What deed-recording-fee rules and transaction examples did South Carolina Revenue Ruling 15-3 provide before later rulings superseded it?

Plain-English summary

South Carolina Revenue Ruling 15-3 was the Department's former comprehensive guide to the deed recording fee. It is now historical: RR 17-5 expressly superseded it, and RR 24-1 later superseded RR 17-5 and incorporated the January 2024 Deed Recording Fee Manual.

RR 15-3 stated a fee of $1.85 for each $500, or fraction of $500, of the realty's value—a $1.30 state portion and $0.55 county portion. The clerk of court or register of deeds collected the fee and remitted the state portion to the Department.

The ruling then applied the law to 66 questions involving value, exemptions, family and charitable transfers, estates and trusts, partnerships, LLCs, corporations, foreclosure and bankruptcy, government and federally connected entities, timeshares, exchanges, manufactured homes, timber and mineral rights, easements, construction-loan transfers, charter schools, and agency relationships.

Historical value rules

"Value" included consideration paid in money or money's worth, including other realty, personal property, securities, partnership interests, other intangible property, debt forgiveness or cancellation, debt assumption, and surrendered rights.

For noncash consideration, fair market value applied. The ruling allowed taxpayers in the circumstances described to elect the realty's fair market value or its fair market value for property tax purposes. Transfers between an entity and an owner, and transfers to a trust or distributions to a trust beneficiary, generally used the realty's fair market value.

A lien or encumbrance that existed before the transfer and remained afterward could be deducted from value.

An unrecorded deed did not trigger the fee because the charge was imposed for the privilege of recording.

Representative old-guide rules

• Transfers with statutory value of $100 or less were among the listed exemptions.
• A qualifying deed of distribution from a decedent's estate was not subject to Chapter 24.
• A gift with no consideration could qualify for exemption, while many family or charitable transfers with consideration remained taxable unless a specific exemption applied.
• Entity contributions and distributions were not treated identically; the ruling applied separate rules to corporations, partnerships, LLCs, trusts, owners, partners, members, and beneficiaries.
• Qualifying deeds to government bodies and charter schools were exempt under the provisions discussed.
• A contract for timber to be cut was exempt, while a deed conveying standing timber as realty was taxable unless another exemption applied.
• Deeds conveying mineral rights, easements, or rights of way were taxable based on their value unless exempt.
• A deed from an agent to a principal could be nontaxable when the principal funded the original purchase and a notarized document filed with the deed established that the agency existed at that time.

Construction-loan example

The ruling described an owner transferring $22,000 of land to a contractor so the contractor could obtain a construction loan, followed by a transfer back after building a $250,000 home.

Under RR 15-3, the first deed was subject to the fee based on the land's $22,000 fair market value, while the deed back was subject to the fee based on the $250,000 construction-contract amount. These are historical transaction answers and must be checked against later guidance.

Common questions

Q: Is RR 15-3 current guidance?

A: No. RR 17-5 superseded it, and RR 24-1 later superseded RR 17-5 and incorporated the 2024 manual.

Q: Was value limited to cash?

A: No. The ruling included noncash property, entity interests, assumed or forgiven debt, and surrendered rights.

Q: Did every family or entity transfer qualify for exemption?

A: No. The ruling distinguished transfers based on consideration, direction of transfer, relationship, entity type, and the specific statutory exemption.

Q: Did an unrecorded deed owe the recording fee?

A: No under RR 15-3, because the fee arose from recording.

Citations and references

• S.C. Code Ann. Sections 12-24-10 through 12-24-70 (deed recording fee, value, exemptions, affidavits, and administration)
• S.C. Code Ann. Section 12-2-25(B) (single-member LLC treatment)
• S.C. Code Ann. Section 62-3-907 (deeds of distribution)
• S.C. Code Ann. Section 59-40-140(K) (charter-school deeds)
• SC Revenue Ruling #17-5 and SC Revenue Ruling #24-1 (later superseding guidance)

Subject

Deed Recording Fee

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR15-3.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 REVENUE RULING #15-3
SUBJECT:

Deed Recording Fee

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

SC Revenue Ruling #04-6 and all previous documents and any oral
directives in conflict herewith.

REFERENCES:

S. C. Code Ann. Section 12-24-10 (2014)
S. C. Code Ann. Section 12-24-20 (2014)
S. C. Code Ann. Section 12-24-30 (2014; Supp. 2014)
S. C. Code Ann. Section 12-24-40 (2014)
S. C. Code Ann. Section 12-24-50 (2014)
S. C. Code Ann. Section 12-24-70 (2014)
S. C. Code Ann. Section 12-2-25(B) (2014)
S. C. Code Ann. Section 62-3-907 (Supp. 2014)
S. C. Code Ann. Section 59-40-140)(K) (2014)

AUTHORITY:

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

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public. It is an advisory opinion issued to apply principles of tax
law to a specific set of facts or a general category of taxpayers. It
is the Department’s position until superseded or modified by a
change in statute, regulation, court decision, or another
Department advisory opinion.

INTRODUCTION:
South Carolina imposes a deed recording fee pursuant to Chapter 24 of Title 12. This fee is
composed of two fees – a state fee of one dollar thirty cents for each five hundred dollars, or
fractional part of five hundred dollars, of the realty’s value and a county fee of fifty-five cents
for each five hundred dollars, or fractional part of five hundred dollars, of the realty’s value. The
fee is collected by the office of the clerk of court or register of deeds, which remits the state
portion of the fee to the Department of Revenue on a monthly basis.
1

The purpose of this advisory opinion is to provide a comprehensive discussion of the application
of the deed recording fee to a wide variety of real estate transactions. This advisory opinion will
“summarize” longstanding Department opinion concerning the taxability of these transactions.
LAW and DISCUSSION:
Code Section 12-24-10 imposes the deed recording fee and reads:
(A) In addition to all other recording fees, a recording fee is imposed for the
privilege of recording a deed in which land and improvements on the land,
tenements, or other realty is transferred to another person. The fee is one dollar
eighty-five cents for each five hundred dollars, or fractional part of five hundred
dollars, of the realty's value as determined by Section 12-24-30.
(B) 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 this
chapter. In addition, a deed transferring real property from a trust to a trust
distributee upon the trust settlor's death, pursuant to the trust terms, is not a
deed subject to this chapter if a deed of distribution would be the appropriate
instrument to transfer the subject property if the property were part of the
decedent's probate estate.
Code Section 12-24-30 defines the term “value” as used in the imposition and reads:
(A) For purposes of this chapter, the term “value” means the consideration paid or
to be paid in money or money’s worth for the realty including 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 a 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 under the provisions of this section. However, in
the case of realty transferred between a corporation, a partnership, or other entity
and its stockholder, partner, or owner, 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.
(B) 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.
(C) Taxpayers may elect to use the fair market value as determined for property
tax purposes in determining fair market value under the provisions of this section.
2

Code Section 12-24-40 provides several exemptions from the fee and reads:
Exempted from the fee imposed by this chapter are deeds:
(1)

transferring realty in which the value of the realty, as defined in Code Section 1224-30, 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) 1;

(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;

1

A review of Section 1041 of the Internal Revenue Code indicates that this exemption applies
only to (1) transfers to a spouse or (2) transfers to a former spouse when the transfer is incident to a
divorce. A transfer is incident to a divorce if it occurs within 1 year after the date on which the marriage
ceases or is related to the cessation of the marriage. Also the recognition of same-sex marriages in
South Carolina for tax purposes exempts from the deed recording fee deeds that transfer realty to a
same-sex spouse or to a former same-sex spouse if the transfer to a former same-sex spouse is pursuant
to the terms of a divorce decree or settlement (Code Section 12-24-40(4)). See SC Revenue Ruling #14-9.

