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Indicates Matter Stricken
Indicates New Matter
AMENDED
March 28, 2007
H. 3033
S. Printed 3/28/07--H.
Read the first time January 9, 2007.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-3-345 SO AS TO PROVIDE FOR A DOCUMENT OF RESCISSION TO CORRECT AN ERRONEOUS RECORDING OF A SATISFACTION OF A MORTGAGE OR OTHER LIEN AFFECTING REAL PROPERTY, TO PROTECT A PRIORITY CREDITOR WHO RECORDS AFTER THE ERRONEOUS RECORDING, TO PROVIDE A CIVIL CAUSE OF ACTION FOR A PERSON INJURED BY A WRONGFUL RECORDING OF A DOCUMENT OF RESCISSION, TO ESTABLISH A RECORDING FEE, AND TO PROVIDE A FORM FOR THE DOCUMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 3, Title 29 of the 1976 Code is amended by adding:
"Section 29-3-345. (A) In this section, 'document of rescission' means a document stating that an identified satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property was recorded erroneously or that a mortgage or other lien affecting real property was satisfied of record erroneously, the secured obligation remains unsatisfied, and the mortgage or other lien affecting real property remains in force.
(B) If a person records a satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property in error or a mortgage or other lien affecting real property is satisfied of record erroneously by another means, the person or the secured creditor may execute and record a document of rescission that has been duly witnessed and notarized in compliance with Section 30-5-30. Upon recording, the document of rescission rescinds the erroneously recorded satisfaction or affidavit and the erroneous satisfaction of record of the mortgage or other lien affecting real property and reinstates the mortgage or other lien affecting real property.
(C) A recorded document of rescission does not affect the rights of a person that:
(1) records an interest in the real property described in a mortgage or other lien affecting real property after the recording of the satisfaction or affidavit of satisfaction of the mortgage or other lien affecting real property or the erroneous satisfaction of record of the mortgage or other lien affecting real property by other means and before the recording of the document of rescission; and
(2) would otherwise have priority over or take free of the lien created by the mortgage or other lien affecting real property as reinstated.
(D) A person who erroneously or wrongfully records a document of rescission is liable to a person injured by the recording for a sum of money not exceeding one-half of the original face amount of the debt secured by the mortgage or twenty-five thousand dollars, whichever is less, plus actual damages, costs, and attorney's fees.
(E) The Clerk of Court or Registrar of Mesne Conveyance shall collect a filing fee of six dollars, and an additional one-dollar a page for a document containing more than one page.
(F) The 'document of rescission' must be in a form substantially similar to:
STATE OF SOUTH CAROLINA ) DOCUMENT OF RESCISSION
COUNTY OF ________________ ) INADVERTENT SATISFACTION
) AFFIDAVIT
The undersigned on oath, being first duly sworn, hereby certifies as follows:
1. The undersigned is an authorized representative of ________________, the identified mortgagee/lien holder of the mortgage/lien ("Mortgage") filed at Book _____, Page _____ in the above-referenced County.
2. With respect to the Mortgage, given by ________________ to _________________ dated _____________ and recorded in the above County in the Office of the Register of Deeds, this is to represent and certify that the mortgagee inadvertently and mistakenly marked the Mortgage as paid and/or satisfied and filed that document in the records of the County aforesaid.
3. This is to represent and certify that such satisfaction was erroneous and inadvertent, with the obligation secured by the Mortgage remaining unsatisfied and outstanding and the referenced
Mortgage remains in force and effect.
4. Pursuant to Section 30-7-15, the Mortage is reinstated.
____________________________________
By:_________________________________________
Its:__________________________________________
Street Address:_____________________________
City, State and Zip Code:_____________________
Telephone:__________________________________
_______________________________________
Witness
_______________________________________
Witness
Personally appeared before me ________________________ who with _______________________ did witness and does acknowledge the due execution of the foregoing instrument.
Witness my hand and seal
the ______ day of ___________
___________________________________(L.S.)
Notary Public for:_______________________
My Commission Expires:___________________"
SECTION 2. This act takes affect upon approval by the Governor.
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