CHAPTER 10-25

TAX DEEDS

10-25-1    Period within which tax deed may be procured.

10-25-2    Contents of notice of intention to take tax deed--Notice combining descriptions of different tracts.

10-25-3    Persons entitled to notice of intention to take tax deed.

10-25-4    Additional persons entitled to notice.

10-25-5    Service of notice of intention to take tax deed--Personal service--Publication--Mailing.

10-25-6    Service on decedent's personal representative, heirs, or beneficiaries.

10-25-7    Service of notice to holder of special assessment certificate or tax certificate--When service not required.

10-25-8    Completion of service by filing of affidavit--Expiration of right of redemption.

10-25-8.1    Failure to redeem tax certificate.

10-25-9    Costs added to amount required for redemption.

10-25-10    Purchase of prior tax certificates required before issuance of deed.

10-25-11    Preparation and delivery of tax deed--Fee.

10-25-12    Title and possessory right vested by tax deed.

10-25-13    Contents of tax deed--Prima facie evidence of regularity of proceedings.

10-25-14    Tax deed based on private sale.

10-25-15    Cancellation of certificate on delivery of deed--Proof and bond for lost certificate.

10-25-16    Limitation of proceedings to procure tax deed--Cancellation of certificate and bar of lien.

10-25-17    Limitation not applicable to certificates held by county--Time allowed after assignment by county.

10-25-18    Time allowed for completion of proceedings to procure tax deed--Cancellation of certificate and bar of lien.

10-25-19    Acts constituting commencement and completion of proceedings to procure tax deed.

10-25-20    Tax deed on real property bid in by county.

10-25-21    Repealed.

10-25-22    Repealed.

10-25-23    Repealed.

10-25-24    County action to quiet title acquired by tax deed--Prosecution by state's attorney.

10-25-25    Procedure in quiet title action--Bond not required of county.

10-25-26    Removal of cloud on title by transfer, assignment, or satisfaction--Maximum consideration.

10-25-27    Repealed.

10-25-28    10-25-28 to 10-25-38. Repealed by SL 1974, ch 68, § 10.

10-25-39    Apportionment of proceeds of sale--Disposing surplus proceeds.

10-25-39.1    County acquisition of real property--Sale of property--Notice of sale required.

10-25-39.2    County acquisition of real property--Public auction of property.

10-25-40    Cancellation of taxes on real property after sale of deed--Reinstatement if deed declared void.

10-25-41    Reconveyance to record owner of real property held by county under tax deed--Consideration required.

10-25-42    Price, conditions, and qualifications required by county commissioners for reconveyance to record owner.

10-25-43    Resolution of county commissioners for reconveyance to record owner--Quitclaim deed.

10-25-44    Limitation of proceedings to contest tax deed--Defenses in action by tax-deed grantee.

10-25-45    Denial of bid on county sale of tax deed property if bidder not current on property taxes.

10-25-1. Period within which tax deed may be procured.

If a tax certificate is sold for taxes and not yet redeemed, the owner or holder of the tax certificate may conduct, or cause to be conducted, a proceeding to procure a tax deed on the real property, as provided by §§ 10-25-2 to 10-25-12, inclusive. A proceeding shall be initiated after three years from the date of the tax certificate sale or at any time thereafter within six years from the date of the tax certificate sale subject to the provisions of §§ 10-25-16 to 10-25-19, inclusive. The time period applies equally to the county or any other purchaser of the tax certificate. Any assignee of a tax certificate shall take the tax certificate subject to the time period of the first owner of the tax certificate.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 1979, ch 74, § 1; SL 1988, ch 100, § 1; SL 2008, ch 37, § 58; SL 2010, ch 53, § 1; SL 2018, ch 63, § 126.

10-25-2. Contents of notice of intention to take tax deed--Notice combining descriptions of different tracts.

A notice of intention to take a tax deed shall be signed by the lawful holder of the tax certificate, or the holder's agent or attorney, stating the date of sale, the description of the real property sold, the name of the purchaser, and the name of the assignee, if any. The notice shall also state that the right of redemption will expire and a deed for the real property will be made upon the expiration of sixty days from the completed service, unless the real property is redeemed as permitted by law. If two or more certificates covering different descriptions of real property are held by the same person, either by purchase or assignment or both, the descriptions may all be included in one notice if the notice includes the information required in this section for each description.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 59; SL 2018, ch 63, § 127.

