HB1178

South Dakota is creating a new legal framework that allows investors to help buyers purchase homes by sharing the down payment and mortgage costs through a "shared equity agreement," where the investor gets a recorded financial stake in the property in return. This new law defines the rules for these arrangements—such as requiring the home to be a single-family primary residence and establishing that both parties must execute and record a written agreement with the county. The change makes shared equity homeownership arrangements legally recognized and enforceable in South Dakota, potentially making homeownership more accessible to buyers who need financial help.

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