does south carolina require you use lawyer when dealing with title companies

South Carolina is one of several states that require a real estate attorney to be involved, but it’s one of just a select few that mandate the attorney be physically present at the closing. When you hire your lawyer, you’ll work closely with them to set a closing date that allows all parties to be present.

Full Answer

Do I need an attorney at a South Carolina real estate closing?

The state of South Carolina requires an attorney to be present at the closing of a real estate transaction and has issued extensive best practices guidelines. The SC Supreme Court has listed the essential components of a closing as 5 categories: title search, loan documents, closing, recordation of documents, and disbursement of transaction funds.

What is the role of a title company attorney?

According to Cowart, the attorney’s primary job is to review, and sometimes draft, the title and contracts and to facilitate the closing process; in states where an attorney’s participation is not mandated, title companies typically conduct these steps.

What is the difference between a title company and a closing attorney?

A significant difference between working with a closing attorney as opposed to a title company is the breadth of involvement. A closing attorney's responsibility is multi-faceted. They can help with loan documentation and disbursement, as well as, explain deeds and notes associated with the purchase.

Do you need a title company at a Virginia real estate closing?

Basically, this says that Virginia’s state government requires that you have an attorney closing or title company present at closing for real estate transactions to provide you with legal advice should you need it for when you’re ready to buy a house.

Does a seller need an attorney at closing in South Carolina?

The state of South Carolina requires an attorney to be present at the closing of a real estate transaction and has issued extensive best practices guidelines.

Is South Carolina a title company or attorney state?

Several east coast states are attorney states: Georgia, South Carolina and North Carolina. Some states, such as Florida, are “Title Company States” that do not require an attorney to close loans or purchases as long as the closing includes title insurance.

Does South Carolina require real estate attorney?

South Carolina is one of several states that require a real estate attorney to be involved, but it's one of just a select few that mandate the attorney be physically present at the closing. When you hire your lawyer, you'll work closely with them to set a closing date that allows all parties to be present.

Do I need an attorney to sell my house in SC?

Unlike in many states, South Carolina requires a lawyer to be involved in the house-selling transaction and oversee real estate closings. The buyer will have hired an attorney at the outset, for help preparing the offer paperwork. You might wish to hire your own attorney, as well.

Is North Carolina an attorney state for real estate closings?

Many other states in the US operate their closings with a title company and no independent attorney is involved. However in North Carolina, this is not the case. North Carolina has a law that all real estate closings must take place with a North Carolina licensed attorney.

What is one of the most common problems faced in a title search?

Liens or debts on the property. This might be the most common problem that arises during a property title search.

Does South Carolina use title companies?

The Armour Title Advantage Whether you're buying, selling, or a realtor, you want to find a South Carolina title company you can trust.

Can you sell a house in SC without a realtor?

Create a contract and accept only WRITTEN offers that include an earnest money deposit. You should consult with an attorney and accept the offer only on their approval. Without a local real estate agent, you will need to handle all legal and financial paperwork.

How does title insurance work in South Carolina?

The title insurance policy insures that the lender has a proper mortgage lien on the property, and that there are no defects in the title which may adversely affect the lender's lien. The policy obtained for he lender's benefit does not insure the purchaser against loss in the event that there is a defect in the title.

Does the seller pay for title insurance in South Carolina?

In South Carolina, sellers typically pay for title and closing fees, transfer taxes, and owner's title insurance.

Who pays for owner's title insurance in South Carolina?

Title insurance fees are charged by the title company to cover the title search, title examination, title insurance, document preparation, and other miscellaneous fees. All buyers pay title insurance fees. These fees will likely cost you around $400.

Is earnest money required in South Carolina?

Earnest money is used to demonstrate the seriousness of the purchaser, as good faith, when buying a property. A South Carolina real estate agency is required to deposit an earnest money check within 48 hours of acceptance of an offer.

Which states require attorneys for real estate closings?

Here's a list of Attorney Only States: Alabama, Delaware, Georgia, Massachusetts, New York, North Carolina, South Carolina, Virginia, West Virginia.

Can you close on a house without a lawyer?

In some state jurisdictions, it's also a mandatory prerequisite to hiring an attorney to gather all the documents and legal advice needed in the pr...

Would I still require a real estate attorney if I don't live in these states?

While certain states require attorneys at closing, not all do. Say, for instance, if you live in Indiana then your state would not require that you...

What is the role of an attorney in a title?

Also, the attorney is also responsible for determining the adequacy of the title draft, doing the deeds, and managing the legal transfer of the property. Non-attorneys, on the other hand, are only allowed to participate in clerical and administrative duties such as titling insurance, abstracts, etc.

What is a real estate closing attorney?

