How to sell a co-owned property in South Dakota to pay funeral and property taxes — FAQ

Short answer: First identify how the property is owned (joint tenancy with right of survivorship vs. tenancy in common), then explore voluntary sale, buyout, probate sale (if the decedent’s share is in the estate), or a court-ordered partition (forced sale). Protect the property from tax sale by contacting the county treasurer, and consider opening probate or a small-estate procedure to pay funeral expenses. Each route has different timelines, costs, and paperwork.

Disclaimer

This is general information, not legal advice. I am not a lawyer. For guidance about your specific situation, consult a South Dakota attorney familiar with probate and real estate law.

Detailed answer — step-by-step under South Dakota law

1. Determine how title is held

The very first step is to read the deed. Common ways property is held include:

Joint tenancy with right of survivorship: When one owner dies, their interest usually passes immediately to the surviving owner(s) outside probate. If title is joint tenancy, the surviving co-owner generally controls sale of the whole property (check the deed language and any recorded documents).
Tenancy in common: Each co-owner holds a distinct share that passes according to a will or intestacy. A deceased owner’s share becomes part of their probate estate and can be sold by the personal representative or by ordering a partition.
Other forms (community property, life estate, trust): Less common in South Dakota; check the deed or trust documents. Ownership form controls who can sell and whether probate is needed.

2. If you can reach agreement, sell voluntarily (fastest and cheapest)

If co-owners agree, everyone signs a listing agreement or direct sale contract. Steps:

Get a title search and a current appraisal.
Agree on price, split of proceeds, and payment of funeral/property taxes from the sale proceeds.
Close the sale and record the deed transfer.

Voluntary sale avoids court costs and delay and usually yields the most net money to cover funeral bills and taxes.

3. If the deceased owned a share that must be sold to pay debts, probate or small-estate procedures apply

If the decedent’s share is part of their estate, the personal representative (executor/administrator) has authority under South Dakota probate law to collect assets, pay funeral expenses and taxes, and sell estate property if necessary. South Dakota’s probate rules and procedures are in the state probate statutes and court rules; you can find the state statutes and resources here: South Dakota Legislature (Codified Laws) and the South Dakota court system’s probate resources at South Dakota Unified Judicial System: Probate.

Key points:

Funeral expenses and certain taxes are priority claims against the estate and are typically paid before distributions to heirs.
If the estate is small, a simplified or small-estate procedure may allow creditors (including funeral homes) to be paid without full probate — check the court’s small-estate rules and the applicable statutes linked above.
If selling real property is necessary to pay estate debts, the personal representative may need court approval unless the will or local rules permit sale without it.

4. If co-owners cannot agree, file a partition action (court-ordered sale)

If one or more co-owners (or the estate) want to force sale of the property, South Dakota law allows a partition action in circuit court. Partition typically proceeds like this:

File a complaint for partition in the circuit court where the property is located.
The court determines interests and whether the property can be physically divided. If physical division is not practical or fair, the court orders a sale and divides proceeds according to ownership shares.
Court costs and attorney fees are paid from the proceeds (the court may apportion fees among parties).

Partition can take many months and will reduce net proceeds by legal and court costs. If urgent bills (funeral costs or tax liens) threaten the property, you may also ask the court for temporary orders to preserve value.

5. Prevent county tax sale and address property taxes

Delinquent property taxes can trigger a tax lien and eventual tax sale. Contact the county treasurer immediately to learn deadlines, payment options, and whether a short grace period or payment plan is available. Each county administers tax collection and sales; the South Dakota Department of Revenue also has guidance at South Dakota Department of Revenue.

6. Practical timeline and costs

Voluntary sale with agreement: 30–90 days typical.
Probate administration (if needed): several months to a year or more depending on complexity.
Partition action: often 6–18 months, sometimes longer if contested.
Costs: realtor fees, title search, closing costs, attorney fees, and court costs. In partition or probate sales, fees come out of sale proceeds.

7. Who pays funeral expenses and property taxes while issues resolve?

Funeral expenses are usually paid from the decedent’s estate as a priority claim. If there is no estate or insufficient funds, surviving family members sometimes pay and then seek contribution from the estate or other co-owners. Property taxes are liens against the property; unpaid taxes can lead to a tax sale, so protecting the property by paying taxes or working with the treasurer is important.

8. When to get a lawyer

Consider hiring a South Dakota attorney when:

Title is unclear or deed language is ambiguous.
Co-owners cannot agree and you anticipate a partition action.
Probate is required or estate assets are insufficient to cover debts.
There is a threat of a county tax sale.

An attorney can explain local court procedures, file necessary pleadings, request emergency relief, and help protect as much of the property value as possible.

Helpful Hints

Locate the deed early. The deed controls survival rights and who can sign to sell.
Get a title search and current appraisal before negotiating a sale or buyout.
Talk to the county treasurer about tax deadlines and options. Stopping a tax sale often takes quick action.
If the decedent left a will, open probate promptly to establish authority to pay bills and sell estate assets if needed.
Consider a mediated buyout if one co-owner can pay fair value to obtain full title; mediation is faster and less expensive than litigation.
Document funeral and tax bills carefully—those are priority claims in probate, and documentation helps resolve disputes faster.
Keep property insured and secured while ownership questions are resolved to preserve value for sale.
Ask the funeral home about billing—many will accept estate payment arrangements or delay collection while probate is opened.

Useful South Dakota resources

South Dakota Legislature (Codified Laws and statute search): https://sdlegislature.gov/
South Dakota Unified Judicial System — Probate resources: https://ujs.sd.gov/Resources/Probate.aspx
South Dakota Department of Revenue (property tax information): https://dor.sd.gov/
Contact your county treasurer’s office for local tax sale rules and deadlines (county websites list contact info).

If you want, I can help you draft a checklist of documents to gather, a sample list of questions to ask a local attorney, or a short template notice you could send to co-owners proposing a voluntary sale or buyout.