Under South Dakota law, a contract for deed must be recorded with the county Register of Deeds if the contract term exceeds:
Correct Answer
A) One year
Under SDCL 43-31-3, a contract for deed (also called a land contract) with a term exceeding one year must be recorded with the county Register of Deeds. Recording provides public notice of the buyer's equitable interest in the property and protects both parties. Failure to record may affect the enforceability of the buyer's interest against third parties.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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