The South Dakota Legislature is considering legislation that would require sellers to disclose certain information prior to the sale of property bound by a homeowners’ association. The bill, SB 217, was introduced by Sen. Michael Rohl, R-Aberdeen.
The bill states, “In attempting to sell a residential real property governed by a homeowners’ association, the seller must furnish to a buyer before the buyer makes a written offer:
- “A disclosure that the property is governed by a homeowners’ association;
- “A copy of the governing documents of the homeowners' association;
- “A statement indicating whether there is an assessment and the amount, frequency, and purpose of any assessment; and
- “A list of any special onetime assessments from the most recent three years.”
It further states, “If, after delivering the homeowners’ association information to the buyer or the buyer’s agent and prior to the date of closing for the property or the date of possession of the property, whichever comes first, the seller becomes aware of any change of material fact that would affect the information, the seller must furnish a written amendment disclosing the change of material fact.”
The bill would apply to residential real estate transactions occurring after July 1.