SC SC Revenue Ruling #17-5 Deed Recording Fee 2017-08-28

What deed-recording-fee framework and transaction guidance did South Carolina Revenue Ruling 17-5 provide before RR 24-1 superseded it?

Short answer: This historical ruling imposed a $1.85 fee for each $500 or fraction of $500 of realty value, generally made the grantor primarily liable, defined value broadly, allowed specified deductions and exemptions, and applied those rules to 73 transaction questions. RR 24-1 superseded it and incorporated the January 2024 Deed Recording Fee Manual as current Department guidance.

Apply this to your situation

This page answers the general question as of 2017. Ezel answers yours, under current South Carolina tax law, with citations.

Disclaimer: Historical guidance only. SC Revenue Ruling #24-1 expressly superseded RR #17-5 and incorporated the January 2024 South Carolina Deed Recording Fee Manual as the Department's consolidated guidance. RR #17-5 had applied to all open periods and superseded RR #15-3, but its 73 transaction-specific answers should not be used for a current transfer without checking RR #24-1, the incorporated manual, and current law. This summary is informational only and is not legal or tax advice.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

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 It is now historical: Revenue Ruling 24-1 expressly superseded it and incorporated the January 2024 Deed Recording Fee Manual as the Department's consolidated guidance.

RR 17-5 stated the basic fee as $1.85 for each $500, or fraction of $500, of the realty's value. Of that amount, $1.30 was the state portion and $0.55 was the county portion. The county clerk of court or register of deeds collected the fee and remitted the state share monthly.

The grantor was generally liable, multiple grantors were jointly and severally liable, and the grantee was secondarily liable. For a master-in-equity deed or a deed from the federal government, South Carolina, a political subdivision, or a qualifying retirement plan to another person, the ruling placed liability on the grantee instead.

"Value" broadly included money and money's worth: other realty, personal property, securities, entity interests, debt forgiveness or assumption, and surrendered rights. Fair market value applied to noncash consideration, and taxpayers could elect the realty's fair market value. Transfers between an entity and an owner, and transfers to or from a trust beneficiary, used the realty's fair market value. An existing lien or encumbrance that remained on the property after the transfer could be deducted.

The ruling then answered 73 questions covering affidavits, multi-county property, unrecorded deeds, refunds, gifts and family transfers, estates, trusts, partnerships, LLCs, corporations, foreclosure and bankruptcy, government and federally connected entities, timeshares, like-kind exchanges, manufactured homes, timber and mineral rights, construction-loan transfers, charter schools, agency relationships, Section 338(h)(10) elections, and community land trusts.

Representative rules in the old guide

A deed was generally subject to the fee unless a statutory exclusion or exemption applied, including the listed exemptions in Section 12-24-40.
A deed of distribution from a decedent's estate under Section 62-3-907, and the described trust-to-beneficiary transfer at the settlor's death, was not a deed subject to Chapter 24.
Transfers for $100 or less of statutory value, transfers to federal or state government bodies, qualifying spouse or divorce transfers, qualifying partitions, and certain entity contributions were among the exemptions discussed.
Transfers from an entity back to an owner were generally treated differently from qualifying contributions into the entity, subject to the specific family-trust and family-partnership provisions.
Charter-school transfers were exempt under Section 59-40-140(K).
An agent-to-principal transfer could be nontaxable when the principal supplied the purchase funds and a notarized document filed with the deed established that the agency existed at the original purchase.

These examples reflect the 2017 guide only. Use the January 2024 manual incorporated by RR 24-1 for the Department's later consolidated treatment.

Common questions

Q: Is RR 17-5 current guidance?
A: No. RR 24-1 expressly superseded it and incorporated the January 2024 Deed Recording Fee Manual.

Q: What rate did RR 17-5 state?
A: $1.85 for every $500, or fraction of $500, of the realty's value.

Q: Who normally owed the fee?
A: The grantor, with joint-and-several liability for multiple grantors and secondary liability for the grantee, subject to the listed statutory exceptions.