3

(9)

transferring realty from a family partnership to a partner or from a family trust to a
beneficiary, as long as 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. “Family” means the grantor, the grantor’s spouse, parents, grandparents,
sisters, brothers, children, stepchildren, grandchildren, and the spouses and lineal
descendants of any of them, and the grantor’s and grantor’s spouse’s heir under a
statute of descent and distribution. A “family partnership” or “family trust” also
includes charitable entities, other family partnerships and family trusts of the
grantor, and charitable remainder and charitable lead trusts, if all the beneficiaries
are charitable entities or members of the grantor’s family. 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; and,
(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 executed 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.
(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;
Based on the above, the deed recording fee is imposed for the privilege of recording a deed
based on the transaction of transferring realty from one person to another person.
When the consideration paid for realty is money, then the deed recording fee is based on the
money paid.
4

When the consideration paid for realty is “money’s worth” (e.g., other realty, stocks,
forgiveness of debt), then the taxpayer must base the deed recording fee upon one of the
following:
(a) the fair market value of the consideration paid,
(b) the fair market value of the realty being transferred, or
(c) the fair market value for property tax purposes of the realty being transferred.
When the realty is being “transferred between a corporation, a partnership, or other entity and
its stockholder, partner, or owner,” or the realty is being “transferred to a trust or as a
distribution to a trust beneficiary,” then the taxpayer must base the deed recording fee upon
one of the following:
(a) the fair market value of the realty being transferred, or
(b) The fair market value for property tax purposes of the realty being transferred.
It should also be noted that 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.” As such, when the fair market value of the
realty being transferred is used to calculate the fee, the value of the lien or encumbrance
qualifying for this deduction may be deducted from the realty’s fair market value before
calculating the deed recording fee due.

5

TABLE OF CONTENTS – QUESTIONS and ANSWERS:
Section
Value
Responsible Person Signing the Affidavit
Realty Located in More Than One County
Unrecorded Deeds
Refunds
Gifts from One Individual to Another Individual
Family Deeds
Charitable Deeds
Deeds from an Estate
Deeds to and from Trusts
Deeds to and from Partnerships
Limited Liability Company (LLC) Deeds
Deeds to and from Corporations
Master-in-Equity Deeds
Foreclosure Deeds
Chapter 7 Bankruptcy Deeds
Chapter 11 Bankruptcy Deeds
Chapter 12 Bankruptcy Deeds
Chapter 13 Bankruptcy Deeds
State and Local Government Deeds
Federal Government Deeds
Federal Credit Union Deeds
Government National Mortgage Association Deeds
Farm Credit Bank Deeds
Production Credits Association Deeds
Federal Land Bank Association Deeds
Federal National Mortgage Association Deeds
Federal Home Loan Mortgage Corporation Deeds
Timeshare Deeds
IRC Code Section 1031 Tax Deferred Exchange Deeds
Manufactured Homes
Timber Deeds
Mineral Rights
Easements and Right of Ways
Deeds to Obtain Construction Loans
Charter School Authorized under Chapter 40 of Title 59
Agent to Principal Transfers

Question Number(s)
1-4
5
6
7
8
9
10 - 12
13 - 14
15 - 16
17 - 18
19 - 22
23
24 - 27
28
29 - 31
32
33
34
35
36 - 38
39 - 40
41 - 42
43 - 44
45 - 46
47 - 48
49 - 50
51 - 52
53 - 54
55 - 56
57
58
59
60
61
62 - 63
64 - 65
66

6

QUESTIONS AND ANSWERS:
The following questions and answers are common transactions or transactions representing
questions the Department has received from taxpayers, attorneys and recording officials.
VALUE:
1.

What is the basis for the deed recording fee?
The basis for the deed recording fee is the realty’s value. Code Section 12-24-30 defines
the term “value” and states:
(A) For purposes of this chapter, the term “value” means the consideration paid
or to be paid in money or money’s worth for the realty including 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 a 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 under the
provisions of this section. However, in the case of realty transferred between
a corporation, a partnership, or other entity and its stockholder, partner, or
owner, 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.
(B) 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.
(C) Taxpayers may elect to use the fair market value as determined for property
tax purposes in determining fair market value under the provisions of this
section.

2.

If realty is transferred for money, and not money’s worth such as services, other realty,
forgiveness of debt, etc., what is the basis for the deed recording fee if the transaction
does not involve realty transferred between a corporation, a partnership, or other entity
and its stockholder, partner, or owner, or realty transferred to a trust or as a distribution to
a trust beneficiary?
Code Section 12-24-30, in subsection (A), states that the fair market value of the realty may
be used “in determining fair market value of the consideration under the provisions of this
section.” The only mention to fair market value in subsection (A) concerns when the
consideration is in money’s worth, or when the transaction involves a business entity and
its owners or a trust. Subsection (C) allows the fair market value for property taxes to be
used again only “in determining fair market value under the provisions of this section.”
7

Therefore, if realty is transferred for money, and not money’s worth, the basis for the deed
recording fee is the money paid or to be paid if the transaction does not involve realty
transferred between a corporation, a partnership, or other entity and its stockholder,
partner, or owner, or realty transferred to a trust or as a distribution to a trust beneficiary.
The realty’s fair market value cannot be used in this case.

3. If realty is transferred for money’s worth, such as services, other realty, forgiveness of debt,
   etc., what is the basis for the deed recording fee if the transaction does not involve realty
   transferred between a corporation, a partnership, or other entity and its stockholder,
   partner, or owner, or realty transferred to a trust or as a distribution to a trust beneficiary?
   If realty is transferred for money’s worth, such as services, other realty, forgiveness of debt,
   etc., and the transaction does not involve realty transferred between a corporation, a
   partnership, or other entity and its stockholder, partner, or owner, or realty transferred to a
   trust or as a distribution to a trust beneficiary, then the taxpayer must base the deed
   recording fee upon one of the following:
   (a) the fair market value of the consideration paid,
   (b) the fair market value of the realty being transferred, or
   (c) the fair market value for property tax purposes of the realty being transferred.
   It should also be noted that 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.” As such, when the fair market value of the
   realty being transferred is used to calculate the fee, the value of the lien or encumbrance
   qualifying for this deduction may be deducted from the realty’s fair market value before
   calculating the deed recording fee due.
4. What is the basis for the deed recording fee if the transaction involves realty transferred
   between a corporation, a partnership, or other entity and its stockholder, partner, or
   owner, or realty transferred to a trust or as a distribution to a trust beneficiary?
   When the realty is being “transferred between a corporation, a partnership, or other entity
   and its stockholder, partner, or owner, or the realty is being “transferred to a trust or as a
   distribution to a trust beneficiary,” then the taxpayer must base the deed recording fee
   upon one of the following:
   (a) the fair market value of the realty being transferred, or
   (b) the fair market value for property tax purposes of the realty being transferred.

8

It should also be noted that 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.” As such, when the fair market value of the
realty being transferred is used to calculate the fee, the value of the lien or encumbrance
qualifying for this deduction may be deducted from the realty’s fair market value before
calculating the deed recording fee due.
Note: With respect to the issue of “value” as defined in the deed recording fee law, the
following are examples of the “value” used in determining the deed recording fee due:
TRANSACTION

VALUE

Realty transferred from John Doe to Jerry Public
for $1,000 and the assumption of a mortgage
with a balance of $81,000.

$1,000 Since the mortgage existed on the
realty before the transfer and remained on the
realty after the transfer, the $81,000 is deducted
from the total consideration of $82,000.

Realty transferred from John Doe to Jerry Public
for $82,000 The grantor paid $1,000 down and
$81,000 at closing by obtaining a mortgage at a
local financial institution.

$82,000 Since the mortgage did not exist on
the realty before the transfer, the $81,000
cannot be deducted from the total consideration
of $82,000.

Realty transferred from John Doe to XYZ Bank for
cancellation of debt. The balance due on the
debt, plus accumulated interest, is $121,000. This
is not a deed in lieu of foreclosure.

