Which of the following transactions is NOT exempt from the Property Disclosure Act?

Which of the following transactions is NOT exempt from the Property Disclosure Act?

• A. Sale of a commercial property.
• B. Sale by a real estate licensee of a two-unit residential property.
• C. Sale of a property being sold for tax delinquency.
• D. Transfer between family members.

Answer: (B)

Under the Property Disclosure Act in South Dakota, certain transactions are exempt from the requirement for sellers to provide property disclosures. Typically, the Act excludes transactions involving commercial properties, properties sold due to tax delinquency, and transfers between family members. The sale by a real estate licensee of a two-unit residential property is notable because it does not fall under these exemptions. Residential properties, particularly those with two or fewer units, are generally subject to disclosure requirements to protect buyers. This is because the intent of the Property Disclosure Act is to ensure that potential buyers are fully informed about the residential property's condition. Therefore, when a real estate licensee is involved in the sale of a two-unit residential property, they are required to provide the necessary disclosures to prospective buyers, making this transaction not exempt from the act.

Under the Property Disclosure Act in South Dakota, certain transactions are exempt from the requirement for sellers to provide property disclosures. Typically, the Act excludes transactions involving commercial properties, properties sold due to tax delinquency, and transfers between family members.

The sale by a real estate licensee of a two-unit residential property is notable because it does not fall under these exemptions. Residential properties, particularly those with two or fewer units, are generally subject to disclosure requirements to protect buyers. This is because the intent of the Property Disclosure Act is to ensure that potential buyers are fully informed about the residential property's condition. Therefore, when a real estate licensee is involved in the sale of a two-unit residential property, they are required to provide the necessary disclosures to prospective buyers, making this transaction not exempt from the act.