Duties and Powers of the Real Estate Commission
PSI's South Dakota state content outline gives this area 4 of the 52 scored items. It covers who sits on the commission, how it acts, and what it can do about conduct it does not like. Everything here comes from SDCL chapter 36-21A and article 20:69 of the Administrative Rules of South Dakota.
Who the commission is
SDCL 36-21A-13 creates the South Dakota Real Estate Commission and fixes its makeup: five members appointed by the Governor, who may not all be of the same political party, of whom three must be active real estate brokers and two must be members of the public. SDCL 36-21A-14 sets a three-year term for members appointed after July 1, 2005 and provides that no member may serve more than three consecutive full terms; a member appointed to fill a vacancy serves the unexpired portion and that partial appointment is not counted as a full term. SDCL 36-21A-16 continues the commission within the Department of Labor and Regulation, and SDCL 36-21A-18 requires it to employ an executive director who keeps the records, is custodian of all money received, and deposits that money in depositories the commission designates.
How the commission acts
SDCL 36-21A-15 supplies the quorum rule: a majority of the commission, in meetings duly assembled, may perform and exercise all of its duties and powers, and actions are taken on a majority vote of the members present. ARSD 20:69:02:02 adds that the commission may act by mail ballot or by conference telephone call, and that either counts as a meeting; on a conference call the executive director participates and takes minutes, and on a mail ballot the result goes into the minutes. SDCL 36-21A-21 requires the commission to meet annually and at other times on the call of the executive director, the chairperson, or a written request from three or more members. SDCL 36-21A-22 provides that the date of any filing or notice to the commission is the date the document is received at its principal place of business, not the date it was mailed.
Enforcement powers
SDCL 36-21A-89 gives the commission its rulemaking authority under chapter 1-26, which is where article 20:69 comes from. SDCL 36-21A-68 lets it revoke a license on proof of unprofessional conduct and, alternatively or in combination, impose a suspension, a reprimand, or a monetary penalty of not more than $2,500. SDCL 36-21A-86 requires that no license be revoked except in compliance with the administrative procedure of chapter 1-26 and allows an appeal from the commission's decision under the same chapter. SDCL 36-21A-91 lets the commission sue for an injunction, either for unprofessional conduct or as an alternative to criminal proceedings, and separately against anyone practicing real estate without a license; where an injunction is granted the court shall award the commission its attorney fees and the costs of the investigation and proceedings. Commencing one proceeding is an election between the civil and criminal routes.
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State-specific details
State exam facts
- Exam vendor
- PSI
- Prelicensing education
- 116 classroom hours
- Passing score
- 75%
- Scored questions
- 142
- Time limit
- 270 minutes
Who regulates real estate brokers in South Dakota?
The South Dakota Real Estate Commission licenses real estate professionals in the state. SDCL 36-21A-13 makes it five members appointed by the Governor — three active brokers and two members of the public, who may not all be of one political party — and SDCL 36-21A-16 continues it within the Department of Labor and Regulation. The Commission has contracted with PSI Services LLC to deliver the examination; the bulletin lists sites in Sioux Falls, Rapid City and Madison, plus Fargo, North Dakota, and you may test at any PSI center in the United States.
Is the broker associate license really South Dakota's entry-level license?
Yes. The Commission's license types table lists Broker Associate with no experience requirement, and there is no salesperson row: South Dakota issues no new salesperson licenses, which is why PSI's bulletin is titled the Real Estate Broker Associate Examination. The tier has not been abolished on paper — SDCL 36-21A-12 still defines a real estate salesperson and ARSD 20:69:03:14 still sets a salesperson renewal fee — but the only way in now is the broker associate license, and an existing salesperson upgrades to it under SDCL 36-21A-34.1 by taking 40 hours of prescribed education and filing a broker associate application.
What education and experience do I need before the South Dakota broker exam?
None by way of experience. SDCL 36-21A-30.1 requires 116 class hours in a Commission-approved course of study, and ARSD 20:69:03:04 bars you from sitting the exam until that education is complete and you have registered. SDCL 36-21A-30 adds that you must be at least eighteen and either a United States citizen or a South Dakota resident. Experience matters only at the next tier: SDCL 36-21A-31 requires a responsible broker applicant to have served actively for two years as a licensed salesperson or broker associate and to complete 24 additional class hours beyond the broker associate level, which ARSD 20:69:04:04 makes a 24-hour responsible broker course carrying its own final examination.
How is the South Dakota broker exam structured?
The broker associate examination has a national portion of 90 items worth 100 points with 150 minutes allowed, and a South Dakota state portion of 52 items worth 52 points with 120 minutes allowed — 142 scored items and 270 minutes in total. ARSD 20:69:03:07 sets the passing score at 75, and each portion is passed separately, so a candidate who fails one retakes only that portion. The national portion includes scenario-based questions with more than four options where you pick the single BEST answer, and those options are weighted zero, one or two points; the South Dakota portion is scored one point per item.
What has to happen after I pass the South Dakota exam?
Two things people miss. SDCL 36-21A-36.1 gives you sixty days from the date of the notice that you passed to file the license application with all required documents; miss it and your registration and all rights deriving from the passing score are canceled, so you would have to sit the exam again. SDCL 36-21A-151 also requires a state and federal criminal background investigation by fingerprint checks through the Division of Criminal Investigation and the FBI, obtained before licensure and paid for by you. SDCL 36-21A-33 lists the eight grounds on which the Commission may refuse the application, including an insufficient funds check, a felony or a misdemeanor involving moral turpitude, and a current unpaid judgment.
Sources: https://dlr.sd.gov/realestate/license_types_requirements.aspx, https://dlr.sd.gov/realestate/exam_information.aspx, https://proctor2.psionline.com/programs/Instructions/SDRE.pdf, https://sdlegislature.gov/Statutes/36-21A, https://sdlegislature.gov/Rules/Administrative/20:69
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