South Carolina

South Carolina at a Glance

1. Mechanics' Lien Rules

Plain English

In South Carolina, anyone who improves real estate with the owner's authorization can claim a lien. The claimant has 90 days after it stops working to serve the owner and file a lien statement, and 6 months to sue and file a lis pendens. Owners and contractors can file an optional Notice of Project Commencement. If one is filed, a sub-sub or supplier who didn't send a "notice of furnishing" can only lien for what's still owed to its subcontractor. For lenders, South Carolina is favorable: a mechanic's lien beats a recorded construction mortgage only for money the lender disburses after the lien is filed and served on it.

Key Rules

Who has a lien.

• Persons with an agreement with the owner, including design and site professionals (§ 29-5-10).
• Laborers, subcontractors, and suppliers, when the owner authorized the improvement, subject to existing liens of which they have notice (§ 29-5-20(A)). Attorney fees and costs go to the prevailing party but can't exceed the lien amount.

Notice of Project Commencement (§ 29-5-23).

• Optional. A person contracting with the owner (or with the owner's consent) may file it with the clerk of court or register of deeds within 15 days of commencement, with a $15 fee. A location notice must be posted at the job site.
• If filed, a sub-subcontractor or supplier's liens are capped at the amount the contractor owes its subcontractor unless it sent a notice of furnishing by certified or registered mail to the contractor (§ 29-5-20(B)).
• If not filed, § 29-5-20(B) and § 29-5-60(B) don't apply.
• It is not a cloud, lien, encumbrance or title defect; it doesn't change the aggregate lien limits under § 29-5-40; and it doesn't affect the priority of any mortgage filed before or after it, or future advances under any mortgage.

Owner's exposure (§ 29-5-40). When a laborer, sub or supplier hired by someone other than the owner notifies the owner in writing of the labor or materials furnished and their amount or value, its lien attaches against the owner for that amount. In no event can the total of these liens exceed what the owner owes on the contract price. A claimant that gave notice is paid ahead of the contractor, and the owner's later payments to the contractor don't reduce its claim (§ 29-5-50).

Lien statement: 90 days (§ 29-5-90). The lien dissolves unless, within 90 days after the claimant stops furnishing labor or materials, it serves the owner (or person in possession) and files a sworn statement of account with property description and owner name with the register of deeds or clerk of court.

Suit: 6 months (§ 29-5-120).

• (A) The lien dissolves unless suit is commenced and a notice of pendency (lis pendens) is filed within 6 months after the claimant stops furnishing.
• (B) After that, a lien and associated bonds may be released by court order, or by an affidavit of the bond holder's or the defendant's attorney stating that 6 months passed with no suit or lis pendens filed (or that the claimant failed to take another required timely action). The affidavit must be on the form approved by the local filing office and reference the lien's recording information.

Bonding off (§ 29-5-110). The owner or another interested person can discharge the property by filing an undertaking of 1⅓ times the amount claimed, secured by cash, U.S. or South Carolina securities, or a licensed surety's bond.

Construction mortgage priority (§ 29-3-50(A)). A mechanic's lien is superior to a recorded mortgage only as to disbursements made after the lien was filed and served on the mortgagee (service as in SCRCP Rule 4).

Practice Points

1. Lien window: 90 days to file, 6 months to sue. Treat work within the last 90 days as a live lien risk.
2. Expired liens. After 6 months with no suit or lis pendens, use the § 29-5-120(B) attorney affidavit to clear the record.
3. Construction loans. Because of § 29-3-50(A), the lender is protected for prior disbursements. Run a date-down before each draw to catch newly filed and served liens.
4. Bonds. Confirm the undertaking is 1⅓ times the claim.
5. Notice of Project Commencement. Search for it. If one was filed, ask the owner and GC for any notices of furnishing they received.

