The South Dakota residential real estate purchase agreement (“purchase and sale agreement”) is a contract that outlines the terms of a real estate transaction between a buyer and seller of real property. The main terms of the agreement consist of a purchase price, down payment, and the financing terms (if any).
The parties may also enable the agreement to be subject to contingencies, for any agreed-upon terms. Once the form has been signed by both parties, each shall have the duty of specific performance to complete their end of the deal in order to facilitate a closing.
Required Seller Disclosures in South Dakota
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In South Dakota, sellers are required to complete a real estate purchase agreement and are urged to complete the following disclosure statements for an agreement to be considered legally binding:
Seller’s Property Condition Disclosure Statement. In South Dakota, before a written offer can be made, the seller must deliver to the buyer this report mentioning any known material issues with the property. (SD Codified Laws § 43-4-38)