Q: Was value limited to cash paid?
A: No. The ruling included noncash property, entity interests, debt forgiveness or assumption, and surrendered rights, using fair market value where required.

Q: Did every transfer between an owner and an entity receive the same treatment?
A: No. The ruling distinguished qualifying contributions into an entity from distributions back to an owner and applied specific statutory exceptions. Current treatment should be checked in the 2024 manual.

Citations and references

S.C. Code Ann. Sections 12-24-10 through 12-24-70 (deed recording fee, liability, value, exemptions, affidavits, and enforcement)
S.C. Code Ann. Section 62-3-907 (deeds of distribution)
S.C. Code Ann. Section 59-40-140(K) (charter-school transfers)
S.C. Code Ann. Section 31-23-40(G) (community land trusts)
SC Revenue Ruling #24-1 and the incorporated January 2024 Deed Recording Fee Manual (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/RR17-5.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 #17-5
SUBJECT:

Deed Recording Fee

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

SC Revenue Ruling #15-3 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. 2016)
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. 2016)
S. C. Code Ann. Section 59-40-140(K) (Supp. 2016)
S. C. Code Ann. Section 31-23-40(G) (Supp. 2016)

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 county 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 12-24-20 establishes the liability for the deed recording fee and reads:
(A) Except as provided in subsection (B), the fee imposed by this chapter is the
liability of the grantor, or the joint and several liability of the grantors, but the
grantee is secondarily liable for the payment of the fee.
(B) In the case of a master-in-equity deed, a deed from the federal government, a
state or any of a state's political subdivisions, or a qualified retirement plan exempt
from income taxes under the Internal Revenue Code to another person, the fee
imposed by this chapter is the liability of the grantee, or the joint and several liability
of the grantees, and not the grantor.
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
2

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.
With respect to the above deduction from “value” in Code Section 12-24-30(B), Code Section
12-59-140(E)(6) reads:
Deductions from "value" pursuant to Section 12-24-30(B) shall include any lien or
encumbrance on realty in possession of a forfeited land commission which may
subsequently be waived or reduced after the transfer under a signed contract or
agreement between the lien holder and the buyer existing before the transfer.
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
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) 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 1224-40(4)). See SC Revenue Ruling #14-9.
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;

(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.
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.
5

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.
Finally, Code Section 12-24-70 requires an affidavit to be filed (with some exceptions) with the
clerk of court or the register of deeds, and reads:
(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.
(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.
As such, an affidavit showing the “value” of the realty must be filed with the deed. However,
the requirement to file the affidavit may be waived by the clerk of court or register of deeds. In
addition, an affidavit is not required for deeds of distribution transferring realty to a distributee.

TABLE OF CONTENTS – QUESTIONS and ANSWERS:
Section

Question Number(s)

Value
Liability for the Deed Recording Fee
Responsible Person Signing the Affidavit
Realty Located in More Than One County
Unrecorded Deeds
Deeds Recorded in the Wrong County
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
Internal Revenue Code Section 338(h)(10) Election
Community Land Trusts

1-4
5
6
7
8
9
10
11
12 - 14
15 - 16
17 - 18
19 - 20
21 - 24
25
26 - 29
30
31 - 33
34
35
36
37
38 - 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 - 67
68
69
70 – 73

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.
With respect to the above deduction from “value” in Code Section 12-24-30(B), Code
Section 12-59-140(E)(6) reads:
Deductions from "value" pursuant to Section 12-24-30(B) shall include any lien
or encumbrance on realty in possession of a forfeited land commission which
may subsequently be waived or reduced after the transfer under a signed
contract or agreement between the lien holder and the buyer existing before
the transfer.

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.”
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.

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.

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.
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.” 3 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.

