What type of Insurance do I need?
Posted on August 1,2018 by Pamela Price, Attorney at Law

There are three types of insurance generally associated with a real estate closing:

  1. Title Insurance.  Most Lenders will require title insurance, which protects the buyer and the lender from risks associated with tax liens, mechanic’s liens, judgments, unsatisfied mortgages and other liens or problems with the title to the property.  This type of insurance is provided by the closing attorney.
  2. Homeowners’ Insurance protects the buyer from fire and other destructive elements which may damage the property.  The Lender wants to be sure the buyer has Homeowners’ Insurance so that if the property is damaged it can be repaired which protects the Lender’s interest in the property.
  3. Mortgage Insurance.  Under some loan programs the lender will require the borrower to purchase Private Mortgage Insurance (PMI) or Mortgage Insurance Protection (MIP).  This type of insurance protects the lender in case the mortgage goes into foreclosure.  It allows the borrower to borrow a larger loan amount and pay a smaller amount of down payment.  
Do I need a new survey (plat)?
Posted on August 1,2018 by Pamela Price, Attorney at Law

A survey will determine the dimension of the lot, will show encroachments or projections over the property boundaries, and may show the foundation of the home.  If a recent survey has been done, the Lender will not require a new survey, however Title Insurance will not cover matters of survey for the Owner unless a new survey is purchased.  We encourage purchasers to consider obtaining a new survey of the property, especially if the latest survey is old.  The title search obtained by the closing attorney will provide a copy of the most recent survey on record. 

What is a Settlement Statement?
Posted on August 1,2018 by Pamela Price, Attorney at Law

Federal Law requires a Settlement Statement be prepared for real estate transactions.  This Settlement Statement should include every cost or expense related to the purchase of the property.  Price Law Firm SC, LLC tries to prepare the Statement as soon as information is received, although changes can be made up until the time of closing.  A rough draft of the Statement will be provided to all parties as early as possible.

What is a Closing Disclosure?
Posted on August 1,2018 by Pamela Price, Attorney at Law

For transactions involving loans, after October of 2015, the statute requires a Closing Disclosure be prepared and provided to the Borrower at least three days prior to the closing. The Closing Disclosure should include all the borrower’s costs. Minor changes can be made after receipt of the Closing Disclosure, but a significant correction may cause a three-day delay in the closing.

What type of Deed do I need?
Posted on August 1,2018 by Pamela Price, Attorney at Law

South Carolina Law recognizes five major types of Deeds, also referred to as Title to Real Estate: 

  1. A General Warranty Deed.  This is the best type of deed which gives assurances to the buyer of good title and other warranties.
  2. A Special or Limited Warranty Deed.  This is usually required by Institutional Sellers and others who have received title to the property through litigation.  Their assurances are as to their period of ownership only.
  3. A Quit Claim Deed.  This gives no warranties or assurances but is simply a conveyance of any interest the seller may have in the property.  These are usually used to convey property from one family member to another, or as a method of clearing up title issues. 
  4. A Deed of Distribution.  This is a deed from the estate of a deceased seller to the heirs of the estate and is signed by the Personal Representative. 
  5. A Tax Title Deed.  These deeds are prepared by governmental officers after an owner of the property has failed to pay the property taxes.  These deeds are subject to being overturned if the statutory requirements for a tax sale are not adhered to properly.  The prior owners have the right to bring an action to determine if the tax sale was handled according to the terms of the statute.  Obtaining a Tax Title Deed allows you to live in, rent, or use the property until an action is brought by the prior owners and the Tax Sale is overturned.  To avoid this result, after the tax sale the new owner will need to file an action to quiet title, naming the prior owners as defendants.  A successful quiet title action will eliminate any possibility of a prior owner overturning the Tax Title Deed.
How should I take Title?
Posted on August 1,2018 by Pamela Price, Attorney at Law

If there are two or more buyers, they must determine how they would like to hold title. 

  1. Tenants in Common:  Upon the death of one of the owners, their share in the property passes according to their will or pursuant to intestate succession.  Their estate must be opened with the Probate Court and a Deed of Distribution is usually prepared. 
  2. Joint Tenants with Right of Survivorship:  Upon the death of one of the owners, their share passes automatically to the other owner or owners.  Proof of death is accomplished by filing the Death Certificate with the County.