From the
South Dakota
Real Estate Commission
425 East Capitol
Pierre, SD 57501
(605) 773-3600
FAX (605) 773-4356
www.state.sd.us/sdrec
E-Mail: realest@crpr1.state.sd.us
If you want this information in pamphlet form, E-mail: joshua.ring@state.sd.us.
INTRODUCTION
The buying, selling, leasing or renting of real estate is an important concern for everyone involved. For many people, the purchase or sale of real property is one of the largest financial transactions in which they will ever be involved.
The South Dakota Real Estate Commission has developed this booklet to help the consumer better understand what is involved in a real estate transaction. This booklet contains some basic answers to common questions. The basic steps in a real estate transaction are discussed with the intent that it will help the reader become more knowledgeable.
THE REAL ESTATE COMMISSION
The law establishing the South Dakota Real Estate Commission became effective on July 1, 1955. The Commission consists of five members appointed by the Governor. The members may not all be of the same political party. Three members are active real estate brokers; two are members of the public.
The South Dakota Real Estate Commission provides public protection in the real estate marketplace through the education and licensure of real estate brokers, salespeople, property managers, auctioneers, and timeshare agents. The Commission also regulates condominium projects, subdivided lands, timeshare projects, and investigates consumer complaints (see Complaints and Problems).
Requests for information may be directed to the Commission. However, the Commission cannot provide legal advice.
REAL ESTATE LICENSEES
In choosing a real estate licensee, it may be helpful to understand the different terms and designations:
Agency is any relationship by which one person acts for or on behalf of a client subject to the client’s reasonable direction and control.
Agency agreement is a written agreement between a broker and a client, which creates a fiduciary relationship between the broker and client.
A single agent is any licensee who represents only one party to a transaction.
A limited agent is any licensee who has a written agency relationship with both the seller/landlord and the buyer/tenant in the same transaction.
A client is any person, including a seller/landlord or a buyer/tenant, who has entered into any agency relationship with a real estate licensee.
A consumer is any person seeking or receiving services from a real estate broker.
A customer is any party to a real estate transaction who does not have any agency relationship with a licensee.
A responsible broker is the "boss" of the real estate brokerage, whose job it is to bring parties together in a real estate transaction. The responsible broker usually collects a fee (commission) from the seller/landlord of the real estate; however, sometimes the buyer/tenant pays the commission.
A transaction broker agreement is a written agreement between a broker and a consumer, which does not create a fiduciary relationship between the broker and consumer.
A transaction broker is a broker who assists one or more parties with a real estate transaction without being an agent or advocate for the interest of any party to the transaction. The term includes the licensees associated with the broker.
The real estate broker associate and salesperson performs many of the same duties as a broker. However, they cannot do so under their own authority – they must act as a representative of the responsible broker with whom they are affiliated. The responsible broker is ultimately responsible for what the broker associate and salesperson does.
A real estate licensee who is a member of the NATIONAL ASSOCIATION OF REALTORS® is called a REALTOR® or REALTOR® ASSOCIATE. These terms are not synonymous with broker, broker associate, or salesperson. In some areas of South Dakota, the board of REALTORS® operates a "Multiple Listing Service" for its members.
LICENSEE REPRESENTATION
When dealing with a real estate licensee in a real estate transaction, one is usually either a client or a customer of that licensee. A licensee has certain duties and obligations. The basic duties are defined in the South Dakota Codified Laws, Chapter 36-21A, and Administrative Rules of South Dakota, Article 20:69.
The licensee chosen represents the client’s interests. However, in some transactions, the seller/landlord and buyer/tenant can receive the real estate services from the same broker, or from licensees associated with the same broker. In other transactions, there can be a written agreement in which the broker does not represent either party.
LICENSEE REPRESENTING THE SELLER OR LANDLORD
Any licensee representing a seller or landlord has the following duties and obligations:
To perform the terms of the written agreement made with the client;
To exercise reasonable skill and care for the client;
To promote the interest of the client with the utmost good faith, loyalty, and fidelity, including:
Seeking a price and terms which are acceptable to the client;
Presenting all written offers to and from the client in a timely manner regardless of whether the property is subject to a contract for sale or lease or a letter of intent to lease;
Disclosing to the client all adverse material facts actually known by the licensee;
Advising the client to obtain expert advice as to material matters about which the licensee knows but the specifics of which are beyond the expertise of the licensee;
To account in a timely manner for all money and property received;
To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes, or regulations.
