South Dakota Broker Associate Exam — All Questions
4 questions
Under South Dakota law, the purpose of the required agency disclosure is to:
- a.Create an automatic dual agency
- b.Waive the licensee's duties to the client
- c.Let the consumer know whether the licensee represents them before confidential information is shared✓
- d.Set the sale price
South Dakota requires licensees to disclose their agency status so a consumer knows whether the licensee represents them before sharing confidential negotiating information. The disclosure is informational and does not by itself create representation; separate agreements establish the relationship. Providing the disclosure at the appropriate time is a frequently tested statutory duty.
In South Dakota, a licensee or firm may represent both the buyer and the seller in the same transaction only if:
- a.The transaction is commercial
- b.Both parties give informed written consent✓
- c.The commission is doubled
- d.The two parties never meet
When a licensee or firm would represent both parties in the same transaction, South Dakota law requires the informed written consent of both. A licensee acting for both sides cannot fully advocate for either and must not disclose one party's confidential information to the other. These statutory limits protect consumers.
A South Dakota licensee representing a client owes the client statutory duties that include:
- a.Honesty, reasonable care, and confidentiality✓
- b.A guarantee that the property will sell
- c.Free legal representation in court
- d.Payment of the client's closing costs
Under South Dakota law, a licensee owes the client duties such as honesty, reasonable care, and confidentiality, and must protect the client's negotiating information. These duties do not include guaranteeing a sale, providing legal representation, or paying a client's costs. Establishing and documenting the relationship clarifies what the client can expect.
When acting for both the buyer and the seller with consent, a South Dakota licensee must NOT:
- a.Present written offers to the seller
- b.Treat both parties honestly
- c.Keep records of the transaction
- d.Disclose the highest price the buyer will pay to the seller✓
A licensee representing both parties must not disclose one party's confidential information, such as the highest price a buyer will pay or the lowest price a seller will accept, to the other side. The licensee must still deal honestly with both, present offers, and keep records. Protecting confidential information is a core limit on dual representation.