2 Code Section 12-59-140(E)(6) provides that “[d]eductions from ‘value’ pursuant to Section 12-24-30(B) shall

include any lien or encumbrance on realty in possession of a forfeited land commission which may subsequently
be waived or reduced after the transfer under a signed contract or agreement between the lien holder and the
buyer existing before the transfer.”
3 Code Section 12-59-140(E)(6) provides that “[d]eductions from ‘value’ pursuant to Section 12-24-30(B) shall
include any lien or encumbrance on realty in possession of a forfeited land commission which may subsequently
be waived or reduced after the transfer under a signed contract or agreement between the lien holder and the
buyer existing before the transfer.”

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.

LIABILITY FOR THE DEED RECORDING FEE
5.

Who is liable for the deed recording fee?
The deed recording fee is generally the liability of the grantor or the joint and several
liability of the grantors. The grantee, however, is secondarily liable for the fee.
The grantee (or grantees), and not the grantor, is liable for the deed recording fee under
the following circumstances:
(a) master-in-equity deed;
(b) deed from the federal government;
(c) deed from a state or any one of a state’s political subdivisions; and
(d) deed from a qualified retirement plan exempt from income taxes under the
Internal Revenue Code.

RESPONSIBLE PERSON SIGNING THE AFFIDAVIT:
6.

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:
7.

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.
12

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:
8.

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?
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.

DEEDS RECORDED IN THE WRONG COUNTY
9.

If a deed is recorded in the wrong county (e.g., a deed for realty in Lexington County is
incorrectly recorded in Richland County), how should this matter be corrected for
purposes of the deed recording fee.
Since the deed recording fee is actually a single fee composed of a state portion and a
county portion, the entire fee must be paid when any deed is recorded with the county
clerk of court or register of deeds.
Therefore, if a deed is recorded in the wrong county (e.g., a deed for realty in Lexington
County is incorrectly recorded in Richland County), then the deed should be recorded in
the correct county. The entire fee of “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” should be paid in the correct county.

After recording the deed in the correct county, the person legally liable for the deed
recording fee 4 should then file a claim for refund for the fee paid in the wrong county in
accordance with the refund procedures for the deed recording fee established in SC
Revenue Procedure #15-1. In addition to the information and documentation required in
SC Revenue Procedure #15-1, the person filing the claim for refund should also provide
the Department documentation that the deed has been recorded in the correct county.
The Department will refund the state portion of the fee and order the county to refund
the county portion of the fee.
REFUNDS:

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 #15-1.
GIFTS FROM ONE INDIVIDUAL TO ANOTHER INDIVIDUAL:
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:
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.

See Question #5 of this revenue ruling.

13. 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:
(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.

14. 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,
(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.
16

CHARITABLE DEEDS:

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 5, 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,
(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.) 6, 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
5
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.
6
See SC Revenue Ruling #99-2 for a discussion of the application of the deed recording fee to I.R.C. Section
1031 Tax Deferred Exchanges.

(e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.

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 from 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
(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
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 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 (12-2440(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:
Are deeds that transfer realty from an estate to a beneficiary subject to the deed
recording fee?
18

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.

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:
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
12-24-40(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.
20.

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:
(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
12-24-40(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.
DEEDS TO AND FROM PARTNERSHIPS:

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.
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.
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.

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.
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:

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.
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:

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)),
(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.
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

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 fee.
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 12-2440.
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:
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 12-2440.
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

Reason for Exemption

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

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.
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 Masterin-Equity 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:

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.

32. 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 1224-40(13).

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:
(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) 7.
CHAPTER 7 BANKRUPTCY DEEDS:
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.
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.
7

CHAPTER 11 BANKRUPTCY DEEDS:

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.
CHAPTER 12 BANKRUPTCY DEEDS:
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:
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 12-24-40.

STATE AND LOCAL GOVERNMENT DEEDS:

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).
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.
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.
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:
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).

42. 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:

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.
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:
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 to 12 U.S.C. 1717 and 12 U.S.C. 1723a.
30

46. 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:

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.
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:
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.

50. Are deeds that transfer realty from a Production Credit Association to a nongovernmental 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:

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.
Are deeds that transfer realty from a Federal Land Bank Association to a nongovernmental entity subject to the deed recording fee?
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:
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
12-24-40.

