Key Takeaways
- South Dakota requires sellers to provide a Seller's Property Condition Disclosure Statement before the buyer makes a written offer
- The disclosure covers property condition, structural systems, environmental hazards, and legal issues
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
- Buyers may terminate an offer within 3 days (in person) or 6 days (by mail) if disclosure is provided late
- Certain transfers are exempt including foreclosures, gifts, and transfers to government agencies
South Dakota Property Disclosures
South Dakota has mandatory property disclosure requirements under South Dakota Codified Law Section 43-4-37 et seq.
Mandatory Seller Disclosure
South Dakota law requires sellers of residential real property to furnish buyers with a completed Seller's Property Condition Disclosure Statement.
Timing Requirement
| Requirement | Details |
|---|---|
| When to provide | Before the buyer makes a written offer |
| Form used | Seller's Property Condition Disclosure Statement |
| Who provides | Seller (not the agent) |
Important: Unlike some states that follow "caveat emptor" (buyer beware), South Dakota has an affirmative disclosure duty for sellers.
What Must Be Disclosed
The South Dakota property disclosure statement covers:
Property Information
| Category | Examples |
|---|---|
| Lot/title information | Easements, encroachments, boundary disputes |
| Structural systems | Foundation, roof, walls, windows |
| Plumbing | Water supply, pipes, fixtures |
| Electrical | Wiring, panels, outlets |
| Heating/cooling | HVAC systems, fuel type |
Environmental Hazards
| Hazard Type | Disclosure Required |
|---|---|
| Radon | Known presence must be disclosed |
| Asbestos | Known presence must be disclosed |
| Lead-based paint | Required for pre-1978 homes (federal) |
| Mold | Known presence should be disclosed |
| Environmental contamination | Known issues must be disclosed |
Legal Issues
| Issue Type | Disclosure Required |
|---|---|
| Easements | Yes |
| Zoning violations | Yes |
| Pending legal actions | Yes |
| HOA requirements | Yes |
| Property tax issues | Yes |
Ongoing Disclosure Duty
Sellers have a continuing duty to disclose:
A seller who becomes aware of any other conditions requiring disclosure between giving the buyer the statement and closing must amend that statement in writing.
Buyer's Right to Terminate
If the disclosure statement (or material amendment) is delivered after the buyer makes a written offer:
| Delivery Method | Termination Period |
|---|---|
| In person | 3 days to terminate |
| By mail | 6 days to terminate |
The buyer may terminate by delivering written notice to the seller or seller's agent.
Exemptions from Disclosure
The following transfers are exempt from South Dakota's disclosure requirements:
| Exemption | Example |
|---|---|
| Properties not available for occupancy | Vacant land, commercial properties |
| Transfers without consideration | Gifts, inheritance |
| Foreclosure transfers | Bank-owned properties |
| Deed-in-lieu of foreclosure | Voluntary transfer to lender |
| Court-ordered transfers | Divorce decrees, probate |
| Transfers to/from government | Public agencies |
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA "Protect Your Family From Lead in Your Home" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
| Lead Warning Statement | Confirming compliance in sales contract |
Warning: Lead-based paint disclosure is REQUIRED regardless of any state exemptions. This is federal law under the Residential Lead-Based Paint Hazard Reduction Act of 1992.
Consequences of Non-Disclosure
| Consequence | Details |
|---|---|
| Liability | Buyer may sue for damages |
| Protection | Seller not liable if disclosure completed truthfully |
| Fraud | Intentional misrepresentation may result in legal action |
When must a South Dakota seller provide the Property Condition Disclosure Statement?
If a South Dakota buyer receives the disclosure statement after making an offer, how long do they have to terminate if delivered in person?
Which of the following transfers is EXEMPT from South Dakota disclosure requirements?
Under South Dakota law, what must a seller do if they discover a new defect after providing the disclosure but before closing?