses of real estate agents and closing attorneys to send fake wire instructions.

  • Always call your South Carolina closing attorney’s office directly using a trusted, verified phone number (do not use phone numbers listed in a suspect email) to verbally confirm the routing and account numbers before sending any money.

13. Perform the Final Walkthrough and Close!

On the morning of closing, you and your agent will perform a final walkthrough of the home. This ensures that:

  • The property is in clean, move-in-ready condition.
  • No new damage has occurred since the home inspection.
  • All agreed-upon repairs (from Steps 7 and 8) have been completed by licensed professionals.
  • The seller has completely moved out and removed all trash.

With a successful walkthrough complete, you will head to your closing attorney’s office. You will sign the mortgage note, deed of trust, and closing disclosures. Once the attorney records your new deed with the county Register of Deeds and disburses the funds to the seller, you will officially be handed the keys to your new South Carolina home!

Frequently Asked Questions (FAQs)

Who pays the closing costs in South Carolina?

Typically, both the buyer and the seller pay closing costs, but their fees differ. The buyer pays for lender-related fees, title insurance, home inspections, and their portion of the attorney’s fee. The seller usually pays for deed preparation, transfer taxes (known as deed recording fees in SC), outstanding property taxes, and negotiated commissions or concessions.

How long does the closing process take in South Carolina?

On average, closing on a home in South Carolina takes between 30 and 45 days from the date the contract is signed. This timeline is largely dictated by the lender’s underwriting speed, the time required to complete the title search, and the scheduling of inspections and appraisals.

Can I close on a South Carolina home remotely?

Yes. South Carolina allows for “mail-away” closings, but because it is an attorney-mandated state, there are strict rules. You will need to sign the documents in the presence of a mobile notary and, in some cases, two witnesses. The physical documents must then be overnighted back to the closing attorney’s office for recording.

What is the “deed recording fee” in South Carolina?

South Carolina charges a state transfer tax (deed recording fee) on the transfer of real estate. Under S.C. Code Ann. § 12-24-10, the rate is $1.85 per $500 of the property’s valuation (or $3.70 per $1,000). This fee consists of a state portion of $1.30 and a county portion of $0.55, and is typically paid by the seller at closing, though it can be negotiated.

Glossary of South Carolina Real Estate Terms

  • CL-100 (Wood Infestation Report): A state-specific document verifying that a property has been inspected for termites, wood-destroying beetles, moisture levels, and active wood decay, regulated by Clemson University’s Department of Pesticide Regulation under S.C. Code of Regulations § 27-1085.
  • Due Diligence Period: A negotiated timeframe during which the buyer can conduct inspections, secure financing, and cancel the contract for any reason with minimal financial penalty.
  • Earnest Money Deposit (EMD): A good-faith deposit made by the buyer to demonstrate commitment to the purchase, held in a secure trust account pursuant to S.C. Code Ann. § 40-57-135 until closing.
  • Escrow: A legal arrangement where a neutral third party holds funds and documents until all conditions of the real estate contract are met.
  • Register of Deeds (ROD): The county government office responsible for recording deeds, mortgages, and other real estate documents to make them matters of public record.

Title Insurance: An insurance policy protecting property owners and lenders against financial loss from title defects, liens, or encumbrances.

What Does a Real Estate Lawyer Do?

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Almost 5.6 million existing homes were bought/sold in the US in 2017 alone. Add to that number roughly 615,000 new properties bought/sold, and it becomes clear that for many, being a homeowner is still very much a part of people’s idea of the quintessential American dream.

Home buying, however, can be an arduous process.

Inspections. Contracts. Deadlines.

All of that and more can make it so both seasoned and first-time real estate buyers/sellers feel like they’re in over their head.

This is where areal estate lawyer services can be extremely helpful. When working with a real estate attorney, the most complicated aspects of properties changing hands will get handled by legal professionals.

To better answer the question of what does a real estate lawyer do, below are some benefits they can bring to you.

1) Professional Legal Document Drafting

There are a lot of documents that surround real estate whether you’re buying, selling, or even renting. Ensuring that your documents are legally binding can mean the difference between a smooth transaction and a lifetime worth of regret.

Real estate lawyer services include high-quality drafted documents aimed at protecting you. A good attorney can prepare deeds, lease and rental agreements, financing agreements, purchase contracts, and more.

Many feel that their real estate agent suffices during the buying/selling process of a home when it comes to contractual matters.

