What affidavit must be filed with a South Carolina deed, and which sample affidavits does the Department provide (per SC IL #15-6)?

Plain-English summary

This Information Letter supplies two sample affidavits for South Carolina's deed recording fee and supersedes SC Information Letter #06-12. When a deed is recorded, S.C. Code § 12-24-70 requires an affidavit showing the value of the realty to be filed with it. The affidavit must be signed by a responsible person connected with the transaction (who must state that connection), though the clerk of court or register of deeds may, at his discretion, waive it. For deeds that are exempt from the fee, the affidavit need not state a value but must state the reason for the exemption.

The Department provides the affidavits as a convenience for taxpayers and local recording officials:

• The first sample affidavit may be used for either taxable or exempt transfers.
• The second may be used only for exempt transfers.

Local officials may require an affidavit with additional information to meet local needs. The letter also retires an old form: affidavits that reference an "arm's length transaction" (based on a 1996 sample tied to a prior version of the deed recording fee law) are no longer valid and should not be used or accepted when a deed is filed. For more on the deed recording fee, the letter points to the Department's advisory opinions SC Revenue Rulings #15-3 and #99-2 and SC Revenue Procedure #15-1.

The letter also notes that willfully furnishing a false or fraudulent affidavit is a misdemeanor, and that no affidavit is required for a deed of distribution to an estate distributee under § 62-3-907.

What this means for you

If you are recording a deed

File the required value affidavit, signed by someone connected with the transaction. If the transfer is exempt, use an affidavit that states the reason for the exemption instead of a value. Do not use an old "arm's length transaction" affidavit — it is no longer valid.

If you are a closing attorney or title professional

Use the current sample affidavits (first for taxable or exempt transfers, second for exempt only), and check whether the local clerk or register of deeds wants additional information.

Common questions

Q: What affidavit is required when recording a South Carolina deed?
A: An affidavit showing the value of the realty, signed by a responsible person connected with the transaction, under § 12-24-70. For exempt deeds, the affidavit states the reason for the exemption rather than a value; the recording official may waive the affidavit.

Q: Which sample affidavit do I use?
A: The first sample may be used for either taxable or exempt transfers; the second may be used only for exempt transfers.

Q: Can I still use an "arm's length transaction" affidavit?
A: No. Those forms (based on a 1996 sample for a prior version of the law) are no longer valid and should not be used or accepted.

Subject

Sample Affidavits

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL15-6.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC INFORMATION LETTER #15-6
SUBJECT:

Sample Affidavits
(Deed Recording Fee)

DATE:

June 8, 2015

SUPERSEDES

SC Information Letter #06-12

REFERENCE:

S. C. Code Ann. Section 12-24-10 (2014)
S. C. Code Ann. Section 12-24-70 (2014)
S. C. Code Ann. Section 62-3-907 (Supp. 2014)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

When recording a deed, Code Section 12-24-70 requires an affidavit to be filed with a deed and
states:
(A)(1) The clerk of court or register of deeds shall require an affidavit showing
the value of the realty to be filed with a deed. The affidavit required by this
section must be signed by a responsible person connected with the transaction,
and the affidavit must state that connection. The clerk of court or register of
deeds, at his discretion, may waive the affidavit requirement.
(2) For deeds exempt from the provisions of this chapter, the value is not
required to be stated on the affidavit, but the affidavit must state the reason the
deed is exempt from the fee.
(B) The clerk of court or register of deeds shall file these affidavits in his office.
1

(C) A person required to furnish the affidavit who wilfully furnishes a false or
fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be
fined not more than one thousand dollars or imprisoned not more than one
year, or both.
(D) An affidavit is not required for an instrument or deed of distribution
assigning, transferring, or releasing real property to the distributee of an estate
pursuant to Section 62-3-907 as evidence of the distributee's title.
The Department has two sample affidavits that it provides as a convenience for taxpayers and
local recording officials. (Note: Local officials may require an affidavit with additional
information to meet local needs.)
The first affidavit may be used for either taxable transfers or exempt transfers. The second
affidavit may be used only for exempt transfers. These sample affidavits are attached.
Finally, from time to time local recording officials receive affidavits that reference an “arm’s
length transaction.” These affidavits are based on a sample affidavit developed by the
Department in 1996 for a prior version of the deed recording fee law and are no longer valid.
Any affidavit that references an “arm’s length transaction” should no longer be used, or
accepted, when a deed is filed.
For additional information on the deed recording fee, see the following advisory opinions on
the Department’s website at www.dor.sc.gov:
SC Revenue Ruling #15-3
SC Revenue Ruling #99-2
SC Revenue Procedure #15-1