10-25-3. Persons entitled to notice of intention to take tax deed.

The notice of intention to take a tax deed shall be served on the owner of record of the real property, the person in possession of the real property, the person in whose name the real property is taxed, and the mortgagee named in any unsatisfied mortgage in force on the real property of record in the office of the register of deeds of the county where the real property is located. However, if the mortgage has been assigned and the assignment is placed on record in the office of the register of deeds, then notice shall be served on the assignee in lieu of the mortgagee named in the mortgage. The notice of intention to take a tax deed shall also be served on any lienholder, any creditor of record, and other interested person as may appear from the records in the office of the register of deeds, the treasurer, or the clerk of courts. The treasurer may obtain any title information necessary to identify any person who appears from the records to have an interest in the real property as the owner, mortgagee, lienholder, or other interested person.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 1991, ch 92, § 1; SL 1992, ch 86; SL 2018, ch 63, § 128.

10-25-4. Additional persons entitled to notice.

If the real property is situated within a municipality, notice also shall be served on:

(1)    The holder of any special assessment certificate that is a lien upon the real property;

(2)    The holder of any tax certificate issued upon sale for any special assessment; and

(3)     The municipal finance officer.

The service provided for in this section may be made only upon each person described in this section whose name and post-office address is known to the holder of the tax certificate or may be obtained from the municipal finance officer or the treasurer, as provided in § 10-25-7.

Source: SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 60; SL 2018, ch 63, § 129.

10-25-5. Service of notice of intention to take tax deed--Personal service--Publication--Mailing.

Personal service of the notice shall be served on the owner of record of the real property, the person in possession of the real property, and the person in whose name the real property is taxed in the manner provided by law for the service of summons. Any other person listed in §§ 10-25-3 and 10-25-4 may be served in the manner provided by law for the service of summons or the notice may be served by publishing the notice once a week for at least two successive weeks in the legal newspapers for the county. The notice to the mortgagee or the mortgagee's assignee shall be directed to the mortgagee or assignee to the address appearing in the mortgage of record, or in the assignment of the real property. The notice to a lienholder or to any other interested person as may appear from the records in the office of the register of deeds, the treasurer, or the clerk of courts shall be sent to the last known address of the person. The notice shall be sent by registered or certified mail, return receipt requested.

Source: SDC 1939, § 57.1119; SL 1972, ch 64, § 1; SL 1991, ch 92, § 2; SL 1998, ch 66, § 1; SL 2018, ch 63, § 130.

10-25-6. Service on decedent's personal representative, heirs, or beneficiaries .

If any of the persons on whom notice is required to be served by §§ 10-25-3 and 10-25-4 is deceased, the notice shall be served on the decedent's personal representative, foreign or resident, or on the resident agent of a foreign personal representative, if any are known to the certificate holder. If no such person is known, the notice shall be served on any known heirs and beneficiaries of the decedent, in the same manner as if the heirs and beneficiaries were owners of record. For any unknown heirs and beneficiaries of the decedent, notice shall be served by publishing the notice as provided in § 10-25-5 and designating such unknown persons as the unknown personal representatives, heirs, and beneficiaries of the deceased. The fact of whether the decedent, the decedent's personal representative or resident agent, or any heirs and beneficiaries are known or unknown shall be sufficiently established for tax-deed proceedings by the affidavit of completed service of the certificate holder or the tax certificate holder's agent or attorney conducting the proceedings.

Source: SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 61; SL 2018, ch 63, § 131.

10-25-7. Service of notice to holder of special assessment certificate or tax certificate--When service not required.

The notice to the holder of any special assessment certificate shall be directed to the certificate holder at the address that appears for the certificate holder in connection with the record of the certificate with the finance officer of the municipality. The notice shall be personally served or sent by registered or certified mail, return receipt requested. A like notice, by personal service or registered or certified mail, return receipt requested, shall be sent to the holder of any tax certificate issued upon a sale for any special assessment, by mailing to the tax certificate holder's address as the address appears in the office of the treasurer. Service is not required for any tax certificate holder whose name and address do not appear in the record and for whom an affidavit or tax certificate is made by the treasurer stating that the person's name or address is not known to the treasurer, accompanied by an affidavit of the holder of the tax certificate that the holder does not know the name and address of the person.

Source: SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 62; SL 2018, ch 63, § 132.

10-25-8. Completion of service by filing of affidavit--Expiration of right of redemption.

