South Dakota Real Estate License Requirements

The South Dakota Real Estate Commission oversees all real estate matters in the state of South Dakota. The commission currently operates on a broker-only licensing system. The types of real estate license the commission currently issues are associate broker and broker licenses.

The requirements to become a real estate agent [associate broker] or broker in South Dakota are as follows:

ASSOCIATE BROKER LICENSE REQUIREMENTS:

To be eligible for a South Dakota associate broker license, applicant must be at least 18 years old and be a U.S. citizen or alien authorized to work in the United States.

Applicant must submit fingerprints and undergo a criminal background check. Applicants should contact the South Dakota Real Estate Commission to request state and federal fingerprint cards.

No prior real estate experience is required to obtain a South Dakota associate broker license.

Applicant must complete 120 hours of pre-license education courses, which includes:
60 hours of Principle & Practices of Real Estate (Course I)
40 Hours of Broker-Level (Course II)

After completing the prelicense education requirements, applicant must pass the state and national real estate broker exam with a minimum score of 75%. The exam consists of three parts: The state multiple choice exam, the national multiple choice exam and the Broker simulation exam. The national multiple choice exam consists of 100 questions. The state portion consists of 57 questions. The simulation portion consists of 11 simulation questions.

A South Dakota associate broker license application must be submitted within 60 days of passing exam along with proof of sponsorship by a licensed real estate broker in South Dakota.

All first-time South Dakota associate broker licensees must complete 60 hours of post licensing education, which includes:
30 hours completed during the first licensing period with a minimum of 6 hours in the following subjects:
Agency
Contracts
Fiduciary duties/trust accounting/earnest money
Business planning/etiquette
Ethics/professional liability

30 hours completed during the second licensing period with a minimum of 6 hours in the following subjects:
Negotiation
Real restate license law
Technology
Marketing/advertising
Property issues

After the second renewal period, licensed broker associates must complete 24 hours of continuing education courses every two years in the following subject areas:
Antitrust
Accounting and Taxation as Applied to Real Property
Basic Computer Skills
Estate Building/Portfolio Management (must be real estate-related)
Environmental Issues
Fair Housing
Home Inspection
Land Use Planning and Zoning
Land Development
Legislative Issues Regarding Real Estate Issues
Real Estate Ethics
Real Estate Contracts
Real Estate License Law and Administrative Rules
Real Estate Financing
Real Estate Market Measurement/Evaluation
Real Estate Brokerage
Real Estate Mathematics
Real Property Management
Real Property Exchange
Real Estate Securities
Real Estate Appraisal
Real Estate Marketing Procedures
The Americans Disabilities Act
Use of Calculators or Computers as Applied to the Practice of Real Estate

At least 12 of the 24 hours must be in the following required subject areas:
Antitrust
Brokerage Services
Ethics
Environmental Issues
Fair Housing
Real Estate Contracts
Real Estate License Law
The Americans Disabilities Act

Nonresident brokers and salespersons applicants are exempt from the continuing education requirements if the licensee meets the education requirements in the state of residence.
Applicants with a law degree are exempt from pre-license education requirements.
A licensee whose license is on inactive status is exempt from the continuing education requirements.

South Dakota is a non-reciprocal licensing state.

Fees to obtain a South Dakota associate broker license include:
Exam Fee: $95
Associate Broker Application Fee: $225
Associate Broker Renewal Fee: $125
Late Renewal Penalty: $20


BROKER LICENSE REQUIREMENTS:

To be eligible for a South Dakota broker license, applicant must be at least 18 years old and be a U.S. citizen or alien authorized to work in the United States.

Applicant must submit fingerprints and undergo a criminal background check. Applicants should contact the South Dakota Real Estate Commission to request state and federal fingerprint cards.

At least two years of real estate experience is required to obtain a South Dakota broker license.

Applicant must complete 135 hours of pre-license education courses, which includes:
60 hours of Principle & Practices of Real Estate (Course I)
40 Hours of Broker-Level (Course II)
15 hours of Broker Course III

After completing the prelicense education requirements, applicant must pass the state broker exam with a minimum score of 75% (if applicant hasn’t already done so when he or she obtained an associate broker license.)

A South Dakota broker license application must be submitted within 60 days of passing exam.

All South Dakota broker licensees must complete 24 hours of continuing education courses every two years in the following subject areas:
Antitrust
Accounting and Taxation as Applied to Real Property
Basic Computer Skills
Estate Building/Portfolio Management (must be real estate-related)
Environmental Issues
Fair Housing
Home Inspection
Land Use Planning and Zoning
Land Development
Legislative Issues Regarding Real Estate Issues
Real Estate Ethics
Real Estate Contracts
Real Estate License Law and Administrative Rules
Real Estate Financing
Real Estate Market Measurement/Evaluation
Real Estate Brokerage
Real Estate Mathematics
Real Property Management
Real Property Exchange
Real Estate Securities
Real Estate Appraisal
Real Estate Marketing Procedures
The Americans Disabilities Act
Use of Calculators or Computers as Applied to the Practice of Real Estate

At least 12 of the 24 hours must be in the following required subject areas:
Antitrust
Brokerage Services
Ethics
Environmental Issues
Fair Housing
Real Estate Contracts
Real Estate License Law
The Americans Disabilities Act

Nonresident brokers and salespersons applicants are exempt from the continuing education requirements if the licensee meets the education requirements in the state of residence.
Applicants with a law degree are exempt from pre-license education requirements.
A licensee whose license is on inactive status is exempt from the continuing education requirements.

South Dakota is a non-reciprocal licensing state.

Fees to obtain a South Dakota broker license include:
Exam Fee: $190
Broker License Application Fee: $225
Broker License Renewal Fee: $125
Late Renewal Penalty: $20


References:

South Dakota Real Estate Examination Candidate Handbook: August 2013: http://www.cookeschool.com/userfiles/SDREP-handbook.pdf

South Dakota Real Estate Commission: Fee Schedule: http://dlr.sd.gov/bdcomm/realestate/fee_schedule.aspx

South Dakota Real Estate Commission: http://dlr.sd.gov/bdcomm/realestate/

South Dakota Department of Labor Regulation: Broker/Broker Associate Application: https://www.state.sd.us/eforms/secure/eforms/E0261v2-BrokerAssociateApplication.pdf


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