Question and Answer Summary
IRC Section 1031 – Tax Deferred Exchanges
Refund Procedures

Note: “An instrument or deed of distribution assigning, transferring, or releasing real
property to the distributee of a decedent's estate pursuant to Section 62-3-907 as evidence of
the distributee's title to the property is not a deed subject to [the deed recording fee.]” Code
Section 12-24-10(B).
In addition, “[a]n affidavit is not required for an instrument or deed of distribution assigning,
transferring, or releasing real property to the distributee of an estate pursuant to Section 623-907 as evidence of the distributee's title.” Code Section 12-24-70(D).
As such, the exemption is not listed on the sample affidavits. However, if a person wishes to
use and file an affidavit stating that the transaction is exempt under Code Section 12-2410(B), such person may complete the affidavit and reference this exemption and code
section.

2

STATE OF SOUTH CAROLINA ) ...................................................................................................................... Page 1 of 2
COUNTY OF
) .................................................... AFFIDAVIT FOR TAXABLE OR EXEMPT TRANSFERS
PERSONALLY appeared before me the undersigned, who being duly sworn, deposes and says:

1. I have read the information on this affidavit and I understand such information.
   2 The property being transferred is located at
   bearing
   County Tax Map Number
   to

,
, was transferred by
on

.

3. Check one of the following: The deed is
   (a)
   (b)
   (c)

subject to the deed recording fee as a transfer for consideration paid or to be paid in
money or money’s worth.
subject to the deed recording fee as a transfer between a corporation, a partnership, or
other entity and a stockholder, partner, or owner of the entity, or is a transfer to a trust
or as a distribution to a trust beneficiary.
exempt from the deed recording fee because (See Information section of affidavit):

(If exempt, please skip items 4 - 7, and go to item 8 of this affidavit.)

If exempt under exemption #14 as described in the Information section of this affidavit, did the agent and principal
relationship exist at the time of the original sale and was the purpose of this relationship to purchase the realty?
Check Yes
or No _____

4. Check one of the following if either item 3(a) or item 3(b) above has been checked (See Information section of
   this affidavit.):
   (a)
   (b)
   (c)

The fee is computed on the consideration paid or to be paid in money or money’s worth
in the amount of
.
The fee is computed on the fair market value of the realty which is
.
The fee is computed on the fair market value of the realty as established for property
tax purposes which is
.

5. Check Yes
   or No
   to the following: A lien or encumbrance existed on the land, tenement, or
   realty before the transfer and remained on the land, tenement, or realty after the transfer. If “Yes,” the amount
   of the outstanding balance of this lien or encumbrance is: ______.
6. The deed recording fee is computed as follows:
   (a) Place the amount listed in item 4 above here:

(b) Place the amount listed in item 5 above here:

(If no amount is listed, place zero here.)
(c) Subtract Line 6(b) from Line 6(a) and place result here: ______
7. The deed recording fee due is based on the amount listed on Line 6(c) above and the deed recording fee due is:
.
8. As required by Code Section 12-24-70, I state that I am a responsible person who was connected with the
transaction as:
.
Page 2 of 2

