Frequently Asked CLOSING QUESTIONS:

South Carolina has determined that for the protection of the parties and their legal rights, only those licensed to practice law in South Carolina may conduct real estate closings.  If anyone other than an attorney closes a real estate transaction in South Carolina (purchase or refinance) it is the unauthorized practice of law, illegal and punishable by imprisonment.

The South Carolina Consumer Protection Code allows a borrower to select his or her closing attorney.  As Buyer, you are paying the closing attorney and you have the right to choose a qualified attorney who will represent you.  If the attorney is qualified, your lender and the other parties must abide by your preference.  Occasionally developers or builders will have a preferred BUYER’S attorney that offers buyers a special rate.  This is often pre-negotiated to create closing efficiencies in scheduling and communication and can be to your financial advantage, but you cannot be forced to use an attorney other than of your own choosing. If you feel that the attorney is serving the lender or developer rather than you, it is time to get your own attorney for4 what is frequently the one of the most important transactions of your life.

The Patriot’s Act requires that closing attorneys positively identify parties in a real estate transaction; thus Buyer and Seller must bring current, un-expired,  government issued photo identification- driver’s license, military ID or passport to be photocopied and a copy retained at closing.  (See Power of Attorney)

This is difference between the lender’s certified funds or bank wired funds and the final amount of purchase.  Funds must be sent prior to closing in the form of a Federal Wire, We will also accept a certified check for an amount not to exceed One Thousand ($1,000) Dollars made payable to BROWNYARD LAW FIRM, P.A. TRUST ACCOUNT. Personal Checks or Money Market checks cannot be accepted. Wiring instructions will be provided to you well in advance of closing and it is the safest way to transmit large sums

Our building does not allow pets other than service animals.  Our office is not staffed to care for your children during closing.  We do have space older children can remain while you are in closing and well babies are always welcome to stay with their parents.

Title refers to the legal ownership of real property.  It means you have the legal right to possess, occupy, peacefully enjoy and sell your property without interference from others, subject only to restrictions imposed by governmental authorities or previous owners. In most cases, title is transferred by deed, which is recorded in the land records of the county in which the property is located.  When property is sold, a title examiner or abstractor goes to the record room of the local courthouse and searches the land records for any title defects.  A title defect is anything in the entire history of ownership of real estate which may encumber the owner’s rights of title. A title defect may cause the owner of real property to lose all or part of his/her land to a superior ownership interest or claim of another. Title issues generally are the result of improperly filed documents \that do not show up in the course of a normal, diligent search and which come to light only after closing. As long as the attorney has properly searched for defects, he or she is not liable for the improperly recorded items. This is the type of loss against which title insurance protects.  Your title insurance policy ensures that the title insurance company will defend you, without cost, against an attack or claim upon your ownership interest in your property as insured and you will be protected against financial loss caused by a title defect.  The owner’s title insurance premium is paid one time, at closing, and coverage extends as long as you own the property and in some cases, even thereafter.

While every effort is made to meticulously search every title there are defects in land records that the search will not uncover.  It is impossible for the examiner to know whether all deeds, mortgages, and judgments affecting the property have been properly indexed in the land records; whether all signatures are valid; or whether a previous owner or unknown heir has a valid claim against the property.  Without owner’s title insurance, you may have no recourse for recovery from these types of problems.

While there should be no risks in transferring property, they do exist.  A title insurance policy provides you peace of mind and takes the risk out of acquiring property whose legal history is unknown to you.  Through the years, your new property may have changed hands many times through sale, inheritance, foreclosure or bankruptcy.  Each transfer was an opportunity for an error of title to arise.  If an error occurred and has never come to light, it puts your title in jeopardy.  It is possible to lose your property and the money you paid for it.  The cost in time and legal fees to defend your rights of ownership could be prohibitive.  Examples of title risks include: clerical errors in public records, unpaid taxes, wills not probated, undisclosed or missing heirs, fraud, forgery, invalid divorces, signatures of minors and incompetent parties, confusion in similarity of names, legal document recording error, etc.  An owner’s title policy provides 1) coverage for legal expenses to defend title, 2) reimbursement in the event of loss.  The one-time low premium protects you so long as title remains in your name or that of your heirs.  Policies are issued in an amount equal to the purchase price you pay. If you are re-financing, we can frequently use your old policy, regardless of who issued it, to provide a discounted rate. Please let us know in advance if you have a current title policy so that we can give you this benefit.

Attorneys who write title insurance do so to provide their clients the best possible title protection and they do earn a percentage of the premium, as is standard in the insurance industry.  The Brownyard Law Firm offers a policy that includes coverage not traditionally offered by title insurers and provides many enhanced protection features including a post-policy automatic increase in value.  There are many assets we acquire in a lifetime not worth insuring, however property is not one of them. You may take comfort in the fact that title insurance is thoroughly regulated by the State of South Carolina and that the cost of title insurance is the same no matter which attorney you may choose. Discounts other than re-issue as mentioned above are illegal.