$121,000 By statute, consideration includes the
forgiveness or cancellation of a debt. However,
the value used may be less than $121,000 if the
fair market value of the realty is less than
$121,000 and the taxpayer elects to use the fair
market value of the realty being transferred in
determining fair market value of the
consideration. In addition, the taxpayer may elect
to use the fair market value for property tax
purposes in determining fair market value.

Realty transferred from John Doe to Jerry Public
for the cancellation of a debt, not associated with
the realty, of $50,000.

$50,000 By statute, consideration includes the
forgiveness or cancellation of a debt. However,
the value used may be less than $50,000 if the
fair market value of the realty is less than
$50,000 and the taxpayer elects to use the fair
market value of the realty being transferred in
determining fair market value of the
consideration. In addition, the taxpayer may elect
to use the fair market value for property tax
purposes in determining fair market value.

Realty transferred from XYZ Corporation to one
of its stockholders - John Doe. The fair market
value of the realty for property tax purposes is
$90,000. No lien or encumbrance existed on the
realty prior to the transfer.

$90,000 By statute, the fair market value of the
realty must be used in calculating the fee due in a
transaction between a corporation and one of its
stockholders. Taxpayers may elect to use the fair
market value for property tax purposes in
determining fair market value under the law.

9

RESPONSIBLE PERSON SIGNING THE AFFIDAVIT:
5.

Who may sign the affidavit required under Code Section 12-24-70?
The affidavit required under Code Section 12-24-70 must be signed by a responsible person
connected with the transaction and the affidavit must state that connection. A “responsible
person connected with the transaction” includes, but is not limited to, the grantor, grantee,
and an attorney involved in the transaction. However, secretaries, paralegals, runners, and
other administrative personnel do not qualify as a “responsible person connected with the
transaction” and, therefore, may not sign the affidavit.

REALTY LOCATED IN MORE THAN ONE COUNTY:
6.

If realty is located in more than one county, how should the deed recording fee be paid when
the deed is filed in each county?
Code Section 12-24-50 answers this question and states:
The fee imposed by this chapter must be remitted to the clerk of court or the
register of deeds in the county in which the realty is located and recorded. If the
realty is located in more than one county, the person having the deed recorded in a
county must state by affidavit what portion of the value of the realty is in that
county and payment of the fee must be made based on the proportionate value of
the realty located in that county.
For example, ABC Corporation sells realty, approximately 10 acres, to XYZ Corporation
for $1,000,000. The realty is located in two counties, with 3 acres in County A and 7 acres
in County B. However, because of the location of the 3 acres in County A (e.g., located at a
major intersection, on the waterfront, etc.), the value of the 3 acres in County A is $700,000
while the value of the 7 acres in County B is $300,000.
Based on these values, 70% of the value is assigned to County A and both the state and
county portions of the deed recording fee are paid in County A based on $700,000
consideration paid (Total Fee Paid in County A: $2,590 ($1,820 State Fee and $770 County
A Fee)) . The remaining 30% of the value is assigned to County B and both the state and
county portions of the deed recording fee are paid in County B based on $300,000
consideration paid (Total Fee Paid in County B: $1,110 ($780 State Fee and $330 County B
Fee)).

UNRECORDED DEEDS:
7.

Are deeds that transfer realty but are not recorded at the courthouse (the office of the
clerk of court, register of deeds, register of mesne conveyance or other recording official)
subject to the deed recording fee?

10

Deeds that transfer realty but are not recorded at the courthouse (the office of the clerk of
court, register of deeds, register of mesne conveyance or other recording official) are not
subject to the deed recording fee since under Code Section 12-24-10 “recording fee is
imposed for the privilege of recording a deed” and therefore the deed recording fee is not
applicable until the deed is recorded.
REFUNDS:
8.

What are the procedures for applying for a refund of the deed recording fee?
The procedures for applying for a refund of the deed recording fee can be found in SC
Revenue Procedure #97-3.

GIFTS FROM ONE INDIVIDUAL TO ANOTHER INDIVIDUAL:
9.

Are deeds that transfer realty from one individual to another individual as a gift (no
consideration paid of any kind) subject to the deed recording fee?
Deeds that transfer realty from one individual to another individual as a gift (no
consideration paid of any kind) are exempt from the deed recording fee under Code Section
12-24-40(1).

FAMILY DEEDS:

10. Are deeds that transfer realty to a spouse subject to the deed recording?
    Deeds that transfer realty to a spouse are exempt from the deed recording fee under Code
    Section 12-24-40(4) regardless of whether or not any consideration was paid or will be paid
    for the transfer.
    Note: The recognition of same-sex marriages in South Carolina for tax purposes exempts
    from the deed recording fee deeds that transfer realty to a same-sex spouse (Code Section
    12-24-40(4)). See SC Revenue Ruling #14-9.
11. Are deeds that transfer realty to a family member, other than a spouse, subject to the
    deed recording fee?
    Deeds that transfer realty to a family member, other than a spouse, are subject to the
    deed recording fee based on the consideration paid for the realty, unless otherwise
    exempt from the deed recording fee. The following are examples of deeds between family
    members (other than spouses) that are subject to the deed recording fee unless otherwise
    exempt under Code Section 12-24-40:
    11

a) a transfer to a brother for $30,000.00,
b) a transfer to a sister in exchange for the forgiveness of a debt,
c) a transfer to a child for $10,000.00
d) a transfer to a brother in exchange for other realty, and
e) a transfer to a sister in exchange for paying off the mortgage on the realty.
The following are examples of deeds between family members (other than spouses) that
are exempt from the deed recording fee under Code Section 12-24-40:
a) a transfer in which the consideration that is paid or will be paid is equal to or less
than $100.00 (12-24-40(1)),
b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)),
c) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7))
(See questions concerning timber deeds.),
d) a transfer in which the realty is subject to a mortgage and the family member
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the family member that is the mortgagor or a deed
executed pursuant to a foreclosure proceeding (12-24-40(13). (See questions
concerning foreclosure proceedings.), and
e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.

12. Are deeds that transfer realty to a former spouse subject to the deed recording?
    Deeds that transfer realty to a former spouse are subject to the deed recording fee based
    on the consideration paid for the realty, unless otherwise exempt from the deed recording
    fee. The following are examples of deeds to a former spouse that are subject to the deed
    recording fee unless otherwise exempt under Code Section 12-24-40:
    a) a transfer in exchange for past due alimony payments when the transfer of the
    realty is not pursuant to the terms of the divorce decree or settlement,
    b) a transfer for $30,000.00,
    c) a transfer in exchange for the forgiveness of a debt,

12

d) a transfer in exchange for other realty, and
e) a transfer in exchange for paying off the mortgage on the realty.
The following are examples of deeds to a former spouse that are exempt from the deed
recording fee under Code Section 12-24-40:
a) a transfer in which the consideration that is paid or will be paid is equal to or less
than $100.00 (12-24-40(1)),
b) a transfer pursuant to the terms of the divorce decree or settlement,
c) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)),
d) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7))
(See questions concerning timber deeds.),
e) a transfer in which the realty is subject to a mortgage and the former spouse
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the grantor as the mortgagor or a deed executed pursuant
to a foreclosure proceeding (12-24-40(13)). (See questions concerning foreclosure
proceedings.), and
f) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Note: The recognition of same-sex marriages in South Carolina for tax purposes exempts
from the deed recording fee deeds that transfer realty to a former same-sex spouse if the
transfer is pursuant to the terms of a divorce decree or settlement (Code Section 12-2440(4)). See SC Revenue Ruling #14-9.
CHARITABLE DEEDS:

13. Are deeds that transfer realty to a church or other charitable organization subject to the
    deed recording fee?
    Deeds that transfer realty to a church or other charitable organization are subject to the
    deed recording fee based on the consideration paid for the realty 2, unless otherwise
    2

If, however, the church or other charitable organization is a stockholder, partner, limited
liability company member, or trust beneficiary of the grantor (corporation, partnership, limited liability
company or trust), then the deed recording fee is based on the fair market value of the realty or the fair
market value of the realty for property tax purposes.