The service of the notice is complete when an affidavit of the service of the notice and of the particular mode of the notice, duly signed and verified by the person or officer making the service, has been filed with the treasurer authorized to execute the tax deed. The record or affidavit is presumptive evidence of the completed service of the notice. The right of redemption from the sale does not expire until sixty days after the filing of affidavit of completed service of the notice.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 63.

10-25-8.1. Failure to redeem tax certificate.

The failure of the owner, any mortgagee, any lienholder or any other interested person to redeem the tax certificate within sixty days of the date of the filing of the affidavit of completed service of the notice as provided in § 10-25-8 passes all of the right, title, and interest of the owner, mortgagee, lienholder, and the other interested person to the holder of the tax certificate subject to the taxes, liens, and encumbrances as provided by § 10-25-12.

Source: SL 1991, ch 92, § 3.

10-25-9. Costs added to amount required for redemption.

The total costs of serving the notice of intention to take a tax deed, whether by publication or otherwise, together with the costs of the affidavit and cost of records search, cost of location of owners, and attorney fee, may not exceed four hundred dollars. These costs shall be added to the redemption money if the treasurer received written notice that the service had begun or was made, and a verified statement of the costs was filed in the treasurer's office, before redemption is made. If more than one description is included in any notice, and service is made by publication, the cost of publication shall be apportioned among the various descriptions in the proportion that each description bears to the entire cost of publication of the notice.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 1979, ch 75, § 2; SL 1988, ch 100, § 2; SL 2014, ch 57, § 1.

10-25-10. Purchase of prior tax certificates required before issuance of deed.

The person demanding the tax deed shall purchase the assignment of all prior tax certificates held by the county on the real property before the treasurer may issue the tax deed.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 64; SL 2018, ch 63, § 133.

10-25-11. Preparation and delivery of tax deed--Fee.

Immediately after the expiration of sixty days from the date of the filing of affidavit of completed service of the notice provided in § 10-25-8, the treasurer shall prepare a deed for each parcel of real property for the tax certificate sold and remains unredeemed. The deed shall be signed by the treasurer and attested by the county auditor, under seal, and shall be delivered to the purchaser or the purchaser's assignee upon the return of the certificate of tax sale. The treasurer shall receive five dollars for each deed prepared by the treasurer on a sale.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 2008, ch 37, § 65; SL 2013, ch 49, § 1; SL 2018, ch 63, § 134.

10-25-12. Title and possessory right vested by tax deed.

Any deed acquired pursuant to § 10-25-39.1 or 10-25-39.2 vests in the grantee an absolute estate in fee simple in the real property. However, the real property is subject to any claim that the state may have in the real property for taxes, liens, or encumbrances. The real property is also subject to any lien for past-due installments of special assessments for the financing of municipal improvements levied pursuant to chapter 9-43, including principal and interest on the installments except as provided by § 9-43-100. The holder of the deed or the holder's successor in interest is entitled to immediate exclusive possession of the real property described in the deed regardless of the rights of any person to redeem or question exclusive possession thereafter.

Source: SL 1897, ch 28, § 132; RPolC 1903, § 2212; SL 1909, ch 194; SL 1911, ch 247; SL 1913, ch 353; SL 1915, ch 291; SL 1917, ch 135; RC 1919, § 6804; SL 1933, ch 198, § 3; SL 1935, ch 195; SL 1937, ch 248; SDC 1939, § 57.1119; SL 1974, ch 78, § 5; SL 2008, ch 37, § 66; SL 2009, ch 45, § 1; SL 2018, ch 63, § 135; SL 2024, ch 38, § 4, eff. Feb. 12, 2024.

10-25-13. Contents of tax deed--Prima facie evidence of regularity of proceedings.

The tax deed is prima facie evidence of the truth of all the facts recited, and of the regularity of all proceedings from the valuation of the real property by the director of equalization up to the execution of the deed. The tax deed shall include the following:

(1)    The legal description of the real property;

(2)    The amount due for nonpayment of taxes, penalties, interest, and costs;

(3)    The date of the tax certificate sale;

(4)    The name of the person who purchased the tax certificate;

(5)    The amount paid for the tax certificate;

(6)    A statement that notice of the tax certificate sale was given and legally advertised; and

(7)    The seal of the treasurer.

The tax deed shall be acknowledged by the treasurer in the presence of the county auditor or a notary public.