LICENSEE REPRESENTING THE BUYER OR TENANT
Any licensee representing a buyer or tenant has the following duties and obligations:
To perform the terms of any written agreement made with the client;
To exercise reasonable skill and care for the client;
To promote the interest of the client with the utmost good faith, loyalty, and fidelity, including:
Seeking a price and terms which are acceptable to the client;
Presenting all written offers to and from the client in a timely manner regardless of whether the client is already a party to a contract to purchase property or is already a party to a contract or a letter of intent to lease;
Disclosing to the client adverse material facts known by the licensee;
Advising the client to obtain expert advice as to material matters about which the licensee knows but the specifics of which are beyond the expertise of the licensee;
To account in a timely manner for all money and property received;
To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes or regulations.
LICENSEE REPRESENTING THE SELLER/LANDLORD AND
THE BUYER/TENANT
A licensee may act as a limited agent only with the informed written consent of all parties to the transaction. A limited agent is an agent for both the seller/landlord and buyer/tenant and has the following duties and obligations:
To perform the terms of any written agreement made with the client;
To exercise reasonable skill and care for the client;
To present all written offers to and from the client in a timely manner regardless of whether the client is already a party to a contract to purchase property or is already a party to a contract or a letter of intent to lease;
To disclose to the client adverse material facts known by the licensee;
To advise the client to obtain expert advice as to material matters about which the licensee knows but the specifics of which are beyond the expertise of the licensee;
To account in a timely manner for all money and property received;
To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes or regulations.
LICENSEE ACTING AS A TRANSACTION BROKER
Any licensee acting as a transaction broker has the following duties and obligations:
To perform the terms of any written agreement made with the customer;
To exercise reasonable skill and care for the customer;
To present all offers in a timely manner;
To account in a timely manner for all money and property received;
To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances including fair housing and civil rights statutes or regulations;
To disclose to the customer all adverse material facts known by the licensee. No licensee acting as a transaction broker may advise any party to a transaction to the detriment of another party.
TYPES OF FORMS
In a real estate transaction a number of forms are required. The consumer should be aware of these forms in order to understand and protect his/her interests. Some of the forms can be accessed by clicking on any of the highlighted names listed below in the explanation of forms.
EXPLANATION OF FORMS
Listing Agreement – A contract between a seller of real property and a broker. The broker is employed to sell real estate on the owner’s terms within a given time, for which service the seller agrees to pay a commission.
Management Agreement – A contract between the owner of real property and a broker. The broker is employed to rent, exchange, or lease real estate on the owner’s terms within a given time, for which service the owner agrees to pay a fee.
Transaction Broker Agreement – A written agreement in which the broker does not represent either the seller/landlord or the buyer/tenant in a fiduciary capacity.
Buyer/Tenant Agreement – A contract between the client and broker. The broker is employed to seek a particular type of real property, within a certain geographic area, during a given time, for which service the buyer/tenant agrees on the amount and method of compensation to be paid.
Real Estate Relationships Disclosure – A form that specifically sets forth agency and brokerage relationships. At the first substantive contact with a seller or buyer who has not entered into a written agreement with a broker, the licensee discloses in writing to that person the types of agency and brokerage relationships available. The licensee also provides a written copy of the disclosure to the seller or buyer.
Seller’s Property Condition Disclosure – This form describes the condition of residential real property as known by the seller. Sellers of residential real property are required to furnish a completed copy of this form to a buyer before the buyer makes a written offer. There are some exceptions to this requirement, detailed in SDCL Chapter 43-4.
Lead Paint Disclosure – This form is required to comply with the sale or lease of any pre-1978 residential dwellings. This was enacted into law by Congress to disclose lead paint hazards.
Purchase Agreement – A contract for the purchase and sale of real property in which the buyer agrees to purchase for a certain price and the seller agrees to convey title. To be enforceable, it must be in writing and signed by both parties.
Closing Statement –A statement of receipts and disbursements in a real estate property transaction. The listing broker furnishes a closing statement to the seller. The selling broker furnishes a closing statement to the buyer.
Lease Agreement – A contract by which one (the lessor or landlord) gives to another (the lessee or tenant) temporary possession and use of real property for reward and the lessee agrees to return such property to the lessor at a future time. A one-year or longer lease requires a written lease agreement.