13

exempt from the deed recording fee. The following are examples of deeds to a church or
other charitable organization that are subject to the deed recording fee unless otherwise
exempt under Code Section 12-24-40:
a) a transfer for $50,000.00,
b) a transfer in exchange for other realty whether or not the transaction qualifies as a
like-kind exchange for federal income tax purposes (Both deeds are subject to the
deed recording fee.), and
c) a transfer of realty with a fair market value of $100,000.00 for only $50,000.00 (The
deed recording fee is based upon $50,000.00.).
The following are examples of deeds to a church or other charitable organization that are
exempt from the deed recording fee under Code Section 12-24-40:
a) a transfer in which the consideration that is paid or will be paid is equal to or less
than $100.00 (12-24-40(1)),
b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)),
c) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7))
(See questions concerning timber deeds.),
d) a transfer in which the realty is subject to a mortgage and the church or other
charitable organization receiving the realty is the mortgagee and the transfer
constitutes a deed in lieu of foreclosure executed by the grantor as the mortgagor or
a deed executed pursuant to a foreclosure proceeding (12-24-40(13)). (See
questions concerning foreclosure proceedings.), and
e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.

14. Are deeds that transfer realty from a church or other charitable organization to an
    individual or business subject to the deed recording fee?
    Deeds that transfer realty from a church or other charitable organization to an individual or
    business are subject to the deed recording fee based on the consideration paid for the
    realty, unless otherwise exempt from the deed recording fee. The following are examples
    of deeds to a church or other charitable organization that are subject to the deed recording
    fee unless otherwise exempt under Code Section 12-24-40:
    a) a transfer for $50,000.00, and

14

b) a transfer in exchange for other realty whether or not the transaction qualifies as a
like-kind exchange for federal income tax purposes (Both deeds are subject to the
deed recording fee.).
The following are examples of deeds from a church or other charitable organization to an
individual or business that are exempt from the deed recording fee under Code Section 1224-40:
a) a transfer in which the consideration that is paid or will be paid is equal to or less
than $100.00 (12-24-40(1)),
b) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)),
c) a transfer that constitutes a contract for the sale of timber to be cut (12-24-40(7))
(See questions concerning timber deeds.),
d) a transfer in which the realty is subject to a mortgage and the individual or business
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the church or other charitable organization as the
mortgagor or a deed executed pursuant to a foreclosure proceeding (12-24-40(13)).
(See questions concerning foreclosure proceedings.), and
e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
DEEDS FROM AN ESTATE:

15. Are deeds that transfer realty from an estate to a beneficiary subject to the deed recording
    fee?
    Deed that transfer realty from an estate to a beneficiary are not subject to the deed
    recording fee since Code Section 12-24-10(B) states that 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].”
    Note: “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.” (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 12-24-10(B), such
    person may complete the affidavit and reference this exemption and code section.

15

16. Are deeds that transfer realty from an estate to a third party for a consideration in order to
pay off debts of the estate subject to the deed recording fee?
Deeds that transfer from an estate to a third party for a consideration in order to pay off
debts of the estate are subject to the deed recording fee if the consideration paid
(including debts forgiven) for the transfer of realty is more than $100.00 and the transfer is
not otherwise exempt under Code Section 12-24-40.
DEEDS TO AND FROM TRUSTS:

17. Are deeds that transfer realty into a trust subject to the deed recording fee?
    Deeds that transfer realty into a trust are subject to the deed recording fee based on the
    fair market value of the realty, except for the following deeds:
    a) a transfer to a trust by a beneficiary of the trust or by a person who will become a
    beneficiary of the trust as a result of the transfer as long as no consideration is paid
    for the transfer other than beneficial interest in the trust or an increase in value in
    the beneficial interest in the trust (12-24-40(8)),
    b) a transfer from one family trust to another family trust for the same family, provided
    no consideration is paid or will be paid for the transfer (12-24-40(8) and 12-2440(9)),
    c) a transfer in order to partition realty, as long as no consideration is paid for the
    transfer other than the interests in the realty that are exchanged in order to effect
    the partition (12-24-40(5)),
    d) a transfer in which the realty is subject to a mortgage and the trust receiving the
    realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
    executed by the mortgagor or a deed executed pursuant to a foreclosure proceeding
    (12-24-40(13)). (See questions concerning foreclosure proceedings.), and
    e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
18. Are deeds that transfer realty from a trust to an individual or other legal entity subject to
    the deed recording fee?
    Deeds that transfer realty from a trust to an individual or other legal entity are subject to
    the deed recording fee based on the fair market value of the realty if the grantee is a
    beneficiary of the trust, except for the following deeds:

16

a) a transfer from a family trust to a trust beneficiary as long as no consideration is paid
for the transfer other than a reduction in the grantee’s interest in the family trust
(12-24-40(9)),
b) a transfer from one family trust to another family trust for the same family, provided
no consideration is paid or will be paid for the transfer (12-24-40(8) and 12-2440(9)),
c) a transfer in order to partition realty, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)),
d) a transfer in which the realty is subject to a mortgage and the trust beneficiary
receiving the realty is the mortgagee and the transfer constitutes a deed in lieu of
foreclosure executed by the family trust that is the mortgagor or a deed executed
pursuant to a foreclosure proceeding (12-24-40(13)). (See questions concerning
foreclosure proceedings.),
e) a transfer from a trust to a trust distributee upon the trust settlor's death,
pursuant to the trust terms, if a deed of distribution would be the
appropriate instrument to transfer the subject property if the property were
part of the decedent's probate estate (12-24-10(B)),
f) a transfer from a trust established for the benefit of a religious organization
to the religious organization (12-24-40(8)), and
g) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Deeds that transfer realty from a trust to an individual or other legal entity are subject to
the deed recording fee based on the consideration paid or to be paid if the grantee is not a
beneficiary of the trust, the consideration paid or to be paid is more than $100.00, and the
transfer is not otherwise exempt under Code Section 12-24-40.
Note: A “family trust” is a trust, in which the beneficiaries are all members of the same
family. “Family” means the grantor, the grantor’s spouse, parents, grandparents, sisters,
brothers, children, stepchildren, grandchildren, and the spouses and lineal descendants of
any of them, and the grantor’s and grantor’s spouse’s heir under a statute of descent and
distribution. With the recognition of same-sex marriages for South Carolina tax purposes
(SC Revenue Ruling #14-9), the term “spouse” as used in the above definition includes a
same-sex spouse.

17

DEEDS TO AND FROM PARTNERSHIPS:

19. Are deeds that transfer realty from a partner to the partnership subject to the deed
    recording fee?
    Deeds that transfer realty from a partner to the partnership are subject to the deed
    recording fee based on the fair market value of the realty, except for the following deeds:
    a) a transfer from a partner to the partnership if no consideration is paid for the
    transfer other than additional interest in the partnership or an increase in value in
    the partner’s interest in the partnership (12-24-40(8)),
    b) a transfer in order to partition realty owned jointly by the partner and the
    partnership of which he is a partner, as long as no consideration is paid for the
    transfer other than the interests in the realty that are exchanged in order to effect
    the partition (12-24-40(5)), and
    c) a transfer that is otherwise exempt under Code Section 12-24-40.
20. Are deeds that transfer realty from the partnership to a partner subject to the deed
    recording fee?
    Deeds that transfer realty from the partnership to a partner, including deeds transferring
    realty to the partner upon liquidation of the partnership, are subject to the deed recording
    fee based on the fair market value of the realty, except for the following deeds:
    a) a transfer from a family partnership to a partner as long as no consideration is paid
    for the transfer other than a reduction in the grantee’s interest in the partnership
    (12-24-40(9)),
    b) a transfer in order to partition realty owned jointly by the partner and the
    partnership of which he is a partner, as long as no consideration is paid for the
    transfer other than the interests in the realty that are exchanged in order to effect
    the partition (12-24-40(5)),
    c) a transfer in which the realty is subject to a mortgage and the partner receiving the
    realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
    executed by the partnership that is the mortgagor or a deed executed pursuant to a
    foreclosure proceeding (12-24-40(13)). Note: See questions concerning foreclosure
    proceedings, and
    d) a transfer otherwise exempt under the provisions of Code Section 12-24-40.