Citations

• S.C. Code Title 29, Chapter 5 (mechanics' liens: §§ 29-5-10, -20, -23, -40, -90, -110, -120): https://www.scstatehouse.gov/code/t29c005.php
• S.C. Code § 29-3-50 (future advances; construction lien priority), Title 29, Chapter 3: https://www.scstatehouse.gov/code/t29c003.php

2. Execution and Notarization Requirements for Recording

Plain English

South Carolina deeds and mortgages are traditionally signed in front of two witnesses, one of whom is usually the notary. To record, the document must be either proved by a witness's sworn affidavit, or acknowledged by the signer in the presence of two witnesses before a notary. Every deed and mortgage needs a derivation clause (where the seller got title) and the buyer's or lender's mailing address. South Carolina does not allow remote online notarization; electronic notarization is allowed only in person. And this is an attorney-closing state: an SC-licensed attorney must supervise residential closings.

Key Rules

• Recording prerequisites (§ 30-5-30, as amended by 2016 Act 144). Before recording, a deed or instrument must be:
  • (A)(1) proved by the affidavit of a subscribing witness before an officer authorized to administer oaths;
  • (A)(2) compliant with the Uniform Recognition of Acknowledgments Act, or accompanied by the signer's affidavit; or
  • (B) signed and acknowledged by the grantor in the presence of two witnesses before an authorized officer.
  • (C) gives an acknowledgment form; (D) says a land development plan is not a prerequisite to recording deeds of undeveloped land.
• Two witnesses. The statutory form of deed is valid to convey a fee simple if executed in the presence of, and subscribed by, two or more credible witnesses (§ 27-7-10). Two witnesses are also customary on mortgages.
• Derivation clause and address (§ 30-5-35). Deeds and mortgages executed after July 1, 1976 must include a derivation clause (prior grantor and recording date of that deed) and the mailing address of the grantee or mortgagee. No derivation clause is required on a quitclaim or non-warranty deed, or on utility or railroad property; the register may record without one if the information was not available (§ 30-5-35(a), (b)).
• Deed recording fee (§ 12-24-10). $1.85 per $500 of value (state and county shares combined), with an affidavit of value (§ 12-24-70). The fee applies only to deeds; South Carolina has no mortgage recording tax.
• Notarization. The Electronic Notary Public Act (2021 Act No. 85, S. 631, effective May 18, 2021) allows electronic notarization only with the signer physically present. The current Code still requires the principal to appear in person before the electronic notary (§ 26-2-50(A)(1)); we found no remote online notarization law. § 26-2-210 preserves the attorney-supervision rule for real estate closings.
• Attorney closings.
  • State v. Buyers Service Co., 292 S.C. 426 (1987): title searches, document preparation, and closings for others are the practice of law and must be supervised by an SC-licensed attorney.
  • Boone v. Quicken Loans, Inc., 420 S.C. 452 (2017): a lender's closing model was not the unauthorized practice of law because SC-licensed attorneys were involved at every critical step. In those transactions, a licensed attorney who had already reviewed the closing documents was physically present at each closing to answer questions and supervise signing.
  • SC Bar Ethics Advisory Opinion 26-01: a lawyer may attend and supervise a HELOC closing, recording and disbursement, consistent with Boone, even without a title exam when the lender has chosen to skip the title search step. The closing lawyer must confirm that the other steps were done by SC-licensed lawyers and can't rely on blanket assurances from non-lawyers.

Practice Points

1. Count the witnesses on deeds and mortgages, and confirm the acknowledgment or witness probate.
2. Derivation clause. Check it against the vesting deed in the chain.
3. No RON. Don't accept a remotely notarized SC deed by a South Carolina notary.
4. Attorney involvement. Confirm an SC-licensed closing attorney supervised the closing.

