In a South Carolina home sale, both sides pay closing costs, but the mix is different. Buyers generally cover loan-related fees, the closing attorney, and prepaid items like taxes and insurance. Sellers usually pay more in total because real estate commissions and the state’s deed recording fee land on their side of the settlement statement. Every line is negotiable, and the purchase contract controls who actually pays what on closing day.
What the Buyer Pays
Buyer closing costs in South Carolina generally run 2% to 5% of the purchase price, depending on the loan and how much gets prepaid at closing.
- Loan origination and lender fees. Most lenders charge an origination fee around 0.5% to 1% of the loan amount, plus underwriting, processing, and document preparation charges.
- Appraisal. The lender requires a licensed appraiser to confirm the property’s value, typically $400 to $600 for a single-family home.
- Credit report. Usually under $50.
- Lender’s title insurance. A one-time premium that protects the lender’s interest. The owner’s policy is a separate item, usually negotiated between buyer and seller.
- Prepaid items. You fund an escrow account at closing to cover the first months of property taxes and homeowner’s insurance, and you prepay the daily interest between closing day and your first mortgage payment.
- Recording fees. County offices charge roughly $15 to record the deed and about $25 to record the mortgage, with exact amounts varying by county.
- Closing attorney. South Carolina requires an attorney to handle the closing, and the buyer typically pays this fee. Expect a few hundred dollars up to roughly $1,000 or more depending on complexity.
What the Seller Pays
Sellers in South Carolina usually face total closing costs between 6% and 9% of the sale price. Commissions are the largest piece by a wide margin.
- Real estate commissions. Sellers historically paid a combined 5% to 6% covering both agents. The 2024 National Association of Realtors settlement ended the practice of listing compensation offers in the MLS, and commission is now fully negotiable on both sides of the transaction. Buyers may separately negotiate and pay their own agent’s fee under a written buyer agreement. In practice, many sellers still offer some form of buyer-agent compensation, but the amount and structure vary deal to deal.1National Association of Realtors. Summary of 2024 MLS Changes
- Deed recording fee. South Carolina charges $1.85 per $500 of value whenever a deed transfers real estate. On a $350,000 sale that’s $1,295. Custom places this cost on the seller.2South Carolina Legislature. South Carolina Code Title 12 – Chapter 24 – Deed Recording Fee
- Owner’s title insurance. The seller customarily pays for the policy that protects the buyer against title defects. This is negotiable, and buyers sometimes pick it up.
- Seller’s attorney. Sellers often hire their own attorney to prepare the deed and handle the satisfaction of any existing mortgage, separate from the buyer’s closing attorney.
- Prorated taxes and HOA dues. If the seller has occupied the property for part of a tax or HOA billing period, they reimburse the buyer for their share at closing.
- Existing mortgage payoff. The remaining balance plus accrued interest comes out of the sale proceeds. Not technically a closing cost, but it reduces what the seller walks away with.
The Deed Recording Fee
South Carolina does not call its transfer tax a transfer tax. It is officially a deed recording fee, but it functions the same way. The rate is $1.85 per $500 of value, which equals $3.70 per $1,000.2South Carolina Legislature. South Carolina Code Title 12 – Chapter 24 – Deed Recording Fee
On a $300,000 home, the fee comes to $1,110. On a $500,000 home, it is $1,850. The seller traditionally pays, though the parties can agree otherwise in the contract. Certain transfers are exempt, including deeds distributing property from a decedent’s estate and trust distributions upon the settlor’s death.
Why the Buyer Pays a Closing Attorney
South Carolina is one of a handful of states that require a licensed attorney to conduct real estate closings. The requirement comes from the South Carolina Supreme Court’s authority to define the practice of law. In State v. Buyers Service Co. (1987), the court held that real estate and mortgage loan closings must be conducted under attorney supervision.3South Carolina Judicial Branch. State v. Buyers Service Co., Inc. A nonlawyer title company or real estate agent cannot run the closing on its own here.
The closing attorney reviews title, prepares documents, escrows and disburses funds, and makes sure the transaction complies with state and federal requirements. The buyer typically pays this fee. That adds cost compared with states where title companies handle closings, but it also means an attorney reviews every document before you sign.
What Is Negotiable
Almost everything on the closing statement is negotiable. The purchase contract is where those agreements get locked in, so anything about who pays what needs to be in writing before closing day.
Seller Concessions
The most common tool is a seller concession, where the seller covers some or all of the buyer’s closing costs. This helps buyers who have stretched for the down payment and have little cash left. The concession is built into the purchase price, so the buyer effectively finances closing costs through the mortgage.
Loan programs cap how much the seller can contribute:
- FHA loans limit seller concessions to 6% of the sale price.4FHA. FHA Seller Concessions
- Conventional loans range from 3% for low-down-payment purchases up to 9% for buyers putting 25% or more down.
- VA loans cap concessions at 4% of the sale price.
Exceeding these limits can require the excess to be subtracted from the appraised value, which can derail the loan.
Other Negotiation Points
Buyers and sellers also negotiate who pays for owner’s title insurance, whether the seller covers a home warranty, and how repair credits factor into the final numbers. In a strong seller’s market, buyers have less leverage. In a slower market, sellers routinely offer concessions to attract offers.
Reviewing the Numbers Before You Sign
For a mortgage transaction, every cost shows up on the Closing Disclosure, a five-page form that itemizes every charge and credit for both sides. Federal law requires the lender to deliver it at least three business days before closing so you have time to review it and catch errors.5eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions If the lender mails it, add three more days, so it needs to go out six business days before closing.6Consumer Financial Protection Bureau. Review Your Closing Disclosure
Compare the Closing Disclosure line by line against your Loan Estimate and the purchase contract. The three-day window exists so you can flag mistakes before you are sitting at the closing table with a pen in your hand.