TYPES OF HOUSING
To meet the many kinds of needs that people have, a number of different types of housing have been developed over the years. Homebuyers need to know about them. Income levels and special needs may dictate the kind of housing appealing to the consumer now and for the near future. However, as family needs change, another style of housing can be considered.
Single Family Residence – The single-family dwelling has always been a very popular kind of housing. Each type of home has its advantages and disadvantages, and tastes vary in architectural styles. But one thing to keep in mind is that eventually all homes are resold to new owners. The more unusual the type of construction, the more difficult it will probably be to find a buyer.
Duplex – A duplex is basically two single-family dwellings joined together. The middle wall separating the units is common to both. This type of housing offers an owner the opportunity to live in one side and rent the other side. The income from the rental portion helps the owner pay for the entire property.
Twin-home – Units owned by separate parties, utilizing a "zero lot line".
Condominium – Condominium ownership is designed to provide exclusive use and ownership of a portion of a larger property, plus shared use and ownership of common areas. Under the condominium arrangement, the individual owner purchases the exclusive right to occupy the space where the unit is located. The owner also receives an undivided interest in the land and common areas, such as hallways, elevators, structure of the building, and as a rule, the recreation facilities. A board of directors or a condominium association elected by unit owners administers the common area.
Townhouse – The townhouse combines features of a
house and a condominium. The legal concept is that the owner enjoys a separate ownership
of his/her dwelling and the land immediately beneath the dwelling, plus joint ownership of
the common areas surrounding the dwelling units. There may be restrictions
upon all separately owned lots and dwellings. The right to establish and enforce these
restrictions is usually vested in an owner’s association. Title to the common areas
is vested in the association, and it governs how the residents use the area.
PURCHASING A HOME
LOCATION
Decide on the type of housing to purchase and the general location to live. Although needs differ from family to family, there are certain general guidelines which every potential homebuyer should consider. The following represents some of the items to consider:
Availability and quality of schools in the area.
How close you are to work.
Availability of shopping centers, churches and recreational facilities.
General condition of homes in the neighborhood.
Property taxes compared to similar houses in other neighborhoods.
Utility rates (gas, electricity, water, and telephone).
Police; fire protection and garbage collection.
Availability of public transportation.
Quiet neighborhood or on an arterial street.
Rural or Urban
PRICE
Give some thought into the approximate price range of the house, and how the monthly payments will be made once the house is occupied. During the qualifying interview, the real estate licensee helps determine the price range and/or payment that will be comfortable.
STOP BEFORE BUYING
Once the prospective purchaser has found the house that seems to be "just perfect", the tendency is to want to close the transaction right away and move in. STOP! Before getting swept away with the excitement of the moment, there are a number of things to check. The time to ask questions and check facts is before buying.
Condition of the house – A Seller’s Property Condition Disclosure form, completed by the seller, is required on most residential real property. This form is to be furnished to the buyer before making a written offer. This form can be utilized during the inspection of the property as a "checklist" of items to review. A person qualified to perform inspections can point out any concerns or problem areas. The money spent for an inspection may be a very wise investment. If obtaining a loan, most lenders will require a survey. Whether or not a loan is obtained, it may be wise to have a survey done prior to closing.
Zoning Restrictions – Ask how the area is zoned. Zoning is established by local government and designates the type of buildings and how they may be used, such as: residential, commercial, and industrial.
Restrictive Covenants – These are private agreements that restrict the use and occupancy of real property. Such things as the purpose of the structure to be built, architectural requirements, setbacks, size of structure and aesthetics are only some examples. The consumer or real estate licensee can contact the Register of Deeds to obtain further information.
Taxes – Find out the cost of property tax and if there are any special assessments regarding roads, streets, sewers, electrical, etc. Also check if there are any property tax reduction programs affecting the current year’s taxes.
Easements – An easement is a right or privilege one party has to the use of another’s land for a special purpose consistent with the general use of the land. Easements are commonly given to telephone and electric companies to erect poles and run lines, as well as gas and water companies. Other easements can be given to people to drive or walk across someone else’s land. The consumer or real estate licensee can find what easements exist on the property by contacting the Register of Deeds.
