Under South Dakota law, which instrument is used as the primary security instrument for real property financing in a purchase transaction?
Correct Answer
D) Mortgage
South Dakota uses the mortgage as the primary security instrument for real property financing. Unlike many western states, South Dakota does not use deeds of trust. The mortgage creates a lien on the property, and foreclosure must proceed judicially under SDCL Chapter 21-47.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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