South Dakota Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

• The principle of good faith and fair dealing requires each party to refrain from taking actions that would harm the other party’s rights under the agreement.
• The term “good faith” pertains to the obligation of a party under contract to act honestly while performing their contractual duties.

Statutory Notice Periods

• The landlord can issue a written notice of lease termination and eviction if the tenant is not undergoing business rescue. The duration of the notice period will depend on the unique circumstances and provisions of the lease agreement.
• If a business rents a South Dakota commercial space, it may have legal protection under the Consumer Protection Act (CPA). If they have a lease with a fixed duration, Section 14 of the CPA applies. 
• A landlord in South Dakota must provide written notice of a lease violation at least 20 business days in advance. 

Security Deposits

• A written South Dakota Commercial Lease Agreement that defines the terms and conditions of the security deposit is the tenants’ right.
• After the lease is terminated, it’s their right to receive a detailed list of deductions made from the deposit and the amount refunded within a reasonable time frame.
• In accordance with South Dakota regulations, property owners have the authority to receive a security deposit that’s at most equal to the rent of one month.
• Landlords in South Dakota are required by the updated legislation to give back the security deposit within 45 days after the tenancy ends. 

South Dakota Disclosures

• According to the Lead-Based Paint Disclosure, if the rental property was constructed before 1978, the landlord must notify the tenant that it might have lead-based paint on its interior.
• If the rental property has been used for methamphetamine production in the past, the landlord must inform any potential tenants about it. This information disclosure is mandatory and cannot be overlooked.

Termination and Renewal

• When tenants fail to pay rent within a specific period, landlords use a South Dakota Notice of Termination for non-payment to terminate the lease. 
• A notice is used in South Dakota to terminate a lease if the tenant has violated the lease agreement. The violations may include engaging in illegal activities, making unauthorized alterations to the property, or subletting without permission.
• When the lease term ends and both parties mutually agree not to renew the lease, a South Dakota Notice of Termination is utilized at the end of the lease term.