The issue here is that your real estate agent is not a trained legal professional. Everything they offer you to sign is boilerplate and prepared by a third party lawyer responsible for drafting generic contacts that pay no mind to your specific situation.

Only your personal real estate lawyer can draft unique papers on your behalf and revise documents in a fashion that is legally binding.

2) Review of Real Estate Transactions

If you’re handling most of the dealings of a real estate transaction on your own, you’ll at least want an attorney to review all of the details of your transaction prior to putting your signature on a paper.

Why?

Real estate attorneys get trained to identify issues you may not see on your own. They can spot title issues, problems with inspections, environmental problems, and reports that seem off.

Doing your diligence by having a lawyer review your property deal is an integral part of the estate exchange process. It ensures you’re getting exactly what you expect from a deal.

3) Negotiating

One of the most daunting aspects of real estate sales is negotiating. For many, this isn’t something that comes easily.

Whether it concerns the price, conditions, or terms surrounding a purchase, negotiating will make sure you’re getting all of the value you can from a deal. Given that real estate lawyers are specially trained when it comes to property transactions, they can look for opportunities to increase the value of your offer.

They can also identify where you’re getting taken advantage of, and fight to make those instances more favorable.

4) Representation during Closing

Many people employ real estate attorneys to represent them during closing.

The closing of a real estate transaction is where all of the final, most important documents are presented to both buying and selling parties and are signed.

It’s important to have a qualified legal professional with you during this process to make sure all of the informal components of your deal are represented in final documents. Remember, agents have a vested interest in your closing a deal, so trusting them to be diligent during closing on your behalf may create a conflict of interest.

With a qualified attorney can you be sure that your interests will be adequately upheld during the final stages of the buying/selling process.

Note that in some states, including South Carolina, you may need to have an attorney present during closing proceedings.

5) Litigation for Deals Gone Wrong

If certain aspects of your real estate deal are not upheld by the opposing party, you may find yourself in a position where you need to take legal action. While this is never a situation someone wants to face, when it becomes necessary, you’ll be glad you have a relationship with an attorney.

A good attorney may even be able to negotiate with opposition to try and keep cases that seem to be headed towards court out of the courtroom.

6) Assistance with Foreclosure

During hard times, many homeowners end up in foreclosure. This can represent a high-stress situation for both those residing in the home getting foreclosed on and lenders.

With a real estate lawyer, no matter which side of foreclosure you’re on, the process will go more smoothly.

If you’re the lender, lawyers can guide you through how to initiate foreclosure. They can also file any relevant lawsuits on your behalf.

As a borrower, an attorney can ensure that you are aware of your rights under foreclosure law. They can even help you avoid foreclosure by negotiating a settlement with lenders.

Get More Information about What Does a Real Estate Lawyer Do

A real estate lawyer can be valuable to both buyers and sellers during the process of properties switching hands. They can assess all paperwork surrounding a property’s sale, draft custom contracts, and represent you at closing.

Bottom line, if you’re acquiring or selling a property, make sure you’re represented. Hire a qualified real estate attorney today.

Are you looking for the best legal team in the Greenville, South Carolina area to represent your real estate interests?

If so, look no further than DeBruin Law Firm. We specialize in providing our clients with a wide variety of services related to real estate and beyond.

Let us take our years of expertise and help you get the best deal on your home possible.

Contact our team of legal professionals to learn more about what does a real estate lawyer do, or to get your consultation today!

Residential Real Estate Closing Process

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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.

How Much Does A Real Estate Closing Attorney Cost?

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There are a number of expenses involved with buying or selling a piece of property. There’s the new mortgage, taxes, and insurance; the cost of making any necessary repairs to the property to prepare it for sale; realtor fees; and a variety of other expenses. In addition, there are fees involved with the final step of the transaction, which is called the closing. At the closing, the seller conveys ownership of the property to the buyer. Because property represents one of the largest financial investments most individuals will ever make, ensuring the legal integrity of this transfer is paramount. This is where the expertise of a dedicated real estate closing attorney becomes invaluable.

Real Estate Closing Settlement Fees

A South Carolina real estate closing attorney typically charges a flat fee for conducting the closing. In most cases, the fee is several hundred dollars, and in some situations, it may be over $1,000. The total cost often depends on the complexity of the transaction, the purchase price of the property, and whether the transaction involves a traditional lender, a cash payment, or unique financing structures like seller-carried notes.

Many real estate clients only see the real estate closing attorney at the closing table itself and may wonder why these fees are in place. To the untrained eye, it might look like the attorney is simply witnessing a few signatures. However, there is a massive amount of hidden, back-end work that closing attorneys must perform long before the parties meet. They do the heavy lifting to prepare for the closing and ensure that the property is being properly, legally, and cleanly transferred from the sellers to the buyers.