MAKING THE OFFER
Most real estate licensees use standard forms (purchase agreement) for offers. The terms of the offer will be the terms of the sale, when accepted. BE SURE THE OFFER IS EXPLAINED TO YOU ITEM BY ITEM BEFORE SIGNING THE CONTRACT. The real estate licensee can assist with writing the offer. Most real estate licensees are not attorneys, and cannot give legal advice. You may want to consult an attorney if there are any concerns.
Some items included in the contract:
Names of the buyer(s) and seller(s).
The sales price.
Method of payment, including earnest money, deposits, and amount paid at closing.
Personal property (appliances, curtains, etc.) staying with the property is generally sold by bill of sale.
Date and time of the signatures of the buyer(s) and seller(s).
Contingencies.
Earnest money deposit. It is normal procedure for the buyer to pay a reasonable cash deposit (earnest money) to bind the buyer and show the seller that this is a sincere offer by the buyer. The earnest money is usually held by the broker in his/her trust account, and is deposited by the next legal banking day after the offer is accepted. If the sale "closes", the earnest money is applied to the total price of the property.
If the offer is not accepted, or if the seller refuses to complete the transaction, or if the sale is not completed through no fault of the buyer, the earnest money will be refunded to the buyer. If the buyer does not follow through with the transaction after the offer is accepted by the seller, the earnest money may be forfeited, in addition to other possible legal remedies. By law, if a transaction is not consummated, a broker may not disburse any funds held in the trust account, except pursuant to a written instruction of all parties to the transaction or pursuant to a court order.
Earnest money disputes are one of the most common types of complaints brought to the attention of the Commission. Unless it can be shown that the broker has acted in a reckless manner by holding or disbursing the earnest money, the Real Estate Commission will not get involved in this type of problem. It is up to the buyer and seller to reach an agreement or get the matter resolved in civil court. If the dispute involves $8,000 or less, it may be handled in Small Claims Court. The broker may resort to paying the earnest money to the court until a legal decision is made as to whom is entitled to the earnest money.
Offer presented for seller’s acceptance. Once the contract has been prepared, the salesperson or broker will take the offer to the seller as soon as possible. If the seller accepts the offer, the contract becomes binding upon both parties. If the seller rejects the offer, modifies the offer, or makes a counter-offer, the original offer that was presented becomes null and void. However, should the buyer accept in writing the modifications or counter-offer, the offer is considered valid. After acceptance, the offer becomes legally binding on both parties.
Title Insurance. Title insurance protects the buyer against title defects. The insurance is a one-time expense and covers the period up to the time the buyer takes possession. The lending agency often requires title insurance to be taken out to insure their interests in the property.
Contingencies. A contingency is a provision placed in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding. Often a buyer will submit an offer to purchase contingent upon his or her obtaining financing. Contingencies must be written clearly and concisely.
Closing. When all the inspections and contingencies are completed, the transaction can be closed. Closing can take place at the broker’s office, the title company, or the lending agency. The paperwork is signed. The buyer will usually have to pay money to cover the downpayment and closing costs. The lender will notify the buyer in advance what is required, to allow time to obtain a check or money order. A closing statement detailing receipts and disbursements in the transaction is furnished to the buyer and the seller. The buyer and seller should review the closing statement for accuracy and completeness. Any questions about the statement should be asked of the real estate licensee, the title company representative, or the lending agency representative.
Recording. To establish clear title to the property, the deed must be recorded in the county where the property is located. Make sure this has been arranged to be done as soon as possible after the closing.
FINANCING A HOME
METHODS OF FINANCING
Almost everyone who buys a house borrows money to pay for it. This is done most often through a note and mortgage, but is sometimes done by contract for deed.
A mortgage involves making the house itself the security for the loan. The buyer receives the deed from the seller and becomes the legal owner. The buyer gives the lender the right to foreclose and obtain possession of the house if he/she fails to repay the loan. This is called a mortgage. Payments are generally made monthly, which include part of the principal and part of the interest.
A contract for deed is a contract where the seller, in effect, lends the buyer the money to buy the house. The seller remains the legal owner of the property as security until the contract is paid. Contract for deed sales are usually made when a mortgage loan cannot be obtained, and the buyer and seller are both eager to do business.
CONSIDERATIONS
Rate of Interest. Interest rates vary depending upon the nature of the loan and the economic conditions. Shop for the best possible rate available when considering a purchase of real property.
