South Carolina Real Estate Closing Guide

South Carolina features beautiful natural features, including spectacular beaches, historic districts and sweeping views of the Blue Ridge Mountains. The state has become a major attraction for homeowners looking for an enjoyable place to live and reasonable housing prices. 

Buying a home in a new state or going through the home-buying process for the first time is very exciting, but it can also be stressful. You'll need to complete several tasks to ensure your purchase does not fall through, including acquiring an attorney to safeguard your investment. If you're interested in purchasing or ready to put an offer on a residence in South Carolina, we're here to help you understand the process of closing on a home. 

Understanding South Carolina Real Estate Closing Guidelines

Whether you're buying a home for the first time in South Carolina or moving to the state for a fresh start, it's important to understand the basics of the closing process so you know what to expect. Use this South Carolina real estate closing guide checklist for a quick review:

1. Schedule the closing: The parties involved, including the buyer, seller, mortgage lender and real estate attorneys, must agree to a date and time to conduct the closing.
2. Open an escrow account: An escrow account holds the property and funds involved in the closing process in real estate transactions. This account is held by a third party to protect buyers and sellers until the purchase agreement is fulfilled.
3. Gather essential information: The buyer and seller must provide their attorneys with banking and homeowner documents, loan information, homeowners insurance, title information and homeowners association (HOA) dues. During this time, the buyer's attorney will secure title insurance and perform a title search to check for outstanding claims, judgments or liens.
4. Inspections: Home and pest inspections are vital before closing to check for structural problems or wood-destroying insects on the property. This allows the buyer to back out or request the seller to fix the issues before closing. Pest inspections are required in South Carolina, but full home inspections are not. However, buyers must complete all inspections and review documents within the due diligence period outlined in the purchase agreement. 
5. Final steps: The real estate attorney will review the title search, legal documents and contingencies and help the buyer negotiate closing costs. The buyer may lock in their interest rate at this point to prevent an increase before the purchase is finalized.

Navigating Legal Requirements: Is South Carolina an Attorney Closing State?

Yes. South Carolina is one of the few states that requires buyers to hire an attorney before closing on real estate or mortgage loans. This process differs from many other states and protects the buyer from signing a contract they may not understand. Attorneys must supervise and review:

• The title search of the property
• Obtaining title insurance
• The recording and filing of legal documents
• The disbursement of closing funds
• Title issues, including mortgage debts and unpaid taxes
• Compliant payments according to the purchase agreement for the lender, seller and buyer

The real estate attorney must be present at the closing to ensure all legal requirements are fulfilled and correct. According to the South Carolina Consumer Protection Code, the buyer chooses the closing attorney, and lenders must abide by their selection.

FAQs About Closing on a Home in South Carolina

Once you've maneuvered through the home-buying process, it's time to officially close. Here are some common questions about how to close on a house.

1. What Happens on the Day of Closing?

On the day of closing, all parties will visit the attorney's office to sign paperwork and complete the transaction. At this point, the mortgage loan has been processed, and the deed has been recorded. Your attorney will review the closing figures and settlement statement. The buyer and seller will review and sign the required documents. The process takes about an hour to complete. 

2. Who Must Be Present at the Closing?

The following key people must be present at closing:

• The attorney
• The buyer(s)
• The seller(s)
• The real estate agent(s)
• The lender

Sometimes, the closing may be conducted remotely if the buyer lives out of state or cannot attend in person.

3. Do Both Buyers Need to Be Present at Closing?

Yes. Both buyers are generally required to be present at closing if both their names will be on the title.

4. What Do I Need to Bring to Closing?

You must bring two acceptable forms of ID for a mortgage closing. These can be your driver's license, Social Security card, passport, military ID or voter's registration. As the buyer, you will also need to have the certified funds necessary to close on the property, which can be completed through wire transfer or certified check. The seller will need to bring the keys to the home.

5. How Long Does It Take to Close on a House?

The general timeline for closing on a house is 30 to 60 days. This depends on how long it takes to complete several steps, including:

• Signing the purchase agreement
• Opening an escrow account
• Completing the home inspections
• Completing the home appraisal
• Completing mortgage underwriting
• Ensuring a clear title
• Obtaining title insurance
• Conducting the final walk-through
• Signing the closing paperwork

However, remember that these processes can get delayed if you run into financing issues or title claims.

6. How Much Are Closing Costs?

Closing costs vary widely depending on your location, lender and services used, but you should expect to pay anywhere from about 1% to 7% of the home's purchase price in fees, which may include:

• Application fees
• Attorneys fees
• Closing fees
• Escrow deposit
• Homeowners insurance
• Title insurance
• Title search fee
• Origination fee
• Prepaid interest
• Survey fee
• Transfer tax

Buyers are responsible for paying most of the closing costs in a South Carolina real estate transaction, although sellers may be subject to some expenses. As a buyer, you may also be able to negotiate with the seller to help pay for the closing costs.

Navigating Post-Closing Steps

Once you've successfully closed on your home, what's next? A few post-closing steps for facilitating a seamless transition and securing your home include:

1. Residential taxes: If your new home is your primary residence, you'll need to change the address on your ID to apply for the special residential tax rate in your new county. If the property is not your primary residence, you can file for an assessable transfer of interest (ATI) exemption for a partial taxation exemption of up to 25%.
2. Title to real estate: You'll receive the recorded deed or title to the property and title of insurance. Retain these documents permanently and safely in the event of an issue.
3. Property taxes: In South Carolina, property taxes are prorated at closing. If you buy a home in the middle of the year, the seller is responsible for some of the estimated property taxes for the time they occupied the house. You will then need to pay the tax bill when it arrives around November.

Contact SK Builders, Inc. for Guidance During the Closing Process

Navigating the closing process in South Carolina can be overwhelming, especially when you're eager to seal the deal and get into your new residence. If you're looking into South Carolina real estate, take the next steps with SK Builders, Inc. We're dedicated to helping future homeowners embark on their journey with confidence. With over 25 years of experience designing, crafting, and building quality homes, we can help you make an informed decision about buying or building a place you're proud to call home.

Our team will support you from contract to closing, whether you're interested in a starter home or creating your dream home in South Carolina. Browse our available builds today, or contact us to learn more about our building and real estate services.