Property Ownership
In South Dakota, a 'condominium conversion' means:
AConverting a single-family home into multiple rental units
BConverting an existing rental building to condominium ownership where individual units are sold to separate owners✓ Correct
CConverting commercial property to residential use
DConverting a fee simple interest to a leasehold estate
Explanation
A condominium conversion changes an existing rental apartment building (or other structure) into condominiums, where individual units are sold to separate buyers who own their unit in fee simple plus a share of the common elements. The conversion process requires recording a condominium declaration and plat.
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Key Terms to Know
Fee Simple
The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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