Agency Relationships in South Dakota
South Dakota requires an agency-relationship disclosure and recognizes single agency, limited (dual) agency, and appointed agents. This chapter explains the disclosure and the duties licensees owe.
Agency Disclosure
South Dakota licensees must disclose the brokerage relationship to a consumer before confidential information is shared, generally at the outset of the working relationship. The disclosure identifies whether the licensee is acting as the agent of the seller, the agent of the buyer, or as a limited agent, so the consumer understands who is being represented.
Single Agency Duties
A licensee who represents a seller or a buyer as a single agent owes that client duties including loyalty, confidentiality, obedience to lawful instructions, disclosure, accounting, and reasonable care. To the other party the licensee still owes honesty and fair dealing and must disclose known material defects in the property. These duties apply throughout the transaction.
Limited Agency and Appointed Agents
When a brokerage represents both the buyer and the seller in the same transaction, South Dakota treats this as limited (dual) agency, which requires the informed written consent of both parties; the limited agent may not disclose one party's confidential information to the other. The responsible broker may also appoint different affiliated licensees to work with the buyer and the seller so each client receives individual service.