9. I understand that a person required to furnish this affidavit who wilfully furnishes a false or fraudulent affidavit
is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned
not more than one year, or both.
Responsible Person Connected with the Transaction
Print or Type Name Here
SWORN to before me this
Notary Public for
My Commission Expires:
INFORMATION
Except as provided in this paragraph, the term "value" means “the consideration paid or to be paid in money or money’s worth for the realty.’
Consideration paid or to be paid in money’s worth includes, but is not limited to, other realty, personal property, stocks, bonds, partnership
interest and other intangible property, the forgiveness or cancellation of a debt, the assumption of a debt, and the surrendering of any right.
The fair market value of the consideration must be used in calculating the consideration paid in money’s worth. Taxpayers may elect to use the
fair market value of the realty being transferred in determining fair market value of the consideration. In the case of realty transferred
between a corporation, a partnership, or other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to
a trust or as a distribution to a trust beneficiary, “value” means the realty’s fair market value. A deduction from value is allowed for the amount
of any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining on the land, tenement, or realty after
the transfer. Taxpayers may elect to use the fair market value for property tax purposes in determining fair market value under the provisions
of the law.
Exempted from the fee are deeds:
(1) transferring realty in which the value of the realty, as defined in Code Section 12-24-30, is equal to or less than one hundred dollars;
(2) transferring realty to the federal government or to a state, its agencies and departments, and its political subdivisions, including school
districts;
(3) that are otherwise exempted under the laws and Constitution of this State or of the United States;
(4) transferring realty in which no gain or loss is recognized by reason of Section 1041 of the Internal Revenue Code as defined in Section 12-640(A);
(5) transferring realty in order to partition realty as long as no consideration is paid for the transfer other than the interests in the realty that are
being exchanged in order to partition the realty;
(6) transferring an individual grave space at a cemetery owned by a cemetery company licensed under Chapter 55 of Title 39;
(7) that constitute a contract for the sale of timber to be cut;
(8) transferring realty to a corporation, a partnership, or a trust as a stockholder, partner, or trust beneficiary of the entity or so as to become a
stockholder, partner, or trust beneficiary of the entity as long as no consideration is paid for the transfer other than stock in the corporation,
interest in the partnership, beneficiary interest in the trust, or the increase in value in the stock or interest held by the grantor. However, except
for transfers from one family trust to another family trust without consideration or transfers from a trust established for the benefit of a religious
organization to the religious organization, the transfer of realty from a corporation, a partnership, or a trust to a stockholder, partner, or trust
beneficiary of the entity is subject to the fee, even if the realty is transferred to another corporation, a partnership, or trust;
(9) transferring realty from a family partnership to a partner or from a family trust to a beneficiary, provided no consideration is paid for the
transfer other than a reduction in the grantee’s interest in the partnership or trust. A “family partnership” is a partnership whose partners are all
members of the same family. A “family trust” is a trust, in which the beneficiaries are all members of the same family. The beneficiaries of a
family trust may also include charitable entities. “Family” means the grantor and the grantor’s spouse, parents, grandparents, sisters, brothers,
children, stepchildren, grandchildren, and the spouses and lineal descendants of any the above. A “charitable entity” means an entity which
may receive deductible contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A);
(10) transferring realty in a statutory merger or consolidation from a constituent corporation to the continuing or new corporation;
(11) transferring realty in a merger or consolidation from a constituent partnership to the continuing or new partnership;
(12) that constitute a corrective deed or a quitclaim deed used to confirm title already vested in the grantee, provided that no consideration of
any kind is paid or is to be paid under the corrective or quitclaim deed;
(13) transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of foreclosure executed by the mortgagor or deed
pursuant to foreclosure proceeding;
(14) transferring realty from an agent to the agent’s principal in which the realty was purchased with funds of the principal, provided that a
notarized document is also filed with the deed that establishes the fact that the agent and principal relationship existed at the time of the
original purchase as well as for the purpose of purchasing the realty;
(15) transferring title to facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric
cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section
791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act.

STATE OF SOUTH CAROLINA )
COUNTY OF
)

AFFIDAVIT FOR EXEMPT TRANSFERS

PERSONALLY appeared before me the undersigned, who being duly sworn, deposes and says:

1. I have read the information on the back of this affidavit and I understand such information.
2. The property being transferred is located at
   bearing
   County Tax Map Number
   was transferred by
   to
   .

