South Carolina Real Estate Contracts: What the Exam Tests

South Carolina contract law follows general real estate principles with state-specific features around transfer tax and deed of trust.

Essential Elements Offer and acceptance, consideration, legal capacity (18+), legal purpose, in writing (Statute of Frauds).

Earnest Money - Salesperson delivers to broker by next business day; broker deposits promptly - 5-year record retention; Retained by seller if buyer defaults; returned to buyer if seller defaults

Deed of Trust in SC SC uses deeds of trust: trustor (borrower) conveys title to trustee; beneficiary (lender) holds note. Default enables non-judicial foreclosure (trustee's sale).

SC Transfer Tax (Deed Recording Fee) - **Rate**: $1.85 per $500 of consideration - **Example**: $425,000 sale: $425,000 / $500 x $1.85 = 850 x $1.85 = **$1,572.50** - Typically paid by the seller (negotiable)

Residential Property Condition Disclosure Required for 1-4 unit residential sales. Sellers must disclose known material defects. Failure to disclose can result in rescission or damages.

Common Exam Question **Q**: A SC buyer and seller agree that the buyer will pay the deed recording fee. Is this allowed? **A**: Yes — while the seller typically pays, the recording fee allocation is negotiable and can be agreed upon in the contract.

[Practice South Carolina contract questions at CARealestate.com/states/south-carolina](https://carealestate.com/states/south-carolina)