First, the closing attorney will conduct a thorough title search to check the status of the property. The title search involves examining public records—often going back 30 to 40 years or more—to confirm that the seller has full, unencumbered ownership of the property and is in a legal position to transfer it to the buyer. This process uncovers any potentially catastrophic issues, such as unresolved mechanic’s liens, unpaid municipal utility bills, or outstanding judgment liens against previous owners.

Furthermore, the title search will show if there are any easements, encroachments, or other restrictions on the property, such as shared driveways, utility line rights-of-way, or restrictive covenants imposed by a neighborhood association. The attorney will also prepare a formal opinion on the title that is presented to a title company. This document is a strict prerequisite for issuing title insurance. This title insurance protects both the lender and the buyer from any undiscovered title defects that might emerge in the future, providing essential peace of mind for the buyer’s investment.

Real Estate Closing Attorney Responsibilities

Closing attorneys are also responsible for facilitating complex communication between a number of disparate parties necessary to the finalization of the deal. A real estate transaction is rarely a simple two-party agreement; it is an intricate web of moving pieces. The closing attorney must act as a central hub, discussing the sale with mortgage lenders, real estate agents, land surveyors, current mortgage holders requiring payoffs, county tax offices, homeowners’ associations, and a variety of other individuals.

The closing attorney must communicate seamlessly with these entities to ensure every detail involved with the sale is entirely accurate. They must verify exact tax amounts owed, secure precise payoff letters from the seller’s current lender, and confirm that there are no outstanding HOA fines or dues. This constant coordination is vital to ensure that the closing is completed on time, preventing costly delays that could jeopardize the buyer’s mortgage rate lock or breach the purchase contract.

During the closing conference itself, the closing attorney steps into the role of an educator and guide. They will explain the legal significance of the documents to the parties as they sign them. There are a number of dense legal documents that must be signed at a closing, including:

  • The Deed: The legal instrument that transfers ownership of the real property.
  • The Settlement Statement (Closing Disclosure): A detailed itemization of all funds received and disbursed, showing exactly where every dollar goes.
  • Loan Documentation: The extensive packet required by the lender, which includes the mortgage or deed of trust securing the loan against the property.
  • A Promissory Note: The buyer’s personal legal promise to repay the loan under the specified terms.
  • Tax and Compliance Affidavits: Federal and state documents required by law to report the sale and verify identities.

The closing attorney is available throughout this meeting to answer any questions about these complex documents that the parties may have, ensuring that no one signs a binding legal contract without fully understanding their rights and obligations.

After The Closing

A closing attorney’s work does not end when the parties shake hands and leave the office. In fact, some of the most critical legal steps occur after the closing has been completed. Once the paperwork is executed, the closing attorney will perform a final gap check on the title to ensure no new liens were filed at the eleventh hour. Following this verification, they will update the title to the property on local registry of deeds websites and formally record the physical deed and mortgage with the county. Proper recording is what legally establishes the buyer’s ownership against any third-party claims.

In addition, the closing attorney is responsible for managing the escrow account and safely disbursing all transaction fees. This involves distributing brokerage commissions to the real estate agents, paying outstanding property and transfer taxes to municipal authorities, routing loan payoff amounts to the seller’s bank, issuing seller proceeds, paying home insurance premiums, and settling invoices for home inspection fees or environmental surveys. Every penny must balance perfectly according to the closing disclosure.

Even after the transaction has been completely wrapped up, the attorney’s role can continue. If any unexpected issues arise with the transfer of the property—such as a boundary dispute discovered during a later fence installation, or a delayed release of a prior mortgage by a banking institution—the closing attorney may be consulted to help resolve the issue.

Clearly, the real estate closing attorney does not simply sit with the parties at the closing table and have them sign documents. The closing attorney’s comprehensive oversight, legal knowledge, and administrative guidance are an absolute necessity to ensure the transition of ownership goes smoothly, securely, and that all parties thoroughly understand and fulfill the legal requirements of the deal.

Frequently Asked Questions About Title Insurance

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At The De Bruin Law Firm, we are experienced and knowledgeable real estate attorneys. We often help our clients when they are buying a home to ensure that the closing process goes as smoothly as possible. One aspect of what we do as real estate closing attorneys is help our clients with a title search and title insurance. If you are a first time home buyer, you may not be aware of everything related to real estate titles; in fact, this is an area about which we get many questions. To help you, we have compiled a list of frequently asked questions about titles.

