South Dakota HOA Laws

In South Dakota, homeowners associations are not regulated by any specific statutes. But, there are still some state laws that may apply to them. Learn about the South Dakota HOA laws here.

For Condominiums

The South Dakota Condominium Law regulates condominium associations in the state. These condominium associations must explicitly choose to be governed by this Act by recording a declaration or master deed in the county register of deeds where the condominium is situated.

You can find the South Dakota Condominium Law under Title 43, Chapter 15A of the South Dakota Codified Laws. It consists of several sections, listed below.

• Definition of terms.
• Estates subject to chapter.
• Establishment of condominium project–Master deed or lease.
• Particulars required in master deed or lease.
• Common areas defined.
• Joint or common ownership.
• Exclusive and common rights of owners.
• Recording of transfers and encumbrances of individual units.
• Recording of master deeds and leases–Tax inapplicable to original recordation.
• Notice of intent to sell domestic condominium–Contract voidable if notice not given.
• Fee to accompany notice of intent–Questionnaire–Form and content.
• Inspection of condominium project.
• Waiver of initial inspection.
• Filing fee and inspection expenses to accompany notice of intent–Payment to inspector.
• Deposit and expenditure of fees.
• Public report of examination findings–Status of report.
• Commission report required before offer to sell or taking reservations to purchase.
• Supplementary report on investigations made after final or substitute report issued–True copy to purchasers.
• Copy of reports issued to prospective purchaser before binding contract for sale–Time to read copy–Receipt.
• True copies to be exact reproductions of commission’s reports.
• Receipts kept by developer–Inspection–Duration.
• Material change in offering prohibited without written notice.
• Deposits held in escrow until delivery of deed.
• Management or recreation facility contract period limited–Subsequent contracts by council of co-owners.
• False statement, fraud, or violation of provisions as misdemeanor.
• Investigation of developer suspected of violations–Examination of books–Developers to keep records available.
• Repealed.
• Validation of previously established vertical and horizontal property regimes and condominiums–Deadline for enforcing rights–Notice of pendency.
• Lien for erection, repair, or improvement of a single development–Apportionment of liens.
• Promulgation of rules to administer and enforce chapter.

South Dakota HOA Laws on Corporate Governance

The South Dakota Nonprofit Corporation Act regulates non-profit corporations in the state when it comes to corporate structure, procedure, and management. If a homeowners association or condominium is incorporated as a non-profit, then this Act will apply to them.

You can find the South Dakota Nonprofit Corporation Act under Title 47, Chapters 47-22 to 47-28 of the South Dakota Codified Laws. It consists of 8 chapters, each one broken down further into sections.