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.

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:
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 12-2440.
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.
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.
33

TIMESHARE DEEDS:

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.
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.
INTERNAL REVENUE CODE SECTION 1031 TAX DEFERRED EXCHANGE DEEDS:
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:

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:
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.
MINERAL RIGHTS:
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 1224-30. See SC Revenue Ruling #06-11.

EASEMENTS AND RIGHT-OF-WAYS (INCLUDING CONSERVATION EASEMENTS):
63.

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. See SC Revenue Ruling #06-10.
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 #64 and #65 (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. See SC Revenue Ruling #05-8.
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.

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.

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:
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).
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?
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:
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
37

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.
INTERNAL REVENUE CODE SECTION 338(h)(10) ELECTION

Is the deed recording fee due when a purchasing corporation making a qualified stock
purchase (i.e., the purchase of at least 80% of the total voting power and value of the
stock of a corporation during a 12 month acquisition period) of a target corporation and
purchasing and target corporations making a joint election under Internal Revenue Code
Section 338 (“Certain Stock Purchases Treated as Asset Acquisitions”)?
No. For deed recording fee purposes, a “transfer” of reality to another person has not
taken place under Code Section 12-24-10. Accordingly, there is no South Carolina deed
recording fee consequence from an Internal Revenue Code Section 338(h)(10) election.
See SC Revenue Ruling #09-4.
COMMUNITY LAND TRUSTS
Is the sale of land to a Community Land Trust that will be leased by the Community Land
Trust in providing affordable, low-income housing to a homebuyer under the provisions of
Chapter 23 of Title 31 of the S.C. Code of Laws subject to the deed recording fee?
No. Code Section 31-23-40(G) states that “[p]roperties purchased, sold, or repurchased
and resold by a [Community Land Trust] … must be assessed the real estate deed
recording fee only once per transfer at the time of the resale to a homebuyer.”
Since the land will be used by the Community Land Trust to provide affordable, lowincome housing, it is not subject to the deed recording fee when it is originally purchased
by the Community Land Trust.
If a Community Land Trust builds a home to provide affordable, low-income housing and
sells the home, and leases the underlying land, as affordable, low-income housing to a
homebuyer under the provisions of Chapter 23 of Title 31 of the S.C. Code of Laws, is the
sale of the home subject to the deed recording fee.
Yes. Code Section 31-23-40(G) states that property sold by a Community Land Trust is
subject to the deed recording fee but only “at the time of the resale to a homebuyer.”

72. Is the sale of land to a Community Land Trust that will be leased by the Community Land
Trust as part of a neighborhood development of a nonresidential nature under the
provisions of Chapter 23 of Title 31 of the S.C. Code of Laws subject to the deed recording
fee?
Yes. Code Section 31-23-40(G) states that “[p]roperties purchased, sold, or repurchased
and resold by a [Community Land Trust] … must be assessed the real estate deed
recording fee only once per transfer at the time of the resale to a homebuyer.”
Since the land will be used by the Community Land Trust in neighborhood development of
a nonresidential nature and will not be sold to a homebuyer, it is subject to the deed
recording fee.

If a Community Land Trust builds a shopping complex as part of a neighborhood
development under the provisions of Chapter 23 of Title 31 of the S.C. Code of Laws, is the
sale of the shopping complex subject to the deed recording fee?
Yes. Code Section 31-23-40(G) states that property sold by a Community Land Trust is
subject to the deed recording fee but only “at the time of the resale to a homebuyer.”
Since the shopping complex is nonresidential and will not be sold to a homebuyer, the
deed recording fee is due on all real estate transfers involving to the shopping complex
unless the transfer is otherwise exempt (e.g., transfers to the government).
SOUTH CAROLINA DEPARTMENT OF REVENUE
s/W. Hartley Powell
W. Hartley Powell, Director
August 28
, 2017
Columbia, South Carolina

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