Source: PolC 1877, ch 28, § 74; CL 1887, § 1639; SL 1897, ch 32, § 1; RPolC 1903, § 2213; RC 1919, § 6805; SDC 1939, § 57.1120; SL 1989, ch. 82, § 41; SL 2018, ch 63, § 136.

10-25-14. Tax deed based on private sale.

If the real property is sold at a private sale after being offered at a public sale for taxes, there shall be inserted in the deed a statement that the property was sold at a private sale as required by § 10-25-13.

Source: SL 1897, ch 32, § 1; RPolC 1903, § 2213; RC 1919, § 6805; SDC 1939, § 57.1120; SL 2018, ch 63, § 137.

10-25-15. Cancellation of certificate on delivery of deed--Proof and bond for lost certificate.

If deeds are delivered by the treasurer for real property sold for taxes, the certificate shall be canceled and filed by the county auditor. In case of loss of any certificate, on being satisfied by due proof, and bond stating the sum equal to the value of the property conveyed, the treasurer may execute, deliver, and file the proof and bond with the county auditor.

Source: SL 1897, ch 28, § 135; RPolC 1903, § 2216; RC 1919, § 6808; SDC 1939, § 57.1121; SL 2018, ch 63, § 138.

10-25-16. Limitation of proceedings to procure tax deed--Cancellation of certificate and bar of lien.

If a proceeding to procure a tax deed is not completed within six years after the date of the tax certificate sale on which the proceeding is based, the tax certificate sale, the lien for taxes, the lien of any taxes paid by the holder of the tax certificate as subsequent taxes, and all rights thereunder cease and are forever barred. The treasurer shall cancel the tax certificate on the treasurer's record and shall note on the sale records and the tax books of the treasurer's office that the tax certificate and the lien of subsequent tax receipts held by the owner of the tax certificate are barred and are not valid.

Source: SL 1909, ch 10, § 1; SL 1913, ch 355; SL 1915, ch 294; RC 1919, § 6806; SL 1921, ch 130, § 1; SDC 1939, § 57.1118; SL 2008, ch 37, § 67; SL 2018, ch 63, § 139.

10-25-17. Limitation not applicable to certificates held by county--Time allowed after assignment by county.

The provisions of § 10-25-16 do not apply to tax sale certificates that are held by the county. If any tax certificate is assigned by the county, and if the tax certificate is dated more than four years preceding the date of its assignment, the purchaser of the tax certificate has one year from the date of its assignment to commence a proceeding to procure a tax deed.

Source: SL 1915, ch 294; RC 1919, § 6806; SL 1921, ch 130, § 1; SDC 1939, § 57.1118; SL 2008, ch 37, § 68; SL 2018, ch 63, § 140.

10-25-18. Time allowed for completion of proceedings to procure tax deed--Cancellation of certificate and bar of lien.

The commencement of a proceeding to procure a tax deed within the periods limited in §§ 10-25-16 and 10-25-17 does not extend the lien of the holder of the tax certificates more than six months beyond the expiration of the periods of limitations. If any proceeding, commenced within the time limited by §§ 10-25-16 and 10-25-17, is not completed, and the right of the party instituting the proceeding to receive a tax deed under the provisions of §§ 10-25-1 to 10-25-12, inclusive, is not fully completed and established, within six months after the expiration of six years from the date of the tax certificate sale on which the proceeding is based; then all rights under the proceeding cease and are forever barred. The treasurer shall cancel the tax certificate in the manner provided in § 10-25-16. However, the purchaser of a tax certificate assigned by the county has an additional period of one year from the date of the assignment to commence the proceeding and six months after the expiration of the period of one year to complete the proceeding. If the tax certificate is cancelled, the lien of the holder of the tax certificate is extinguished and all further proceedings on the tax certificate are barred.

Source: SL 1921, ch 130, § 1; SDC 1939, § 57.1118; SL 1979, ch 75, § 1; SL 2008, ch 37, § 69; SL 2018, ch 63, § 141.

10-25-19. Acts constituting commencement and completion of proceedings to procure tax deed.

Commencement of a proceeding as provided in §§ 10-25-16 to 10-25-18, inclusive, means any act done or record made by or for the certificate holder indicating that a proceeding has been commenced. Completion of a proceeding used in §§ 10-25-16 to 10-25-18, inclusive, means the completed service and filing of proof of service in the office of the treasurer which starts the running of the sixty days allowed for redemption.

