South Dakota Real Estate Broker Associate Exam — All Questions

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2 questions

South Dakota Practice & Disclosures

In South Dakota, the seller of most residential real property must generally provide the buyer with:

  • a.A title insurance policy
  • b.A professional home inspection report
  • c.A completed property condition disclosure statement
  • d.A written guarantee that the property has no defects

South Dakota law requires the seller of most residential real property to give the buyer a completed property condition disclosure statement describing the known condition of the property before the buyer is obligated. The seller need not inspect the property but must answer honestly about known conditions.

South Dakota Practice & Disclosures

Earnest money a South Dakota broker associate receives from a buyer must be:

  • a.Delivered promptly to the responsible broker for deposit in the brokerage trust account
  • b.Held by the associate in a personal account until closing
  • c.Sent to the Real Estate Commission for safekeeping
  • d.Given directly to the seller when the offer is made

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, and trust funds must be kept separate from personal and business funds. Commingling or converting trust money is a serious violation.

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