A bill adding questions about historical property to a seller’s disclosure statement passes committee.
Its backers call it a consumer protection bill.
SB 171’s prime sponsor, Brookings Senator Tim Reed, said its primary goal is to bring simplicity to the homebuying process regarding historical property.
In some communities, historic properties have certain rules with altering and modifying homes – but proponents say that isn’t always clear in South Dakota currently for homebuyers.
Matt Krogman is with the South Dakota Association Realtors. He said it’s about having sellers disclose information about making all of a property’s facts known, not to move backwards.
“Let’s say the current owner is in a historic district and decides to change their front porch and didn’t get approval from the district in doing so. The new owner will be disclosed to them they are in the district and then they’ll have to make sure they follow the rules moving forward," Krogman said. "My understanding is the historic district can’t go to a new owner and say, ‘Hey, your previous owner didn’t follow the rules and so now you have to remove what’s been done.’ Whether it’s windows, front porch, whatever the historic district requires. It’s moving forward from the time of disclosure."
Roger Tellinghuisen is a lobbyist for the Deadwood Historic Preservation Commission. With the majority of Deadwood deemed historic property, he said the bill would bring clarity to the homebuying process.
“Poor homeowners who have purchased property or owned property that didn’t know it was a historic property in the city of Deadwood who may have gone ahead and made alterations to their home without getting that certificate of approval before," Tellinghuisen said. "I think this is a good bill. It puts a potential buyer on notice that the property they’re contemplating purchasing is one that’s in a historic district or not."
The bill passed the Senate Commerce and Energy Committee unanimously 9-0. It now heads to the Senate floor.
