SCR Risk Management
NAR Code of Ethics #13 Article
Always verbally and in writing for your records, recommend that parties obtain legal information from their attorneys, closing attorneys, and trial lawyers for disputes.
SCR offers mediation information for mediated self-settlement prior to litigation (e.g., litigation = uncertain outcome, expensive, lengthy, no control over outcome).
Here is Hayes Walsh’s article on his attendance at a recent SC Bar continuing education class for SC real estate oriented attorneys.
On Tuesday, October 20, 2026, the South Carolina Bar Continuing Legal Education Division presented its 2026 Residential Real Estate Essentials course. Although the course was geared towards providing attorneys with basic legal knowledge regarding residential real estate transactions in South Carolina, it provided some takeaways that are good for Realtors® to remember.
-
South Carolina is an “attorney-closing state”. An attorney must supervise residential real estate and mortgage loan closings. Supervising and conducting closings is considered the practice of law, and non-lawyers cannot close residential transactions.
-
Attorneys view the closing cycle as having three distinct phases: (i) Pre-closing; (ii) Closing; and (iii) Post-closing.
-
Attorneys have duties to and may represent more than one party at the closing. They may represent or be performing work for the buyer, seller, lender, title company or any combination thereof. It is situation specific and varies from transaction to transaction.
-
Attorneys are a good referral source for Realtors® and Realtors®’ services. Realtors® should cultivate relationships with them.
-
Attorneys have very specific rules regarding their trust accounts, the acceptance of funds, and funds disbursal. If the attorney will be holding the earnest money or if you are bringing any funds to the closing, check with the attorney’s office regarding what payment forms they accept and for any amount and timing limitations and restrictions.
-
Do not give legal or tax advice. If your clients have any questions regarding how they should hold title, what type of deed to use or if there will be any tax implications, direct them to their legal, tax and estate planning professionals.
-
If your client asks whether they should get a new survey, advise them to discuss it with their attorney. The decision has legal and title insurance implications, and their attorney can explain the risks and consequences of their choices.
-
All covenants and restrictions affecting the property should be reviewed by the client with an opportunity to ask their attorney any questions. How the client intends to use the property and if it can be used as intended may be affected by the covenants and restrictions. Do not assume you know how the clients want to or will use the property. If they have any questions, they need to ask their attorney. Typically, if there is a conflict between the covenants and restrictions and zoning ordinances, the most restrictive wins.
-
Be responsive. Everyone is working under timelines and want to close the transaction with minimal disruptions and without delays.
-
Refer any questions regarding title insurance to the attorney. There are different types of title insurance policies with varying levels of coverage and requirements.
by Hayes Walsh, Esq
Posted by: Byron King on 10/23/26 (This information is only accurate as of 10/23/26. You must contact SCR for updates and changes to this information after 10/23/26, as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.