,

on

3. The deed is exempt from the deed recording fee because (See Information section of
   affidavit):

If exempt under exemption #14 as described in the Information section of this affidavit, did the
agent and principal relationship exist at the time of the original sale and was the purpose of this
relationship to purchase the realty? Check Yes
or No ___
4. As required by Code Section 12-24-70, I state that I am a responsible person who was
connected with the transaction as:

______.
5. I understand that a person required to furnish this affidavit who wilfully furnishes a false or
fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more
than one thousand dollars or imprisoned not more than one year, or both.
Responsible Person Connected with the Transaction
Print or Type Name Here
SWORN to before me this

day of

20____

Notary Public for ______
My Commission Expires:

INFORMATION
Except as provided in this paragraph, the term "value" means “the consideration paid or to be paid in money or money’s worth
for the realty.” Consideration paid or to be paid in money’s worth includes, but is not limited to, other realty, personal
property, stocks, bonds, partnership interest and other intangible property, the forgiveness or cancellation of a debt, the
assumption of a debt, and the surrendering of any right. The fair market value of the consideration must be used in calculating
the consideration paid in money’s worth. Taxpayers may elect to use the fair market value of the realty being transferred in
determining fair market value of the consideration. In the case of realty transferred between a corporation, a partnership, or
other entity and a stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or as a
distribution to a trust beneficiary, “value” means the realty’s fair market value. A deduction from value is allowed for the
amount of any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining on the land,
tenement, or realty after the transfer. Taxpayers may elect to use the fair market value for property tax purposes in
determining fair market value under the provisions of the law.
Exempted from the fee are deeds:
(1) transferring realty in which the value of the realty, as defined in Code Section 12-24-30, is equal to or less than one
hundred dollars;
(2) transferring realty to the federal government or to a state, its agencies and departments, and its political subdivisions,
including school districts;
(3) that are otherwise exempted under the laws and Constitution of this State or of the United States;
(4) transferring realty in which no gain or loss is recognized by reason of Section 1041 of the Internal Revenue Code as defined
in Section 12-6-40(A);
(5) transferring realty in order to partition realty as long as no consideration is paid for the transfer other than the interests in
the realty that are being exchanged in order to partition the realty;
(6) transferring an individual grave space at a cemetery owned by a cemetery company licensed under Chapter 55 of Title 39;
(7) that constitute a contract for the sale of timber to be cut;
(8) transferring realty to a corporation, a partnership, or a trust as a stockholder, partner, or trust beneficiary of the entity
or so as to become a stockholder, partner, or trust beneficiary of the entity as long as no consideration is paid for the transfer
other than stock in the corporation, interest in the partnership, beneficiary interest in the trust, or the increase in value in
the stock or interest held by the grantor. However, except for transfers from one family trust to another family trust without
consideration or transfers from a trust established for the benefit of a religious organization to the religious organization, the
transfer of realty from a corporation, a partnership, or a trust to a stockholder, partner, or trust beneficiary of the entity is
subject to the fee, even if the realty is transferred to another corporation, a partnership, or trust;
(9) transferring realty from a family partnership to a partner or from a family trust to a beneficiary, provided no consideration
is paid for the transfer other than a reduction in the grantee’s interest in the partnership or trust. A “family partnership” is a
partnership whose partners are all members of the same family. A “family trust” is a trust, in which the beneficiaries are all
members of the same family. The beneficiaries of a family trust may also include charitable entities. “Family” means the
grantor and the grantor’s spouse, parents, grandparents, sisters, brothers, children, stepchildren, grandchildren, and the
spouses and lineal descendants of any the above. A “charitable entity” means an entity which may receive deductible
contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A);
(10) transferring realty in a statutory merger or consolidation from a constituent corporation to the continuing or new
corporation;
(11) transferring realty in a merger or consolidation from a constituent partnership to the continuing or new partnership;
(12) that constitute a corrective deed or a quitclaim deed used to confirm title already vested in the grantee, provided that no
consideration of any kind is paid or is to be paid under the corrective or quitclaim deed;
(13) transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of foreclosure executed by the
mortgagor or deed pursuant to foreclosure proceedings;
(14) transferring realty from an agent to the agent’s principal in which the realty was purchased with funds of the principal,
provided that a notarized document is also filed with the deed that establishes the fact that the agent and principal relationship
existed at the time of the original purchase as well as for the purpose of purchasing the realty; and
(15) transferring title to facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities,
municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under
the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric
transmission assets as defined in the Federal Power Act.