South Carolina · owner financing
South Carolina owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in South Carolina — statute, recording, default remedies, interest caps, and where deals actually happen.
S.C. Code § 27-7-10 et seq. (recording); common law; no dedicated CFD statute
Recording with county Register of Deeds / Clerk of Court permitted under S.C. Code § 30-7-10; not statutorily mandated but unrecorded contracts are subordinate to BFPs without notice.
Hybrid. South Carolina courts apply the equitable mortgage doctrine—where a CFD is in substance security for debt, courts require foreclosure rather than forfeiture, especially when buyer has accumulated substantial equity. Lewis v. Premium Inv. Corp., 351 S.C. 167 (2002).
Is owner financing legal in South Carolina?
South Carolina recognizes 'bonds for title' / 'contracts for deed' under common law and equity.
How do you record a owner financing agreement in South Carolina?
Recording with county Register of Deeds / Clerk of Court permitted under S.C. Code § 30-7-10; not statutorily mandated but unrecorded contracts are subordinate to BFPs without notice.
What happens if the buyer defaults?
Hybrid. South Carolina courts apply the equitable mortgage doctrine—where a CFD is in substance security for debt, courts require foreclosure rather than forfeiture, especially when buyer has accumulated substantial equity. Lewis v. Premium Inv. Corp., 351 S.C. 167 (2002).
What is the maximum interest rate?
8.75% if no written agreement; written contracts effectively allow market rates with consumer credit transactions governed by S.C. Code Title 37 (Consumer Protection Code); rate ceilings vary by transaction type.
What disclosures are required?
South Carolina Residential Property Condition Disclosure required for 1-4 family (S.C. Code § 27-50-10 et seq.); lead-based paint (federal).
Who's protected — buyer vs. seller
Buyer protections
Equitable mortgage doctrine forces foreclosure when CFD operates as security; redemption rights; statutory residential disclosure.
Seller protections
Forfeiture available where minimal equity; ejectment; retention of payments as rent; foreclosure with deficiency available.
Where in the state do these deals happen?
Rural Pee Dee and Lowcountry land; coastal property; Upstate small-town residential; mobile home/land packages.
Notable case law
Lewis v. Premium Inv. Corp., 351 S.C. 167, 568 S.E.2d 361 (2002); Lawrimore v. Sun Pub. Co., 18 S.C. 562 (1883).
Looking at a South Carolina deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. South Carolina contracts and remedies are fact-specific — consult a licensed South Carolina real-estate attorney before signing anything.