Which South Dakota Laws Govern Your HOA or Condo?

Before you can hold a South Dakota association to the law, it helps to know which law applies — and South Dakota gives owners unusually little statutory framework. For your specific situation, a licensed South Dakota attorney is the right resource. This is general information, not legal advice.

Does South Dakota have an HOA law?

No. South Dakota has no comprehensive homeowners-association or planned-community act. A traditional subdivision HOA, where you own a house and lot, runs almost entirely on its recorded declaration and, if incorporated, the Nonprofit Corporation Act. A chapter sometimes miscited as an "HOA act," SDCL ch. 43-15B, is actually the Time-Share Estates law, not a homeowners-association statute.

What does South Dakota's Condominium Act cover?

Mostly how a developer markets and sells a new project. Under SDCL ch. 43-15A, a condominium is established by recording a master deed or lease (§ 43-15A-3); the rest covers notices of intent to sell, project inspection, public reports, and escrow, overseen by the Real Estate Commission, and is largely silent on records, meetings, fines, and unpaid assessments.

South Dakota does have a condominium statute — the Condominium Act, SDCL ch. 43-15A — but most of it governs how a developer markets and sells a new condominium project, not day-to-day governance. It creates a condominium only on recording a master deed: under § 43-15A-3, a condominium project is established when owners "expressly declare, through the recordation of a master deed or lease ... their desire to submit their property to the formation of a condominium." Section 43-15A-2 defines a condominium as "an estate in real property consisting of an undivided interest in portions of a parcel of real property together with a separate interest in space in a residential, industrial, or commercial building."

Does South Dakota nonprofit law apply to my HOA?

Usually, if the association is incorporated. With no general HOA act and a Condominium Act that says little about ongoing governance, the Nonprofit Corporation Act (SDCL ch. 47-22 to 47-28) supplies the practical rules for most incorporated associations: under SDCL ch. 47-24, § 47-24-2 lets any member inspect books and records for any proper purpose at any reasonable time.

On records, § 47-24-2 provides that "[a]ll books and records of a corporation may be inspected by any member, or his agent or attorney, for any proper purpose at any reasonable time," and § 47-24-1 requires the corporation to "keep correct and complete books and records of account" and meeting minutes. Member meetings are governed by ch. 47-23.

How the layers fit together

1. The governing documents — the recorded master deed/declaration, bylaws, and rules. In South Dakota these carry an unusual share of the load, including any assessment lien.
2. The condominium statute — SDCL ch. 43-15A for condominiums (mostly sales/disclosure). Non-condo HOAs have no equivalent.
3. The entity law — the Nonprofit Corporation Act (SDCL ch. 47-22 to 47-28), if incorporated.
4. Federal law — the Fair Housing Act, ADA, Servicemembers Civil Relief Act, OTARD, and the Freedom to Display the American Flag Act.

Because the right combination depends on whether you're a condo and how the association is organized, a licensed South Dakota attorney is the foundation for any specific question — from records to fines to unpaid dues.

Sources

• SDCL ch. 43-15A — Condominium Act
• SDCL ch. 43-15B — Time-Share Estates
• SDCL ch. 47-24 — Nonprofit Corporations: Records, Fiscal Affairs and Reports
• SDCL ch. 47-23 — Nonprofit Corporations: Members, Directors, Officers and Agents