Escrow & Title
Under South Carolina law, a mortgage lien is established when:
AThe sales contract is signed
BThe deed of trust is signed and recorded✓ Correct
CThe loan is approved by the lender
DThe closing disclosure is signed
Explanation
In South Carolina, a deed of trust (or mortgage) creates a lien when it is signed and recorded at the county Register of Deeds. Recording establishes priority and provides constructive notice to all.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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