Common Title Defects in South Carolina Real Estate Transactions

Buying or selling a home in South Carolina can be an exciting moment. However, errors in the deed or ownership issues can turn into frustrating delays that are confusing for those with little to no background in real estate law. At Mack & Mack Attorneys, our experienced legal team can help you understand and identify common title defects in South Carolina real estate transactions and the actions you can take to mitigate their impact on your case.

​About Mack & Mack Attorneys

​The family at Mack & Mack Attorneys has been aiding the people of the Fort Mill area with their real estate cases for over 85 years. Partner B. Bayles Mack founded this firm with his father back in 1960 and has spent decades handling complex real estate matters such as title defects. He is active in the community, having served as the attorney for the town of Fort Mill from 1969 to 2014, and is accompanied by his son and grandson, who are both experienced attorneys.

​What Is a Title Defect in South Carolina?

In South Carolina, a title defect is a legal term used to describe any issue that makes the ownership of property unclear. These complications can arise in deed errors, a lack of clear ownership history, outstanding expenses, or boundary disputes. With an average South Carolina home worth $309,323, title defects should be addressed before finalizing any transaction to avoid significant financial losses.

Title defects take many forms in South Carolina and can arise at many points throughout a real estate transaction. The following are several common complications that can impact the real estate closing of a sale:

• Outstanding Expenses. One frequent issue in real estate transactions is unreleased mortgages or liens on the property. Oftentimes, this title defect occurs when the homeowner has paid the complete amount due, but the lender or creditor has not updated their records, resulting in muddled ownership rights. To resolve a prior mortgage, you must contact the lienholder for a document releasing you from legal obligations.
• Deed Errors. Errors on the physical deed can cause significant delays in the selling process and invalidate the document. Issues could include incorrect names, wrong descriptions, recording mistakes, or missing required witness signatures. The avenue to addressing a deed error is to create a corrective deed in your county. For example, Fort Mill residents would submit changes to the York County Register of Deeds.
• Boundary Disputes. Boundary disputes involve any disagreements centered on the property lines that enclose real estate. These may involve outdated surveys or neighbors contesting the boundaries. Requesting an independent survey and negotiations can resolve this issue before the closing date.
• Unlawful Finalization. This is a title defect unique to South Carolina, and it occurs when a prior real estate transaction occurred without attorney approval. A South Carolina Supreme Court ruling from 1987 makes the sale of property without a licensed attorney the unlawful practice of law. Previous sales lacking legal counsel can cloud ownership history.
• Inheritance Issues. Inheritance can initiate a multitude of title defects. This includes the owner dying without a will, having multiple heirs, having named heirs who cannot be located, or when owners refuse to sign transfer documents. Confusing ownership designations can require corrective deeds, negotiations, or waiting for probate cases to resolve before a transaction can be finalized.
• Fraudulent Transfers. Fraudulent transfers occur when an aspect of the transaction or ownership is based on false information. This may involve forged deeds, unauthorized transfers, false identities in documents, or any other misrepresentation. Fraud is a serious type of title defect and should be immediately reported to law enforcement.

Hire a Real Estate Lawyer to Protect Your Property

​Title defects can come with serious legal complications and add unnecessary delays to your real estate case. If you’re dealing with a title defect in South Carolina, you should hire a real estate lawyer who can analyze your case, identify the type of title defect you’re handling, and help you navigate the legal requirements that follow. An experienced attorney can organize your finances, review documents, draft and file paperwork, and assist in resolving ownership disputes.

​FAQs

What Can You Do to Avoid a Title Defect in South Carolina?

The actions you can take to avoid a title defect in South Carolina are based on whether you are selling or buying the property. As the seller, you should pay off mortgages and review deeds and ownership before listing the home. A buyer can mitigate title defect risk by examining the title before closing, purchasing owners’ title insurance, and obtaining an independent survey.

When Should You Speak With a Real Estate Attorney for a Title Defect in South Carolina?

You should speak with a South Carolina real estate attorney about a title defect as soon as you are made aware of any issues surrounding property ownership. Proactive action can protect you from financial liability, speed up the resolution process, and help you avoid making additional mistakes that can cause needless complexities.

How Much Does a Real Estate Attorney Cost for a Title Defect in South Carolina?

How much it costs to hire a South Carolina real estate attorney to help you with a title defect depends on the complexity of your situation, how much legal aid you require, and the type of issue you’re dealing with. An attorney who is hired to resolve simple deed errors typically costs less than one for a fraudulent deed claim. You can discuss potential pricing during your initial consultation with a lawyer.

What Protects a Buyer From Title Defects After Closing in South Carolina?

Some buyers in South Carolina worry about whether they are protected from title defects after closing a real estate success. One of the strongest ways to prevent financial losses from a title defect is to secure owner’s title insurance. This insurance can cover undetected issues that existed before closing occurred. Other steps you can take after a deal has been finalized include pursuing damages, enforcing a warranty, or filing a quiet title action.

Speak With a Trusted Real Estate Lawyer Today

The team at Mack & Mack Attorneys understands how complex title defects can be and is ready to use our decades of legal knowledge to help you resolve title issues with ease.

Reach out today to book your initial consultation. During this meeting, we can learn your story and provide effective legal strategies that help you finalize your sale. You may also visit our Fort Mill offices, located on Allison Street, a block south of Tom Hall Street and east of Thornwell-Elliott House.