South Dakota real estate: buy or sell with a local AXEN agent
South Dakota makes sellers hand over a disclosure before you make an offer, gives you 3 days to walk away if it comes late, and charges a small transfer fee that the seller pays. Here is what is the same everywhere in South Dakota, and where to search homes.
South Dakota: search homes by city
Tap a city to see the newest homes for sale there.
What every South Dakota buyer and seller should know
You get the disclosure before you make an offer
The seller of a home with 1 to 4 units in one building must give you a completed disclosure statement before you make a written offer (SDCL 43-4-38). If something important changes before closing or move-in, the seller must give you a written update.
A late disclosure lets you walk away
If the disclosure, or an important update, reaches you after you make your offer, you can cancel by giving written notice within 3 days of getting it in person, or 6 days if it came by mail (SDCL 43-4-39).
Sellers who skip it can owe you
A sale is not undone just because the seller broke the disclosure rules. But a seller who does it on purpose or carelessly is liable for your actual damages and repairs, and the court can award legal fees (SDCL 43-4-42).
Some sales skip the disclosure
Court-ordered sales, foreclosures, estate and trust sales, sales between co-owners or close family, and brand-new homes no one has lived in are exempt (SDCL 43-4-43). Your inspection matters even more on these.
HOA homes come with the rules up front
For homes in a homeowners association, the seller must give you the association's governing documents, the dues and what they pay for, and any special one-time charges from the last 3 years, all before you make an offer (SDCL 43-4-44.1).
The transfer fee is small, and on the seller
South Dakota charges a transfer fee of 50 cents for each $500 of value, which is 0.1%. The law puts it on the seller (SDCL 43-4-21).
Every deed needs a certificate of value
The county register of deeds will not record a deed unless it comes with a certificate of real estate value showing the price (SDCL 7-9-7). Your title company prepares it.
Claim owner-occupied status for a lower tax rate
South Dakota taxes the home you live in at a lower rate, but you have to ask. File the owner-occupied certificate with the county director of equalization by March 15 (SDCL 10-13-40).
Closing costs in South Dakota: who pays what
Who pays what in South Dakota. The transfer fee is on the seller by law. Most other costs follow the contract and local custom, and can be negotiated.
| Buyer pays | How it works |
|---|---|
| Lender's title policy | Required with a loan. Usually paid by the buyer. |
| Recording fees | County fees to record the deed and mortgage. |
| Loan costs | Origination, appraisal and credit report, if you have a loan. |
| Home inspection | A flat fee, paid during your inspection period. |
| Closing fee | Often split between buyer and seller. |
| Prepaid taxes and insurance | Your first year of homeowners insurance and any tax escrow. |
| HOA transfer fee | Only if the association charges one. |
| Tax adjustments | Your share of property taxes from the closing date. |
| Seller pays | How it works |
|---|---|
| Transfer fee | 50 cents per $500 of value (0.1%). The seller pays it by law. |
| Owner's title policy | Commonly paid by the seller. Set in the contract. |
| Mortgage payoff | Your lender's payoff plus the fee to release the mortgage. |
| Closing fee | Often split between buyer and seller. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Deed preparation | The fee to draft the deed. |
| Tax adjustments | Your share of property taxes for the time you owned the home. |
| Repairs or credits you agree to | Only what you agree to in the contract. |
The transfer fee is set in SDCL 43-4-21. Recording fees are set by state law and collected by the county register of deeds. Confirm current numbers with your title company.
How a South Dakota home purchase runs
The order most South Dakota purchases follow. Your purchase agreement sets the exact deadlines, so keep a calendar.
Get pre-approved →-
Get pre-approved. Know your budget and payment before you tour.
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Read the disclosure first. You should have it, and any HOA papers, before you offer.
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Make an offer. Include inspection, financing and appraisal contingencies.
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Inspect. Book it right away and ask for repairs by your deadline.
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Title work. The title company checks ownership and liens and prepares the certificate of value.
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Loan approval. The lender finishes the appraisal and underwriting.
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Final walk-through. Check the home is in the condition you agreed to.
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Close. Sign, get the keys, and the deed is recorded.
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File for owner-occupied status. Send the certificate to the county by March 15.
South Dakota by region
South Dakota markets run from fast-growing Sioux Falls to the Black Hills. Tap a city to see the newest homes for sale there.
Sioux Falls Area
The state's largest city and its growing suburbs.
AXEN Realty in South Dakota
Every AXEN agent in South Dakota works under a licensed managing broker: Chris Chase (AXEN Realty, LLC, firm license 15983). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
South Dakota real estate questions
When do I get the seller's disclosure in South Dakota?
Before you make a written offer. If it arrives after your offer, you have 3 days (6 if mailed) to cancel in writing.
Who pays the transfer fee in South Dakota?
The seller, by law. It is 50 cents for each $500 of value, or 0.1%.
What does an HOA seller have to give me?
The association's governing documents, the dues and their purpose, and a list of special one-time charges from the last 3 years, all before you make an offer.
How do I get the lower tax rate on my home?
File the owner-occupied certificate with your county director of equalization by March 15.
Can I sue if the seller hid a problem?
A seller who intentionally or carelessly breaks the disclosure law is liable for your actual damages and repairs, and the court can award legal fees. Talk to a lawyer.
Does South Dakota have a state income tax?
No. South Dakota has no state income tax, which is one reason people move here.
Is a home inspection required?
No law requires one, but it is your best protection. Write an inspection contingency into your offer.
Which sales don't come with a disclosure?
Foreclosures, court-ordered sales, estate and trust sales, sales between co-owners or close family, and new homes no one has lived in.