South Dakota Lien: A Complete Guide to Liens in the State

A lien is a creditor’s legal right or interest in a debtor’s property, which can be enforced if the debt is not paid. When filed, it can block any sale, refinance, or transfer of the property until the obligation is settled. Because lien laws vary from state to state, it is important to know how the system works in South Dakota.

What Is a Lien in South Dakota?

Per the South Dakota Codified Law § 44-1-1, a lien is described as a charge against certain property that serves as security for completing a duty or paying a debt. Furthermore, a lien may apply to real property, livestock, timber and natural resources, personal property, and agricultural products. It becomes part of the public record once filed and can notify buyers and title companies of debts that remain unpaid.

For creditors, liens provide a means to collect debts while also preventing property owners from selling or refinancing their property until the debt is satisfied.

Types of Liens in South Dakota

The types of liens most commonly filed in South Dakota include:

1. Mechanics’ and Materialmen’s Lien (§ 44-9 to § 44-12)

A mechanics’ and materialmen’s lien is a right attached to property that allows contractors, builders, or suppliers to seek payment for labor and materials. This lien must be filed 120 days after the last work or materials were provided. If the debt is not paid, the lienholder can bring a lawsuit to foreclose on the property to recover the money owed.

2. Self-Service Storage Facility Lien (§ 44-14)

This is the right of a storage facility owner to place a claim on a tenant’s stored property if the tenant does not pay rent or fees. In practice, the facility can keep the items in storage and sell them to recover unpaid charges after giving proper notice.

3. Hospital Lien (§ 44-12-1 to § 44-12-12)

A hospital lien in South Dakota is a claim a hospital can place against any settlement or judgment a patient receives after an accident. For example, if an individual is injured and treated at a hospital and later wins a personal injury lawsuit, the hospital can use a lien to make sure its medical bills are paid out of that money.

4. Manufacturer’s Lien (§ 44-15-1 to § 44-15-7)

This is a right that a manufacturer has to hold on to or claim property they have made until they are paid for their labor or service.

5. Property Tax Lien (South Dakota Codified Law, Title 10, Chapter 23)

A tax lien is the government’s legal claim against a property for unpaid property taxes. Under state law, the lien attaches automatically to the property on November 1 of each year when the taxes are due and unpaid.

How to Search for Liens in South Dakota

The public may access lien records in South Dakota through:

• Court Records: Judgment liens tied to a lawsuit can be found in state court records.
• County Register of Deeds: In each county, this office records most liens, like mortgage, judgment, and mechanic liens.
• County Treasurer’s Office: For tax liens, interested parties may check with the treasurer in the county where the property is located.
• Title Companies: These companies can help potential buyers to run a title search. This includes searching for liens, mortgages, or judgments on the property.

In most cases, lien documents include the property’s legal description, creditor’s name, filing date, and the amount of the debt.

Lien Records in Major South Dakota Cities

Since lien records are kept at the county level, record seekers can begin their search in the county where the property is located:

• Sioux Falls (Minnehaha County): The primary records office in Minnehaha County is the Register of Deeds’ Office. This office provides public access to state and federal liens, mechanic liens, and UCC filings for properties in Sioux Falls.
• Rapid City (Pennington County): Through the Pennington County Register of Deeds, residents of Rapid City can locate filmed, scanned, and digital records of personal property liens, state tax liens, and county indigent liens.
• Aberdeen (Brown County): The Brown County Register of Deeds maintains records of state, county, and mechanics liens for properties in the county, including Aberdeen.
• Brookings (Brookings County): The Register of Deeds’ Office in Brookings County preserves real estate records, including state and county lien records.
• Watertown (Codington County): To access lien records for Watertown, requesters must visit the office of the Codington County Register of Deeds during office hours.

How Long Does a Lien Stay on Property in South Dakota?

The validity of a lien in South Dakota depends on the lien type:

• Property Tax Lien: It is valid until the taxes are paid or the property is sold through a tax deed process. Nonetheless, the owner has a redemption period of three years to pay off the taxes and interests.
• Mechanics’ Lien: After the lien is filed, the claimant must start a lawsuit to enforce the lien within 6 years.
• Judgment Lien: A judgment lien on real property lasts for 10 years from the date the judgment is docketed.
• Mortgage Lien: This lien is valid as long as the underlying debt is unpaid.
• Hospital Lien: The hospital must begin an action to recover the debt within one year after filing the lien.

Even after a debt is repaid, a lien may remain on public records if it is not properly released.

How to Remove a Lien in South Dakota

Some of the methods for removing a lien in South Dakota include:

1. Court Order: The debtor may ask the court to strike down a lien that is invalid or already settled but not released.
2. Negotiating Release: In exchange for a release, the debtor can reach a settlement with the lienholder to pay in installments.
3. Posting a Bond: A property can be freed if the debtor substitutes the lien with a surety bond.
4. Full Payment or Discharge: After the debtor pays the debt, the creditor will file a release of satisfaction with the appropriate Register of Deeds.

If a release is not properly recorded with the Register of Deeds, liens may continue to affect property ownership even after being settled.

Liens in South Dakota are an essential part of the property and debt enforcement system. They protect creditors while ensuring property owners fulfill their obligations. To avoid mistakes with filing, removal or deadlines of liens, individuals may consult a lawyer or the Register of Deeds. Property owners can achieve a clear title by ensuring that a lien is properly released and recorded once the debt is paid.