A South Dakota deed of trust is a legal document wherein a borrower transfers a property title to a neutral third party (the “trustee”) as security for a real estate loan. The arrangement may also include a guarantor who will be responsible for repaying the lender if the borrower fails to comply with the promissory note terms (see below). Once the borrower’s obligation to the lender is settled, the property title is transferred back from the trustee to the borrower. If the borrower (or guarantor) cannot repay the loan, the trustee can seize and sell the property through a “non-judicial foreclosure,” a process which, as the name suggests, does not involve the court.
- Statutes: §§ 21-48-1 to 21-4-26
- Formatting: § 43-28-23
- Signing Requirements (§ 43-25-26): Notary Public or Witness
- Where to Record (§ 43-28-1): County Register of Deeds Office
- Recording Fees (§ 7-9-15): $30 for the first fifty (50) pages and $2 for each additional page.
- Certificate of Real Estate Value (Form PT-56): Required by the Register of Deeds when recording a deed (§ 7-9-7(4)).
Related Forms (1)
South Dakota Promissory Note – A legal instrument wherein a borrower and lender outline a loan’s conditions.