How To Become a Real Estate Agent in South Dakota

South Dakota is known for many things, from its diversity in weather and scenery to economic opportunities. This has brought about numerous opportunities in the real estate industry.

In fact, real estate is a fast-growing industry in South Dakota, and many are venturing into it.

There are different ways to invest in real estate, and anyone can do it. Even without a large capital, you can uncover how to invest in real estate with little money and succeed.⁴

For instance, get into real estate crowdfunding, house flips, invest in REITs, or become a real estate agent.

Becoming a real estate agent in South Dakota is also lucrative. You can do it as a side hustle or a full-time career.

However, if you are interested in this career path, you must follow certain standard steps per the state. This helps maintain professionalism in the industry and uniformity.

What are these standard procedures to obtain a license as a real estate agent in South Dakota? Well, this piece uncovers how to become a real estate agent in South Dakota, including the key steps and requirements.

Steps for Getting Real Estate License

Getting a real estate license in South Dakota can be a bit puzzling. It is, therefore, crucial to understand the standard procedures for obtaining a license.

Here is what you need to do:

1. Complete the real estate pre-licensing course
2. Do the fingerprint and background check
3. Pass the South Dakota Comprehensive Real Estate exam
4. Obtain errors and omissions insurance
5. Submission of application for SD real estate license
6. Gain a broker sponsorship

There are different license types that you can apply for in South Dakota. They include:

• Broker Associate
• Auctioneer
• Home Inspector Registered
• Home Inspector Licensed
• Responsible Broker
• Property Manager
• Residential Rental Agent

Basic Criteria To Qualify for Real Estate Professional License

You must meet the eligibility criteria to practice as a real estate agent in South Dakota. Some of the key requirements include:

• Be a citizen of the US or a legal alien with a valid US work permit
• Be 18 years or older
• Have a clean criminal record
• Meet the statutory requirements for a license pursuant to the South Dakota codified law (SDCL) chapter 36 – 21A

If you are relocating from another US state and hold a real estate license in your resident jurisdiction, you can get an equivalent. However, you must submit a certificate of licensure showing good standing together with your application.¹

Can someone be denied a chance to become a real estate agent in SD? Yes, you may be denied a license on various grounds.

These include being convicted of a felony, misstatements, and unpaid judgments.

However, you may be considered for eligibility if you apply for predetermination. The application form should outline all the offenses you have been convicted of.

They are reviewed by the South Dakota Real Estate Commission (SDREC) to determine whether you can move forward or not.

Age and Basic Educational Eligibility Criteria

You must have attained a legal age of 18 years to get a license as a real estate agent in South Dakota. Minors are not allowed to practice.

The basic educational requirement to become a real estate agent in South Dakota is to hold a high school diploma or GED.² You must also pass with a 75% score on the pre-licensing test to acquire a real estate agent license.

The course helps you to uncover different techniques of how to sell real estate. You also get better acquainted with the real estate industry principles and practices of South Dakota and the country at large.

The auctioneer, broker associate, and responsible broker must complete 116 hours of pre-licensing course. However, the responsible broker must also complete a 24-hour responsible broker course plus two years of active status.

On the other hand, Property Managers must complete at least 40 hours of fundamental property management. Home Inspector Licensed must have completed 100 home inspections as a registered home inspector to receive a license.

After every two years, real estate agents must engage in continuing education courses. The course takes 24 hours.

New associate brokers are also expected to complete 60 hours of post-licensing education. This should happen within the first two years after receiving a license.

Prescribed Pre-License Course Duration

To become a real estate agent in South Dakota, you must do a pre-license course in an approved school. The duration of this South Dakota pre-licensing course depends on the type of license, the mode of study, and the number of hours you study per day.

You can do the pre-licensing course online or live in person. It’s good to note that you can do 100 hours online and attend the remaining 16 hours in person.

The beauty of the online course is that it is self-paced, and you can do it from anywhere and anytime.

Real Estate School Pre-License Course Fees

Choosing a school to complete a pre-licensing course may depend on many factors. One of the most significant factors is the fee structure and the package you select.

The education providers offer different features to entice the students. For instance, some guarantee you pass the real estate exam on the first attempt.

Pick a school among those approved by the South Dakota Real Estate Commission.³ Also, be sure to pick the school that best suits your preferences and needs.

Essential Background Investigation for Real Estate Professionals

After you pass the exams, the next step is the background check and fingerprinting. All applicants must have their background check performed as required by the South Dakota Real Estate Commission.

You must provide FBI and DCI fingerprint cards to start your background check process. For this, you need a check of $43.25 payable to the DCI.

Ensure the cards have the date and signature on the back. To ensure your eligibility, the commission reviews any findings in the background report.

Unfortunately, if you have past criminal offenses and judgments like public funds embezzlement, you may not be eligible for the real estate license.

How To Become a Buyers Agent

A buyer agent is simply a real estate agent or broker representing a property buyer. They help the buyers to search for the best home and negotiate the best prices.

In essence, they help the buyer in all aspects of buying a home or a property.

Before becoming a buyer’s agent, you must be a licensed real estate agent or broker. In other words, you only need to be a practicing real estate agent.

Is Real Estate a Good Career?

If you are passionate about it and have the right real estate agent skills, then this can be a great career path. The national average salary for a person pursuing this career is $95,018.

Also, since the jobs here are more commission-based, you can earn more – that is what anyone is looking for. It is also flexible, and you can do it part-time or full-time based on your availability.

Why Do I Need a Real Estate Agent?

The reasons are limitless. For example, real estate agents can help you price your property as they have immense knowledge of other properties in the market.

Also, they can help you list your home on the MLS (Multiple Listing Service), which connects buyers and sellers.

Lastly, if you want to sell or buy a house fast, these guys know how.