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H. 4520

STATUS INFORMATION

General Bill
Sponsors: Reps. W. Newton and Elliott
Document Path: l:\council\bills\agm\19233cz18.docx

Introduced in the House on January 9, 2018
Currently residing in the House Committee on Judiciary

Summary: Derivation clause requirements

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
  12/13/2017  House   Prefiled
  12/13/2017  House   Referred to Committee on Judiciary
    1/9/2018  House   Introduced and read first time (House Journal-page 141)
    1/9/2018  House   Referred to Committee on Judiciary 
                        (House Journal-page 141)

View the latest legislative information at the website

VERSIONS OF THIS BILL

12/13/2017

TO AMEND SECTION 30-5-35, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DERIVATION CLAUSE REQUIREMENT ON DEEDS AND MORTGAGES, SO AS TO REQUIRE ALL MORTGAGES EXECUTED AFTER JUNE 1, 2018, TO INCLUDE A CLAUSE SETTING FORTH THE NAME OF THE PARTY WHO PREPARED THE MORTGAGE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 30-5-35 of the 1976 Code is amended to read:

"Section 30-5-35.    (aA)    All deeds conveying an interest in land and all mortgages of real estate executed after July 1, 1976, must include a derivation clause in the property description and there must be inscribed on the deed or mortgage the mailing address of the grantee or mortgagee. When the grantor's or mortgagor's title was acquired by deed, the derivation clause must include the name of the grantor and the recording date of that deed. However, when the deed of derivation has been simultaneously executed and delivered and has not then been recorded it is sufficient to set forth in the deed or mortgage the name of the grantor of the deed of derivation and its date and that it is to be recorded. When the grantor's or mortgagor's title was obtained by inheritance or devise, the derivation clause must include the name of the person from whom the title was acquired, the approximate date of acquisition, and, in the case of property acquired under a probated will or administered estate, the probate court in which such estate was filed. However, a derivation clause is not required on a deed or mortgage of property devoted to a utility or railroad purpose of any private or public utility or railroad. Further, a derivation clause is not required on a quitclaim or non-warranty deed of real property.

All deeds or mortgages of real estate executed after June 1, 2018, to be recorded must include identifying and contact information of the preparer of the instrument.

(bB)    A clerk of court or register of deeds shall may not record any deed or mortgage after July 1, 1976, unless it contains a derivation and preparer's clause as prescribed in subsection (a A); provided, however, that he may record a deed or mortgage without such clause upon a showing satisfactory to him that the necessary information for such clause was not available upon a showing satisfactory to the clerk of court or register of deeds that identifying and contact information of the preparer of the instrument is not available, the clerk of court or register of deeds may record the deed or mortgage.

(cC)    The provisions of this section are intended to be regulatory in nature and will not affect the legality, force, effect or record notice of any instrument recorded in violation hereof of this section."

SECTION    2.    This act takes effect upon approval by the Governor.

This web page was last updated on January 11, 2018 at 8:55 AM