Citations

• S.C. Code Title 30, Chapter 5 (§§ 30-5-30, 30-5-35): https://www.scstatehouse.gov/code/t30c005.php
• S.C. Code Title 12, Chapter 24 (deed recording fee): https://www.scstatehouse.gov/code/t12c024.php
• S.C. Code Title 26, Chapter 2 (notaries; § 26-2-210): https://www.scstatehouse.gov/code/t26c002.php
• S.C. Code Title 26, Chapter 1 (notaries): https://www.scstatehouse.gov/code/t26c001.php
• State v. Buyers Service Co., 292 S.C. 426 (1987): https://law.justia.com/cases/south-carolina/supreme-court/1987/22730-1.html
• Boone v. Quicken Loans, Inc., 420 S.C. 452 (2017), Op. No. 27727: https://law.justia.com/cases/south-carolina/supreme-court/2017/27727.html
• SC Bar Ethics Advisory Opinion 26-01: https://www.scbar.org/for-lawyers/quicklinks/legal-resources/ethics-advisory-opinions/ethics-opinion-26-01/
• S.C. Code § 27-7-10 (form of deed; two witnesses): https://www.scstatehouse.gov/code/t27c007.php

3. Securing Future Advances

Plain English

South Carolina has one of the most lender-friendly future-advance statutes. A mortgage securing future advances, optional or obligatory, is valid from the day and hour it's recorded for all advances, up to the maximum principal amount stated in the mortgage, plus interest, attorney fees, and costs. Deferred or capitalized interest doesn't have to be counted in the maximum if the mortgage discloses it.

Key Rules (§ 29-3-50(A))

• A mortgage securing existing debt or future advances, whether or not at the lender's option, is valid from the time recorded against later creditors and purchasers without notice, as if all advances were made when the mortgage was signed.
• Total outstanding debt may not exceed the maximum principal amount stated in the mortgage, plus interest, attorney fees, and court costs.
• Deferred, accrued, or capitalized interest need not be included in the maximum, if the mortgage discloses it.
• Exception for mechanics' liens: see Section 1. A filed and served lien beats later disbursements.

Practice Points

1. Confirm a maximum principal amount is stated.
2. Construction draws: check for filed and served mechanics' liens before each disbursement.

Citations

• S.C. Code § 29-3-50, Title 29, Chapter 3: https://www.scstatehouse.gov/code/t29c003.php

4. Subdivision Statutes and Regulations

Plain English

Local planning commissions control subdivisions under the South Carolina Local Government Comprehensive Planning Enabling Act. Plats need approval before recording, and an owner may not transfer lots before the approved plat is recorded. Doing so is a misdemeanor, and a metes-and-bounds description doesn't avoid it. Separately, recorded plats referenced in a deed matter: when a deed describes land as shown on a plat, the plat becomes part of the deed, and a buyer is charged with notice of restrictions properly recorded in the chain of title.

Key Rules

• No recording or permits without approval (§ 6-29-1140). Where subdivision regulations exist, no plat may be recorded and no building permit issued without approval; violation is a misdemeanor.
• Recorder's duty (§ 6-29-1160). The register may not accept an unapproved plat for recording.
• Transfers before approval (§ 6-29-1190). An owner may not transfer lots until the plan or plat is approved and recorded. Violation is a misdemeanor; metes-and-bounds descriptions don't exempt it; the local government may seek an injunction.
• Improvement guarantees (§ 6-29-1180). Where regulations require site improvements before plat approval, the developer may be allowed to post a surety bond, certified check or similar security instead, of at least 125% of the improvement cost.
• Restrictive covenant inquiry (§ 6-29-1145). In a permit application, the local planning agency must ask whether a recorded covenant conflicts with the permitted activity. If it has actual notice of a conflicting covenant, it may not issue the permit until the covenant is released. "Permit" here doesn't include authorization to build or place a structure.
• Plat incorporation. Where a deed describes land as shown on a plat, the plat becomes part of the deed (Gooldy v. Storage Ctr.-Platt Springs, LLC, 422 S.C. 332 (2018)). A homeowner is charged with constructive notice of restrictions properly recorded in the chain of title, even if the deed doesn't mention them (Harbison Cmty. Ass'n v. Mueller, 319 S.C. 99 (Ct. App. 1995)). Oak Forest HOA v. Dennison, Unpub. Op. No. 2025-UP-443 (S.C. Ct. App. Dec. 31, 2025), applied both rules to bind a lot owner to HOA covenants; it is unpublished and has no precedential value.