Much like Virginia, for property closings in West Virginia, real estate closing attorneys coordinate the closing or settlement process for the property being purchased. A real estate agent or attorney facilitates the closing by coordinating these activities necessary to ensure that the title to the property is transferred according to the terms of the purchase, sale contract and that the funds are accounted for on a settlement statement.

What is a settlement agent in Virginia?

The Real Estate Settlement Agents Act authorizes licensed attorneys, title insurance companies, real estate agents, real estate brokers, and financial institutions to serve as Settlement Agents. This means that by law, the purpose of this Act is to provide consumer protection safeguards and to define who can lawfully provide real estate settlement services in Virginia. Basically, this says that Virginia’s state government requires that you have an attorney closing or title company present at closing for real estate transactions to provide you with legal advice should you need it for when you’re ready to buy a house.

What does an attorney do for a home?

Your attorney will have the responsibility to gather all legal documents, the necessary paperwork, and make preparations for all facets that grant the homeowner legal rights . The attorney will also have a right to determine the validity and legitimacy of the property as well as the title to the property.

Do you need an attorney to close a real estate transaction in Delaware?

Delaware. In adherence to the decision taken in 2000 by the Delaware Supreme Court, non-attorneys do not have any power to and do not have any legal authorization for generating a real estate closing transaction or settlement. This means it is mandatory for you to have an attorney present to conduct the closing transaction.

Is it illegal to have another party stand in for a closing in South Carolina?

They have to be present before and during the process. Even after the attorney authorizes and approves the deeds and other documents, it is illegal for him to have another party stand-in for the closing.

Do you need an attorney for closing?

Being a sought-after retirement destination, it is essential for retirees as well as other buyers to know that it is mandatory to hire an attorney for the closing transaction. Your attorney will have the responsibility to gather all legal documents, the necessary paperwork, and make preparations for all facets that grant the homeowner legal rights. The attorney will also have a right to determine the validity and legitimacy of the property as well as the title to the property.

What does a seller's lawyer review with the title clerk on?

The seller’s lawyer reviews with the title clerk on: Any open issues such as a prior death or divorce that might affect title. Many times, the seller can then work to get the necessary documents to show the seller is the sole owner or that the open claims are invalid. Any creditor or other issues.

What do lawyers do for title clerk?

The lawyers for both the buyer and seller help the title clerk by explaining what any legal documents that have to be signed mean. The attorneys also help review the settlement sheet so that each side gets the right amount – and the settlement sheet balances.

What happens if the title clerk doesn't get payoff statements?

If the title clerk doesn’t get the payoff statements for any sums due, the seller’s lawyer should get those payments. Sometimes, the seller’s lawyer will negotiate with the creditor by explaining that the creditor only gets paid if the sale goes through. More on how the seller’s attorney works with the title company.

What does a title company do to prepare for settlement?

To prepare for settlement, the title company: Works with the mortgage loan companyto get all the necessary paperwork that the buyer must sign at settlement. Works to get all the necessary federal and state real estate protection documentation that the buy ers sign at settlement.

What does a title company do to protect themselves?

To protect themselves, title companies search the court records, and other relevant documents and filings the search aims to determine all possible claims against the real estate. The role of the title company at settlement. Title companies regularly also handle settlement transactions. To prepare for settlement, the title company:

What does title insurance mean?

Title insurance means that once the title company approves the title, the title company insures the home against subsequent claims.

What do lawyers do after a settlement?

The role of the lawyers at and after settlement 1 The lawyers for both the buyer and seller help the title clerk by explaining what any legal documents that have to be signed mean. The attorneys also help review the settlement sheet so that each side gets the right amount – and the settlement sheet balances. 2 The buyer’s attorney then checks with the title company that the necessary deeds and mortgages were properly filed. The sellers also check to see if they are any outstanding complaints.

What is the difference between a closing attorney and a title company?

A significant difference between working with a closing attorney as opposed to a title company is the breadth of involvement. A closing attorney's responsibility is multi-faceted. They can help with loan documentation ...

What is the job of a title company?

A title company's primary responsibility is confirming the legitimacy of a property’s title and then issuing title insurance. Title companies play a pivotal role in settling all outstanding balances with respect to the home purchase, including issues that might hamper the transferring of the title. Title companies work on behalf of many title insurers rather than the buyer or seller of the house. Their responsibilities sometimes also include obtaining a copy of a possible survey of the property. The review of the survey would confirm property lines and identify any encroachments or easements from neighbors. Failing to complete this due diligence could result in issues for the homeowner. In some instances, your title company can maintain escrow accounts to ensure the funds are used for the closing and settlement of the purchase.

What does a closing attorney do?

The task of the closing attorney is overseeing the purchase and sale agreement in a real estate transaction. The attorney will review all documents associated with the purchase. These instruments range from deeds to settlement statements. Closing attorneys also take on the task of examining the title and overseeing the purchasing of the title insurance. A significant difference between working with a closing attorney as opposed to a title company is the breadth of involvement. A closing attorney's responsibility is multi-faceted. They can help with loan documentation and disbursement, as well as, explain deeds and notes associated with the purchase. They represent the buyer as opposed to the insurer, assisting with any legal problems or questions that might crop up during the settlement process.

