USA – SOUTH CAROLINA Law and Practice Contributed by: Matt Norton, Parker Havis and Aaron Lay, K&L Gates
ment has limited the scope of the beneficial ownership information reporting requirements under the Corpo - rate Transparency Act to foreign reporting companies only, pending issuance of a final rule. Relevant filing deadlines and exposure to potential fines will need to be closely monitored during the pendency of a final ruling. With effect from 1 March 2026, the Financial Crimes Enforcement Network (FinCEN) implemented a new rule, subject to limited exemptions, requiring certain individuals to report specific information to FinCEN about non-financed transfers of residential real prop - erty in the United States to legal entities or trusts. The rule encompasses traditional residential proper - ties, including single-family residences, multi-family dwellings of up to four units, condominium and co- operative units, mixed-use properties with a residen - tial component for occupancy by one to four families, and certain vacant parcels intended for residential development where the transferee intends to con - struct one or more structures designed for occupancy by one to four families. Property rights generally fall into three categories – fee interest, leasehold interest and easement interest. A fee interest generally describes ownership of the land and is often transferred by deed. A leasehold interest generally describes the right to use but not own the land, such as the interest acquired by a tenant when they enter into a lease with a landlord. An easement interest generally describes the right to access a por - tion of someone else’s land and is generally acquired pursuant to an easement agreement. 2.2 Laws Applicable to Transfer of Title South Carolina has formal requirements for the valid - ity of conveyancing real estate instruments to be recorded in the real property records located in each county. The parcel or parcels conveyed must have been legally created as separate parcels; any con - veyance subdividing a parcel or combining multiple parcels into a single parcel requires an application and government approval for such reconfiguration. There 2. Sale and Purchase 2.1 Categories of Property Rights
are no special laws or regulations that apply to the transfer of specific types of real estate (although spe - cific uses are always subject to zoning and land-use regulations). 2.3 Effecting Lawful and Proper Transfer of Title South Carolina has formal requirements for the valid - ity of conveyancing real estate instruments to be recorded in the real property records located in each county. The parcel or parcels conveyed must have been legally created as separate parcels; any con - veyance subdividing a parcel or combining multiple parcels into a single parcel requires an application and government approval for such reconfiguration. There are no special laws or regulations that apply to the transfer of specific types of real estate (although spe - cific uses are always subject to zoning and land-use regulations). 2.4 Real Estate Due Diligence Many aspects of real estate transactions are subject to arcane and technical rules and regulations, and, as a result, it is critical to have the assistance of knowl - edgeable South Carolina counsel. With respect to title due diligence, South Carolina is one of the few states in which law firms act as title insurance agents; most South Carolina law firms are empowered to issue title insurance commitments and policies. This arrange - ment facilitates the negotiation of title insurance coverage and allows for integration of title insurance coverage with the closing process. For these reasons, due diligence relating to title is generally conducted by purchaser’s counsel, and the purchaser or its counsel is responsible for the title examination and obtaining title insurance. South Carolina is a filed-rate state, meaning that title insurance premiums are largely fixed by state regula - tion, although there may be some negotiation for the price of endorsements. Although not typical, in some transactions the seller will tender a basic title commit - ment for review by purchaser’s counsel. Surveys Purchasers are advised to obtain new surveys meet - ing the standards set forth by the American Land Title Association (ALTA) and the National Society of Profes -
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