How did South Carolina Revenue Ruling 04-6 apply the deed recording fee to common real-estate transfers?

Plain-English summary

South Carolina Revenue Ruling #04-6 was the Department's 2004 comprehensive guide to the deed recording fee. It explained the basic tax base and answered 59 questions covering deeds among family members, businesses, trusts, estates, governments, lenders, bankruptcy parties, timeshare owners, and other transferors and transferees.

The ruling stated a total fee of $1.85 for each $500, or fraction of $500, of realty value. “Value” generally included money and money's worth, such as other property, debt forgiveness, debt assumption, or surrendered rights. Certain transfers between entities and owners or involving trusts used the realty's fair market value. A qualifying lien or encumbrance that existed before and remained after the transfer could reduce value.

It also explained that the fee attached to the privilege of recording a deed. An unrecorded deed was therefore not subject to the fee until recorded. Statutory exemptions controlled many special transactions.

This ruling is no longer the operative Department guide. RR 15-3 expressly superseded it, RR 17-5 later superseded RR 15-3, and RR 24-1 now incorporates the January 2024 Deed Recording Fee Manual.

What this means for you

Buyers, sellers, and closing professionals

Use RR 04-6 only as historical context. Its answers show how the Department analyzed value, consideration, exemptions, and transaction form in 2004, but later consolidated guidance replaced it.

Attorneys and recording officials

The ruling addressed who could sign the statutory affidavit, allocating value when property crossed county lines, refund procedures, and many entity and government transfers. Those procedural answers must be checked against the current manual and law.

Tax professionals

The ruling's central framework distinguished money consideration, money's-worth consideration, and transfers for which the realty's fair market value controlled. It also applied the statutory lien deduction and listed exemptions transaction by transaction.

Common questions

Q: What rate did RR 04-6 state?
A: $1.85 for each $500, or fractional part of $500, of the realty's value—$1.30 state and $0.55 county under the ruling.

Q: Was every deed subject to the fee?
A: No. The ruling applied the statutory exemptions in § 12-24-40 and other federal or state exemptions to specific transfers.

Q: Did an unrecorded deed trigger the fee?
A: No. The ruling said the fee did not apply until the deed was recorded.

Q: Is RR 04-6 current guidance?
A: No. RR 15-3 expressly superseded it, and RR 24-1 now incorporates the January 2024 Deed Recording Fee Manual as the Department's consolidated guidance.

Citations and references

• S.C. Code Ann. § 12-24-10 — imposition and rate
• S.C. Code Ann. § 12-24-30 — value and qualifying lien deductions
• S.C. Code Ann. § 12-24-40 — exempt deeds
• S.C. Code Ann. § 12-24-50 — property in multiple counties
• S.C. Code Ann. § 12-24-70 — recording affidavit
• SC Revenue Ruling 15-3 — expressly superseded RR 04-6
• SC Revenue Ruling 17-5 — later superseded RR 15-3
• SC Revenue Ruling 24-1 — superseded RR 17-5 and incorporated the January 2024 manual

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR04-6.pdf
• Official superseding RR 15-3 PDF: RR15-3.pdf
• Official later RR 17-5 PDF: RR17-5.pdf
• Official current-consolidation RR 24-1 PDF: RR24-1.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC REVENUE RULING #04-6

SUBJECT:

Deed Recording Fee

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous documents and any oral directives in conflict
herewith.

REFERENCES:

S. C. Code Ann. Section 12-24-10 (2000)
S. C. Code Ann. Section 12-24-30 (2000)
S. C. Code Ann. Section 12-24-40 (2000; Supp. 2003)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Section 1-23-10(4) (Supp. 2003)
SC Revenue Procedure #03-1

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to
the public and to Department personnel. It is a written
statement issued to apply principles of tax law to a specific
set of facts or a general category of taxpayers. A Revenue
Ruling does not have the force or effect of law, and is
not binding on the public. It is, however, the
Department’s position and is binding on agency personnel
until superseded or modified by a change in statute,
regulation, court decision, or 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 clerk of court or register of
deeds, which remits the state portion of the fee to the Department of Revenue on a
monthly basis.

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Since the enactment of the deed recording fee in 1996, many questions concerning its
application have arisen. The Department has previously addressed many of these
questions in its Deed Recording Fee Manual (published in 1997), in Department advisory
opinions, and through informal opinions provided to recording official, attorneys and
taxpayers.
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. The
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:
In addition to all other recording fees, a recording fee will be imposed for
the privilege of recording a deed in which any lands and all improvements
on the land, tenements, or other realty is transferred to another person.
The fee is one dollar and 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.
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
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.

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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);
(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 such stock or interest
held by the grantor. However, except for transfers from one family trust to
another family trust without consideration, 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 the 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

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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

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(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.
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.

Table of Contents – Questions and Answers:
Section

Question Number(s)

Value
Responsible Person Signing the Affidavit
Realty Located in More Than One County
Unrecorded Deeds
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

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1-4
5
6
7
8
9
10 - 12
13 - 14
15 - 16
17 - 18
19 - 21
23
24 - 27
28
29 - 31
32
33
34
35
36 - 38
39 - 40
41 - 42
43 - 44

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

45 - 46
47 - 48
49 - 50
51 - 52
53 - 54
55 - 56
57
58
59

Questions and Answers:
The following questions and answers are common transactions or transaction
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.

