Where could a South Carolina real estate broker file a magistrate interpleader over earnest money when buyer and seller lived elsewhere?

Plain-English summary

In 2006, the South Carolina Attorney General said a real estate broker's magistrate-court interpleader over disputed earnest money could be filed in a county where at least one defendant, the buyer or seller, resided. The broker's own county did not supply the venue rule the opinion applied.

The opinion addressed a narrow statutory route for earnest-money disputes within the magistrate court's monetary jurisdiction. It said that if both the buyer and seller lived out of state, the office knew of no authority to bring the matter before a South Carolina magistrate.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: Could the broker file in a county where a buyer or seller lived?
A: Yes. The Attorney General applied the rule allowing filing where at least one defendant resided.

Q: Did the broker's own location determine the county?
A: The opinion relied on a defendant's residence rather than the plaintiff broker's location.

Q: What if both buyer and seller lived outside South Carolina?
A: The office said it knew of no authority for filing the action in a South Carolina magistrate court.

Background and statutory framework

The letter quoted the statute allowing a limited magistrate-court interpleader arising from real estate contracts and the then-applicable monetary limit. It applied the magistrate court's territorial filing rule to a broker holding money claimed by both buyer and seller.

Citations and references

The linked opinion quotes the South Carolina interpleader statute, the then-applicable jurisdictional limit, and the magistrate court filing rule.

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/july-6-2006/
• Original PDF: https://www.scag.gov/wp-content/uploads/2011/03/06july6watt.pdf

Original opinion text

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HENRY M CMASTER
ATTORNEY G EN ERAL

July 6, 2006

Lovee M. Watts, Staff Attorney
South Carolina Court Administration
1015 Sumter Street, Suite 200
Columbia, South Carolina 29201
Dear Ms. Watts:
In a letter to this office the question was raised as to the jurisdiction of a magistrate when hearing an interpleader action where the defendant/buyer and defendant/seller are not located in the same county and/or state where the plaintiffi'realtor is located. As explained by you, interpleader is

...an equitable remedy in which a person, who owes or is in possession of money or property in which he disclaims any title or interest but which is claimed by two or more persons, prays that the claimants be compelled to state their several claims so that the court may adjudge to whom the matter or thing in controversy belongs. S.C. Code Ann. § 22-3-25(A) states that
[i]n compliance with Section 22-3-20(2) and Article 11 ofthis chapter, actions in the nature of interpleader arising from real estate contracts for the recovery of earnest money, in which the value of the money that is the subject of the action does not exceed the jurisdictional limit of the magistrates court, may be filed in magistrates court under the provisions of this section .... The jurisdictional limit of a magistrate's court action is seven thousand five hundred dollars. See: S.C. Code Ann. § 22-3-10. As indicated by you, Section 22-3-25 is
... narrowly drawn so that the only interpleader actions available in magistrate's court is where a real estate broker (plaintiff) is unable to determine whether the buyer or seller (defendant) is entitled to the return of earnest money. The real estate broker asks the court to accept the money, dismiss him/her from the case, and allow the buyer and seller to plead their case to the court.

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• PoSTOrnc:e Box 11 549 • Co<., MaodC 192 11 - " 4'

Ms.Watts
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July 6, 2006

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As to your question of the jurisdiction of a magistrate to hear an interpleader action when the defendant/buyer and defendant/seller are not located in the same county where the plaintiff/realtor is located, pursuant to Rule 4 of the Magistrate's Court Rules, "[a] civil action may be filed in the appropriate magistrate's court having territorial jurisdiction in the county in which at least one defendant resides .... " I am unaware of any court decisions in this State responsive to your question. However, in my opinion, consistent with Rule 4, the interpleader action could be filed in the county in which at least one of the defendants reside. If both of the defendants reside out of state, I am unaware of any authority for the matter to be brought before a magistrate in this State.

If there are any questions, please advise.
Sincerely,

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Senior Assistant Attorney General

REVIEWED AND APPROVED BY:

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Assistant Deputy Attorney General

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