South Dakota Code § 32-3-83

Transfer on death--Ineligible if encumbered--Certificate not issued
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An owner of property may not designate a beneficiary, pursuant to §
32-3-80
, if the property is subject to any lien or other encumbrance.
The department may not issue a certificate of title reflecting the transfer of ownership, pursuant to §
32-3-81
, if the property is subject to any lien or other encumbrance.

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