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Note: A “family partnership” is a partnership whose partners are all members of the same
family. “Family” means the grantor, the grantor’s spouse, parents, grandparents, sisters,
brothers, children, stepchildren, grandchildren, and the spouses and lineal descendants of
any of them, and the grantor’s and grantor’s spouse’s heir under a statute of descent and
distribution. With the recognition of same-sex marriages for South Carolina tax purposes
(SC Revenue Ruling #14-9), the term “spouse” as used in the above definition includes a
same-sex spouse.

21. Are deeds that transfer realty from a non-partner to a partnership, or from a partnership
    to a non-partner, subject to the deed recording fee?
    Deeds that transfer realty from a non-partner to a partnership are subject to the deed
    recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
    is not otherwise exempt under Code Section 12-24-40.
    If a consideration of $100.00 or less is paid or the transfer is otherwise exempt under Code
    Section 12-24-40, then the deed transferring realty from a non-partner to the partnership
    is exempt from the deed recording fee.
22. If Partnership A and Partnership B have the same partners but neither partnership is a
    partner in the other, is a deed that transfers realty from Partnership A to Partnership B
    subject to the deed recording fee?
    If Partnership A and Partnership B have the same partners but neither partnership is a
    partner in the other, then a deed that transfers realty from Partnership A to Partnership B
    is subject to the deed recording fee if the consideration paid or to be paid is more than
    $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
    If a consideration of $100.00 or less is paid or the transfer is otherwise exempt under Code
    Section 12-24-40, then the deed transferring realty from Partnership A to Partnership B is
    exempt from the deed recording fee.
    LIMITED LIABILITY COMPANY (LLC) DEEDS:
23. How are deeds that transfer realty to and from a limited liability company (“LLC”) treated
    under the deed recording fee law?
    Deeds that transfer realty to and from an LLC, which is treated as a partnership for South
    Carolina income tax purposes, are treated in the same manner under the deed recording
    fee as deeds that transfer realty to and from a partnership. See the section in this
    publication concerning deeds to and from partnerships.

19

Deeds that transfer realty to and from an LLC, which is treated as a corporation for South
Carolina income tax purposes, are treated in the same manner under the deed recording
fee as deeds that transfer realty to and from a corporation. See the section in this
publication concerning deeds to and from corporations.
Deeds that transfer realty to and from a single member LLC (“SMLLC”), which is treated as
a corporation for South Carolina income tax purposes, are treated in the same manner
under the deed recording fee as deeds that transfer realty to and from a corporation. See
the section in this publication concerning deed to and from corporations.
Deeds that transfer realty to the SMLLC from its single member, and deeds that transfer
realty to the single member of the SMLLC from the SMLLC, are not subject to the deed
recording fee if the SMLLC is ignored for all tax purposes under the provisions of Code
Section 12-2-25(B).
Deeds that transfer realty from the SMLLC to a person who is not the single member, and
deeds that transfer realty from a person who is not the single member to the SMLLC, are
treated as if the realty were transferred from or to the single member if the SMLLC is
ignored for all tax purposes under the provisions of Code Section 12-2-25(B). As such, the
application will depend on the facts and circumstances of the transfer and on whether the
single member is an individual, partnership, LLC, trust or corporation.
Note: Written instruments whereby a single member transfers its interest in the SMLLC to
another person are treated as if the realty were transferred from the single member to the
other person if the SMLLC is ignored for all tax purposes under the provisions of Code
Section 12-2-25(B). As such, the application will depend on the facts and circumstances of
the transfer and on whether the single member selling the interest is an individual,
partnership, LLC, trust or corporation and whether the person purchasing the interest, the
new single member, is an individual, partnership, LLC, trust or corporation.
DEEDS TO AND FROM CORPORATIONS:

24. Are deeds that transfer realty from a stockholder to the corporation subject to the deed
    recording fee?
    Deeds that transfer realty from a stockholder to the corporation are subject to the deed
    recording fee based on the fair market value of the realty, except for the following deeds:
    a) a transfer from a stockholder to the corporation if no consideration is paid for the
    transfer other than stock in the corporation or an increase in value in the
    stockholder’s stock in the corporation (12-24-40(8)),

20

b) a transfer in which the realty is subject to a mortgage and the corporation receiving
the realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
executed by the stockholder that is the mortgagor or a deed executed pursuant to a
foreclosure proceeding (12-24-40(13)). (See questions concerning foreclosure
proceedings.),
c) a transfer in order to partition realty owned jointly by the stockholder and the
corporation of which he is a stockholder, as long as no consideration is paid for the
transfer other than the interests in the realty that are exchanged in order to effect
the partition (12-24-40(5)), and
d) a transfer that is otherwise exempt under Code Section 12-24-40.

25. Are deeds that transfer realty from the corporation to one of the stockholders subject to
    the deed recording fee?
    Deeds that transfer realty from the corporation to one of the stockholders, including deeds
    transferring realty to the stockholder upon dissolution of the corporation, are subject to
    the deed recording fee under Code Section 12-24-40(8) except for the following deeds:
    a) a transfer in order to partition realty owned jointly by the stockholder and the
    corporation of which he is a stockholder, as long as no consideration is paid for the
    transfer other than the interests in the realty that are exchanged in order to effect
    the partition (12-24-40(5)),
    b) a transfer in which the realty is subject to a mortgage and the stockholder receiving
    the realty is the mortgagee and the transfer constitutes a deed in lieu of foreclosure
    executed by the corporation that is the mortgagor or a deed executed pursuant to a
    foreclosure proceeding (12-24-40(13)). (Note: See questions concerning foreclosure
    proceedings), and
    c) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
26. Are deeds that transfer realty from a non-stockholder to a corporation, or from a
    corporation to a non-stockholder, subject to the deed recording fee?
    Deeds that transfer realty from a non-stockholder to a corporation are subject to the deed
    recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
    is not otherwise exempt under Code Section 12-24-40.
    If a consideration of $100.00 or less is paid or will be paid or the transfer is otherwise
    exempt under Code Section 12-24-40, then the deed transferring realty from a nonstockholder to the corporation is exempt from the deed recording.

