The Big 5
What “Attorney Closing State” Means in South Carolina
Many of our clients are out of state law firms or national commercial title offices handling commercial real estate closings all over the country. It is helpful to know what aspects of the commercial real estate closing must be handled by a South Carolina licensed attorney. So, without further ado, the Big 5 according to the
South Carolina Supreme Court:
1. Title Search. The title search and the preparation of title reports and other title insurance documents for the transaction will be undertaken or supervised by a licensed South Carolina attorney.
2. Real Estate and Loan Documents. The real estate and/or loan documents related to the transaction will be reviewed by a licensed South Carolina attorney, who will have the opportunity to make corrections necessary to insure compliance with applicable law.
3. Closing. The closing of the transaction will be conducted or supervised by a licensed South Carolina attorney.
4. Recording of Documents. Document recording to complete the transaction will be completed or supervised by a licensed South Carolina attorney.
5. Disbursement of Funds. The funds, if any, applicable to the transaction will be disbursed by a licensed South Carolina attorney OR the disbursement process will be reviewed and approved by a licensed South Carolina attorney.
Why do we care? We will get into this more in a follow on post but there are significant unauthorized practice of law (UPL) issues here, ethical issues and enforceability challenges that can wreck a deal and those involved.
As with anything else, it is always better to do the deal the right way the first time and get on with business.
For some light reading, check out our Resources for articles and cases related to this topic.
Need help? Contact us to discuss a good strategy to get your South Carolina commercial real estate transaction closed.