What do you have to disclose when selling a house in Sioux Falls? South Dakota law requires most sellers of a previously occupied home to give the buyer a completed Seller’s Property Condition Disclosure Statement — on the state’s standard form — before the buyer signs a written offer. You disclose what you actually know about the home’s structure, roof, basement, plumbing, electrical, heating, water source, and hazards like radon. Brand-new homes that have never been lived in are exempt. Leave out a known problem and you can be on the hook for the buyer’s actual repair costs.

By Jeff Merrill | September 22, 2026

Here’s the part most Sioux Falls sellers get wrong: the disclosure isn’t a formality you sign at the end. It’s a legal document you fill out at the very beginning, and getting it wrong can cost you long after you’ve cashed the check and moved on.

South Dakota spells this out in state law. Under SDCL 43-4-44, if you’re selling a home that someone has lived in, you have to complete the state’s standard Seller’s Property Condition Disclosure Statement and get it into the buyer’s hands before they make a written offer. Not at closing. Not after the inspection. Before the offer.

That timing matters, and so does what you write on it. Let’s walk through exactly what you’re on the hook for.

What the disclosure covers — and when you hand it over

The form itself isn’t something you draft. The South Dakota Department of Labor and Regulation publishes the exact document, and every seller uses the same one. It’s several pages of yes-or-no questions with room to explain.

You’re disclosing what you actually know — not guessing, not running your own inspection. If you don’t know the answer, “unknown” is a legitimate response. The law asks for honesty about your knowledge, not omniscience about the house.

The form walks through the major systems and known problems, including:

  • Structure and roof — foundation cracks, roof age and leaks, additions, settling
  • Basement and water — past or present water intrusion, sump pump issues, drainage. In older Sioux Falls neighborhoods and anywhere near a creek or low grade, a wet basement is one of the most scrutinized lines on the whole form.
  • Plumbing, electrical, heating, and cooling — what works, what doesn’t, what’s been repaired
  • Water and sewer — city hookup versus private well and septic, and the condition of each
  • Environmental hazards — radon, asbestos, lead-based paint, mold, and prior methamphetamine contamination. South Dakota sits in a high-radon zone, so this line gets real attention here.
  • Legal and boundary items — easements, encroachments, zoning issues, boundary disputes, HOA obligations, and special assessments

If a material fact changes after you hand over the disclosure but before closing or possession — say the furnace quits in October while the deal is pending — you’re required to give the buyer a written amendment. You can’t sign the form, watch something break, and stay quiet.

One more thing the disclosure is not: a warranty. The form states plainly that it’s a disclosure of condition, not a guarantee, and it doesn’t replace an inspection. Buyers should still get their own inspection, and smart ones do — which is exactly why I tell buyers to think hard before waiving the home inspection. The disclosure tells them what you know. The inspection tells them what you might not.

The buyer’s three-day window

Because the disclosure has to come before the written offer, buyers get a built-in right to walk if something on it changes their mind.

Once you deliver the statement — or any amendment to it — the buyer can rescind their offer within three days if you handed it to them in person, or within six days if it went out by mail. That clock is set by state law, not by your purchase agreement.

For you as the seller, the takeaway is simple: deliver the disclosure early and cleanly. Handing it over late, or amending it at the wrong moment, can reopen a buyer’s exit window when you least want it open. Your agent and the title company will time this correctly, but you should understand why the sequence isn’t negotiable.

What happens if you don’t disclose

This is the part that keeps sellers up at night, and it should.

Under SDCL 43-4-42, a seller who makes a misrepresentation or leaves out a known problem on the disclosure is liable to the buyer for the actual damages — the real cost of the repairs and losses the buyer suffers because of it. That liability doesn’t disappear at closing. A buyer who discovers a covered-up problem months later can still come after you.

Picture a real scenario. You’ve dealt with water seeping into the basement corner every spring for years. You patch it, you run a dehumidifier, you move a rug over the stain, and on the form you check “no known water problems.” The buyer moves in, the next spring hits, and the wall weeps. Now there’s a paper trail showing you knew — and a repair bill, plus possibly your buyer’s attorney, pointed at you.

