February 18, 2026

South Carolina Transaction Guide: How Closings Work

Q: Is an attorney required to close real estate in South Carolina?

Yes. South Carolina law requires an attorney to supervise every real estate closing. This is not merely customary — it is a legal requirement enforced by the South Carolina Supreme Court. The attorney conducts the title examination, prepares closing documents, supervises the execution of documents, handles disbursement of funds, and ensures proper recording. Title companies cannot independently conduct closings in South Carolina.

Q: What is the due diligence period in South Carolina?

The due diligence period in South Carolina gives the buyer a set number of days (negotiated in the contract, typically 10-14 days for retail deals) to conduct inspections, review the property, and make a decision about whether to proceed. During this period, the buyer can terminate the contract for any reason — the termination right is essentially unrestricted. This is similar to the due diligence period in North Carolina and Georgia. On investment deals, the due diligence period is typically waived or set to zero days.

Q: How much are deed stamps in South Carolina?

South Carolina deed stamps (also called deed recording fees or transfer tax) are $1.85 per $500 of the sale price, or $3.70 per $1,000. The seller customarily pays deed stamps. On a $200,000 property, deed stamps are $740. On a $300,000 property, deed stamps are $1,110. This is a relatively moderate transfer tax compared to states like Pennsylvania or Illinois.

Q: Who pays for title insurance in South Carolina?

In South Carolina, the buyer customarily pays for the owner's title insurance policy. This is the opposite of states like Texas and Tennessee, where the seller typically pays. The buyer also pays for the lender's title insurance policy if obtaining a mortgage. Because the buyer pays for title insurance, the buyer typically gets to choose the closing attorney.

Q: Can you wholesale real estate in South Carolina?

Yes, but with regulatory requirements. HB 4754 established rules for wholesale transactions in South Carolina, including disclosure obligations. Assignment of contract is permitted unless the contract prohibits it. Double closings are also permitted with an attorney supervising both transactions. See our South Carolina compliance guide for the full regulatory picture.

South Carolina is one of a handful of states where an attorney is required by law to supervise every real estate closing. This is not just customary — the South Carolina Supreme Court has ruled that conducting a real estate closing without attorney supervision constitutes the unauthorized practice of law. Title companies cannot independently handle closings in South Carolina the way they do in Texas, Ohio, or Florida.

South Carolina also uses a due diligence period similar to North Carolina and Georgia. This gives the buyer an unrestricted right to terminate the contract during a negotiated window, for any reason. Combined with the attorney-closing requirement, South Carolina closings have a particular rhythm that differs from title-company states.

The state has a growing investment market, particularly in the Charleston, Columbia, and Greenville/Spartanburg areas. Wholesalers and investors operate actively throughout the state, and HB 4754 established regulatory requirements for wholesale transactions. For the full compliance picture, see our South Carolina compliance guide.

How Closings Work in South Carolina

Every real estate closing in South Carolina must be supervised by a licensed South Carolina attorney. The closing attorney handles the entire process: title examination, lien search, preparation of the closing disclosure and settlement statement, deed preparation, document execution supervision, fund disbursement, and deed recording.

In practice, the closing attorney is often selected by the buyer, because the buyer customarily pays for the owner's title insurance and the attorney's closing fee. The seller can have their own attorney review the transaction, but the closing itself is conducted by a single attorney who represents the transaction (not one party specifically, unless an attorney explicitly represents one side).

The closing is typically an in-person meeting at the attorney's office. Both buyer and seller attend (or authorize a power of attorney to sign on their behalf), sign the necessary documents, and the attorney disburses funds from the trust account once all conditions are met and the deed is recorded. Mail-away closings are possible, particularly for out-of-state buyers, but the attorney still supervises the process.

Title insurance in South Carolina is issued by a title insurance underwriter (such as First American, Old Republic, or Fidelity) through the closing attorney, who acts as the title agent. The attorney examines title and certifies it to the underwriter, which then issues the policy.

Termination Rights and Due Diligence

Retail / Owner-Occupant Deals

South Carolina residential contracts typically include a due diligence period — a negotiated number of days during which the buyer has the unrestricted right to terminate the contract for any reason. This is similar to the Georgia and North Carolina models.

