Key Takeaways
- South Dakota is a "race-notice" state for recording - first to record without notice of prior claims has priority
- Homestead exemption protects up to one acre within a municipality or 160 acres in rural areas
- South Dakota does not impose a state real estate transfer tax on property sales
- Property taxes are administered by county treasurers with the fiscal year running January 1 to December 31
- South Dakota recognizes various forms of property ownership including joint tenancy with right of survivorship
South Dakota Property Law
South Dakota has specific property laws that affect real estate transactions. Understanding these is essential for the state exam.
Recording Laws
South Dakota is a "race-notice" state for recording:
Race-Notice Rule
| Principle | Description |
|---|---|
| Priority | First to record without notice of prior claims |
| Protection | Subsequent purchaser without notice wins |
| Requirement | Must record AND be without notice |
Recording Process
| Step | Description |
|---|---|
| Where to record | County Register of Deeds |
| What to record | Deeds, mortgages, liens, easements |
| Effect | Provides constructive notice to the world |
Homestead Exemption
South Dakota provides homestead protection for primary residences:
Homestead Limits
| Location | Maximum Protected |
|---|---|
| Within municipality | 1 acre |
| Rural areas | 160 acres |
| Value limit | Unlimited value protection |
Homestead Protection
The homestead exemption protects the home from:
- Forced sale for general creditor claims
- Bankruptcy (with limitations)
Important: Homestead protection does NOT apply to mortgage liens, property taxes, or mechanic's liens.
Transfer Tax
| Tax Type | South Dakota Status |
|---|---|
| State transfer tax | None |
| Local transfer tax | Generally none |
Key Advantage: South Dakota does not impose a state real estate transfer tax on property sales, making it attractive for property transactions.
Property Taxation
Assessment and Collection
| Item | Details |
|---|---|
| Fiscal year | January 1 to December 31 |
| Assessment date | November 1 of prior year |
| Administered by | County Treasurer |
| Tax bills | Mailed annually |
Payment Schedule
Property taxes in South Dakota are typically due:
| Payment | Due Date |
|---|---|
| First half | April 30 |
| Second half | October 31 |
Property Tax Exemptions
| Exemption Type | Description |
|---|---|
| Owner-occupied | Reduction for primary residence |
| Agricultural | Special assessment for farmland |
| Veterans | Exemptions for qualifying veterans |
| Senior citizens | Various programs available |
Forms of Property Ownership
South Dakota recognizes various forms of ownership:
| Ownership Type | Key Features |
|---|---|
| Fee simple | Complete ownership |
| Joint tenancy | Right of survivorship |
| Tenancy in common | No right of survivorship |
| Community property | Not recognized in SD |
Joint Tenancy Requirements
For joint tenancy with right of survivorship in South Dakota:
- Four unities: time, title, interest, possession
- Clear intent to create survivorship
- Must be expressly stated in deed
Landlord-Tenant Law
Security Deposit Rules
| Requirement | Details |
|---|---|
| Maximum deposit | 1 month's rent (general guideline) |
| Return deadline | Within 2 weeks after termination |
| Itemization | Must provide itemized statement of deductions |
Lease Termination Notice
| Lease Type | Notice Required |
|---|---|
| Month-to-month | 1 month notice |
| Year lease | As specified in lease |
What type of recording system does South Dakota use?
What is the homestead exemption limit for rural property in South Dakota?
Does South Dakota impose a state real estate transfer tax?
When are South Dakota property taxes typically due?