Find the right South Dakota real estate form

South Dakota real estate conveyances are governed primarily by Titles 43 and 43-28 of the South Dakota Codified Laws. Before a deed may be recorded, it must be accompanied by a full and complete Certificate of Value.

Certificate of Value Requirement

The Certificate of Value must include the names and addresses of the buyer and seller, the legal description of the property, the actual consideration exchanged, any relationship between the parties, and the terms of payment if not paid in full at closing. Recording will not be completed without this certificate.

Form and Ownership Structure

A transfer of real property is an act of the parties or of law by which title passes from one living person to another (SDCL § 43-4-1). An estate in real property—other than an estate at will or for a term not exceeding one year—must be transferred by written deed subscribed by the grantor or the grantor’s authorized agent (SDCL § 43-25-1).

South Dakota distinguishes between absolute ownership (full dominion by one person) and qualified ownership (shared ownership, limited duration, or restricted use) (SDCL §§ 43-2-4 to 43-2-6). Property may be owned individually, jointly, in common, or in partnership. The manner of ownership determines survivorship and conveyance rights.

Warranty deeds and quitclaim deeds are commonly used. Statutory forms provided in SDCL §§ 43-25-5 to 43-25-8 are permissive and do not invalidate other properly drafted forms.

Alien Ownership and Agricultural Restrictions

South Dakota permits citizens and aliens to hold property (SDCL § 43-2-9), but restricts alien ownership of agricultural land under Chapter 43-2A. Agricultural land ownership by certain nonresident aliens is limited by statute.

A person claiming title may convey property even if the land is held adversely by another (SDCL § 43-25-2).

Execution, Acknowledgment, and Delivery

A deed must be signed and acknowledged by the grantor. If not acknowledged, the deed may be proved by a subscribing witness (SDCL § 43-25-26). A deed takes effect only upon absolute delivery. A conditional delivery to the grantee is ineffective to transfer title (SDCL § 43-4-8).

Recording and Priority

Deeds must be recorded in the office of the register of deeds in the county where the property is located.

An unrecorded deed is valid between the parties and those with notice (SDCL § 43-28-14). Once properly proved, certified, and recorded, the instrument provides constructive notice to subsequent purchasers and encumbrancers (SDCL § 43-28-15).

South Dakota follows a race-notice recording system. A conveyance—other than a lease for one year or less—is void against a subsequent purchaser or encumbrancer in good faith and for valuable consideration whose instrument is first duly recorded (SDCL § 43-28-17).

South Dakota also expressly protects good-faith purchasers under quitclaim deeds. A person taking title by quitclaim is deemed a purchaser in good faith unless he or she had actual knowledge of a prior unrecorded conveyance (SDCL § 43-25-12).

Because South Dakota requires a Certificate of Value, strict compliance with delivery and acknowledgment rules, and timely recording to establish priority, careful preparation and prompt filing are essential to ensure that a conveyance is legally effective and protected.