Detailed answer — how consent orders work and when they can replace a hearing

A consent order (sometimes called a stipulated order or agreed order) is a proposed court order based on an agreement between the parties. You submit the signed agreement and a proposed order to the court, and the judge may sign it if it is lawful and within the court’s power. When entered, the consent order has the force of a court judgment.

In practice in South Dakota:

• Courts often accept consent orders that resolve litigated disputes because they save time and resources.
• The judge still reviews the agreement. A judge will refuse to enter any consent order that is unconscionable, violates law or public policy, or fails to protect non-consenting third parties (creditors, minors, taxing authorities, lienholders).
• Certain statutory processes impose independent steps (notice, accounting, hearing, waiting periods, trust requirements) before distribution of sale proceeds. Where a statute requires a hearing or specific notice, a simple consent order may not substitute for that required process.

Common situations where a consent order can help skip an in-court contested hearing:

• Parties to a civil case reach full agreement about distribution of proceeds from a sale and there are no unresolved third-party claims.
• All lienholders and claimants sign releases or written agreements allocating the proceeds.
• The parties submit an agreed accounting and proposed distribution; the judge signs the order and the clerk disburses funds per the order.

Common situations where a hearing or statutory steps are likely required:

• There are unpaid creditors, unknown claimants, or contested lien priorities who have not consented.
• Proceeds involve minors, protected persons, guardianship/conservatorship, or bankruptcy estate property.
• State statutes or court rules require notice to interested parties or a confirmation hearing (for example, certain probate or partition sale procedures).
• Tax, municipal, or other statutory liens may need special handling or notice to taxing authorities.

Because statutory procedure varies with the type of sale (sheriff’s sale, foreclosure sale, partition sale, probate sale), check the specific South Dakota procedures for that sale. When in doubt, ask the court clerk or an attorney whether a hearing is required or whether the clerk will accept a consent order for distribution.

Practical steps — how to use a consent order to distribute sale proceeds

1. Confirm who has legal claims: identify all owners, lienholders, taxing authorities, and potential creditors.
2. Get written releases or stipulations from every party with a claim on the proceeds. If a lienholder will accept a payoff, get a payoff letter and a release document.
3. Prepare an agreed accounting showing gross sale price, costs of sale, liens and payoff amounts, fees, and the proposed net distribution to each claimant.
4. Draft a proposed consent order attaching the settlement agreement and the accounting. The order should direct the clerk/judge how to disburse funds and who will sign releases or record satisfactions of lien.
5. File the consent order and supporting documents with the court; if required, file a motion to enter the consent order and include certificates of service or affidavits of notice to any required parties.
6. If the judge approves and signs the order, the clerk will follow the order to distribute funds. If the judge requires a hearing, be prepared to present the accounting and supporting releases at that hearing.

Tip: If a creditor or lienholder refuses to sign, a hearing may be necessary to resolve priority or validity of the lien.

Hypothetical example

Two co-owners sell a rural parcel in a partition sale. Sale proceeds total $200,000. A contractor claims an unpaid $8,000 lien; the mortgage holder claims $120,000; the co-owners agree to split the remainder equally. The co-owners obtain a mortgage payoff statement and a signed lien release from the contractor accepting $6,000 as full payment. They prepare an accounting showing sale price, sale expenses, payoff amounts, and a proposed split of net proceeds. They file a consent order attaching the releases and accounting and ask the judge to enter it. If the judge finds notices were proper and no other parties have claims, the judge may sign the consent order and the clerk will distribute funds. If the contractor had not signed a release or a taxing authority objected, the judge might schedule a hearing instead.

Helpful hints

• Always check for recorded liens: mortgage, tax liens, mechanics’ liens — they affect distribution priority.
• If minors or incapacitated persons have an interest, the court often requires a hearing or special procedural protections.
• Obtain written payoff figures and releases before asking the court to distribute funds.
• Provide the judge a clear proposed distribution and supporting documentation (settlement agreement, lien releases, title search, accounting). A clear record makes entry of an order more likely without a hearing.
• File certificates of service or affidavits proving required notice to parties and interested agencies.
• Ask the clerk whether local practice requires a hearing for your type of sale; local rules and judicial districts may vary in practice.
• If federal bankruptcy, IRS liens, or other superior claims exist, consult counsel — those claims can block distribution even with a consent order.

Where to look for South Dakota rules and help

• South Dakota Unified Judicial System (procedures, forms, and local rules): https://ujs.sd.gov
• South Dakota Codified Laws (general statutes reference and lookups): https://sdlegislature.gov/Statutes/Codified_Laws
• Your county clerk of courts for local filing procedures and required notices. The clerk can often tell you whether a hearing is commonly required in a particular matter.