South Dakota Real Estate Practices

Title policy must be countersigned by SD licensed abstractor. SDCL 58-25-16.

It’s permitted.

Title Company can release mortgages, but note that the limit is for mortgages of $500,000 or less. SDCL 44-8-30 to 44-8-35.

Warranty, Limited Warranty and Quit- Claim Deeds. There are no deeds that are generally not insurable.

No

SDCL 25-2-4: Neither spouse has any interest in the property of the other except can’t be kept out of the dwelling.

SDCL 25-2-7: Homestead conveyed by both.

No.

(a) Owner’s Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

a) Owner’s policy cost split between buyer and seller.
b) Each party pays filing fees for their documents. Deed Tax ~ SDCL 43-4-21, Seller pays $.0.50/500.
c) Surveys are typically only used in commercial transactions and paid for by whoever wants it, or if the lender requires, then by the borrower.
d) Buyer and seller split closing fees.

SDCL 58-25-16 requires countersignature of SD abstractor on policy.

Paid in arrears; 2011 taxes due January 1 but not delinquent if pay half by May 1 and remaining half by October 1.

SDCL 43-30-1: 22 years, Marketable Title Act.

It is permissible to charge a search and examination fee. There is usually a search and exam fee if multiple parcels are involved. Some agents charge using an all-inclusive structure but the charges will usually be about the same.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

The customary and permissible form of security instrument is the Mortgage. Deeds of Trust are not used in South Dakota.

Standard Exceptions:

1. Defects, liens, encumbrances, adverse claims or other matters, if any; created, first appearing in the Public Records, or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2. Rights or claims of parties in possession not recorded in the Public Records.

3. Easements, or claims of easements, which are not recorded in the Public Records.

4. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown in the Public Records.

5. Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

6. a. Unpatented mining claims; b. reservations or exceptions in patents or in Acts authorizing the issuance thereof; c. water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

7. Taxes or special taxes and special assessments which are not recorded as existing liens by the Public Records.

8. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

None.

See SDCL 58-25-1 thru 58-25-27.

Yes. SDCL 43-4-21. Yes, it is uniform.

Yes. There is no restriction on interest rates, SDCL 54-3-1.1. Regulated lenders are exempt from all rate limitations, SDCL 54-3-13. Regulated lenders are defined as any institutional lender, SDCL 54-3-14.

None.

No.