21

27. If Corporation A and Corporation B have the same stockholders but neither corporation is a
stockholder in the other, is a deed that transfers realty from Corporation A to Corporation
B subject to the deed recording fee?
If Corporation A and Corporation B have the same stockholders but neither corporation is a
stockholder in the other, then a deed that transfers realty from Corporation A to
Corporation B is subject to the deed recording fee if the consideration paid or to be paid is
more than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
If a consideration of $100.00 or less is paid or will be paid or the transfer is otherwise
exempt under Code Section 12-24-40, then the deed transferring realty from Corporation A
to Corporation B is exempt from the deed recording fee.
MASTER-IN-EQUITY DEEDS:

28. Are deeds that transfer realty from a Master-in-Equity to an individual or business subject
    to the deed recording fee?
    Deeds that transfer realty from a Master-in-Equity to an individual or business are subject
    to the deed recording fee, with the grantee liable for the fee under the provisions of Code
    Section 12-24-20(B), unless the transfer is otherwise exempt under Code Section 12-24-40.
    Note: Since the liability for the deed recording fee has shifted to the grantee in the case of
    a Master-in-Equity deed, the deed may be exempt if the grantee is otherwise exempted by
    law. For example, the following deeds are exempt from the deed recording fee when the
    grantor is a Master-in-Equity:
    Grantee
    Federal, State or Local Government
    Federal Credit Union
    Government National Mortgage Association
    Farm Credit Bank
    Production Credit Association
    Bank for Cooperatives
    Federal Land Bank Association
    U.S. Veterans Administration
    Federal National Mortgage Association
    Federal Home Loan Mortgage

Reason for Exemption
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(2)
12-24-40(3), 12 U.S.C. 1717, and
12 U.S.C. 1723a
12-24-40(3) & 12 U.S.C. 1452

Note: By statute or case law, Federal Credit Unions, the Government National Mortgage
Association, Farm Credit Banks, Production Credit Associations, Banks for Cooperatives,
and Federal Land Bank Associations are considered instrumentalities of the federal
government.
22

The Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan
Mortgage (“Freddie Mac”) are not instrumentalities of the federal government, but have
been granted exemption from most state and local taxes when the liability for the tax falls
upon them. Since the liability for the fee transfers to the grantee in the case of a Master-inEquity deed, the transfer by a Master-in-Equity deed to the Federal National Mortgage
Association (“Fannie Mae”) or the Federal Home Loan Mortgage (“Freddie Mac”) is exempt
from the deed recording fee pursuant to federal law.
FORECLOSURE DEEDS:

29. Are deeds that transfer realty, subject to a mortgage, from the mortgagor to the
    mortgagee subject to the deed recording fee?
    Deeds that transfer realty, subject to a mortgage, from the mortgagor to the mortgagee
    are exempt from the deed recording fee under Code Section 12-24-40(13) if the transfer is
    by a deed in lieu of foreclosure executed by the mortgagor.
    Deeds that transfer realty from the mortgagor to the mortgagee for cancellation or
    forgiveness of the mortgage are subject to the deed recording fee and do not come within
    the exemption under Code Section 12-24-40(13) unless the books and records of the
    parties indicate that the transfer was made in lieu of foreclosure. If the Department
    determines after the deed is recorded that the transfer was not in lieu of foreclosure, the
    Department will assess the appropriate deed recording fee, penalty and interest.
30. Are deeds that transfer realty, subject to a mortgage, to the mortgagee pursuant to a
    foreclosure proceeding subject to the deed recording fee?
    Deeds that transfer realty, subject to a mortgage, to the mortgagee pursuant to a
    foreclosure proceeding are exempt from the deed recording fee under Code Section 12-2440(13).
31. Are deeds that transfer realty, subject to a mortgage, to the assignee of the mortgagee
    pursuant to foreclosure a proceeding subject to the deed recording fee?
    Since the assignee was not the mortgagee of record at the time of the sale, the provisions
    of Code Section 12-24-40(13) are not applicable.
    However, deeds that transfer realty, subject to a mortgage, to the assignee of the
    mortgagee pursuant to foreclosure a proceeding are not subject to the deed recording fee
    if:
    a) the assignee is the federal government:

23

b) the deed is a Master-in-Equity deed and the assignee is the Federal National
Mortgage Association or the Federal Home Loan Mortgage: or,
c) the assignee is a single member limited liability company (SMLLC), the single
member of the SMLLC is the mortgagee of record at the time of the sale, and the
SMLLC is not regarded as an entity separate from its owner under Code Section 122-25(B)(1) 3.
CHAPTER 7 BANKRUPTCY DEEDS:

32. Are deeds that transfer realty under a Chapter 7 bankruptcy subject to the deed recording
    fee?
    Deeds that transfer realty under a Chapter 7 bankruptcy to a person who is not a
    stockholder, partner, or owner of the business are subject to the deed recording fee if a
    consideration of more than $100.00 is paid or will be paid and the transfer is not otherwise
    exempt under Code Section 12-24-40.
    Deeds that transfer realty under a Chapter 7 bankruptcy to a person who is a stockholder,
    partner, or owner of the business are subject to the deed recording fee based on the fair
    market value of the realty unless the transfer is otherwise exempt under Code Section 1224-40.
    CHAPTER 11 BANKRUPTCY DEEDS:
33. Are deeds that transfer realty under a Chapter 11 bankruptcy subject to the deed
    recording fee?
    Deeds that transfer realty under a Chapter 11 bankruptcy are exempt from the deed
    recording fee under Code Section 12-24-40(3) and 11 U.S.C. Section 1146 if the transfer is
    under a plan confirmed under 11 U.S.C. Section 1129. If the transfer is not under a plan
    confirmed under 11 U.S.C. Section 1129, then the deed transferring the realty is subject to
    the deed recording fee if consideration of more than $100.00 is paid for the transfer and
    the transfer is not otherwise exempt under Code Section 12-24-40.

3

A single member limited liability company (SMLLC) is not considered an entity separate from
its owner under Code Section 12-2-25(B)(1) if the single member limited liability company (SMLLC) is not
taxed for South Carolina income tax purposes as a corporation.

24

CHAPTER 12 BANKRUPTCY DEEDS:

34. Are deeds that transfer realty under a Chapter 12 bankruptcy subject to the deed
    recording fee?
    Deeds that transfer realty under a Chapter 12 bankruptcy are exempt from the deed
    recording fee under Code Section 12-24-40(3) and 11 U.S.C. Section 1231 if the transfer is
    under a plan confirmed under 11 U.S.C. Section 1225. If the transfer is not under a plan
    confirmed under 11 U.S.C. Section 1225, then the deed transferring the realty is subject to
    the deed recording fee if consideration of more than $100.00 is paid for the transfer and
    the transfer is not otherwise exempt under Code Section 12-24-40.
    CHAPTER 13 BANKRUPTCY DEEDS:
35. Are deeds that transfer realty under a Chapter 13 bankruptcy subject to the deed
    recording fee?
    Deeds that transfer realty under a Chapter 13 bankruptcy to a person who is not a
    stockholder, partner, or owner of the business are subject to the deed recording fee if a
    consideration of more than $100.00 is paid or will be paid and the transfer is not otherwise
    exempt under Code Section 12-24-40.
    Deeds that transfer realty under a Chapter 13 bankruptcy to a person who is a stockholder,
    partner, or owner of the business are subject to the deed recording fee based on the fair
    market value of the realty unless the transfer is otherwise exempt under Code Section 1224-40.
    STATE AND LOCAL GOVERNMENT DEEDS:
36. Are deeds that transfer realty to the State, or to a political subdivision of the State (e.g.,
    counties, cities, school districts), subject to the deed recording fee?
    Deeds that transfer realty to the State, or to a political subdivision of the State (e.g.,
    counties, cities, school districts), are exempt from the deed recording fee under Code
    Section 12-24-40(2).
37. Are deeds that transfer realty from the State, or from a political subdivision of the State
    (e.g., counties, cities, school districts), to a non-governmental entity subject to the deed
    recording fee?
    Deeds that transfer realty from the State, or from a political subdivision of the State (e.g.,
    counties, cities, school districts), to a non-governmental entity are subject to the deed
    recording fee if the consideration paid or to be paid is more than $100.00 and the transfer
    is not otherwise exempt under Code Section 12-24-40.
    25

Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the State, or from a political subdivision
of the State (e.g., counties, cities, school districts), to non-governmental entity, the deed
may be exempt if the grantee is otherwise exempted by law.