Source: SDC 1939, § 57.1118; SL 2008, ch 37, § 70; SL 2018, ch 63, § 142.

10-25-20. Tax deed on real property bid in by county.

If any real property has been bid in by the treasurer in the name of the county at the tax certificate sale and the tax certificate has not been redeemed from the sale or assigned by a certificate of purchase, and sufficient time has elapsed since the sale that a tax deed may be properly issued, the treasurer may issue a tax deed for the real property to the county. However, if the treasurer fails, refuses, or neglects to take proceedings for the issuance of a tax deed to the county, the treasurer shall, upon written application of the county commissioners, or the governing body of any municipality, school district, or township within the county that would be a beneficiary of the tax for which the property was sold, may give notice of intention to take tax deed as required by law. After the notice has been given and no redemption has been made within the time allowed, the treasurer shall issue a tax deed for the real property to the county. If the treasurer fails, refuses, or neglects to comply with the provisions of this section, the treasurer's duty to comply may be enforced by writ of mandamus.

Source: SL 1897, ch 28, § 128; RPolC 1903, § 2207; SL 1911, ch 246; SL 1913, ch 354; SL 1917, ch 136; RC 1919, § 6803; SL 1937, ch 206; SDC 1939, § 57.1122; SL 2008, ch 37, § 71; SL 2018, ch 63, § 143.

10-25-21. Repealed.

Source: SL 1943, ch 304, § 1; SDC Supp 1960, § 57.1117-1; SL 2008, ch 37, § 72; SL 2018, ch 63, § 144; SL 2024, ch 38, § 5, eff. Feb. 12, 2024.

10-25-22. Repealed.

Source: SL 1943, ch 304, § 2; SDC Supp 1960, § 57.1117-1; SL 2008, ch 37, § 73; SL 2018, ch 63, § 145; SL 2024, ch 38, § 6, eff. Feb. 12, 2024.

10-25-23. Repealed.

Source: SL 1943, ch 304, § 3; SDC Supp 1960, § 57.1117-1; SL 2018, ch 63, § 146; SL 2024, ch 38, § 7, eff. Feb. 12, 2024.

10-25-24. County action to quiet title acquired by tax deed--Prosecution by state's attorney.

Any county that has acquired or may acquire title to any real property by tax deed may commence an action in the county to quiet the title to the real property. In any such action, several parcels of real property, contiguous or noncontiguous, may be included in one complaint and any person claiming any title to, interest in, or lien upon any of the real property may be joined as a defendant. If requested by the board of county commissioners, the state's attorney shall promptly commence and prosecute the action to final judgment.

Source: SL 1941, ch 43, § 1; SL 1943, ch 36; SDC Supp 1960, § 37.1501-1; SL 2008, ch 37, § 74; SL 2018, ch 63, § 147.

10-25-25. Procedure in quiet title action--Bond not required of county.

The procedure in the action commenced under § 10-25-24 shall be conducted pursuant to the provisions of chapter 21-41, except the provisions of chapter 21-41 requiring the plaintiff to execute an indemnity bond, before entry of judgment to the defendants who are served by publication, are not applicable to the county.

Source: SL 1941, ch 43, § 1; SL 1943, ch 36; SDC Supp 1960, § 37.1501-1; SL 2008, ch 37, § 75; SL 2018, ch 63, § 148.

10-25-26. Removal of cloud on title by transfer, assignment, or satisfaction--Maximum consideration.

The board of county commissioners may procure from any person who has any interest in the real property, real or apparent, a transfer, assignment, or satisfaction of the interest for the purpose of removing any cloud from the title of the real property. The authority granted in this section may be exercised either in lieu of an action to quiet title or in connection with an action. However, the consideration for the transfer, assignment, or satisfaction may not exceed twenty-five dollars in connection with any parcel of real property, the title to which is sought to be quieted or cloud to the title removed. The board of county commissioners may negotiate with any person having any interest, real or apparent, in any real property, for transfers, assignments, or satisfactions and may pay for the transfers, assignments, or satisfactions within the limitations provided in this section.

Source: SL 1941, ch 43, § 2; SDC Supp 1960, § 37.1501-2; SL 2008, ch 37, § 76; SL 2018, ch 63, § 149.

10-25-27. Repealed.

Source: SL 1933, ch 66; SDC 1939, § 57.1123; SL 2018, ch 63, § 150; SL 2024, ch 38, § 8, eff. Feb. 12, 2024.