What is title insurance?

The Title and Title Insurance for Purchasing Your Home. A notable overlap of responsibilities for both the title company and the closing attorney is to secure a clean title to your property. The title is crucial for all buyers as it gives you a legal right to the house that you've purchased.

What is the title search for a house?

This step is essential to determine that the seller is the current owner and is legally allowed to sell you the house. The title search confirm s outstanding mortgages, judgments, unpaid taxes or other issues that would profoundly impact ownership.

Do you need title insurance when buying a house?

Title insurance is optional if, and only if, you purchase the property with cash. Most lenders will have title insurance as a requirement for the loan. If someone were to materialize and declare themselves as the rightful owner of the property, the title insurance will protect your investment by covering the costs of the house and ...

Which states require a real estate attorney to buy a home?

The following states require you to hire a real estate attorney when you buy a home: Alabama. Connecticut. Dela ware.

What do real estate lawyers do?

Now you know a real estate attorney can help you with much of the paperwork you need to sign when you buy a house. But this type of lawyer’s duties go beyond preparing important mortgage and title documents. There are some specific situations where a lawyer is highly recommended in order to protect the buyer.

What to do if the seller refuses to make repairs?

If the seller refuses to make the repairs or lower the price of the house accordingly, you might need legal help to ensure you don’t lose a lot of money on the deal. A real estate attorney can assist you in either getting out of the contract at the last minute or ensuring the repairs get done before closing day.

Why do you need a lawyer for a house?

There are some specific situations where a lawyer is highly recommended in order to protect the buyer. One example is when the house you want to buy has significant damage, whether it’s a termite infestation, lead paint on the walls, or a roof that needs to be replaced.

How much does a lawyer charge per hour?

Before you do, you should get an idea of how much you’ll likely spend. Some lawyers charge per hour for their legal services, usually about $150 to $300 per hour. Others charge a flat fee for helping with real estate transactions, often somewhere between $500 and $1,500.

Should I hire a real estate attorney if I don't live in a state?

If you don’t live in a state that requires you to hire a real estate attorney, that doesn’t mean you shouldn’t hire one. In fact, it’s usually recommended that you do, especially if any of the following apply to you: You’re buying a bank-owned property. You’re buying a house in another state.

Can a lawyer help you buy a home?

And while that’s definitely one aspect of the job, there are additional duties a lawyer can help with as you buy a home. So even if you never have to deal with any legal issues during the home buying process—as is the case for many buyers—a real estate attorney can likely still help you.

What do attorneys do before transferring a property title?

Before transferring the property title, attorneys evaluate public records on a property’s history, to uncover any potential liens or other issues that might negatively impact the title for the new owner.

Which states require a real estate attorney to close?

Nebraska: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Nevada: Real estate attorneys are not essential for closing but may be advised by your real estate agent. New Hampshire: New Hampshire requires a licensed attorney to conduct real estate closings.

Why do real estate attorneys help?

Provide peace of mind to all parties. Thanks to their experience and education, real estate attorneys can provide some peace of mind for all parties involved. They help protect clients from legal disputes and streamline the closing process for a smooth sale.

What can an attorney do in a contract dispute?

Attorneys can also act as a mediator between buyers and sellers in a contract dispute. The attorney can look back on the sale documents and provide both parties with an unbiased, legal perspective.

How much does a real estate attorney charge?

However, some attorneys charge a flat fee for their assistance in real estate transactions, and these costs can range from $950 to $5,000. The buyer usually foots the bill for this expense, but they may negotiate for the seller to pay the fees in some instances.

What is the job of an attorney?

According to Cowart, the attorney’s primary job is to review, and sometimes draft, the title and contracts and to facilitate the closing process; in states where an attorney’s participation is not mandated, title companies typically conduct these steps.

Is a real estate attorney required to close a transaction in Ohio?

Ohio: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Oklahoma: Oklahoma Law requires a real estate attorney to conduct your title examination, but that is only one small aspect of the transaction and will be included as part of your closing services.

A State-by-State Guide

I’ve bought and sold land in a number of states over the years, and in the markets where I’ve worked – I’ve only encountered this obstacle a handful of times.

When Is It Worth The Cost?

Don’t get me wrong – real estate attorneys can certainly play an important role in many transactions (especially the ones that involve a great deal of money or complexity), but when a state’s laws force EVERYONE to hire an attorney for even the simplest transactions… some would argue that this is a bit overbearing.

Special Thanks

It took many hours to compile the information shown in the map above, and as I was doing the research this project – there were a few resources that were extremely helpful to me, so I wanted to give credit where credit is due: