Detailed Answer
In South Dakota, paying property taxes alone does not grant you any ownership interest in real property. Ownership arises from a valid deed recorded with the county Register of Deeds. Without a recorded deed or a formal tax foreclosure process, you hold no legal title simply by paying taxes.
Tax Liens, Certificates, and Tax Deeds
When property taxes become delinquent, the county places a lien on the real estate under SDCL 10-18-2. Any interested party may purchase a tax lien certificate at auction under SDCL 10-18-8. Certificate holders may apply for a tax deed if the owner fails to redeem the certificate within a two-year period, as outlined in SDCL 10-18-28. Only after receiving a tax deed does the certificate holder acquire legal title through this statutory process.
Adverse Possession and Equitable Claims
South Dakota law permits adverse possession for those who occupy land openly, continuously, and hostilely for 20 years under SDCL 15-54-1. Paying property taxes can support an adverse possession claim but does not by itself satisfy all statutory requirements.
Contractual Arrangements
If you enter into a written land contract or lease-option that requires you to pay property taxes, your rights derive from that agreement. Unless the contract specifically grants you an ownership interest or future option, tax payments do not automatically create equity or title.
Helpful Hints
- Verify ownership by reviewing the recorded deed at the county Register of Deeds.
- Monitor county tax sale notices to understand lien and redemption timelines.
- Keep detailed records of all tax payments if you plan to pursue a tax deed or adverse possession claim.
- Ensure any land contract clearly defines your property rights and obligations before making tax payments.
- Consult a licensed South Dakota attorney for formal pathways to secure title or enforce your rights.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized guidance, consult a licensed attorney in South Dakota.