This guide offers a complete overview of obtaining a South Dakota real estate license, including all necessary steps and real estate continuing education requirements.
It’s applicable to everyone in the state, with special insights for major cities like Sioux Falls (SD).
We cover the best real estate classes and online courses available, providing comprehensive resources to help you navigate South Dakota’s real estate market successfully.
Requirements
To become a real estate agent in South Dakota, you must:
- Be at least 18 years old
- Be a U.S. citizen or lawful permanent resident
- Have a high school diploma or equivalent (GED)
Like all US states, South Dakota allows out-of-state applicants, so you do not need to reside there to become licensed as a real estate agent.
Pre-Licensing Education
Complete 116 hours of pre-license education through courses approved by the South Dakota Real Estate Commission. These courses include:
- Real Estate Principles (116 hours)
Examination
South Dakota Real Estate Exam Details
Exam Structure
- Total Questions: 140 multiple-choice questions
- National Portion: 100 questions
- State-Specific Portion: 40 questions
- Time Limit: 4 hours total (3 hours for the national portion, 1 hour for the state portion)
- Passing Score: 75% on each section
Registration and Fees
- Exam Fee: $95, payable when scheduling the exam through PSI Services.
- Registration: After completing your 116 hours of pre-licensing education, submit your application to the South Dakota Real Estate Commission. Once approved, you can register for the exam through PSI Services.
Identification Documents
- Required ID: Candidates must bring two forms of identification on exam day, including a government-issued photo ID with a signature (e.g., driver’s license or passport).
Exam Difficulty and Passing Rates
The South Dakota Real Estate Exam is considered moderately challenging. Proper preparation for both the national and state-specific portions is essential to pass.
Required Forms and Documents
- Pre-License Education Certificate
- Proof of completing 116 hours of pre-license education from an accredited provider is required.
- Initial License Application
- Submit your initial license application through the South Dakota Real Estate Commission after completing pre-licensing education.
- Application Fee
- The fee is $225, payable when submitting your license application.
Background Check
- Fingerprinting
- Approved Vendor: Fingerprinting must be completed through IdentoGO, the approved vendor for South Dakota.
- Cost: The fingerprinting fee is approximately $43.25, payable directly to the vendor.
- Submission
- The fingerprint results will be sent directly to the South Dakota Real Estate Commission as part of your application process.
- Processing
- The South Dakota Real Estate Commission will review the background check results before approving your license application.
Application
After passing the exam and completing the background check, submit your license application to the South Dakota Real Estate Commission.
- Application Fee: $225
Post-Licensing Education
30-Hour Post-Licensing Course
- Timeframe: New licensees must complete 30 hours of post-licensing education within the first year of obtaining their license.
- Course Content:
- Real Estate Law and Regulations
- Contracts and Negotiations
- Agency Relationships
- Ethics and Professional Conduct
- Risk Management
Approved Providers
- The post-licensing course must be completed through an approved provider listed by the South Dakota Real Estate Commission.
Submission
- Proof of course completion must be submitted to the South Dakota Real Estate Commission within the first year to keep your license active.
Continuing Education
Total Hours Required: Licensees must complete 24 hours of continuing education every two years to renew their license.
- Core Courses (12 hours):
- Real Estate Law Updates
- Ethics and Fair Housing
- Agency Relationships
- Elective Courses (12 hours)
- Property Management
- Marketing and Technology in Real Estate
- Environmental and Home Inspections
Approved Providers
- The continuing education courses must be completed through an approved provider listed by the South Dakota Real Estate Commission.
Submission
- After completing the required 24 hours of continuing education, you must submit proof of completion through the Commission’s online portal.
Consequences of Non-Compliance
- Inactive License: Failure to meet the CE requirements will result in your license being placed on inactive status, preventing you from conducting real estate transactions.
- Reactivation: To reactivate your license, complete the required continuing education hours and submit proof to the South Dakota Real Estate Commission.
South Dakota Real Estate Education Options
Online Options
- Kaplan Real Estate Education: Provides online pre-licensing courses tailored to South Dakota’s requirements.
- Colibri Real Estate: Formerly known as Real Estate Express, provides flexible online learning options.
- The CE Shop: Offers comprehensive online courses for pre-licensing, post-licensing, and continuing education.
In-Person Options by Major Cities
Sioux Falls:
- Black Hills State University: Offers in-person pre-licensing and continuing education courses.
- Southeast Technical Institute: Provides in-person real estate courses, including pre-licensing education.
Rapid City:
- Western Dakota Technical College: Offers in-person pre-licensing and continuing education classes.
- Black Hills Association of REALTORS®: Provides in-person real estate education.
Pierre:
- Capital City Campus: Offers a variety of in-person educational courses for pre-licensing and continuing education.
Reciprocity
Full Reciprocity
South Dakota offers full reciprocity with the following states:
- Alabama
- Colorado
- Georgia
- Iowa
- Minnesota
- Nebraska
- North Dakota
If you hold an active real estate license in one of these states, you can apply for a South Dakota real estate license without additional education or examination requirements. You must submit an application and pass a background check.
