A South Dakota residential purchase agreement is a contract between a buyer and seller of a residential property. This legally binding document formalizes the buyer’s offer, which becomes legally binding upon the seller’s acceptance and establishes legal obligations for both parties.
The agreement outlines important terms, such as the down payment, purchase price, closing date, and any conditions the parties must fulfill before the sale can proceed. Throughout negotiations, both parties can revise the terms until they reach a mutual agreement. The parties’ signatures finalize the contract and its terms, ensuring a smooth transaction resulting in the property’s ownership transfer.
State Laws
- Good Faith Disclosure: The seller must make each disclosure and perform every act in good faith [1] .
- Statutory Property Disclosure Form: You can use the official form in the state’s statutes [2] or the form from the SD Department of Labor and Regulation, which is linked later.
- Escrow Account: An agent must open and maintain a designated escrow account in a federally insured depository in the state for any earned money deposit they receive from the buyer. The depository maintaining the account shouldn’t disburse any of the money from the buyer until after the expiration of the seven-day period in which the buyer may rescind the contract [3] .
- Prepayment Privileges: Any real estate purchase contract implies that the buyer has the right to provide prepayment, and the seller has the right to accept it. Prepayment of the balance of the contract price will include accrued interest at any time without penalty to the buyer unless the contract states otherwise [4] .
Realtor Version
South Dakota Real Estate Commission Purchase Agreement
The South Dakota Real Estate Commission provides this form for professional realtors to create a residential property purchase agreement.
Required Seller Disclosures
Lead-Based Paint Disclosure
42 U.S. Code § 4852d requires that sellers of residential property must provide buyers with a lead-based paint disclosure form to inform them of the potential hazards of lead-based paint. It's only required for houses built before 1978.
Real Estate Relationships Disclosure
A licensed real estate agency and a buyer/seller use this document to establish a formal relationship.
Seller's Property Condition Disclosure Statement
Per § 43-4-38, the seller must disclose the property's material condition to the buyer before the buyer gives them a written offer.
Do Sellers in South Dakota Have to Disclose Property Defects?
Yes. Sellers must reveal all material deflects in a property that’s for sale. This requirement promotes transparency, ensuring buyers aren’t left with a property in poor condition.
South Dakota is unlike the states that implement the “caveat emptor” or “buyer beware” principle. This principle states that the buyer is the only party responsible for conducting a property inspection to locate material defects.