The due diligence period is typically 10-14 days on retail transactions, though the length is negotiable. During this window, the buyer can:

Conduct home inspections (structural, mechanical, pest, environmental)
Review the title commitment for any defects or encumbrances
Evaluate the property for any reason — the termination right is not limited to specific findings
Terminate the contract and receive a full refund of earnest money

Once the due diligence period expires, the buyer's earnest money becomes at-risk. If the buyer terminates after the due diligence period (absent a separate contingency like financing), the seller may be entitled to the earnest money as liquidated damages.

A financing contingency is standard on financed purchases, providing additional protection if the buyer cannot secure mortgage approval. An appraisal contingency is also common.

Investment / Wholesale Deals

Off-market investment deals typically waive the due diligence period entirely or set it to zero days. The buyer is purchasing at a discount with the understanding that the property needs work, and the seller expects a firm, no-contingency commitment. Earnest money is non-refundable from the moment the contract is signed.

Some investors negotiate a very short due diligence period (1-3 days) to allow for a basic property walkthrough, but this is less common. The norm on off-market wholesale and investment deals is no due diligence period and non-refundable deposits.

Earnest Money

Retail Deals

Earnest money on retail transactions in South Carolina is typically 1-2% of the purchase price. In competitive markets like Charleston, higher deposits (2-3%) are common. The earnest money is held in escrow by the closing attorney's trust account.

The deposit is refundable during the due diligence period. After the due diligence period expires, it becomes at-risk. South Carolina law has specific rules about how disputed earnest money is handled — the closing attorney holds the funds in trust until both parties agree to a disbursement or a court orders it.

Investment and Wholesale Deals

On off-market investment deals, earnest money is typically $1,000-$5,000 and is non-refundable from contract execution. The deposit is held by the closing attorney. Wholesalers typically put up $500-$2,000 on their A-to-B contracts and require $2,000-$5,000+ from end buyers.

Who Pays for What

Retail Transaction Customs

Deed stamps (transfer tax): Seller pays. The rate is $1.85 per $500 of sale price ($3.70 per $1,000). On a $250,000 property, deed stamps are $925.
Owner's title insurance: Buyer pays. This is different from states like Texas where the seller pays. Because the buyer pays for title insurance, the buyer typically selects the closing attorney.
Lender's title insurance: Buyer pays.
Closing attorney fee: Varies. The buyer's closing attorney fee ranges from $500 to $1,200+. Some transactions have the buyer and seller each paying their own attorney, while in others the buyer pays the primary closing attorney fee.
Recording fees: Buyer typically pays for deed and mortgage recording.
Property tax proration: Prorated as of the closing date. South Carolina property taxes are paid in arrears.

Investment Transaction Customs

Deed stamps: Seller typically pays, though this is negotiable on deeply discounted deals.
Title insurance: Buyer pays. Most investors purchase owner's title insurance even on cash deals as protection against title defects.
Attorney fees: Each side pays their own if they have separate counsel. The closing attorney fee is typically paid by the buyer.
Total closing costs: On a cash investment deal, expect $2,000-$4,000 in total closing costs including attorney fees, title insurance, deed stamps (seller's side), and recording fees.

Title Work and Insurance

Title examination in South Carolina is conducted by the closing attorney. The attorney searches the public records for the chain of title, any liens, mortgages, judgments, tax liens, easements, and encumbrances. The attorney then certifies the title to the title insurance underwriter, which issues the title commitment and, after closing, the final policy.

Because the attorney performs the title examination rather than a separate title company, the quality of the title work is directly tied to the attorney's competence and thoroughness. Choosing an experienced real estate closing attorney is important — particularly on investment deals where properties may have more complex title issues (tax liens, code violations, estate situations).

Title insurance premiums in South Carolina are regulated and based on the sale price. For a $200,000 property, expect approximately $900-$1,200 for the owner's policy. Simultaneous issue discounts apply when both owner's and lender's policies are purchased together.