What Is A Title?

A title is a document that serves as evidence of an owner’s right to possess a property. It’s possible for someone other than the owner to have a legal right to the property in question; in this case, the other person may be able to stake claim over the property or demand use of it.

What Is A Title Search?

A title search entails examining the historical records of a property, including deeds, property and name indexes, court records, and other documents. This search serves to confirm the seller’s right to transfer ownership to the buyer, and to uncover any other claims, defects, burdens, or rights to the property.

What Issues Can A Title Search Uncover?

A title search could reveal a number of issues with the title, including title defects, liens, encumbrances, or restrictions. This could include unpaid taxes, unpaid mortgages, legal issues with the seller, and restrictions on how to use the land.

Are There Potential Issues With The Title That A Title Search Won’t Reveal?

Yes. There are certain hazards that a title search might not reveal. For example, if a previous owner did not reveal his marital status, his spouse could have a legal claim to the property. Other examples include forgery, fraud, defective deeds, and clerical errors. It is possible for these issues to arise after you have already purchased your home, jeopardizing your ownership rights.

What Is Title Insurance?

Title insurance is a type of insurance policy that protects you against the loss if any of these issues present themselves after you have purchased your home.

What Happens If A Claim Is Filed Against My Property?

This varies depending on the claim. In the worst case scenario, you could lose your property and still be liable to pay off your mortgage balance. This is an extreme occurrence that doesn’t happen in most cases, but even a small claim will cost you money, time, and stress, and may require you to hire a lawyer.

If A Claim Does Arise, How Does Title Insurance Protect Me?

If a claim against your property is made, title insurance assures you a legal defense and will pay all court costs. If the claim proves to be valid, you will be reimbursed for your loss (up to the face amount of the title insurance policy).

Isn’t The Deed The Proof Of Ownership?

Actually, no. A deed is a document through which ownership rights to property are transferred, but it is not proof of ownership, and does not eliminate another’s rights to the property. Additionally, a deed does not show liens or claims against the title.

What Are The Different Kinds Of Title Insurance?

There are two types of title insurance policies: a loan policy and owner’s policy. The loan policy protects the lender in the property as security for the outstanding balance of the buyer’s mortgage. The owner’s policy protects the buyer’s investment in the property.

How Much Does Title Insurance Cost?

While it varies, in general, title insurance costs one percent or less of the total cost of the property. Additionally, a title insurance is not paid annually, like other types of insurance; it is one upfront cost paid at closing.

How Long Does My Title Insurance Coverage Last?

Title insurance coverage lasts as long as you or your heirs have an interest in the property, and in some cases, beyond that.

When buying real estate, it is in your best interest to hire an experienced attorney. As real estate attorneys in South Carolina, we can help you during your real estate closing. Interested in our legal services? Contact us today to learn more about how we can help with your real estate closing.

3 Issues That May Come Up During A Refinance

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Refinancing a home can be a really big task that has the potential to get complicated quickly. There are many different reasons a homeowner might want to refinance from wanting to lower the interest rate on the loan, remove the PMI, or receive an infusion of cash to improve the house. Even in the case of a refinance, an attorney is required for many of the aspects involved with the closing in South Carolina. Contacting a closing attorney early in your refinance process may be beneficial. Let’s take a look at what these issues are and why you might want to call De Bruin Law Firm for assistance during your refinance.

Timeliness

Whether buying a new home or refinancing your existing home, having all of the evaluations and paperwork complete by specific deadlines is essential. What can happen is banks will continue to ask for current paperwork as they push out your refinance up to even 90 days. If your bank is giving you the run around, it could be beneficial to bring in a real estate attorney to protect your investment and time.

Low Appraisal

Receiving a low appraisal can also be a really big problem when refinancing. The appraisal dictates what the bank is willing to do in terms of relieving you of the PMI or cashing out for improvements. There are several steps that can be taken to escalate this problem, which is often why you need to consult with a real estate lawyer.

Negotiations

Having a good attorney on your side means that if things escalate, negotiations need to happen. A real estate lawyer can help avoid disputes and protect the borrower’s rights throughout the process. If you’re thinking about getting your home refinanced contact Bryan De Bruin at the De Bruin Law Firm to handle you closing.

The De Bruin Law firm offers a wide range of legal services to clients in Greenville, SC and the surrounding upstate. Our experienced attorneys can help you with legal matters in the areas of business law, criminal law, estate planning, and real estate law.

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