Practice Points

1. Confirm the plat was approved and recorded before the first lot deed.
2. Read the referenced plat. Plat notes, easements, and HOA references bind the buyer through the deed.
3. "Subject to restrictions of record" means the restrictions in the chain and referenced plats must be read and excepted specifically.

Citations

• S.C. Code Title 6, Chapter 29, Article 7 (§§ 6-29-1110 to -1200): https://www.scstatehouse.gov/code/t06c029.php
• Oak Forest HOA v. Dennison, Unpub. Op. No. 2025-UP-443 (S.C. Ct. App. Dec. 31, 2025): https://ctrack.sccourts.org/public/document/view.do?documentID=1447253

5. Title Premium Rates

Plain English

South Carolina uses prior approval with a deemer. Each title insurer files its rate schedules with the Department of Insurance. If not approved or disapproved within 60 days, they're deemed approved (the Department can extend review another 60 days). Insurers must publish their rates and charges. A title insurer may pay its agents no more than 60% commission. Paying for referrals is an unlawful inducement.

Key Rules

• Rate standards (§ 38-75-970). Rates must not be excessive, inadequate, or unfairly discriminatory, considering past and prospective loss experience, expenses (including amounts paid to or retained by agents), investment income and a reasonable profit margin. Filings require a five-year experience period.
• Filing and approval (§ 38-75-980). Approved within 60 days if compliant; deemed approved if not acted on in 60 days; review may be extended 60 more days.
• Publication (§ 38-75-990). Each title insurer and title agent must make dated schedules of its current premiums and charges available to the public in each SC office, and keep them for 5 years after they expire.
• Commission cap (§ 38-75-1000). No commission greater than 60% on a title policy.
• Regulation (S.C. Code Regs. 69-18). Referral fees and other inducements are unlawful, and charging more or less than the scheduled rate is an unlawful inducement (§ 2). Rates must be filed and approved before use (§ 3).
• Closing protection (§ 38-75-1010). Title insurers may issue closing or settlement protection.

Practice Points

1. Charge only the approved, scheduled rate. Charging more or less is an unlawful inducement under Reg. 69-18.
2. Closing protection letters are issued under § 38-75-1010 in attorney-closed transactions.

Citations

• S.C. Code Title 38, Chapter 75, Article 9 (§§ 38-75-970 to -1010): https://www.scstatehouse.gov/code/t38c075.php
• S.C. Code Regs. 69-18 (title insurance regulation): https://www.law.cornell.edu/regulations/south-carolina/R-69-18

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

South Carolina calls its transfer tax a deed recording fee: $1.85 per $500 of value ($1.30 state plus 55 cents county). An affidavit of consideration is recorded with the deed. South Carolina has no mortgage tax.

Key Rules

(a) Deed transfer, conveyance or excise tax

• Rate. $1.85 per $500 or fraction (§ 12-24-10): a state fee of $1.30 plus a county fee of $0.55 (§ 12-24-90).
• Value base is the realty's value, generally the consideration paid.
• Who pays. By statute the grantor (seller) is liable; the grantee is secondarily liable (§ 12-24-20).
• Affidavit of consideration (§ 12-24-70).

(b) Mortgage, indebtedness or intangible tax

• None. South Carolina has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees). The deed recording fee applies only to deeds.

(c) Other recording taxes and fees

• Register of deeds fees (S.C. Code § 8-21-310): $15 for a deed; $25 for a mortgage; $10 for a satisfaction or release.

Practice Points

1. Worked example. A $400,000 sale: $1,480.
2. No mortgage tax on loans.

Citations

• S.C. Code §§ 12-24-10, 12-24-20, 12-24-70, 12-24-90 (deed recording fee): https://www.scstatehouse.gov/code/t12c024.php
• S.C. Code § 8-21-310 (fees): https://www.scstatehouse.gov/code/t08c021.php