What Palmetto State Title & Escrow Does and How It Works in Real Estate Deals

Palmetto State Title & Escrow handles the paperwork and money in your real estate transaction

Palmetto State Title & Escrow is a title company that manages two critical parts of buying or selling property in South Carolina: verifying ownership history and holding money during the sale. When you buy a home, the company searches public records to confirm the seller actually owns what they're selling and that no liens or claims are attached to the property. During closing, they hold your down payment and the seller's proceeds in a secure account—called an escrow account—until all paperwork is signed and recorded.

Title companies exist because real estate sales involve risk. A previous owner might have unpaid taxes, a contractor might have filed a lien for work never paid for, or a spouse might claim ownership rights. Palmetto State Title & Escrow's job is to uncover those problems before you sign, and to make sure money changes hands only when the deed is legally recorded and the title is clear.

Key Takeaways

• Palmetto State Title & Escrow searches property records to confirm the seller owns the home and no unpaid debts are attached to it.
• The company holds buyer funds and seller proceeds in an escrow account until closing is complete and the deed is recorded.
• Title insurance—issued by the company—protects you against ownership disputes or hidden claims that surface after you buy.
• Closing typically takes place at Palmetto State Title & Escrow's office, where all parties sign documents and funds are transferred.
• The cost of title services is usually split between buyer and seller, though South Carolina law allows either party to pay the full amount.

What a title search reveals before you buy

Before closing, Palmetto State Title & Escrow searches the deed records, tax records, and court filings for the property. This search looks for ownership history going back several years, unpaid property taxes, mortgage liens, judgment liens from creditors, homeowners association liens, and any other claims recorded against the address. If the search finds a problem—say, the seller's ex-spouse is still listed on the deed, or there's an unpaid contractor's lien—the title company reports it to you and your lender before you're obligated to buy.

The title search also confirms that the person selling the property is actually the person whose name appears on the current deed. It sounds obvious, but identity fraud and forged documents do happen. The title company verifies signatures, checks for probate issues if the property was inherited, and confirms that any power of attorney used to sign documents is valid and current.

If problems are found, they must be resolved before closing. Usually the seller pays to clear liens or satisfy old debts. If the seller won't or can't fix the issue, you can walk away without penalty—the title company's job is to protect you from inheriting someone else's legal mess.

How escrow protects both buyer and seller

An escrow account is a neutral holding tank for money. When you make an offer on a property, you typically deposit earnest money—usually 1 to 3 percent of the purchase price—with Palmetto State Title & Escrow. This money sits in their account, not the seller's pocket, until closing. If the deal falls through for a reason allowed by your contract, you get the money back. If you breach the contract, the seller may be may have access to to it.

At closing, the buyer's lender wires the mortgage funds to Palmetto State Title & Escrow. The buyer also brings any remaining down payment. The seller brings the deed and any documents needed to transfer ownership. Palmetto State Title & Escrow holds all the money, verifies that every document is signed correctly, confirms the deed is ready to record, and only then releases funds to the seller and records the deed in your name. This sequence protects both sides: the seller knows they'll be paid, and you know your money won't move until the property is legally yours.

Title insurance and what it covers

Palmetto State Title & Escrow issues a title insurance policy as part of closing. This is a one-time premium—paid at closing, not annually—that protects you against ownership claims or liens that weren't found during the search. If someone later shows up claiming they own part of the house, or if a lien surfaces that should have been caught, title insurance covers your legal defense and any loss up to the policy amount.

South Carolina typically requires two title policies: an owner's policy that protects you, and a lender's policy that protects your mortgage lender. The lender's policy is usually required by your bank. The owner's policy is optional but strongly recommended—it costs less than the lender's policy and covers you for as long as you own the home. Both policies are issued by Palmetto State Title & Escrow and remain in effect even after you sell, protecting you against claims related to your ownership period.

Closing day: what happens at Palmetto State Title & Escrow

Closing typically takes place at Palmetto State Title & Escrow's office, though some transactions close remotely by signing documents electronically and wiring funds. You'll meet with a closing agent—an employee of the title company—who walks you through every document. You'll sign the promissory note (your promise to repay the loan), the mortgage or deed of trust (the lender's security interest in the home), the deed of conveyance (the document that transfers ownership from seller to you), and various disclosure forms required by South Carolina law.

The closing agent reviews the Closing Disclosure, a federal form that shows the final loan terms, interest rate, monthly payment, and all closing costs. You have the right to review this form at least three business days before closing. At the closing table, the agent confirms the numbers match what you were quoted, answers questions, and collects signatures. Once everything is signed, Palmetto State Title & Escrow records the deed with the county register of deeds and disburses funds to the seller and lender.

Costs and who pays for title services

Title search fees, title insurance premiums, and closing agent fees vary depending on the property price and complexity of the transaction. In South Carolina, the buyer and seller can negotiate who pays these costs, though custom varies by region. Some areas expect the seller to pay; others split the cost. Your real estate agent or lender can tell you what's typical in your area, and your purchase contract will specify who pays what.

Title insurance is the largest component of title costs. A policy on a $300,000 home typically costs between $500 and $1,000, depending on the insurer and whether you're buying an owner's policy, a lender's policy, or both. Search and closing fees add another $300 to $800. These costs are usually disclosed in your loan estimate within three business days of applying for a mortgage, so you'll know what to expect before you sign anything.

When problems arise after closing

If a title problem surfaces after you've closed—for example, someone claims they have a right to the property, or a lien appears that should have been caught—your title insurance policy covers the cost of defending your ownership. You contact Palmetto State Title & Escrow or the title insurance company, report the claim, and they assign an attorney to handle it. You don't pay legal fees; the insurance does, up to the policy limit.

Title claims are rare, especially in straightforward residential sales. But they do happen—a forged deed surfaces years later, a spouse claims they never signed off on the sale, or a contractor files a lien for work done before you bought. Title insurance exists precisely for these unlikely but serious scenarios. Without it, you'd be paying your own attorney to fight the claim.

Frequently Asked Questions

Can I choose my own title company, or does my lender pick it?

You have the right to choose your title company under federal law. Your lender cannot force you to use a specific company, though they may have preferred vendors. If you want to use Palmetto State Title & Escrow, tell your lender and real estate agent early in the process so they can coordinate closing logistics.

What if the title search finds a problem?

The title company reports the problem to you, your lender, and the seller's agent. Usually the seller is responsible for clearing it—paying off a lien, getting a spouse to sign a release, or satisfying a judgment. If the seller won't fix it, you can renegotiate the price, ask for a credit at closing, or walk away from the deal without losing your earnest money.

Do I need both an owner's policy and a lender's policy?

Your lender will require a lender's policy to protect their investment. An owner's policy is optional but recommended—it covers you personally and costs less than the lender's policy. Many buyers purchase both for complete protection.

How long does closing take?

The closing meeting itself usually lasts 30 minutes to an hour. Recording the deed and disbursing funds typically happens within one to three business days after closing. You'll receive the recorded deed and a copy of all closing documents in the mail or electronically within a week.

What happens if I find out after closing that the seller didn't disclose a problem?

That's a separate issue from title insurance—it involves the seller's disclosure obligations under South Carolina law. Title insurance covers hidden ownership claims and liens, not undisclosed defects like a leaky roof or foundation cracks. You may have a claim against the seller for misrepresentation, which is handled through your real estate attorney, not the title company.