A South Carolina deed of trust designates a trustee as a property’s legal owner until the original owner’s (the “borrower”) debt to a lender is paid. Property conveyed in a deed of trust is returned to the borrower once the loan made via a promissory note is settled. This type of deed allows a lender financing a borrower’s purchase of real estate to protect their loan, as a default will authorize the trustee to begin legal proceedings for foreclosing the property. A deed of trust essentially works like a mortgage in that they both use the borrower’s title to secure a loan. However, the difference is the addition of a trustee who is responsible for holding the title and handling the foreclosure process.
- Statutes: §§ 29-3-10 to 29-3-800
- Formatting: Deeds must include a return address (§ 30-9-30) and a “derivation clause” in the property description (§ 30-5-35). Counties may follow additional formatting rules (see Greenville County).
- Signing Requirements (§ 30-5-30): Notary Public and Two (2) Witnesses. The notary public may sign as one (1) of the witnesses.
- Where to Record (§ 30-7-10): County Registers of Deeds
- Recording Fees (§ 8-21-310(A)(2)): $25
- Affidavit for Taxable or Exempt Transfers: Required when filing an instrument conveying real property (§ 12-24-70).
Related Forms (1)
South Carolina Promissory Note – A legally binding loan contract between a borrower and a lender.