Wholesale-Specific Closing Notes

Attorney supervision required: Both assignment closings and double closings in South Carolina must be supervised by an attorney. You cannot close a wholesale deal through a title company alone.
Assignment closings: Assignment of contract is permitted unless the contract prohibits it. The assignment fee is disclosed on the settlement statement. The closing attorney handles the assignment paperwork as part of the closing.
Double closings: Simultaneous closings (A-to-B / B-to-C) are permitted in South Carolina. The same attorney can handle both transactions. Transactional funding is available if needed to fund the A-to-B side before the B-to-C side closes.
HB 4754 compliance: South Carolina has wholesale-specific regulations under HB 4754, including disclosure requirements. See our South Carolina compliance guide for details.
Finding an investor-friendly attorney: Not all closing attorneys in South Carolina are familiar with wholesale transactions. Find one who regularly handles assignments and double closings in your target market (Charleston, Columbia, Greenville) before putting deals under contract.

Typical Closing Timeline

Retail (financed): 30-45 days. Due diligence (10-14 days) + loan processing and underwriting (15-25 days) + closing coordination (5-7 days).
Retail (cash): 14-21 days. Due diligence (10 days if retained) + title examination (7-10 days) + document preparation (3-5 days).
Investment (off-market cash): 7-14 days. No due diligence period. Title examination (5-7 days) + closing coordination (2-5 days). Attorney closings can move quickly when title is clean.
Wholesale assignment: 10-21 days from contract to close. Timeline depends on end buyer identification and title clearance.

Key Differences from Other States

Attorney required by law: Unlike Pennsylvania (customary) or Texas (title company), South Carolina legally requires attorney supervision at closing. This is enforced by the state Supreme Court as an unauthorized practice of law issue.
Due diligence period: South Carolina uses a due diligence period with unrestricted termination rights, similar to Georgia and North Carolina. This is different from the inspection contingency model used in Ohio, Indiana, and Pennsylvania, where termination must be tied to specific inspection findings.
Buyer pays title insurance: Unlike Texas, Tennessee, and many other states where the seller pays the owner's title policy, South Carolina buyers customarily pay. This affects who chooses the closing attorney.
No option fee: South Carolina does not have an option fee mechanism like Texas. The due diligence period serves the buyer protection function.
Deed stamps (not transfer stamps): South Carolina calls its transfer tax "deed stamps" at $1.85 per $500. The rate is moderate compared to Pennsylvania or Illinois but higher than states with no transfer tax like Texas or Indiana.
Property taxes in arrears: Like Illinois, South Carolina property taxes are paid in arrears, creating proration credits at closing.

Frequently Asked Questions

Is an attorney required to close real estate in South Carolina?

Yes, by law. The South Carolina Supreme Court has ruled that conducting a real estate closing without attorney supervision constitutes the unauthorized practice of law. Every closing must be supervised by a licensed South Carolina attorney, who handles the title examination, document preparation, fund disbursement, and recording.

What is the due diligence period in South Carolina?

The due diligence period is a negotiated window (typically 10-14 days on retail deals) during which the buyer can terminate the contract for any reason and receive a full refund of earnest money. It is an unrestricted termination right. On off-market investment deals, it is typically waived.

How much are deed stamps in South Carolina?

Deed stamps are $1.85 per $500 of sale price, or $3.70 per $1,000. On a $200,000 property, deed stamps are $740. On a $300,000 property, $1,110. The seller customarily pays deed stamps.

Who pays for title insurance in South Carolina?

The buyer customarily pays for the owner's title insurance policy in South Carolina. This is the opposite of states like Texas where the seller pays. The buyer also pays for the lender's policy if financing the purchase.

Can you wholesale real estate in South Carolina?

Yes, with compliance requirements. HB 4754 regulates wholesale transactions including disclosure obligations. Assignment and double closings are both permitted, but all closings must be supervised by an attorney. See our South Carolina compliance guide for full details.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Transaction customs vary by county and market conditions. Closing procedures, deed stamp rates, and local customs can change. Consult a licensed real estate attorney in South Carolina before relying on this information for any particular transaction. Deal Run provides tools and information to help investors operate more effectively — we are not a law firm and do not provide legal services.