38. Are deeds that transfer realty from the State, or from a political subdivision of the State
    (e.g., counties, cities, school districts), to another governmental entity subject to the deed
    recording fee?
    Deeds that transfer realty from the State, or from a political subdivision of the State (e.g.,
    counties, cities, school districts), to another governmental entity are exempt from the deed
    recording fee under Code Section 12-24-40(2).
    FEDERAL GOVERNMENT DEEDS:
39. Are deeds that transfer realty to the federal government subject to the deed recording
    fee?
    Deeds that transfer realty to the federal government are exempt from the deed recording
    fee under Code Section 12-24-40(2).
40. Are deeds that transfer realty from the federal government to a non-governmental entity
    subject to the deed recording fee?
    Deeds that transfer realty from the federal government to a non-governmental entity are
    subject to the deed recording fee if the consideration paid or to be paid is more than
    $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
    Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
    shifted to the grantee in the case of a deed from the federal government, the deed may be
    exempt if the grantee is otherwise exempted by law.
    FEDERAL CREDIT UNION DEEDS:
41. Are deeds that transfer realty to a federal credit union subject to the deed recording fee?
    Deeds that transfer realty to a federal credit union are exempt from the deed recording fee
    under Code Section 12-24-40(2) since federal credit unions are considered
    instrumentalities of the federal government. See 1986 Op. Atty. Gen. No. 86-72, and a
    second South Carolina Attorney General Opinion dated March 26, 1991, which both
    concluded that federally chartered credit unions are instrumentalities of the federal
    government.
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42. Are deeds that transfer realty from the federal credit union to a non-governmental entity
subject to the deed recording fee?
Deeds that transfer realty from a federal credit union to a non-governmental entity are
subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION DEEDS:

43. Are deeds that transfer realty to the Government National Mortgage Association subject to
    the deed recording fee?
    Deeds that transfer realty to the Government National Mortgage Association are exempt
    from the deed recording fee under Code Section 12-24-40(2) since the Government
    National Mortgage Association is considered an instrumentality of the federal government
    pursuant to12 U.S.C. 1717 and 12 U.S.C. 1723a.
44. Are deeds that transfer realty from the Government National Mortgage Association to a
    non-governmental entity subject to the deed recording fee?
    Deeds that transfer realty from the Government National Mortgage Association to a nongovernmental entity are subject to the deed recording fee if the consideration paid or to
    be paid is more than $100.00 and the transfer is not otherwise exempt under Code Section
    12-24-40.
    Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
    shifted to the grantee in the case of a deed from the federal government, the deed may be
    exempt if the grantee is otherwise exempted by law.
    FARM CREDIT BANK DEEDS:
45. Are deeds that transfer realty to a Farm Credit Bank subject to the deed recording fee?
    Deeds that transfer realty to a Farm Credit Bank are exempt from the deed recording fee
    under Code Section 12-24-40(2) since a Farm Credit Bank is considered an instrumentality
    of the federal government pursuant to 12 U.S.C. 2011 and 12 U.S.C. 2023.

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46. Are deeds that transfer realty from a Farm Credit Bank to a non-governmental entity
subject to the deed recording fee?
Deeds that transfer realty from a Farm Credit Bank to a non-governmental entity are
subject to the deed recording fee if the consideration paid or to be paid is more than
$100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
PRODUCTION CREDIT ASSOCIATION DEEDS:

47. Are deeds that transfer realty to a Production Credit Association subject to the deed
    recording fee?
    Deeds that transfer realty to a Production Credit Association are exempt from the deed
    recording fee under Code Section 12-24-40(2) since a Production Credit Association is
    considered an instrumentality of the federal government pursuant to 12 U.S.C. 2071 and
    12 U.S.C. 2077.
48. Are deeds that transfer realty from a Production Credit Association to a non-governmental
    entity subject to the deed recording fee?
    Deeds that transfer realty from a Production Credit Association to a non-governmental
    entity are subject to the deed recording fee if the consideration paid or to be paid is more
    than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
    Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
    shifted to the grantee in the case of a deed from the federal government, the deed may be
    exempt if the grantee is otherwise exempted by law.
    FEDERAL LAND BANK ASSOCIATION DEEDS:
49. Are deeds that transfer realty to a Federal Land Bank Association subject to the deed
    recording fee?
    Deeds that transfer realty to a Federal Land Bank Association are exempt from the deed
    recording fee under Code Section 12-24-40(2) since a Federal Land Bank Association is
    considered an instrumentality of the federal government pursuant to 12 U.S.C. 2091 and
    12 U.S.C. 2098.
50. Are deeds that transfer realty from a Federal Land Bank Association to a non-governmental
    entity subject to the deed recording fee?
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Deeds that transfer realty from a Federal Land Bank Association to a non-governmental
entity are subject to the deed recording fee if the consideration paid or to be paid is more
than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
Note: Since under Code Section 12-24-20(B) the liability for the deed recording fee has
shifted to the grantee in the case of a deed from the federal government, the deed may be
exempt if the grantee is otherwise exempted by law.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FANNIE MAE”) DEEDS:

51. Are deeds that transfer realty to the Federal National Mortgage Association (“FNMA” or
    “Fannie Mae”) subject to the deed recording fee?
    Deeds that transfer realty to the Federal National Mortgage Association (“FNMA” or
    “Fannie Mae”) are subject to the deed recording fee if the consideration paid or to be paid
    is more than $100.00 and the transfer is not otherwise exempt under Code Section 12-2440.
    Note: If the deed is a Master-in-Equity deed, a deed from the federal government, a state
    or a state’s political subdivision, or the deed is from a qualified retirement plan exempt
    from income taxes under the Internal Revenue Code, then the deed (transferring the realty
    to FNMA or Freddie Mac) is not subject to the deed recording fee since the liability rests
    with the grantee under Code Section 12-24-20(B) and FNMA and Freddie Mac are exempt
    from the fee under Code Section 12-24-40(3), 12 U.S.C. 1717, 12 U.S.C. 1723a and 12 U.S.C.
    1452.
52. Are deeds that transfer realty from the Federal National Mortgage Association (“FNMA” or
    “Fannie Mae”) to a non-governmental entity subject to the deed recording fee?
    Deeds that transfer realty from the Federal National Mortgage Association (“FNMA” or
    “Fannie Mae”) to a non-governmental entity are exempt from the deed recording fee
    under Code Section 12-24-40(3), 12 USCS 1717, and 12 U.S.C.A. 1723a.
    Note: The Federal National Mortgage Association is not a federal instrumentality
    FEDERAL HOME LOAN MORTGAGE CORPORATION (“FREDDIE MAC”) DEEDS:
53. Are deeds that transfer realty to the Federal Home Loan Mortgage Corporation (“FHLMC”
    or “Freddie Mac”) subject to the deed recording fee?
    Deeds that transfer realty to the Federal Home Loan Mortgage Corporation (“FHLMC” or
    “Freddie Mac”) are subject to the deed recording fee if the consideration paid or to be paid
    is more than $100.00 and the transfer is not otherwise exempt under Code Section 12-24-40.
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Note: If the deed is a Master-in-Equity deed, a deed from the federal government, a state
or a state’s political subdivision, or the deed is from a qualified retirement plan exempt
from income taxes under the Internal Revenue Code, then the deed (transferring the realty
to FNMA or Freddie Mac) is not subject to the deed recording fee since the liability rests
with the grantee under Code Section 12-24-20(B) and FNMA and Freddie Mac are exempt
from the fee under Code Section 12-24-40(3), 12 U.S.C. 1717, 12 U.S.C. 1723a and 12 U.S.C.
1452.

