Relationship Disclosure and Appointed Agency
South Dakota's relationship disclosure is a delivery duty rather than a signature duty, and it is timed to a defined moment. Appointed agency, added by SDCL 36-21A-141.1 in 2005, is the mechanism that lets one brokerage serve both sides without every licensee in the office becoming a limited agent.
The written disclosure
SDCL 36-21A-147 requires every responsible broker to develop and maintain a written office policy setting out the agency and brokerage relationships the broker may establish. At the first substantive contact with a seller or buyer who has not entered into a written agreement with a broker, the licensee must disclose in writing the types of relationships the broker is offering and provide a written copy of a disclosure on a form prescribed by the commission. The form must carry a signature block for the consumer to acknowledge receipt, and the statute states plainly that the customer's acknowledgment does not constitute a contract with the licensee. If the customer fails or refuses to sign, the licensee notes that fact on a copy of the disclosure and retains the copy. Once a consumer has a written agency or brokerage agreement with a broker, no other licensee must repeat the disclosure. ARSD 20:69:16:01 requires the form to be substantially the same as the commission's prescribed real estate relationships disclosure form and to acknowledge that the consumer received the real estate consumer guide.
Appointed agency
SDCL 36-21A-141.1 lets a brokerage entering into an agency agreement appoint, through the responsible broker and in writing, those affiliated licensees who will act as the client's agents to the exclusion of all other licensees in the firm. A responsible broker is not a limited agent solely because the broker makes such an appointment; but any licensee who personally represents both sides in a particular transaction is a limited agent and must comply with the limited agency rules. ARSD 20:69:16:03 requires the licensee to notify the client in writing of the brokerage's appointed agent policy before entering into the listing or agency agreement, forbids appointing an agent in a transaction governed by a pre-existing exclusive single agency or limited agency agreement without the client's written consent, and requires referral to another broker if that consent cannot be obtained. ARSD 20:69:16:06 lets the responsible broker appoint a designated broker to supervise appointed agents, with the same duties as the responsible broker, and confirms that using appointed agents relieves the responsible broker of nothing.
Knowledge is not imputed
Appointed agency only works because South Dakota abolishes imputed knowledge. SDCL 36-21A-141.1 provides that when an agent is appointed, each client, the brokerage and any appointed licensee is considered to possess only actual knowledge and information, with no imputation by operation of law among or between them. SDCL 36-21A-148 states the same rule for agency and brokerage relationships generally and adds two liability limits: no client or customer is liable for the licensee's misrepresentation unless the client knew of it, and no licensee is liable for the client's misrepresentation unless the licensee knew of it. ARSD 20:69:16:07 nevertheless requires every licensee to keep the responsible broker or designated broker fully informed of activity conducted on the brokerage's behalf, so the abolition of imputed knowledge is a rule about legal attribution rather than a license to keep the broker in the dark.
Keep going: the full South Dakota Real Estate Broker guide covers every section of the exam. South Dakota Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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
In the South Dakota Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.