South Dakota Landlord Selling the House
South Dakota rules on landlord selling the house for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.
Short answer: South Dakota has no state law in its lease chapter (SDCL 43-32) that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. SDCL ch. 43-32 (reviewed); SDCL 43-32-21
The rules in South Dakota
| If the landlord sells the property | South Dakota has no state law in its lease chapter (SDCL 43-32) that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. The chapter provides that a tenant has the same remedies against the landlord's assignees (such as a buyer of the landlord's interest) for breach of the lease as against the original landlord, except on covenants against encumbrances or relating to title or possession. Reviewed SDCL chapter 43-32 on 2026-10-28; no provision found. |
|---|---|
| Tenants in foreclosure | No statute — South Dakota adds no tenant protections beyond the federal PTFA. After a mortgage or execution sale, once the redemption period expires and the deed is delivered, the buyer may bring an FED action against an occupant who stays. Federal PTFA: a 90-day notice and existing leases are honored with limited exceptions. |
Related questions
South Dakota vs. neighboring states
| State | If the landlord sells the property | Tenants in foreclosure |
|---|---|---|
| South Dakota | South Dakota has no state law in its lease chapter (SDCL 43-32) that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. The chapter provides that a tenant has the same remedies against the landlord's assignees (such as a buyer of the landlord's interest) for breach of the lease as against the original landlord, except on covenants against encumbrances or relating to title or possession. SDCL ch. 43-32 (reviewed); SDCL 43-32-21 | No statute — South Dakota adds no tenant protections beyond the federal PTFA. After a mortgage or execution sale, once the redemption period expires and the deed is delivered, the buyer may bring an FED action against an occupant who stays. SDCL 21-16-1(5); chs. 21-16, 43-32 checked |
| Iowa | When a landlord's interest ends (for example, by sale), the landlord must within a reasonable time either transfer the rental deposit (minus lawful deductions) to the successor and tell the tenant the new owner's name and address, or return the deposit to the tenant. The successor then has the landlord's rights and duties for the deposit; if the tenant does not object within 20 days after written notice of the amount transferred, the successor's duty is limited to that amount. A landlord who sells in good faith to a bona fide buyer is released from liability under the lease for events after giving the tenant written notice of the sale, unless otherwise agreed. Iowa Code §§ 562A.12(5)-(6), 562A.16(1) | Not verified yet |
| Minnesota | When a landlord's interest ends by sale, assignment, death, receivership or otherwise, the landlord's successor takes on all of the landlord's rights and obligations for the security deposit. If the tenant gets written notice of the deposit amount being transferred or assumed (with a stamped envelope addressed to the successor) and does not object within 20 days, the successor's duty to return the deposit is limited to the amount stated in the notice. Minn. Stat. §504B.178, subd. 6 | After a foreclosure redemption period ends, the successor must give a tenant at least 90 days' written notice to vacate. A bona fide lease running more than 90 days past redemption must be honored to the end of its term, unless the new owner will live there (then 90 days). Contract-for-deed cancellation requires 2 months' notice. A landlord that has received a foreclosure or contract-for-deed cancellation notice may sign only short leases (no longer than the redemption period) and must tell prospective tenants in writing before taking rent or a deposit ($500 penalty). Minn. Stat. § 504B.285, subd. 1a, 1b; § 504B.151 |
| Montana | When a landlord sells a rental in a good-faith sale to a genuine buyer, the selling landlord is released from liability under the rental agreement and the Residential Landlord and Tenant Act only for events after the tenant gets written notice of the sale, unless otherwise agreed. The selling landlord stays liable to the tenant for all recoverable security deposit money and all prepaid rent. Mont. Code Ann. § 70-24-304(1) | No Montana statute protects tenants in foreclosure beyond federal law (federal PTFA applies). On a good-faith sale, the selling landlord is released from future duties only after written notice of the sale to the tenant, but stays liable for the security deposit and prepaid rent. The duty to disclose the owner and manager applies to any successor landlord. Mont. Code Ann. §§ 70-24-304, 70-24-301(2) |
| Nebraska | When a landlord sells a rental in a good-faith sale to a genuine buyer, the selling landlord is released from liability under the lease and the Uniform Residential Landlord and Tenant Act for events after the tenant gets written notice of the sale, unless otherwise agreed. The seller stays liable for the tenant's security deposit and prepaid rent unless the seller assigns them to the buyer with written notice to the tenant. Whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. Neb. Rev. Stat. §§ 76-1420(1), 76-1416(5) | No Nebraska statute was found that protects residential tenants in foreclosure beyond federal law (federal PTFA). Under the Act, the disclosure duty applies to successor owners (§ 76-1417(2)). The person holding the landlord's interest when the tenancy ends is responsible for returning the security deposit (§ 76-1416(5)). Neb. Rev. Stat. §§ 76-1416(5), 76-1417(2) |
| North Dakota | When a landlord sells the rental, the security deposit and any interest it has earned must be transferred to the buyer, and the seller stays liable for the deposit until it is transferred. Whoever owns the landlord's interest when the lease ends is bound by the deposit-return rules even if that owner never received the deposit. A buyer of property subject to a lease gets the same remedies for rent and lease breaches that the seller had, and a tenant has the same remedies against the landlord's successors (assigns) that the tenant had against the original landlord. N.D.C.C. §§ 47-16-07.1(5), 47-16-28, 47-16-29 | No statute — North Dakota adds no tenant protections beyond the federal PTFA. After a foreclosure sale and the end of the redemption period, the buyer may evict the occupant under the eviction chapter. N.D.C.C. § 47-32-01(5); chs. 47-16, 47-32 checked |
| Wyoming | Whoever holds the owner's (or designated agent's) interest in the rental when the rental agreement ends is bound by Wyoming's deposit rules, including returning the deposit balance with a written itemization of deductions. Wyoming's residential rental statutes do not say whether a sale ends the lease and do not require a notice of sale to the renter. W.S. 1-21-1209, 1-21-1208 | No state tenant-protection statute for foreclosures was found; the federal PTFA (90-day notice; bona fide leases honored) applies. State law lets a purchaser use forcible entry and detainer after a judicial foreclosure sale (against a judgment debtor in possession) or after a power-of-sale (nonjudicial) foreclosure once possession has been demanded. On a sale or transfer, the new holder of the owner's interest at the end of the tenancy is bound by the deposit-return rules. Wyo. Stat. § 1-21-1002(a)(ii)-(iii); § 1-21-1209 |
City rules that may add to state law
More South Dakota rental law
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- Breaking a Lease in South Dakota
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- South Dakota Subletting, Lease Endings & Tenant Death
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- Free legal help in South Dakota
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South Dakota Landlord Selling the House FAQ
What happens to my lease if my landlord sells the house in South Dakota?
South Dakota has no state law in its lease chapter (SDCL 43-32) that requires a selling landlord to transfer the security deposit to the buyer or to notify tenants of the sale. The chapter provides that a tenant has the same remedies against the landlord's assignees (such as a buyer of the landlord's interest) for breach of the lease as against the original landlord, except on covenants against encumbrances or relating to title or possession. (SDCL ch. 43-32 (reviewed); SDCL 43-32-21)
What are tenants' rights in a foreclosure in South Dakota?
No statute — South Dakota adds no tenant protections beyond the federal PTFA. After a mortgage or execution sale, once the redemption period expires and the deed is delivered, the buyer may bring an FED action against an occupant who stays. (SDCL 21-16-1(5); chs. 21-16, 43-32 checked)
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.