In real estate transactions, there’s more to consider than just finding the right property or negotiating the best price. The legal side is just as crucial and often more complicated. The good news is that with the right legal partner by your side, you can navigate potential pitfalls and ensure that your deal is safe and sound.

I recently had the pleasure of interviewing Michael Thomas Bagwell, a shareholder attorney at Bradley K. Richardson P.C., on my podcast. We dove deep into the essential role that closing attorneys play in South Carolina real estate transactions. Michael shared some incredibly valuable insights on protecting yourself from mistakes, fraud, and the complex legalities that come with buying or selling property.

The Role of a Closing Attorney in South Carolina

If you’re buying or selling real estate in South Carolina, you can’t skip the closing attorney. Unlike many states, South Carolina law requires this legal expert to be part of every real estate transaction. And trust me, this isn’t something you want to overlook.

So, what does a closing attorney actually do?

Michael explained it perfectly—they handle the legal aspects of the transaction, ensuring everything is in order before you sign on the dotted line.

Here’s a breakdown of their key roles:

• Conducting a Title Search - They go through property records to make sure the seller actually owns the property and that there are no legal claims, like unpaid mortgages or liens.

• Ensuring a Clear Transfer of Ownership - They make sure that the property’s title is properly conveyed to the buyer, without any legal hiccups.

• Preventing Costly Mistakes - They help you avoid errors, from mismatched legal descriptions to other title issues that could cause problems down the road.

• Protecting Your Rights - They ensure that when you buy a property, you get the full "bundle of rights"—meaning, you’re getting exactly what you think you’re paying for.

Common Pitfalls in Real Estate Transactions Without Legal Oversight

Skipping a closing attorney can lead to some serious headaches.

Improper Property Descriptions

Without a closing attorney, you might end up with a deed that describes the property incorrectly, leaving you with legal confusion if you try to sell it later.

Legal Issues in Deeds

Errors in the deed could lead to disputes over ownership, and sometimes it’s just not clear who actually owns what.

Unresolved Liens or Judgments

A closing attorney ensures that any outstanding debts on the property, like unpaid taxes or judgments, are cleared before the deal goes through. If not, you could inherit those issues.

The Importance of Title Insurance and Fraud Prevention

Fraud is rampant, and title insurance provides much-needed protection. Michael highlighted several types of fraud that can occur in real estate, including wire fraud and seller impersonation. Fraudsters are getting more creative and sophisticated, which makes it even more crucial to have this coverage.

Having a closing attorney ensures that title insurance is in place, which gives you peace of mind. It’s one of those costs that’s well worth it, especially when it comes to protecting your assets.

Tax Liens and Quiet Title Actions

Michael explained that tax lien sales can be appealing to investors because they’re often available at low prices. However, buying these properties at auctions can come with significant risks, especially if the property’s title hasn’t been cleared.

What Is a Quiet Title Action, And Why Does It Matter?

A quiet title action is a legal process that ensures the buyer has clear ownership of the property. It’s especially important when purchasing properties at tax lien auctions, as there may be competing claims or unresolved issues with the title.

However, this process isn’t cheap. According to Michael, it can range from $4,000 to $6,000, depending on the complexity of the case. And, it can take up to six to nine months to resolve.

So, it’s important to factor that into your plans if you’re purchasing tax lien properties.

Types of Deeds and Their Implications in Real Estate Transactions

There are different types of deeds used in South Carolina real estate deals. Each one provides a different level of protection, and it’s important to understand what you’re getting.

General Warranty Deed

This is the most protective type. It guarantees that the seller owns the property and has the right to transfer it without issues.

Special Warranty Deed

Commonly used in bank-owned properties, this type only guarantees the seller’s ownership during the time they held the property. It doesn’t cover past issues with the title.

Quitclaim Deed

This one offers no guarantees at all. It’s usually used when there’s no warranty involved, like in tax lien transactions. It’s a high-risk move if you’re not careful.

Bradley K. Richardson's Approach

Bradley K. Richardson is known for being responsive and accessible. One thing that sets them apart is that they don’t just pass you off to staff or paralegals. You’ll get direct access to an attorney when you need legal advice, which ensures you’re always getting the most accurate and timely information.

Michael is particularly committed to fast communication. He told me that he often responds to emails at all hours—something that really demonstrates how much the firm cares about its clients’ needs.

Ways to Stay Informed

If you want to stay ahead of the curve when it comes to real estate in South Carolina, there are great resources available. Listening to real estate podcasts, especially those that feature local experts, is an excellent way to stay informed.

Want to hear my entire conversation with Michael? Listen to our podcast episode! 

Check Out HomeBrew Podcast to Know About What’s Brewing in Real Estate in South Carolina!

Michael’s insights show how crucial it is to have a legal partner in real estate transactions. With a closing attorney, you protect yourself from costly mistakes, fraud, and legal disputes that could jeopardize your deal.

If you’re looking for more expert advice and stories from South Carolina’s real estate and business scene, tune into HomeBrew Podcast. We delve into local topics and feature some of the industry's top minds, such as Michael.

And, if you’re buying or selling a home in South Carolina, contact us at JW Martin Real Estate. We’re here to guide you through the process and ensure you make informed, safe decisions! 

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