Chapter 47-22. Nonprofit Corporations–Formation And General Powers

• Definitions.
• Applicability to domestic corporations.
• Applicability to corporations existing prior to 1965.
• Applicability to foreign corporations.
• Purposes and authority of corporations–Particular purposes–Exceptions.
• Incorporators–Articles of incorporation.
• Contents of articles of incorporation–Necessary recitals.
• Corporate name–Indication of purpose.
• Repealed.
• Use of same or similar name prohibited–Non-English name to be transliterated.
• Reservation of name–Parties entitled to reserve.
• Procedure for reservation of name–Maximum time of reservation.
• Transfer of reserved right–Notification to secretary of state.
• Articles of incorporation–Endorsement and filing by secretary of state–Issuance of certificate of incorporation.
• Commencement of corporate existence–Certificate as conclusive evidence of compliance–Exceptions.
• Amending articles of incorporation.
• Procedure for amendment.
• Resolution of amendment–Submission to members at meeting–Notice of meeting–Contents of notice–Written notice of adoption required–Majority vote required.
• Procedure in absence of members entitled to vote–Adoption of amendment by board of directors.
• Submission of more than one amendment.
• Articles of amendment–Contents of articles.
• Delivery to secretary of state–Fees–Endorsement and filing–Issuance of certificate of amendment.
• Effective date of amendment.
• Preexisting actions unaffected–Change of name as not abating action.
• Restatement of articles of incorporation–Procedure.
• Resolution of restatement–Submission to members.
• Notice of proposed restatement–Contents of notice.
• Vote of membership–Majority vote required.
• Procedure in absence of members entitled to vote–Adoption of restatement by board of directors.
• Approval of restated articles–Contents of articles–Delivery to secretary of state.
• Restated articles may incorporate proposed amendments–Conditions.
• Approval by secretary of state–Fees–Endorsement and filing–Issuance of restated certificate of incorporation.
• Effective date of restated articles.
• Meeting of first board of directors–Organization meeting–Notice of meeting.
• First meeting of members–Notice of meeting.
• Adoption of initial bylaws–Amendment of bylaws–Permissible contents of bylaws.
• Method of providing notice to members or directors.
• Changing number of board of directors–Bylaws controlling absent provision in articles.
• Emergency bylaws–Conditions creating emergency.
• Provisions of emergency bylaws–Meetings of directors–Attendance–Priorities.
• Modification of lines of succession during emergency.
• Changing head office during emergency.
• Duration of emergency bylaws.
• Notice of meetings during emergency–Quorum.
• Liability for actions during emergency–Willful misconduct.
• Repealed.
• Powers of corporation–Perpetual succession.
• Powers of corporation–Capacity to sue and be sued.
• Powers of corporation–Corporate seal.
• Powers of corporation–Dealing in real or personal property.
• Powers of corporation–Disposal of corporate assets.
• Powers of corporation–Lending money.
• Powers of corporation–Securities holdings–Government obligations.
• Powers of corporation–Contracting–Borrowing–Issuance of securities.
• Powers of corporation–Lending–Investing–Property holding.
• Powers of corporation–Extraterritorial operations.
• Powers of corporation–Officers and agents.
• Powers of corporation–Adoption of bylaws.
• Powers of corporation–Donations–Wartime donations.
• Repealed.
• Powers of corporation–Indemnification–Defense of actions.
• Indemnification against expenses and attorneys’ fees.
• Authorization of indemnification–Requirements–Manner of determination.
• Authorization of payment of expenses prior to final disposition of action–Receipt of undertaking–Terms and conditions.
• Indemnification not exclusive of other rights–Continuation of benefits to former employees–Benefits to deceased employees.
• Powers of corporation–Purchase and maintenance of liability insurance.
• Corporation defined.
• Definition of other terms.
• Powers of corporation–Pension plans.
• Powers of corporation–Cessation of activities.
• Powers of corporation–Other powers.
• Restrictions on private foundations–Definition of terms.
• Restrictive provisions as to income and property deemed incorporated in foundation charter.
• Self-dealing by foundation prohibited.
• Distributions required of foundation.
• Excess business holdings prohibited to foundation.
• Investments which jeopardize charitable purpose prohibited to foundation.
• Taxable expenditures prohibited to foundation.
• Judicial determination that required restrictions would be contrary to charter.
• State powers over corporation unimpaired.
• Ultra vires unavailable to invalidate transfers of property.
• Circumstances under which ultra vires may be asserted–Actions by members or directors–Injunctions.
• Circumstances under which ultra vires may be asserted–Actions by corporation against officers or directors.
• Circumstances under which ultra vires may be asserted–Actions by attorney general to dissolve or enjoin corporation.
• Unauthorized acting as corporation–Liability.
• Legislative power to prescribe additional regulations.
• Privacy protection policy for social security numbers of volunteers.
• Prior incorporations validated–Previously pending actions.
• Rights vested under prior statutes unaffected.
• Severability and saving clause.
• Citation of nonprofit corporation law.

