Capping a long line of unauthorized practice of law cases arising from real estate loan closings, the South Carolina Supreme Court has published a decision that may produce “chaotic unintended consequences.”  Matrix Financial Services Corp. v. Frazer et al., Op. No. 26859 (S.C. Sup. Ct. filed Aug. 16, 2010) (Shearouse Adv. Sh. No. 32 at 46 and 50) (Pleicones, J., dissenting).   In Matrix, the court has enunciated a rule (albeit in dicta) that could prevent a mortgage lender from foreclosing on a mortgage if the lender closed the loan without a lawyer’s supervision of the title search, document preparation, and closing.  Though this decision follows a May 6, 2010, decision of the South Carolina Court of Appeals, it is a case of first impression from our supreme court with potentially dramatic import.

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For more information or questions about the Matrix decision, contact Mr. Smith at 803.255.9492 or John Moore at 803.255.9415.

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