Partial Reciprocity
South Dakota offers partial reciprocity. If you hold an active real estate license in another state, you may qualify for a waiver of some of the pre-licensing education requirements.
You will still need to pass the South Dakota state-specific portion of the real estate exam and fulfill other state-specific requirements.
For detailed information and required forms, visit the South Dakota Real Estate Commission Reciprocity Information.
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Broker's License
To become a real estate broker in South Dakota, you must:
- Have at least two years of active real estate salesperson experience within the last five years
- Complete 116 hours of broker pre-license education
- Pass the South Dakota Real Estate Broker Examination
- Submit a broker license application to the South Dakota Real Estate Commission
Criminal Record
The South Dakota Real Estate Commission reviews applications from individuals with a criminal record on a case-by-case basis.
If you have a felony or other serious criminal conviction, you may still apply for a real estate license, but the Commission will consider the nature of the crime, the time elapsed since the conviction, and evidence of rehabilitation.
Crimes involving fraud, theft, or moral turpitude are particularly scrutinized. It’s recommended to contact the South Dakota Real Estate Commission directly to discuss your specific circumstances and determine your eligibility.
Cost Breakdown
Item | Cost Range |
|---|---|
Total | $1,020 – $1,720 |
Pre-License Education | $400 – $700 |
Exam Fee | $95 |
Background Check | $50 – $100 |
Application Fee | $225 |
Post-Licensing Education | $200 – $400 |
Continuing Education | $50 – $200 per cycle |
Resources and Contacts
- South Dakota Real Estate Commission:
- Street Address: 217 W Missouri Ave., Pierre, SD 57501
- Telephone: (605) 773-3600
- Fax: (605) 773-7175
- Email: dlr.realestate@state.sd.us
- Contact South Dakota Real Estate Commission
- License Information
- Renewal and Continuing Education Information
- Exam Information
- PSI Examination Services: (800) 733-9267
Document Checklist
- Proof of age (ID, birth certificate)
- Proof of U.S. citizenship or lawful permanent resident status
- High school diploma or GED certificate
- Completion certificates for 116 hours of pre-license courses
- Exam pass notification from PSI
- Fingerprint submission and background check confirmation
- Completed application form for the South Dakota Real Estate Commission
- Payment for application fee
Step-by-Step Guide to Becoming a Real Estate Agent in South Dakota
- Meet Basic Requirements: Ensure you are at least 18 years old, a U.S. citizen or lawful permanent resident, and have a high school diploma or equivalent (GED).
- Complete Pre-License Education: Enroll in and complete 116 hours of pre-license courses approved by the South Dakota Real Estate Commission.
- Schedule and Pass the Examination: Register for the South Dakota Real Estate Salesperson Examination through PSI. Study for and pass the exam, ensuring you achieve a minimum score of 75% on both the national and state-specific portions. Pay the exam fee of $95.
- Submit to a Background Check: Arrange for fingerprinting and a criminal background check through a South Dakota Division of Criminal Investigation-approved vendor. Ensure all required documentation is submitted to the South Dakota Real Estate Commission.
- Submit Your Application: Complete and submit the real estate license application to the South Dakota Real Estate Commission, including the application fee of $225.
- Find a Sponsoring Broker: To activate your license, find a licensed South Dakota real estate broker to work under. This is required for both temporary and permanent licensure.
- Complete Post-Licensing Education: Within the first year of obtaining your license, complete 30 hours of post-licensing education.
- Begin Your Real Estate Career: Once your license is issued, start your career as a licensed real estate agent in South Dakota.
- Complete Continuing Education: Every two years, complete 24 hours of continuing education, including mandatory and elective courses, to maintain and renew your license.
South Dakota Real Estate Agent Salary
In South Dakota, real estate agents earn an average salary of $75,619 per year, with typical earnings ranging from $30,000 to $140,000.
The median salary is around $70,000, indicating a consistent income distribution among agents.
Top performers, particularly in growing cities like Sioux Falls and Rapid City, can earn upwards of $150,000 annually.
South Dakota’s real estate market is characterized by steady demand and a low cost of living, making it a favorable environment for real estate professionals.
The state’s stable economy further supports a positive financial outlook for agents.
FAQs
Can I become a real estate agent in South Dakota if I have a felony?
The South Dakota Real Estate Commission reviews applications from individuals with a criminal record on a case-by-case basis. Certain felonies, particularly those involving fraud or moral turpitude, may disqualify you. Contact the Commission for specific inquiries.
How long does it take to become a real estate agent in South Dakota?
It typically takes 3-6 months to complete the pre-license education, pass the exam, and obtain your license.
What is the cost to become a real estate agent in South Dakota?
The total estimated cost ranges from $820 to $1,320, including education, exam fees, background checks, and application fees.
Does South Dakota have reciprocity with other states?
South Dakota has full reciprocity with several states and partial reciprocity with others. You may need to pass the South Dakota state-specific portion of the real estate exam and meet other requirements.
Summary
Becoming a real estate agent in South Dakota involves meeting educational requirements, passing an exam, undergoing a background check, and completing continuing education.
By following these steps and utilizing the provided resources, you can successfully start and maintain your real estate career in South Dakota.
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