South Dakota Real Estate Broker Associate Exam — All Questions
12 questions
Real estate licensees in South Dakota are licensed and regulated by:
- a.The South Dakota Association of Realtors
- b.The South Dakota Real Estate Commission✓
- c.The county register of deeds
- d.The South Dakota Secretary of State
The South Dakota Real Estate Commission licenses and disciplines real estate licensees under SDCL Chapter 36-21A. A trade association is a private membership group and does not issue licenses.
In South Dakota, a broker associate must conduct real estate activity:
- a.Only after also becoming a responsible broker
- b.Under the supervision of a responsible broker✓
- c.Independently once licensed
- d.For any broker who will pay a commission
South Dakota's entry-level broker associate must be associated with and supervised by a responsible broker and may not operate independently. The responsible broker is accountable for the associate's real estate conduct and for the brokerage's trust accounts and records.
A South Dakota broker associate may lawfully be paid a commission by:
- a.The seller directly upon listing
- b.The buyer directly at closing
- c.The responsible broker with whom the license is associated✓
- d.Any cooperating broker in the transaction
A South Dakota broker associate is compensated only through the responsible broker with whom the license is associated, not directly by a buyer, seller, or another broker. The responsible broker supervises the associate and handles client funds.
The South Dakota Real Estate Commission consists of five members appointed by the Governor. Of those five:
- a.Four must be brokers and one must be a licensed state appraiser
- b.Two must be brokers and three must be sitting county officials
- c.Three must be active brokers and two must be public members✓
- d.All five must be brokers in good standing
The Commission has five members appointed by the Governor, who may not all be of the same political party; three must be active real estate brokers and two must be members of the public. Cite: SDCL 36-21A-13.
A member of the South Dakota Real Estate Commission is appointed for a term of:
- a.Two years, renewable without any limit at all
- b.Three years, with a three-consecutive-term limit✓
- c.Five years, and no member may serve more than two consecutive terms
- d.Six years, with no consecutive service permitted
Members appointed after July 1, 2005 serve three-year terms, and no member may serve more than three consecutive full terms. Filling an unexpired term does not count as a full term. Cite: SDCL 36-21A-14.
Unless the conduct is punishable under the criminal code, a person who violates the South Dakota real estate licensing chapter is guilty of:
- a.A petty offense carrying no jail time
- b.A civil infraction handled by the Commission
- c.A Class 6 felony punishable by prison
- d.A Class 1 misdemeanor✓
Unless punishable under Title 22, a person violating any provision of the real estate licensing chapter is guilty of a Class 1 misdemeanor. Cite: SDCL 36-21A-87.
In a disciplinary case, the South Dakota Real Estate Commission may impose a monetary penalty of not more than:
- a.Five hundred dollars for each violation proved
- b.Two thousand five hundred dollars✓
- c.Ten thousand dollars for each violation proved
- d.Fifty thousand dollars for a pattern of conduct
On proof of unprofessional conduct the Commission may revoke a license and may also impose suspension, a reprimand, or a monetary penalty not to exceed two thousand five hundred dollars, or a combination of those. Cite: SDCL 36-21A-68.
The South Dakota real estate recovery fund exists to:
- a.Reimburse licensees for uncollected commissions
- b.Pay unsatisfied judgments obtained against licensees✓
- c.Fund the Commission's continuing education programs
- d.Cover the deductible on the group insurance policy
The Commission maintains a real estate recovery fund of one hundred thousand dollars as a source of payment for unsatisfied judgments obtained by persons aggrieved by the acts of a licensee. Cite: SDCL 36-21A-101.
The most the South Dakota real estate recovery fund will pay on account of the acts of any one licensee is:
- a.Fifty thousand dollars in total
- b.One hundred thousand dollars
- c.Five thousand dollars in total
- d.Fifteen thousand dollars✓
An aggrieved judgment creditor may recover actual and direct loss up to fifteen thousand dollars, and the fund's liability for the acts of one licensee is terminated once orders authorize payments aggregating fifteen thousand dollars on that licensee's behalf. Cite: SDCL 36-21A-104.
Which of these people may act without a South Dakota real estate license?
- a.An unlicensed assistant who negotiates price with buyers
- b.A person who lists a home for a flat fee
- c.A person paid a fee to find buyers for a neighbor's farm
- d.A person who owns a cemetery and sells burial lots✓
The chapter's exemptions include bona fide owners and lessors, public officers, court-appointed fiduciaries, attorneys who do not hold themselves out as being in the real estate business, banks, and any person owning and operating a cemetery who sells lots solely for use as burial plots. Cite: SDCL 36-21A-29.
A person who performed brokerage acts in South Dakota while unlicensed sues for the fee. That person:
- a.Recovers the reasonable value of services rendered
- b.Recovers on a theory of unjust enrichment from the client
- c.May not institute an action or recover✓
- d.Recovers if the client knew of the unlicensed status
No action or suit may be instituted, nor recovery had, in any court of this state for compensation for an act the chapter prohibits unlicensed persons from performing, unless the person was licensed when the compensation was contracted for. Cite: SDCL 36-21A-88.
A South Dakota responsible broker is accountable for the real estate activities of affiliated licensees:
- a.Whether they are employees or independent contractors✓
- b.Only for acts done inside the brokerage's own office
- c.Only when the broker personally approved the act
- d.Only when they are W-2 employees of the brokerage
A responsible broker is responsible for the real estate activities conducted by affiliated licensees, whether they are employees or independent contractors. Cite: SDCL 36-21A-79.