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South Dakota Rent-to-Own Lease Agreement

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Updated July 15, 2025

A South Dakota rent-to-own lease agreement provides a tenant with a standard lease and gives the option to purchase the property. The landlord and tenant typically negotiate the terms of the purchase upon entering into the lease. If the tenant decides to buy, a purchase agreement will be created that matches the terms written in the lease.

South Dakota Laws

Requirement to Record: Not legally required but must be recorded to establish constructive notice.[1]

Expiration: Constructive notice does not expire by statute.[1]

Maximum Term: There is no maximum term for a lease with an option to purchase.

No Duration: If the lease does not specifically define a duration for the option to purchase, the option will automatically expire at the end of the lease.

Signing Requirements: Must be in writing and signed by the seller.[2]

Required Disclosures (2)

1. Lead-Based Paint Disclosure – For properties built before 1978, landlords must inform tenants that the walls and ceilings may contain lead-based paint.

2. Methamphetamines Disclosure – If the property was ever used to manufacture methamphetamines, the landlord is required by state law to notify new tenants.[3]

Seller’s Disclosures (2)

1. Seller’s Property Condition Disclosure Statement – Details the material condition of the property. Sellers must give this disclosure to buyers before receiving a written offer.[4]

2. Real Estate Relationships Disclosure – Used to establish a relationship between a buyer/seller and a licensed real estate agency.

Sample

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