South Dakota Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a South Dakota Real Estate Contract?

In South Dakota, a real estate contract is a legal agreement between two parties, a buyer and a seller, for the purchase of real property.

Real estate contracts must include certain information to ensure the sale can move forward. It is common to see the following issues addressed in a real estate contract:

  • Identification of the parties
  • Legal description of the property
  • Purchase price
  • Contingencies
  • Required disclosures
  • Closing date and fees

Real estate contracts must be in writing and are only considered binding and enforceable once the contract is signed by both parties.

Common South Dakota Real Estate Contracts

Common South Dakota real estate contracts include:

  • Residential real estate contract. The most frequently used contract to buy and sell and existing residential house or property zoned for residential housing. The South Dakota Real Estate Commission has an approved contract template for these types of sales.
  • Commercial real estate contract. Used to buy and sell property zoned for commercial use like operating a business.
  • Lease agreement. Used by property owners who wish to rent their property to tenants.

4 Essential Elements of a South Dakota Real Estate Contract

Under South Dakota contract law, there are 4 essential elements that must exist to create a valid contract:

  1. Parties capable of contracting
  2. Consent of the parties to enter the contract
  3. A lawful object
  4. Sufficient consideration

What is a Contract for Deed in South Dakota?

In South Dakota, a contract for deed is a real estate contract in which the buyer makes payments to the seller, rather than a traditional lender for purchase of a property. The seller will retain the title to the property until the contract is fulfilled. The buyer typically has the right to occupy and use the property while making payments but does not have clear title to the property until the contract is satisfied.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in South Dakota?

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