Codington County Commissioners Consider Temporary Lien Release for Henry Home Sale

Northeast Radio SD News – Watertown, SD - The Codington County Commissioners are exploring a contractual agreement to temporarily release a county aid lien to facilitate a local real estate transaction, following a presentation at their August 4, 2026, meeting.

Agenda Item 7 brought property seller Paul Larson before the board to discuss a county lien tied to a prospective homebuyer. Larson, who is flipping a property at 208 Elm Street in Henry, South Dakota, stated that his tenants, Melissa Gim and her husband, are looking to purchase the home after successfully improving their credit over the past year.

However, a surprise on the title report stalled the closing. A county aid lien of $4,155.55 is currently attached to Gim, preventing the bank from finalizing the mortgage.

“What I’m asking the council to do is to release and satisfy the county aid lien, even though it is not yet paid,” Larson explained to the commissioners. “After the dust settled on the closing, then we put the county aid lien back on, and it would help everybody.”

Larson reasoned that the move would ultimately benefit the county by tying the lien to a physical asset.

“Although you might be in first place, you’re in first place to no collateral,” Larson said. “It’s better to be in second place to a $160,000 property than in first place to zero.”

Codington County State’s Attorney Allison Bakken confirmed Larson’s assessment of the lien, noting the fees were likely court-appointed attorney fees from a 2020 case.

“If the county were to release the lien, we could put it back on. We would be in second place of the bank, obviously for the mortgage,” the State’s Attorney advised the board.

District 1 Commissioner Lee Gabel expressed cautious optimism but stressed the need to protect the county’s fiscal responsibility. Gabel suggested a formal contractual agreement to ensure the lien is re-established immediately upon the property’s closing.

Following a brief discussion regarding past precedent, Gabel motioned to have the State’s Attorney draft a formal contract with Larson and the purchaser. District 2 Commissioner Tyler McElhany seconded the motion.

The State’s Attorney clarified the exact nature of the motion before the vote:

“This is a motion for the State's Attorney to negotiate with Mr. Larson and the purchaser of the property to engage in contract negotiations and draft a contract, which the buyer will then execute, and we will approach the commissioners next week for a decision as to whether or not the commissioners are willing to enter into that contractual agreement to release the lien temporarily.”

The motion carried unanimously. The commissioners will review the drafted contract at their next meeting.

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