Disclaimer: This article provides general information about South Dakota co-ownership and realtor selection. It does not constitute legal advice. Consult a licensed attorney for advice tailored to your situation.
Understanding Co-Ownership Rights in South Dakota
When two or more individuals own property together—whether as joint tenants or tenants in common—they hold equal rights to sell or otherwise manage the property. Under SDCL § 43-19-40 (https://sdlegislature.gov/Statutes/Codified_Laws/43-19-40), co-owners must typically agree on major decisions, including selecting a real estate agent.
Step 1: Clarify Shared Goals and Preferences
Open a frank discussion about each co-owner’s priorities. For example, Emma and Jack co-own a vacation cabin near Rapid City. Emma wants a fast sale at market price. Jack seeks top dollar, even if it takes longer. Identifying these goals upfront helps you choose a realtor whose marketing plan aligns with both of you.
Step 2: Establish Realtor Selection Criteria
Agree on specific criteria, such as:
- Local market expertise in Sioux Falls, Rapid City, or your area
- Recent sales performance and average days on market
- Commission structure and any additional fees
- Marketing strategy and online presence
Step 3: Research and Interview Potential Realtors
Each co-owner can compile a short list of 2–3 candidates. Then interview them together, asking about:
- Comparable sales in your neighborhood
- Proposed listing price and pricing strategy
- Advertising channels (MLS, social media, open houses)
- Communication style and availability
Take notes and compare each realtor’s strengths and weaknesses against your agreed criteria.
Step 4: Negotiate and Sign a Joint Listing Agreement
Once you select a realtor, review the listing agreement carefully. Ensure both co-owners sign and retain copies. The agreement should outline:
- Listing price range and duration of the contract
- Commission rate and how it’s split if only one co-owner procures the buyer
- Termination rights if circumstances change
What to Do if Co-Owners Disagree
If you cannot reach consensus, South Dakota law allows a partition action. Under SDCL § 21-16-1 (https://sdlegislature.gov/Statutes/Codified_Laws/21-16-1), any co-owner may petition the circuit court to divide or sell the property. The court can then appoint a referee to sell the real estate and distribute proceeds.
Key Takeaways
- Start with clear, documented communication about goals and criteria.
- Research multiple realtors and interview them together.
- Use a jointly signed listing agreement to formalize your choice.
- If you hit an impasse, consider a partition action under SDCL § 21-16-1.
Helpful Hints
- Schedule joint realtor interviews on the same day to compare impressions.
- Ask potential agents for references from other co-owners they’ve represented.
- Use a shared spreadsheet to track commission quotes and marketing plans.
- Keep records of all communications and signed agreements.
- Consult a real estate attorney if you anticipate disputes.