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2. 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.

3. 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.
   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.

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4. 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.” 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.
Responsible Person Signing the Affidavit:

5. 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, 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:
6. 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.

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Unrecorded Deeds:

7. 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.
   Refunds:
8. 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 #97-3.
   Gifts From One Individual To Another Individual:
9. 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:
10. 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.
11. 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,

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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.

12. 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

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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 (12-2440(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.
Charitable Deeds:

13. 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 realty1, 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.), and

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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.

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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)),
d) a transfer that constitutes a contract for the sale of timber to be cut (12-2440(7) (See questions concerning timber deeds.),
e) 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
f) a transfer otherwise exempt under the provisions of Code Section 12-24-40.

14. 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 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, 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)),

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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)),
d) a transfer that constitutes a contract for the sale of timber to be cut (12-2440(7) (See questions concerning timber deeds.),
e) 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
f) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
Deeds from an Estate:

15. Are deeds that transfer realty from an estate to a beneficiary subject to the deed
    recording fee?
    Deed that transfer realty from an estate to a beneficiary 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 an estate to a beneficiary that
    are subject to the deed recording fee unless otherwise exempt under Code Section 12-2440:
    a) a transfer pursuant to the will where the will requires the beneficiary to pay a
    consideration for the realty, and
    b) a transfer in which the beneficiary of the realty directs the personal
    representative of the estate to transfer the realty directly to a third party in
    exchange for a consideration paid to the personal representative or the beneficiary
    (e.g., cash, forgiveness of a debt, etc.)
    The following are examples of deeds from an estate to a beneficiary 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)), and
    b) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
16. 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?

13

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:

17. 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). Note: See questions concerning foreclosure
    proceedings, and
    e) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
18. 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)),

14

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.), and
e) 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 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.
Deeds to and from Partnerships:

19. 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.
20. 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:

15

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.

21. 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.
22. 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:
23. How are deeds that transfer realty to and from a limited liability company (“LLC”)
    treated under the deed recording fee law?

16

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 advisory
opinion concerning deed 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 advisory
opinion concerning deed 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 advisory opinion 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.
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:

24. 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:

17

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.

25. 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
    c) a transfer otherwise exempt under the provisions of Code Section 12-24-40.
26. 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.

18

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.

27. 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.
    Master-in Equity Deeds:
28. 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

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 USCS 1717, and
12 USCA 1723a
12-24-40(3) & 12 USCA 1452

Federal Home Loan Mortgage

19

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 deed
from a Master-in-Equity to the Federal National Mortgage Association (“Fannie Mae”) or
the Federal Home Loan Mortgage (“Freddie Mac”), the transfer is exempt from the deed
recording fee pursuant to federal law.
Foreclosure Deeds:

29. 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.
30. 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).
31. 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, if the assignee is the federal government, or the deed is a Master-in-Equity
    deed and the assignee is the Federal National Mortgage Association or the Federal Home
    Loan Mortgage, the deed that transfers the realty, subject to a mortgage, to the assignee
    of the mortgagee pursuant to a foreclosure proceeding is not subject to the deed recording
    fee.
    20

Chapter 7 Bankruptcy Deeds:

32. 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.
    Chapter 11 Bankruptcy Deeds:
33. 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.A. Section 1146 if the
    transfer is under a plan confirmed under 11 U.S.C.A. Section 1129. If the transfer is not
    under a plan confirmed under 11 U.S.C.A. 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:
34. 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.A. Section 1231 if the
    transfer is under a plan confirmed under 11 U.S.C.A. Section 1225. If the transfer is not
    under a plan confirmed under 11 U.S.C.A. 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:
35. 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.
    21

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:

36. 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).
37. Are deeds that transfer realty from the State, or from a political subdivision of the
    State (e.g., counties, cities, school districts), to 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 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.
38. 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:
39. 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).
40. Are deeds that transfer realty from the federal government to a non-governmental
    entity subject to the deed recording fee?
    22

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:

41. 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.
42. 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:
43. 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 to12 USCS 1717 and 12 USCS 1723a.
44. 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.
    23

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:

45. 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 USCS 2011 and 12 USCS 2023.
46. 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:
47. 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 USCS 2071 and
    12 USCS 2077.
48. 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.

24

Federal Land Bank Association Deeds:

49. 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 USCS 2091 and
    12 USCS 2098.
50. 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:
51. 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 12-2440.
52. 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:
53. Are deeds that transfer realty to the Federal Home Loan Mortgage Corporation
    (“Freddie Mac”) subject to the deed recording fee?

25

Deeds that transfer realty to the Federal Home Loan Mortgage Corporation (“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 12-24-40.

54. Are deeds that transfer realty from the Federal Home Loan Mortgage Corporation
    (“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
    Timeshare Deeds:
55. 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.
56. 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:
57. 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.
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The Department has issued a separate advisory opinion, SC Revenue #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 #99-2.
Manufactured Homes:

58. 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:
59. 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.
    SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Burnet R. Maybank III
Burnet R. Maybank III, Director

March 30
, 2004
Columbia, South Carolina

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