Key Takeaways
- South Carolina recognizes fee simple, life estate, and leasehold interests in real property
- Concurrent ownership types include tenancy in common, joint tenancy, and tenancy by the entirety
- South Carolina allows tenancy by the entirety for married couples only
- Property transfers require a deed that is properly executed and recorded
- South Carolina uses the register of deeds (ROD) for recording property documents
Property Ownership in South Carolina
South Carolina recognizes various forms of property ownership that affect how property is held, transferred, and inherited.
Types of Ownership Interests
Fee Simple Absolute
The most complete form of ownership:
| Feature | Description |
|---|---|
| Duration | Indefinite - lasts forever |
| Rights | All rights of ownership |
| Transferable | Can sell, gift, or will to anyone |
| Inheritable | Passes to heirs if no will |
Life Estate
Ownership limited to a person's lifetime:
| Feature | Description |
|---|---|
| Duration | Limited to life of measuring life |
| Life tenant | Person holding the life estate |
| Remainderman | Person who receives property after life tenant dies |
| Restrictions | Cannot commit waste (damage property) |
Leasehold Estate
Right to occupy property for a specific period:
| Type | Description |
|---|---|
| Estate for years | Fixed term with specific end date |
| Periodic tenancy | Renews automatically (month-to-month) |
| Tenancy at will | No fixed term; either party can terminate |
| Tenancy at sufferance | Holdover tenant |
Concurrent Ownership (Co-Ownership)
Tenancy in Common
| Feature | Description |
|---|---|
| Ownership shares | Can be equal or unequal |
| Right of survivorship | No - interest passes to heirs |
| Transfer | Each owner can sell their share |
| Default | Assumed if no other type specified |
Joint Tenancy
| Feature | Description |
|---|---|
| Ownership shares | Must be equal |
| Right of survivorship | Yes - surviving owner(s) get deceased's share |
| Four unities required | Time, title, interest, possession |
| Severance | Can be converted to tenancy in common |
Tenancy by the Entirety
| Feature | Description |
|---|---|
| Who can hold | Married couples only |
| Right of survivorship | Yes |
| Creditor protection | One spouse's creditors cannot attach |
| Severance | Requires both spouses' consent or divorce |
Key Point: South Carolina DOES recognize tenancy by the entirety, which provides protection from individual creditors.
Property Transfer Requirements
Deeds
A deed is the legal document that transfers ownership of real property:
| Deed Type | Warranty Level |
|---|---|
| General Warranty Deed | Highest protection; warrants against all defects |
| Special Warranty Deed | Warrants only during grantor's ownership |
| Quitclaim Deed | No warranties; transfers whatever interest exists |
| Deed of Trust | Used for mortgage purposes |
Elements of a Valid Deed
| Element | Requirement |
|---|---|
| Grantor | Must be identified and competent |
| Grantee | Must be identified |
| Consideration | Usually stated (even if nominal) |
| Granting clause | Words of conveyance |
| Legal description | Property must be accurately described |
| Signature | Grantor must sign |
| Delivery | Must be delivered to and accepted by grantee |
Recording Requirements
South Carolina uses the Register of Deeds (ROD) system:
| Requirement | Details |
|---|---|
| Where to record | County Register of Deeds office |
| Why record | Establishes priority and provides notice |
| Recording tax | State and county transfer taxes apply |
| Notice type | South Carolina is a "race-notice" state |
Transfer Taxes
| Tax | Rate |
|---|---|
| State deed recording fee | $1.85 per $500 of value |
| County recording fees | Varies by county |
Encumbrances
Encumbrances are claims or interests that affect title:
| Type | Description |
|---|---|
| Liens | Financial claims (mortgages, tax liens, judgments) |
| Easements | Right to use another's land |
| Restrictions | Limits on property use (deed restrictions, covenants) |
| Encroachments | Physical intrusion onto adjacent property |
Title Insurance
| Type | Protects |
|---|---|
| Owner's policy | Buyer against title defects |
| Lender's policy | Lender's interest in property |
Exam Tip: In South Carolina, title insurance is commonly used to protect against undiscovered title defects, liens, and other issues.
Which type of concurrent ownership is available ONLY to married couples in South Carolina?
In South Carolina, if a deed does not specify the type of concurrent ownership, what is assumed?
What type of deed provides the MOST protection to the buyer?