54. Are deeds that transfer realty from the Federal Home Loan Mortgage Corporation
    (“FHLMC” or “Freddie Mac”) to a non-governmental entity subject to the deed recording
    fee?
    Deeds that transfer realty from the Federal Home Loan Mortgage Corporation (“Freddie
    Mac”) to a non-governmental entity are exempt from the deed recording fee under Code
    Section 12-24-40(3) and 12 U.S.C.A. 1452.
    Note: The Federal Home Loan Mortgage Corporation (“Freddie Mac”) is not a federal
    instrumentality
    TIMESHARE DEEDS:
55. Are deeds that transfer a one-week interest in a timeshare unit under a vacation time
    sharing ownership plan (not a “vacation time sharing lease plan”) as defined in Chapter 32
    of Title 27 subject to the deed recording fee?
    Deeds that transfer a one-week interest in a timeshare unit under a vacation time sharing
    ownership plan as defined in Chapter 32 of Title 27 are subject to the deed recording fee if
    the consideration paid or to be paid is more than $100.00 and the transfer is not otherwise
    exempt under Code Section 12-24-40.
56. Are deeds that transfer a one-week interest in a timeshare unit under a vacation time
    sharing ownership plan (not a “vacation time sharing lease plan”) as defined in Chapter 32
    of Title 27 to the original seller, or to the company managing the timeshare development,
    in exchange for forgiving any unpaid fees subject to the deed recording fee?
    Deeds that transfer a one-week interest in a timeshare unit under a vacation time sharing
    ownership plan as defined in Chapter 32 of Title 27 to the original seller, or to the company
    managing the timeshare development, in exchange for forgiving any unpaid fees are
    subject to the deed recording fee if the consideration paid or to be paid (the amount of the
    unpaid fees forgiven) is more than $100.00 and the transfer is not otherwise exempt under
    Code Section 12-24-40.

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INTERNAL REVENUE CODE SECTION 1031 TAX DEFERRED EXCHANGE DEEDS:

57. Are deeds that transfer realty as part of an income tax deferred exchange under Internal
    Revenue Code Section 1031 subject to the deed recording fee?
    Generally, transactions under Internal Revenue Code Section 1031 involve the exchange of
    realty and exchanges of realty are subject to the deed recording fee. However, such
    transactions can be complex and can also involve an intermediary who may act as an agent
    for one of the parties.
    The Department has issued a separate advisory opinion, SC Revenue Ruling #99-2,
    concerning the deed recording fee and the transfer of realty as part of an income tax
    deferred exchange under Internal Revenue Code Section 1031. For information concerning
    the taxability of the various transactions in an income tax deferred exchange under
    Internal Revenue Code Section 1031, consult SC Revenue Ruling #99-2. (See SC Revenue
    Ruling #99-2.)
    MANUFACTURED HOMES:
58. Are deeds that transfer land and the manufactured home anchored to the land subject to
    the deed recording fee based on the full consideration paid or may the value of the home
    be deducted in calculating the deed recording fee?
    Deeds that transfer land and the manufactured home anchored to the land are subject to
    the deed recording fee based on the full consideration paid. The manufactured home
    anchored to the land is realty and its value may not be deducted from the consideration
    paid in calculating the deed recording fee.
    Note: “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.” See Code Section 12-24-30(B).
    TIMBER DEEDS:
59. Are “timber deeds” subject to the deed recording fee?
    Deeds that constitute a contract for the sale of timber to be cut are exempt from the deed
    recording fee under Code Section 12-24-40(7).
    Deeds transferring the timber and the underlying land are subject to the deed recording
    fee based on the full “value” as defined in Code Section 12-24-30, unless otherwise exempt
    under the statute.

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MINERAL RIGHTS:

60. Is the recording of a deed that conveys mineral rights (oil, gas, sand, etc.) to another
    person subject to the deed recording fee?
    A deed that conveys mineral rights (oil, gas, sand, etc.) to another person where the
    minerals are to be severed by the grantee (buyer) is a deed that conveys realty. The
    recording of this deed is subject to the deed recording fee, unless otherwise exempt under
    the law, based on the value of the mineral rights as determined by Code Section 12-24-30.
    EASEMENTS AND RIGHT-OF-WAYS:
61. Is the recording of a deed that conveys an easement or a right of way (including a
    conservation easement) to another person subject to the deed recording fee?
    The recording of a deed that conveys an easement or a right of way including a
    conservation easement) to another person is subject to the deed recording fee, unless
    otherwise exempt under the law, based on the value of the easement or right of way as
    determined by Code Section 12-24-30.
    Note: In addition to the discussion portion of this document, see Questions #1 through #4
    above for a discussion of “value” as determined by Code Section 12-24-30.
    DEEDS TO OBTAIN CONSTRUCTION LOANS:
    To best address Questions #62 and #63 (below) concerning deeds to obtain construction loans,
    the following example will be used:
    Mr. X owns realty with a fair market value of $22,000.00 and wants to construct a home
    on that realty. Mr. X hires ABC Home Contractors to build a home on the realty for
    $250,000.00.
    In order to obtain the construction loan to build the home, the financial institution is
    requiring that title to the realty on which the home is to be constructed be in the name
    of ABC Home Contractors. Mr. X transfers the realty to ABC Home Contractors under an
    agreement that ABC Home Contractors will construct the home (per specifications
    agreed upon by both parties) and then transfer the realty back to Mr. X upon payment
    of the $250,000.00.

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Note: For purposes of this example, neither transfer involves a lien or encumbrance that
existed on the realty before the transfer and remained on the realty after the transfer.
In addition, neither transfer in this example involves (1) a transaction between a
corporation, a partnership, or other entity and its stockholder, partner, or owner, or (2)
a transaction involving a transfer of realty to a trust or as a transfer of realty as a
distribution to a trust beneficiary.

62. Is the deed that transfers realty from Mr. X to ABC Home Contractors as discussed in the
    facts, so that ABC Home Contractors may obtain a construction loan to build a home for
    Mr. X, subject to the deed recording fee?
    The deed that transfers realty from Mr. X to ABC Home Contractors as discussed in the
    facts, so that ABC Home Contractors may obtain a construction loan to build a home for
    Mr. X, is subject to the deed recording fee based on $22,000.00 - the fair market value of
    the realty.
    Note: If the fair market value of the realty for property tax purposes is less than
    $22,000.00, Code Section 12-24-30(C), allows the taxpayer to use that figure (fair market
    value) in computing the deed recording fee due.
63. Is the deed that transfers the same realty, as discussed in the facts, from ABC Home
    Contractors back to Mr. X upon completion of the building subject to the deed recording
    fee?
    The deed that transfers the same realty, as discussed in the facts, from ABC Home
    Contractors back to Mr. X upon completion of the home is subject to the deed recording
    fee based on $250,000.00 - the money paid or to be paid pursuant to the contract for
    constructing the home.
    CHARTER SCHOOLS AUTHORIZED UNDER CHAPTER 40 OF TITLE 59 OF THE
    SOUTH CAROLINA CODE OF LAWS:
64. Are deeds that transfer realty to a charter school authorized under Chapter 40 of Title 59
    of the South Carolina Code of Laws subject to the deed recording fee?
    Deeds that transfer realty to a charter school authorized under Chapter 40 of Title 59 of the
    South Carolina Code of Laws are not subject to the deed recording fee. These deeds are
    exempt from the deed recording fee under Code Section 59-40-140(K).
65. Are deeds that transfer realty from a charter school authorized under Chapter 40 of Title
    59 of the South Carolina Code of Laws to an individual or business subject to the deed
    recording fee?

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Deeds that transfer realty from a charter school authorized under Chapter 40 of Title 59 of
the South Carolina Code of Laws to an individual or business are not subject to the deed
recording fee. These deeds are exempt from the deed recording fee under Code Section
59-40-140(K).
AGENT TO PRINCIPAL TRANSFERS:

66. Are deeds that transfer realty from an agent to the agent’s principal subject to the deed
    recording fee?
    Deeds that transfer realty from an agent to the agent’s principal are not subject to the
    deed recording fee if the realty was purchased with funds of the principal and a notarized
    document is filed with the deed establishing the facts that the agent and principal
    relationship existed at the time of the original purchase for the purpose of purchasing the
    realty.
    SOUTH CAROLINA DEPARTMENT OF REVENUE
    s/Rick Reames III
    Rick Reames III, Director
    June 8
    , 2015
    Columbia, South Carolina

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