Length of Mortgage Period. The longer the mortgage, the lower the monthly payment. However, the total interest paid is more. Most home mortgages are for 15 to 30 years. Some loans are obtained with a "balloon" payment, which permits smaller monthly payments for a time period, and then the unpaid balance is due.
Acceleration Clauses. One should pay careful attention to what will happen if payments are not made timely. In many cases, the failure to meet payment requirements causes the entire debt to become due.
Prepayment Clauses. This permits paying off the mortgage before the end of its term. This right is necessary if refinancing is to be possible, or if the borrower wants to sell before the mortgage is paid. Some lenders charge a penalty for prepayment.
Due-on-Sale Clause. If a mortgage contains this clause, the mortgagor is required to pay off the mortgage debt, at the lender’s option, when the property is sold. This eliminates the possibility of the buyer assuming the mortgage without the lender’s consent.
Insurance and Taxes. The borrower will be required by the lender to maintain insurance on the property as a protection against loss. The borrower may be required to pre-pay the property taxes to the lender, either in a lump sum or on a monthly basis as a part of the payment to the lender. The insurance premium may also be part of the monthly payment.
Downpayment. In most cases, to obtain a mortgage loan, a downpayment is made. The amount depends upon the lender and type of loan.
Fees. When a borrower asks for a mortgage loan, the lender incurs a number of expenses, including such things as the time the loan officer spends interviewing the borrower, office overhead, the purchase and review of credit reports, title searches, legal and recording fees, and so on. The general practice is for lenders to charge 1% to 2% of the amount of the loan. This is commonly known as the "Origination Fee."
Points. Points are percentage points of the amount of the loan. One point = 1%. Points are charged to raise the lender’s yield. For example, a lender may be willing to offer an interest rate that is lower than the general market rate and in return require the borrower to pay "points". The points are payable at closing.
Adjustable Rate Mortgages. Adjustable rate mortgages are generally originated at one rate of interest, with the rate fluctuating up or down during the loan term base upon economic conditions. Generally, interest rate adjustments are limited to one each year, and there are a maximum number of increases that may be made over the life of the loan.
TYPES OF LOANS
Real estate loans today are categorized into three general types:
Veterans Administration. (VA) direct loan and loan guaranty program; Federal Housing Administration (FHA) insured loan; and the conventional loan which is any loan not guaranteed or insured by a federal or state agency.
Veterans Administration Loan. The main purpose of the VA loan is to assist veterans in financing the purchase of reasonably priced homes, including condominium units and mobile homes, with small or no downpayments. The financing is limited to owner-occupied residential (1 to 4 family) dwellings.
Federal Housing Administration Loan. Purchasers wishing to use an FHA-insured mortgage must meet certain criteria. A charge will be made to the borrower as the premium for the FHA insurance. This protects the lender from loss. The property must be appraised by an FHA appraiser before the loan is made.
Conventional Loan. This type of loan is not insured by the government or guaranteed. The risk is therefore higher for the lender, which is reflected by higher interest rates and a larger downpayment requirement. Lenders establish specific terms of the loan, and can vary according to market conditions, consumer needs, and state regulations.
South Dakota Housing Development Authority. This is an agency created for the purpose of administering housing programs enabling low and moderate income families in South Dakota to obtain decent and safe housing.
DISCRIMINATION
The South Dakota Human Relations Act, Federal Fair Housing Act, and Fair Housing Act Amendments prohibit discrimination in housing.
State and federal law prohibits discrimination based upon race,
sex, religion, color, creed, ancestry, disability, familial status or national origin. The
unfair or discriminatory housing practices are defined in the South Dakota Codified Laws
(SDCL) Chapter 20-13-20 through 20-13-21.2.
PROHIBITED ACTS
Refusing to sell, rent, or negotiate with any person, or otherwise making a dwelling unavailable to any person.
Changing terms, conditions, or services for different individuals as a means of discrimination.
Advertising or making statements which would discourage applicants or buyers from applying or offering for real estate. Also inducing someone to sell because of potentially mixed neighborhoods.
Representing to any person, as a means of discrimination, that a dwelling is not available for sale or rent.
Refusing to allow alterations to accommodate the disabled when an escrow account has been set up for restoration.
Altering the terms or conditions for a home loan to any person who wishes to purchase or repair a dwelling, or otherwise denying such a loan as a means of discrimination.
