When conducting due diligence on a property in South Dakota, it is crucial to review the relevant documents found in the seller's files. These documents provide insight into any potential liens, mortgages/deeds of trust, UCC statements, bankruptcies, and lawsuits associated with the property. To gain a comprehensive understanding, it is essential to examine each item separately. 1. South Dakota Liens: Liens are legal claims against a property that secure the payment of a debt or obligation. In South Dakota, various types of liens may be found in a seller's files, including: — Mechanic's Liens: These liens are filed by contractors or subcontractors who have not been fully paid for work performed on the property. — Tax Liens: These liens are placed on a property by the government or taxing authorities due to unpaid property taxes. — Judgment Liens: These liens result from a court judgment against the property owner, typically in cases of unpaid debts or lawsuits. 2. Mortgages/Deeds of Trust: These documents serve as security for a loan used to purchase the property. In South Dakota, mortgages or deeds of trust are typically used as collateral in real estate transactions. Reviewing these documents can reveal the outstanding amount owed on the loan and any potential issues associated with it, such as unpaid installments or defaults. 3. UCC Statements: UCC (Uniform Commercial Code) statements are filed to establish a creditor's security interest in personal property or inventory. These statements serve as a notice to other potential creditors, ensuring that the filer has priority over future claims. Examining UCC statements can identify any outstanding debts or security interests related to personal property associated with the property being sold. 4. Bankruptcies: Bankruptcy records within the seller's files provide crucial information about the financial history of the property owner. These records reveal whether the property owner has declared bankruptcy, indicating potential financial difficulties that may impact the sale or ownership of the property. 5. Lawsuits: Lawsuit records within the seller's files uncover any ongoing or concluded legal actions involving the property or the property owner. These lawsuits could indicate disputes, property-related conflicts, or potential liabilities that may affect the property's value or future ownership. Conducting a thorough review of these documents is vital to ensuring a transparent and secure real estate transaction in South Dakota. It is recommended to consult with a professional, such as a real estate attorney or title company, to ensure a comprehensive understanding of the specific documents and their implications.