Certain laws related to mortgages in South Dakota are to be found in Real Property Mortgages-Section 21, Chapter 47. South Dakota law requires that an assignment of mortgage must be in writing and recorded. It has to be recorded by the register of deeds of the country in which the real property concerned is situated.

Any assignment or satisfaction has to contain a proper South Dakota acknowledgment, or other acknowledgment as approved by statute.

In case after full repayment the mortgagee does not satisfy mortgage of record within ten days of mortgagor's written request submission then the mortgagee becomes liable for all damages the mortgagor may have sustained as a consequence. This includes the mortgagor's attorney's fees and an additional $100 penalty.

Commonly foreclosures in South Dakota are carried out through court. Foreclosures of mortgages can be carried out via advertisements too though it is not so common. The foreclosure process is initiated by the lender submitting to the court a complaint regarding the borrower's default. Generally, the borrower has to answer court filing within 30 days before the foreclosure process continues. Lenders are not required to mail a default notice to the borrower prior to the initiation of the foreclosure process. Lenders in South Dakota may foreclose on mortgages in default by either the judicial foreclosure process or non-judicial foreclosure process.

Right of lenders to obtain a deficiency judgment in the state varies. In case the property is 40 acres or less and the mortgage contains a power of sale clause then there is a redemption period of 180 days. This redemption period is reduced to 60 days when the property concerned is abandoned. In general, if no specific short-term redemption provisions apply then the borrowers may redeem the property within one year of the date of sale.

Issue and regulation of Mortgage Broker/Lender Licensees in South Dakota are supervised by the South Dakota Division of Banking. A person engaging in the business of a mortgage banker/mortgage broker should obtain an original license for engaging in such business under the terms and conditions of chapter 54-14, South Dakota Codified Laws. The website of the Division of Banking provides a list of licensees in South Dakota.

• Broker Licensing