Is this a SC law –applies only to commercial loans and is given at closing or application. SC's Consumer Protection Code specifically excludes consumer transactions-- this right cannot be waived on consumer transactions in SC.

see below verbiage:
WAIVER OF APPRAISAL RIGHTS

The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty days after the sale of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction. THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSUSRE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY.


By signing under seal, I agree to the terms contained in this Waiver of Appraisal Rights. I also acknowledge receipt of a copy of this Waiver of Appraisal Rights on_
Borrower:

We put the Waiver of Appraisal rights notice/clause in the committment letter on the signature page and in the mortgage on the signature page for all commercial real estate loans.

We put the Notice in the commitment letter. We also have a separate form that is used if no commitment letter is issued. We then have all parties to the loan sign the actual waiver at closing.

Can loans still be closed if the borrower does not want to waive their rights? If it can be legally closed, then would it be a Risk Management or Legal call on if the loan should be closed.

Yes, the loan can still be closed. In our bank we have a member of senior management (that understands the ramifications of the waiver) approve any waivers.

I'm trying to understand the requirement for this. Would this be required on a residential first lien mortgage also? It's on the SC Multi-State note and I've got a closing attorney refusing to go forward because it's on the page before the signature page and not underlined. Why would an industry document have this issue for years and this one attorney is the only one who notices?

SECTION 29-3-680. Application for order of appraisal.

(A) In any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked, whether he has theretofore appeared in the action or not, may within thirty days after the sale of the mortgaged property apply by verified petition to the clerk of court in which the decree or order of sale was taken for an order of appraisal.

(B) Except in any real estate foreclosure proceeding relating to a dwelling place, as defined in Section 12-37-250, or to a consumer credit transaction, as defined in Section 37-1-301(11), a defendant against whom a personal judgment may be taken on a real estate secured transaction may waive the appraisal rights as provided by this section if the debtors, makers, borrowers, and/or guarantors are notified in writing before the transaction that a waiver of appraisal rights will be required and upon signing a statement during the transaction similar to the following:

"The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty days after the sale of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction. THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY."

This waiver may be in any document relating to the transaction; however, the required language must be on a page containing the signature of the person making the waiver and the capitalized sentence must be underlined, in capital letters, or disclosed in another prominent manner.