Chapter 47-23. Nonprofit Corporations–Members, Directors, Officers And Agents

• Classes of members–Corporations without members–Articles of incorporation as governing–Certificates of membership.
• Exoneration from personal liability.
• Liability of director, trustee, committee member, or officer serving without compensation.
• Members’ meetings–Time and place.
• Annual members’ meeting–Time and place–Failure to hold meeting.
• Special meetings of members–Calling special meeting–Requisite percentage of members to call special meeting.
• Taking action without meeting–Written consent–Effect of written consent.
• Notice to members of meeting–Manner of giving notice.
• Articles or bylaws as limiting right to vote–Vote in absence of limitation provision.
• Voting procedure–Proxy votes_Ballots.
• Cumulative voting for directors.
• Corporations without members entitled to vote–Powers of directors.
• Bylaw provisions governing vote or quorum–Quorum in absence of bylaw provision–Majority vote required.
• Board of directors–Qualifications of directors.
• Number of directors–Bylaws as governing–Increasing or decreasing number of directors–Decrease as not affecting term.
• First board of directors–Term of office.
• Election or appointment of directors–Term of office.
• Classes of directors–Term of office.
• Removal of directors.
• Vacancy on board of directors–Filling by majority vote of remaining directors–Term of office.
• Quorum of directors–Provisions of articles or bylaws as governing.
• Meetings by teleconference.
• Committees–Authority and function–Responsibility of board of directors.
• Articles or bylaws as governing vote of directors.
• Corporate officers–Appointment and term of office–Ex officio members of board of directors.
• Removal of officers–Contract rights unaffected.
• Notice to members or directors–Written waiver.
• Indemnification of corporate agents for liability from good faith acts on behalf of corporation.
• Definition of terms.
• Immunity of volunteers of nonprofit organizations, free clinics, certain hospitals, and governmental entities.
• Person not immune where negligent operation of vehicle caused injury.
• Effect on other statutes concerning immunity.
• Waiver of immunity to extent of risk sharing pool or liability insurance coverage–Volunteer serving as director, officer, or trustee exempt.

Chapter 47-24. Nonprofit Corporations–Records, Fiscal Affairs And Reports

• Books, records, minutes, and member lists.
• Inspection of books or records.
• Shares of stock prohibited–Dividends and profits prohibited.
• Directors not liable for distribution in good faith reliance on financial statements or accountant’s report.
• Compensation of members, directors, or officers–Distributions upon final liquidation.
• Loans to directors or officers–Liability for assenting to loan.
• Report required of domestic corporation.
• Repealed.
• Repealed.
• Repealed.
• Repealed.
• Administrative dissolution.
• Notice of dissolution–Time limit for corrections–Continued existence–Authority of registered agent.
• Petition for reinstatement after dissolution of corporate existence–Execution and filing.
• Denial of reinstatement–Appeal–Court action.
• Change of name required on reinstatement.
• Conforming petition for reinstatement filed–Certificate.
• Notice to attorney general before sale, transfer, conversion, or merger of at least thirty percent of assets–Information to be submitted to secretary of state.

Chapter 47-25. Nonprofit Corporations–Reorganization

• Merger of corporations–Plan of merger–Contents of plan.
• Amendment of surviving corporation’s articles.
• Consolidation of corporations–Plan of consolidation–Contents of plan.
• Articles of consolidation as governing new corporation.
• Adoption of plan of merger or consolidation.
• Resolution of merger or consolidation–Submission to members–Notice of proposed plan.
• Two-thirds vote required for approval.
• Corporations having no members entitled to vote–Approval by directors.
• Abandonment of merger or consolidation plan.
• Approval of articles of merger or consolidation–Contents of approval–Delivery to secretary of state.
• Endorsement and approval by secretary of state–Issuance of certificate of merger or consolidation.
• Effective date of merger or consolidation.
• Formation of single corporation–Surviving corporation.
• Cessation of previous corporate existence.
• Rights and duties of surviving corporation.
• Transfer of assets and liabilities to surviving corporation–Title to real estate.
• New corporation as responsible for claims and liabilities–Preexisting rights unimpaired.
• Merger or consolidation involving foreign corporation.
• Compliance with local law by local corporation–Compliance with foreign law by foreign corporation.
• Compliance with local law by surviving corporation–Submission to service of process locally.
• Effect of merger or consolidation of foreign and domestic corporation.
• Surviving corporation as governed by foreign law.
• Abandonment of merger or consolidation.
• Transfer of substantially all corporate assets.
• Vote upon transfer of corporate assets–Notice of meeting–Contents of notice.
• Authorization of transfer by members–Two-thirds vote required.
• Abandonment of transfer plan after vote of members–Rights of third parties.
• Authorization for transfer in corporation having no members entitled to vote.

