Real Estate Practice in South Dakota
South Dakota practice includes trust accounts maintained by the responsible broker and a statutory seller's property condition disclosure. This chapter covers trust money and required seller disclosures.
Trust Accounts and Earnest Money
Client funds such as earnest money must be handled through the brokerage's trust account, which the responsible broker maintains. A broker associate who receives money must deliver it promptly to the responsible broker for deposit, and trust funds must be kept separate from personal and business funds. Commingling or converting trust money is a serious violation of South Dakota license law.
Seller's Property Condition Disclosure
South Dakota law requires the seller of most residential real property to provide the buyer a completed property condition disclosure statement before the buyer is obligated to purchase. The statement describes the known condition of the property's systems and components. The seller is not required to inspect the property but must answer honestly, and licensees must not help conceal known defects.
Advertising and Honest Dealing
Advertising must be truthful and conducted in a manner that identifies the brokerage; a broker associate may not advertise property independently of the responsible broker. Licensees must disclose known material defects and avoid misrepresentation. Accurate, honest practice protects consumers and limits the licensee's exposure to complaints and discipline.
State-specific details
State exam facts
- State regulator
- South Dakota Real Estate Commission (SDREC)
- Prelicensing education
- 116 hours of approved broker associate pre-license education
How many prelicensing hours does South Dakota require to become a real estate agent?
South Dakota requires 116 hours of Commission-approved pre-licensing education for the broker associate license (the state's entry-level license), covering national principles and South Dakota law and practice.
Who licenses real estate agents in South Dakota?
The South Dakota Real Estate Commission (SDREC), within the Department of Labor and Regulation, licenses broker associates and responsible brokers. South Dakota's entry-level license is called a 'Broker Associate' (what most states call a salesperson).
How is the South Dakota broker associate exam structured?
The South Dakota exam has a national portion and a South Dakota state portion, each scored separately; you must pass both. Confirm the current exam vendor, scored-question counts, and passing score on the SDREC website.
Sources: https://dlr.sd.gov/realestate/approved_prelicensing_education.aspx, https://dlr.sd.gov/realestate/
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