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H. 4877
STATUS INFORMATION
General Bill
Sponsors: Reps. Clemmons, Cotty, Ballentine, Agnew, G.M. Smith, Talley, Lucas, McGee and Weeks
Document Path: l:\council\bills\agm\18262mm06.doc
Introduced in the House on March 23, 2006
Currently residing in the House Committee on Judiciary
Summary: Mortgages or other liens
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/23/2006 House Introduced and read first time HJ-12 3/23/2006 House Referred to Committee on Judiciary HJ-12
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 30-7-15 SO AS TO PROVIDE FOR A DOCUMENT OF RESCISSION TO CORRECT AN ERRONEOUS RECORDING OF A SATISFACTION OF A MORTGAGE OR OTHER LIEN AFFECTING REAL PROPERTY, TO PROTECT A PRIORITY CREDITOR WHO RECORDS AFTER THE ERRONEOUS RECORDING, AND TO PROVIDE A CIVIL CAUSE OF ACTION FOR A PERSON INJURED BY A WRONGFUL RECORDING OF A DOCUMENT OF RESCISSION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 7, Title 30 of the 1976 Code is amended by adding:
"Section 30-7-15. (A) In this section, 'document of rescission' means a document stating that an identified satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property was recorded erroneously or that a mortgage or other lien affecting real property was satisfied of record erroneously, the secured obligation remains unsatisfied, and the mortgage or other lien affecting real property remains in force.
(B) If a person records a satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property in error or a mortgage or other lien affecting real property is satisfied of record erroneously by another means, the person or the secured creditor may execute and record a document of rescission. Upon recording, the document of rescission rescinds the erroneously recorded satisfaction or affidavit and the erroneous satisfaction of record of the mortgage or other lien affecting real property and reinstates the mortgage or other lien affecting real property.
(C) A recorded document of rescission does not affect the rights of a person that:
(1) records an interest in the real property described in a mortgage or other lien affecting real property after the recording of the satisfaction or affidavit of satisfaction of the mortgage or other lien affecting real property or the erroneous satisfaction of record of the mortgage or other lien affecting real property by other means and before the recording of the document of rescission; and
(2) would otherwise have priority over or take free of the lien created by the mortgage or other lien affecting real property as reinstated.
(D) A person who erroneously or wrongfully records a document of rescission is liable to a person injured by the recording of the actual loss caused by the recording and reasonable attorney's fees and costs."
SECTION 2. This act takes effect upon approval by the Governor.
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