Chapter 47-25A. Nonprofit Corporations–Domestication And Conversion

• Definitions.
• Required approvals.
• Domestication–Plan of domestication.
• Domestication of a domestic nonprofit corporation in a foreign jurisdiction.
• Articles of domestication.
• Effect of domestication–Liability of member of foreign nonprofit corporation domesticated in this state.
• Abandonment of domestication.
• For-profit conversion–Plan of for-profit conversion.
• Conversion of domestic nonprofit corporation to domestic or foreign business corporation.
• Articles of for-profit conversion.
• Effect of for-profit conversion–Liability of member of domestic nonprofit corporation that converts to domestic business corporation.
• Abandonment of for-profit conversion.
• Foreign for-profit domestication and conversion.
• Articles of domestication and conversion.
• Effect of foreign for-profit domestication and conversion–Liability of shareholder.
• Abandonment of foreign for-profit domestication and conversion.
• Effect of conversion.
• Abandonment of entity conversion.
• Conversion of domestic business corporation to domestic nonprofit corporation.
• Plan of nonprofit conversion.
• Effect of conversion of domestic business corporation to domestic nonprofit corporation.
• Abandonment of conversion of domestic business corporation to domestic nonprofit corporation.

Chapter 47-26. Nonprofit Corporations–Dissolution And Liquidation

• Procedure for dissolution.
• Vote of members–Meeting for vote–Notice of meeting–Contents of notice–Two-thirds vote required.
• Dissolution by board of directors in corporation without members entitled to vote.
• Resolution to dissolve–Cessation of business affairs–Notice of proposed dissolution to creditors–Collection and distribution of assets.
• Manner of distribution of assets–Particular assets–Remaining assets.
• Plan for distribution of assets–Adoption of plan.
• Notice to attorney general.
• Membership vote on plan–Meeting–Notice of meeting–Two-thirds vote required.
• Adoption of plan by corporation having no members entitled to vote.
• Articles of dissolution–Time for adoption–Contents.
• Delivery of articles to secretary of state–Endorsement and filing by secretary of state–Issuance of certificate of dissolution.
• Cessation of corporate existence–Exceptions.
• Revocation of dissolution action–Procedure.
• Revocation of dissolution resolution–Meeting–Notice of meeting–Two-thirds vote required.
• Revocation in corporation having no members entitled to vote.
• Effect of adoption of revocation resolution.
• Involuntary dissolution by court decree–Action by attorney general–Grounds of action.
• Repealed.
• Repealed.
• Venue of attorney general’s action–Service of process.
• Service by publication–Contents of publication–Newspaper of publication.
• Including several corporations in one notice–Mailing notice to corporation–Attorney general’s certificate of mailing–Number and time of publication–Time for default.
• Power of court in liquidation proceedings–Actions by member or director.
• Power of court in liquidation proceedings–Action by creditor.
• Power of court in liquidation proceedings–Application by corporation.
• Power of court in liquidation proceedings–Action by attorney general.
• Venue of actions.
• Proper parties to action.
• Preservation of corporate assets–Injunctions and receivers.
• Appointment of liquidating receiver–Authority of receiver–Order appointing receiver.
• Disposition of assets resulting from sale of corporate property–Manner of distribution–Disposition of remaining assets.
• Expenses of liquidation–Compensation of receiver–Attorneys’ fees.
• Capacity of receiver to sue and be sued–Jurisdiction of court.
• Qualifications of receiver–Bond.
• Claims of creditors–Proof of claim–Time for filing–Failure to file timely proofs.
• Discontinuance of liquidation proceedings–Redelivery of assets to corporation.
• Decree of involuntary dissolution–Cessation of corporate existence.
• Copy of decree filed with secretary of state–Fee.
• Disposition of undistributable assets–Unknown claimants–Deposit with state treasurer for subsequent payment.
• Preexisting rights and claims unaffected by dissolution–Time for assertion–Protection of remedy.
• Dissolution by expiration of period of duration–Extension of period of duration.