Compare that to the seller who checks “yes,” writes “seasonal seepage in northwest corner, sump pump installed 2019,” and attaches the receipt. That seller has almost no exposure. The buyer bought the house knowing exactly what they were getting.

The lesson I give every seller: disclosure protects you more than it protects the buyer. An honest “yes” with an explanation is a shield. A dishonest “no” is a liability waiting for a court date. If a defect is genuinely in dispute or the stakes are high, that’s a conversation to have with a real estate attorney before you sign anything.

And yes — this applies even if you’re selling on your own. Sellers who go FSBO in Sioux Falls sometimes assume the disclosure requirement is an agent thing. It isn’t. The law follows the sale, not the salesperson.

When you’re exempt

Not every transfer requires the disclosure. The big one in this market: newly constructed homes that have never been occupied are exempt.

That’s a meaningful carve-out given how much new construction is going up in Tea, Harrisburg, and the northwest corridor. If you’re the first buyer of a brand-new Allen Homes, Van Buskirk, or Cordes build, the builder generally doesn’t owe you the state disclosure form. In many of those deals, the buyer also contractually waives the disclosure as part of the builder’s purchase agreement.

That’s not a reason to skip due diligence on new construction — a builder walkthrough and a private inspection still matter — it just means the disclosure statute doesn’t apply the way it does to a resale.

A handful of other transfers fall outside the requirement too, such as certain court-ordered sales, foreclosures, and transfers between co-owners or family in specific situations. If you’re not sure whether your sale is exempt, don’t guess — confirm it before you decide to skip the form.

For the vast majority of Sioux Falls sellers, though, the answer is the same: you have a lived-in home, so you complete the disclosure, you complete it honestly, and you hand it over before the offer.

Frequently asked questions

Is a seller’s disclosure required in South Dakota?

Yes, for most previously occupied residential homes. SDCL 43-4-44 requires sellers to complete the state’s standard Seller’s Property Condition Disclosure Statement and deliver it to the buyer before the buyer makes a written offer. It applies whether you sell with an agent or on your own.

What has to be disclosed when selling a house in Sioux Falls?

You disclose what you know about the home’s structure, roof, basement and water issues, plumbing, electrical, heating and cooling, water and sewer source, and known hazards like radon, asbestos, lead paint, and mold — plus legal items like easements, HOA obligations, and special assessments. “Unknown” is a valid answer when you truly don’t know.

Can a buyer back out after reading the disclosure?

Yes. After you deliver the disclosure or an amendment, the buyer can rescind their offer within three days if it was delivered in person, or six days if delivered by mail. That right is set by state law.

What happens if a seller lies on the disclosure?

Under SDCL 43-4-42, a seller who misrepresents or omits a known defect can be liable to the buyer for the actual cost of repairs and damages. That liability can survive well past closing, which is why an honest disclosure is the seller’s best protection.

Do I need a disclosure for a brand-new home?

No. Newly constructed homes that have never been occupied are exempt, and builders often have buyers waive the disclosure in the purchase contract. A private inspection is still worth getting.

The bottom line

The seller’s disclosure is the cheapest insurance policy you’ll ever fill out. Answer honestly, explain the “yes” boxes, attach your receipts, and hand it over before the offer — and you’ve protected yourself far more than you’ve exposed yourself.

Where sellers get burned is trying to make a house look better on paper than it is. In my experience, buyers forgive a disclosed flaw. They don’t forgive a hidden one, and neither does the law.

If you’re getting ready to sell in Sioux Falls, Brandon, Harrisburg, or Tea and you’re not sure how to handle a tricky item on the disclosure, that’s exactly the kind of thing I walk sellers through before we ever list. Reach out anytime at 605-201-2846 or at siouxfallsgreathomes.wordpress.com, and we’ll make sure it’s done right the first time.

About Jeff Merrill
Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. He helps motivated buyers, sellers, and new agents cut through the hype in real estate with honest guidance, hands-on mentorship, and a track record of real results. Connect with Jeff at 605-201-2846 or siouxfallsgreathomes.wordpress.com.