Denying persons membership or limiting their participation in any multiple listing service, real estate brokers’ organization, or other facility related to the sale or rental of a dwelling as a means of discrimination.
EXEMPTIONS
State law exempts dwellings with no more than two families if the owner lives in one of the units. Federal law applies to dwellings with four or more units.
Familial status exempts housing units where state and federal programs are specifically for the elderly; 100% of occupants are over 62; or if facilities and services are designed and advertised for the elderly and 80% of the units have at least one person over 55.
After 1991, all new apartment units must be constructed to allow
ground floor access and access to common use areas by the disabled, unless terrain is
prohibitive. If a person feels they have been discriminated against because of membership
in a protected category, they should contact the South Dakota Division of Human Rights,
118 West Capitol, Pierre, SD 57501; (605)773-4493.
RESPONSIBILITIES
The South Dakota Real Estate Commission is charged with the responsibility of investigating complaints, which are brought to its attention involving real estate licensees, whereby misconduct is alleged. The Commission’s jurisdiction is over the license of the licensees involved in the complaint. The Commission may not force a licensee to specifically perform under the terms of a contract, nor may it recover damages.
The complainant must file a civil action in order to seek specific performance or damages. If the dispute involves $8,000 or less, the matter may be settled in Small Claims Court. The following lists the primary responsibilities:
Administer and enforce the license law;
Create and enforce necessary rules;
License by examination qualified applicants as real estate licensees;
Investigate possible and alleged violations of the license law and rules;
Prescribe curricula and standards for entry level real estate educational programs;
Prescribe curricula and standards for continuing education of licensees;
Administer the Recovery Fund;
Conduct hearings to impose suspension and revocation of licensees for violations of the Law and/or Rules of the Commission.
PROCEDURE
The South Dakota Real Estate Commission furnishes the complaint forms to the person registering the complaint. All complaints must be in writing in order for the Commission to investigate. The complaint must have a clear and concise statement of the facts, with supporting documentation.
When a complaint is filed against a licensee, a copy of the complaint is forwarded to the licensee. The licensee must file an answer on forms furnished by the Commission within 20 days from receipt of the complaint. This answer must be in written affidavit form, be properly certified, and contain the licensee’s factual response.
The licensee’s response is filed with the Commission. A copy of the licensee’s answer is forwarded to the person registering the complaint, and the Commission’s staff investigates the matter. Priority of investigation is normally based on the date of receipt of the complaint.
The complaint, answer, and investigative report is submitted to the Real Estate Commission for its review. There are three options the Commission may take:
If the Commission determines the complaint is without merit, is frivolous, or charges conduct not constituting grounds for disciplinary action, it will dismiss the complaint and notify the parties in writing.
If the Commission considers the complaint to be of a serious nature constituting grounds for disciplinary action, it may, at its discretion, consult with the party or parties affected in an effort to resolve the matter in an informal consultation.
The Commission may, in lieu of, or after an informal consultation, decide to conduct a formal hearing. The parties involved are mailed a notice of hearing. The hearing is similar to a court proceeding: an Administrative Hearing Examiner presides; parties have right to legal counsel; witnesses may be subpoenaed; testimony is heard; documents are offered in evidence; and witnesses may be cross-examined.
After the hearing is held, the Commission renders a decision. If the licensee is found guilty of misconduct, paperwork is prepared setting forth the violations found and disciplinary action to be taken. Disciplinary action may take the form of a letter of reprimand, suspension or revocation of license, monetary penalty, or a combination thereof.
LEASE OF REAL PROPERTY
The South Dakota Real Estate Commission does not have jurisdiction over complaints and problems about leasing or renting real property, unless it involves misconduct by a real estate licensee. A lease of real property for more than one year must be in writing. No lease of agricultural land may be longer than 20 years. No lease of any municipal lot may be longer than 99 years. Specific information on leasing real property can be found in SDCL 43-32.
More information regarding leasing and renting can be found in the South Dakota Attorney General’s Office of Consumer Handbook. The Attorney General's office also has a consumer hotline and that telephone number is 1-800-300-1986.
CONCLUSION
This material is intended to help the consumer make wise decisions regarding real estate transactions. The South Dakota Real Estate Commission can be contacted at the 118 West Capitol, Pierre, SD 57501 or (605) 773-3600 on the front of this booklet, or e-mail us at realest@crpr1.state.sd.us.