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SC Real Estate: Transfer of Title and Property Rights

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All guide sections

Transfer of Title and Property Rights

Deeds and delivery

A valid deed names a competent grantor and an identifiable grantee, contains words of conveyance, gives a legal description, is signed by the grantor, and is delivered and accepted. Consideration is customary and stated but not essential; acknowledgment before a notary is required for recording. A general warranty deed carries the broadest covenants (seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances); a special warranty limits the grantor's promise to the grantor's own period of ownership; a bargain and sale deed implies limited warranties; a quitclaim conveys whatever interest the grantor may have with no warranty of title.

Recording and evidence of title

Recording gives constructive notice. The recording statute protects the later purchaser who takes without notice and records first, so a grantee who receives a deed but fails to record risks losing to a bona fide purchaser. South Carolina practice relies on a title abstract, attorney title opinion, and title insurance (owner and lender policies) rather than a Torrens system. Marketable title is title reasonably free of objectionable defects.

Other transfer methods

Involuntary transfers include foreclosure, tax sale, bankruptcy, adverse possession, and escheat; voluntary transfers include sale, gift, devise, and dedication. Intestate succession passes to heirs by statute. Quiet title litigation clears competing claims; deed in lieu avoids foreclosure.

Traps

  • A deed means nothing legal until delivered; recording is not delivery.
  • A quitclaim carries no warranties but transfers interest effectively.
  • Possession by a prior grantee can give inquiry notice.

Worked example

Grantor delivers a warranty deed to A, who puts it in a drawer. Grantor then sells to B, who pays value, has no notice, and records immediately. Under the recording statute B keeps title and A is left with a claim against the grantor.