Chapter 47-27. Foreign Nonprofit Corporations

• Certificate of authority to do business–Application–Contents of application–Forms–Execution.
• Delivery of application to secretary of state.
• Approval by secretary of state–Endorsement and filing.
• Issuance of certificate of authority–Authority conferred by certificate.
• Circumstances under which certificate may not be denied–Difference between local and foreign law–Regulation of internal affairs of corporation prohibited.
• Certificate as conferring no greater rights than those enjoyed by local corporations.
• Corporate name as affecting right to certificate–Purpose indicated by name.
• Name similar to or same as other corporation.
• Change of name to prohibited name–Suspension of certificate of authority.
• Certificate as not authorizing acts prohibited locally.
• Certificate as requisite for doing business.
• Failure to obtain certificate as barring suit within state.
• Failure to obtain certificate as not barring defense to action within state.
• Liability for doing business in state without certificate–Fees and reports–Interest and penalties–Action by attorney general.
• Repealed.
• Circumstances under which new certificate of authority is necessary–Change of corporate name–Additional corporate purposes–Application for new certificate of authority.
• Annual reports by foreign corporations.
• Repealed.
• Contract or tort within state as consent to serve secretary of state.
• Repealed.
• Withdrawal of foreign corporation from state–Certificate of withdrawal–Application to secretary of state–Contents of application.
• Endorsement and filing by secretary of state–Issuance of certificate of withdrawal.
• Cessation of authority to conduct local business.
• Revocation of certificate of authority–Grounds for revocation.
• Notice and procedure for revocation–Time for notice–Corrective action by corporation.
• Issuance and filing of certificate of revocation–Notice to corporation.
• Cessation of authority to do business locally.

Chapter 47-28. Nonprofit Corporations–Supervision By Secretary Of State

• General powers of secretary of state.
• Appeal from actions of secretary of state–Notice of disapproval by secretary of state–Time for notice.
• Appeal to circuit court–Venue–Petition and supporting documents–Trial de novo.
• Right of foreign corporation to appeal revocation of certificate of authority–Procedure for appeal–Trial de novo.
• Appeal from order of circuit court–Procedure.
• Filing fees.
• Fee for service of process.
• Fee for certified copy.
• Prima facie effect of certificates of secretary of state–Admissibility.
• Repealed.
• Interrogatories by secretary of state to determine compliance with statutes.
• Answer to interrogatories–Time for answer–Extension of time–Proper party to answer.
• Withholding filing of documents pending answer–Certification of certain answers to attorney general.
• Interrogatories and answers as confidential–Exception in case of criminal proceedings.
• Failure to answer interrogatories–Civil fine.
• Director or officer failing to answer interrogatories or signing false report–Civil fine.
• Forms prescribed by secretary of state–Use not mandatory.
• Filing by electronic transmission.
• Delayed effective time and date of filings.

Fair Housing

The South Dakota Human Relations Act of 1972 offers protection to residents against housing discrimination based on race, color, ancestry, national origin, sex, religion, creed, familial status, or disability. It closely follows the provisions set forth within the federal Fair Housing Act and the Americans with Disabilities Act.

Victims of housing discrimination can file a private lawsuit in state or federal court. They may also submit a complaint to the U.S. Department of Housing and Urban Development or the South Dakota State Commission of Human Rights.