South Dakota Certificate of Real Estate Value (PT 56)

When you record a deed in South Dakota, the county Register of Deeds will almost certainly ask for a Certificate of Real Estate Value — the form commonly known as PT 56. If you're transferring property after a family member's death, this requirement can feel like one more bewildering hurdle at exactly the wrong moment.

Here's what the PT 56 actually is, when you need it, and when South Dakota law lets you skip it entirely.

What the PT 56 Does

The Certificate of Real Estate Value is a state-mandated disclosure form administered by the South Dakota Department of Revenue. It captures the sale price or assessed value of a property transfer so the state can track real estate market data and calculate the applicable transfer fee.

South Dakota charges a real estate transfer fee of $0.50 per $500 of property value under SDCL 43-4-21. When you record a deed, the Register of Deeds uses the PT 56 to determine the transfer fee amount. No PT 56 generally means no recording — the clerk will send you back to fill it out.

The form itself requires basic information: the property's legal description, the consideration paid (or fair market value for non-sale transfers), the names of the grantor and grantee, and the county where the property is located.

When the PT 56 Is Required

You'll need to file a PT 56 any time you record a deed that transfers real property for consideration in South Dakota. Common scenarios include:

• Arm's-length sales between unrelated parties
• Transfers where money changes hands, even between family members
• Contract-for-deed fulfillments when the final deed is recorded
• Foreclosure sales and sheriff's deeds

The form must be completed, signed, and submitted to the Register of Deeds alongside the deed and the recording fee — typically $30 at most county offices.

Exemptions That Apply During Estate Settlement

This is where families settling an estate catch a break. SDCL 43-4-22 provides a broad list of exemptions from the real estate transfer fee — and by extension, from the PT 56 requirement. Several of these exemptions apply directly to estate transfers:

Transfers from a fiduciary to a beneficiary. When a personal representative distributes real property to a beneficiary named in the will or determined by intestate succession, the transfer is exempt. The deed must include the language: "Exempt from transfer fee per SDCL 43-4-22" followed by the specific subdivision number.

Transfer on Death (TOD) deed executions. When a TOD deed beneficiary records the affidavit of confirmation after the owner's death, that transfer is exempt from the transfer fee.

Transfers between spouses. Property passing to a surviving spouse — whether through joint tenancy survivorship, a will, or intestate succession — qualifies for the exemption.

Probate decrees and court orders. Judicial distributions ordered by the circuit court during formal probate are generally excluded from the PT 56 requirement.

To claim any of these exemptions, the deed itself must state the exemption on its face. Don't assume the Register of Deeds will figure it out — write it directly on the document before you submit it.

How to File the PT 56

If your transfer doesn't qualify for an exemption, filing the PT 56 is straightforward:

1. Obtain the form from the South Dakota Department of Revenue website or from your county Register of Deeds office.
2. Complete all fields — property legal description, county, consideration or fair market value, and the parties involved.
3. Calculate the transfer fee at $0.50 per $500 of value (or fraction thereof).
4. Submit the PT 56 with the deed, the recording fee ($30 at most counties), and the calculated transfer fee to the Register of Deeds.

The Register of Deeds will review the form, collect the fees, and record the deed. If anything is missing or inconsistent, they'll reject the filing until it's corrected.

Common Mistakes Families Make

Assuming all estate transfers need the PT 56. Many families walk into the Register of Deeds office expecting to pay the transfer fee on property inherited through a will or probate decree. Most estate-related transfers are exempt — but only if the exemption language appears on the deed.

Forgetting the exemption language on the deed. The exemption isn't automatic. If you don't write "Exempt from transfer fee per SDCL 43-4-22" with the correct subdivision on the deed, the clerk may require you to pay the fee or reject the filing until the language is added.

Confusing the PT 56 with the recording fee. The $30 recording fee at the Register of Deeds is separate from the transfer fee calculated on the PT 56. Even exempt transfers still require the recording fee.

Getting the Full Picture

The Certificate of Real Estate Value is just one piece of transferring property after a death in South Dakota. Between deed preparation, recording fees, potential Medicaid estate recovery claims, and the agricultural land exclusion for small estate affidavits, there's a lot to coordinate.

The South Dakota Estate Settlement Guide walks through every property transfer scenario step by step — including the exact exemption language to use, recording fee schedules by county, and the forms you need for each type of transfer.

See more South Dakota guides →