Educational Resources: Take South Dakota Real Estate Sample Tests, Application Steps and Tips

After you receive the certificate of completion of the pre-licensing course, you can sit for the SD real estate exam. Use the PSI website to book for an exam.¹

You only need to create an account and schedule your exam date.

The PSI administers this South Dakota state licensing exam in two sections. The national exam and the South Dakota state exam.

The state questions cover South Dakota real estate industry principles and practices. This includes the duties and powers of the real estate agents, licensing requirements, and commission.

Real Estate Licensing Exam Synopsis

The National exam covers the US real estate industry principles, laws, and practices.

During your exam date, you must arrive at the exam center 15 minutes earlier. If you get there later than that, you get sent back and need to reschedule the exam.

You must carry two forms of identification: the certificate of pre-licensing course completion and the Applicant ID. Also, remember to have an exam fee of $98, payable to the PSI exam center.

The licensing exam for broker associates in South Dakota happens at the PSI centers in Rapid City, Madison, or Sioux Falls. On the other hand, the auctioneer and the property manager exam takes place in Pierre and Sioux Falls.

South Dakota Department of Labor & Regulation Real Estate License Application Process: 6 Essential Steps

Let’s uncover the five steps to become a real estate agent in South Dakota:

Step 1: Complete the Real Estate Pre-Licensing Course

In South Dakota, the pre-licensing course is designed to take around 116 hours of classwork. Once you study and complete the course successfully, you qualify to apply for an exam.

This helps to test how well you have mastered the course.

Luckily, if your schedule is tight, you can complete part of these real estate classes online. Most real estate schools in South Dakota offer up to 100 hours online.

The rest of the course, 16 hours, must be completed at the SD Real Estate School in person. The course is estimated to cost between $600 and $800.

Take time, study well, and ensure you are sufficiently versed in the course. This can help you pass the pre-licensing real estate exam and apply for the license.

Step 2: Do the Fingerprint and Background Check

Can you be a real estate agent with a felony in South Dakota? Well, integrity is a core value for anyone aspiring to become a real estate agent/associate broker in South Dakota.

Therefore, the state makes it a prerequisite for all applicants to take a background criminal check.

How does the process work? First, pick DCI and FBI fingerprint cards from the South Dakota Real Estate Commission.

Then, complete the fingerprinting process at any fingerprinting office or law enforcement agency.

Ensure that you sign and date the cards at the back before returning them to the commission. If you do not, they are returned to you for signing.

This only prolongs your license application process.

Also, carry a $43.25 check while returning the cards to the commission. The money goes to the DCI account.

The SD Real Estate Commission starts the background check and gets back to you. If you have no criminal convictions, you are eligible for the next step.

If your record shows some serious convictions, you might be disqualified.

However, even with a conviction, you can attach any questions while providing your fingerprints. Your previous offenses may not warrant a disqualification.

How far back does a real estate background check go? The background check goes as far as seven years of history.

If you have maintained a clean record in the past 7 years, you may be considered and can get a license.

However, the South Dakota Real Estate Commission has the final say of whether you can qualify or not. You are not eligible for licensing if you do not meet real estate agent background check requirements as set by the Commission.

Step 3: Pass the South Dakota Comprehensive Real Estate Exam

Having completed the course and the background check, it is time to tackle your exam. The exam is administered by PSI.

To schedule your exam, use their website or contact them via 855.558-0623 or mail in your registration form.

The South Dakota Real Estate comprises 157 questions categorized into three groups.² There is the national multiple-choice exam that consists of 100 questions.

Then, there is the state multiple-choice exam consisting of 57 questions.

You must pass with at least a 75% score or get correct 105 out of the 140 points.³ The exam takes 3 and a half hours to complete.

Lastly, there is the Broker Simulation Exam. This comprises 10 problems that you must solve and also score 75%.

The entire exam should be completed within 420 minutes. This includes 150 minutes for the National section, 130 minutes for the State section, and 180 for the Simulation part.

The pass mark varies in SD. It is usually based on the difficulty of the exam, and it is set by experts using the Angoff method.

The exam is usually a difficult one, so ensure you study comprehensively.

Step 4: Obtain Errors and Omissions Insurance

All active real estate agents in South Dakota must have an Errors and Omissions Insurance cover. This means that before getting licensed, you must apply for insurance.

A licensee can apply for insurance coverage as part of a group or individual. If you wish to apply as a group, contact RISC.

This is a state group program that offers affordable coverage. If you choose the individual option, use an insurer based in South Dakota.

Step 5: Submission of Application for South Dakota Real Estate License

Before applying for a license, you must pass the exam. After passing the South Dakota real estate exam, you have two months or 60 days to apply for a license.⁴

Failure to meet this deadline, you forfeit your right to apply for a license. Broker associates have up to two years to apply for the license after completing the pre-licensing course.

Step 6: Gain a Broker Sponsorship

The last step in your South Dakota real estate license application journey is finding a sponsoring broker. After receiving the license, it is usually inactive.

You must get a sponsoring principal broker to activate it.

Do not rush this process. When choosing a sponsoring principal broker, take your time to understand their commission structure, corporate culture, and credibility.

Different brokers expect the real estate agents to behave differently. There are those that require you to work 9 to 5, and others are more flexible and let the agents decide when to work.

South Dakota Department of Labor & Regulation Association of Real Estate Agents Fees and Expenses

The fee schedule of the real estate agents in South Dakota depends on the category.⁵ To remain in the directory Excel sheet of the active licensees, you have to pay $250.

The examination fee for a broker or broker associate is $98 for each portion ($294 for 3 portions). On the other hand, the exam fee for a home inspector is $133.

To get an additional license in all categories, you pay $30. The license application fee for broker, associate broker, property manager, and auctioneer is $225.

On the other hand, an application for a home inspector is $200, a firm $100, and that of a residential rental agent is $60.

If you apply for a certificate of licensure, you pay $15. However, an application for a salesperson reciprocal only is $225.

You must renew your license after every 2 years. Renewal for broker, broker associate, auctioneer, firm, property manager, and salesperson is $125.

Renewal for a home inspector is $100 and a residential rental agent is $50

Application for National Association of Realtors® (NAR) Membership (At Your Discretion)

If you are a real estate agent, you can join the National Association of REALTORS®. This body offers you the tools and resources to succeed as a real estate agent.

As of June 2023,⁷ the membership of the National Association of REALTORS® was over 1.5 million.

You should first become a member of the local associations. Your local membership automatically extends your membership to state and national associations.

As of 2022, there were 1075 local associations. Search for a local association near you and send your application.

If you become a member, be ready to part with $150 annually to be a member of NAR. However, the benefits of joining the association are worth it.

Usually, many people use the terms Realtor® and real estate agents interchangeably. However, while both work to connect buyers and sellers in real estate transactions, there is a difference between a Realtor® and a real estate agent.

Realtors® have joined the NAR and adhere to the strict code of ethics.⁶ This adds credibility to you as a real estate agent.

What’s the General Duration of the Real Estate Application Procedure?

The real estate practice course takes between 1 and 3 months to complete for many people. After this, you are eligible to apply for your licensing exam.

Once you pass the real estate practice exam, you have 60 days to apply for the license. If you fail to meet that deadline, you forfeit any rights of having passed the exam.

This means that you cannot apply for the exam despite having received a pass notification.