Short answer: Yes. The South Carolina Supreme Court has held since State v. Buyers Service Co. (1987) that real estate and mortgage loan closings must be conducted under the supervision of a licensed South Carolina attorney, and reaffirmed it in Doe v. McMaster (2003). The attorney supervises the title search, the loan documents, the closing, the recording and the disbursement of funds. If you take a mortgage for a home, state law also requires the lender to ask which attorney you prefer (SC Code 37-10-102).

Key facts

  • Rule: "real estate and mortgage loan closings should be conducted only under the supervision of attorneys" (Doe v. McMaster, 2003, quoting State v. Buyers Service Co., 1987).
  • Four steps the attorney supervises: title search, loan documents, closing and recording (Doe v. McMaster).
  • Disbursement: paying out the money is part of the closing and must be attorney-supervised (Doe Law Firm v. Richardson, 2006).
  • Your choice of attorney: on a home mortgage, the lender must ask your preference of attorney before closing and follow it (SC Code 37-10-102).
  • Consequence for lenders: a lender that closes without attorney supervision can lose equitable remedies on the loan (Matrix Financial v. Frazer, 2011; reaffirmed in U.S. Bank v. Mack-Marion, 2025).
  • Who pays: the attorney's fee is a closing cost; how it's split is set by your contract and engagement letter.

Why does South Carolina require an attorney at closing?

Because the state Supreme Court treats closing a real estate sale as the practice of law. In State v. Buyers Service Co. (1987), the Court held that real estate and mortgage loan closings should be conducted only under the supervision of attorneys. Doe v. McMaster (2003) restated the rule and listed the steps an attorney must supervise: the title search, the preparation of loan documents, the closing itself, and the recording of title documents. In 2006 the Court added that disbursing the loan funds is also an integral part of the closing (Doe Law Firm v. Richardson).

That's different from many states where a title company or escrow agent runs the closing and no lawyer is involved. If you're buying on Hilton Head from out of state, expect a South Carolina attorney's name on your settlement statement and their office handling your funds.

What does the closing attorney do?

The attorney or their staff, working under the attorney's supervision, typically:

  1. Searches the title at the Beaufort County Register of Deeds and reports liens, easements and restrictions.
  2. Arranges title insurance, if you buy it or the lender requires it.
  3. Prepares or reviews the deed, the settlement statement and the loan documents.
  4. Collects payoffs, community association estoppel figures and fees, and calculates prorated taxes and dues.
  5. Conducts the closing and the signing.
  6. Records the deed and mortgage and pays the deed recording fee and the Town of Hilton Head Island's transfer fee at recording.
  7. Disburses the money to the seller, lenders, the County and everyone else on the statement.

Ask the attorney whom they represent in your transaction: you, your lender, the seller, or more than one of you. The engagement letter should say, and the seller can hire separate counsel.

Can I choose my own closing attorney?

Yes, and on a home loan the law protects that choice. SC Code 37-10-102 says that when a loan secured by real estate is mainly for personal, family or household purposes, the lender "must ascertain prior to closing the preference of the borrower as to the legal counsel" for the closing and comply with it. The lender can do this on the credit application or in a written notice within three business days of the application. The lender may require the attorney to provide reasonable security through mortgage title insurance and to follow reasonable closing procedures.

The same section gives you a say in the insurance agent who places the required hazard and flood insurance, except for condominium property under the Horizontal Property Act. For a cash purchase there's no lender in the picture, and you simply hire an attorney.

Does the attorney have to be in the room?

The court decisions require attorney supervision; we haven't found a current official rule that spells out whether the attorney must be physically present at every signing. If you won't be on Hilton Head for closing, ask the attorney early how they handle signing from a distance, and confirm wire instructions by phone with a number you already know, never one from an email.

What happens if a closing isn't supervised by an attorney?

The lender is the one most at risk. In Matrix Financial Services v. Frazer (2011), the Supreme Court barred lenders from equitable remedies on loans closed without attorney supervision. In U.S. Bank N.A. v. Mack-Marion (January 2025), the Court reaffirmed Matrix, noted it applies only going forward (mortgages recorded before August 8, 2011 remain enforceable), and confirmed that circuit courts can hear claims of unauthorized practice of law. For a buyer, the practical point is that every legitimate South Carolina closing has an attorney, and an offer to close without one is a red flag.

How we help

If you don't already have a South Carolina closing attorney, we can give you the names of several who close on Hilton Head so you can compare fees and pick one. We send the attorney the contract and the community's resale documents and keep the closing timeline on track. The choice of attorney is yours.

Questions

Do I need an attorney if I'm paying cash?

Yes. The Supreme Court's rule covers real estate closings, not just mortgage loans, so a cash sale still closes under an attorney's supervision. The attorney searches title, prepares or reviews the deed, records it and disburses the money.

Can a title company close my Hilton Head purchase?

A title company can issue the title insurance, but in South Carolina the closing itself must be supervised by a licensed SC attorney (Doe v. McMaster, 2003). Non-lawyer staff may handle parts of the work, under that attorney's supervision.

How much does a closing attorney cost?

Fees vary by firm and by the work involved, so we don't quote a typical amount. Ask for the fee in writing before you choose, and ask what's included (title search, title insurance, document preparation, courier and wire fees). You'll see the final figure on your settlement statement.

Sources

  1. Doe v. McMaster, Opinion No. 25508 (2003), Supreme Court of South Carolina (checked October 2026)
  2. Doe Law Firm v. Richardson, Opinion No. 26214 (2006), Supreme Court of South Carolina (checked October 2026)
  3. U.S. Bank N.A. v. Mack-Marion, Opinion No. 28255 (2025), Supreme Court of South Carolina (checked October 2026)
  4. SC Code Title 37 Chapter 10 (37-10-102, borrower's choice of attorney and insurance agent), SC Legislature (checked October 2026)