Prepare for the South Dakota real estate exam with 50 free practice questions, detailed answer explanations and links to the relevant South Dakota laws. No account or registration is required. Review licensing, agency, disclosures, advertising, agreements and trust accounts.

Choose an answer, read the explanation and select Next. At the end, review your score and answers or restart the test. Pair these state-law questions with our national real estate practice exam to cover both parts of your studies.

South Dakota Real Estate Practice Exam

1 / 50

Which South Dakota agreement may include an automatic-renewal clause under the express statutory exception?

A property management agreement with agreed written-cancellation terms.

Every buyer agency agreement, without limitation.

Every listing agreement, without any cancellation provision.

Only an unsigned verbal listing.

2 / 50

A South Dakota team advertisement includes an unlicensed assistant. What must it do concerning that person?

Present the assistant as a licensed broker without checking.

Hide the brokerage company’s name because a team is pictured.

Clearly identify the unlicensed individual.

State that the team operates independently of its broker.

3 / 50

A South Dakota licensee advertises brokerage services for another owner’s property. What firm identification is required?

Only the individual licensee’s first name.

The advertisement must clearly state the affiliated firm’s name.

No firm name if the advertisement is online.

Only the title company’s name.

4 / 50

A South Dakota accepted purchase agreement fails to close and the parties dispute the trust funds. What allows the broker to disburse them?

A unilateral demand from only the seller.

The broker’s personal opinion about who deserves the funds.

A request by an unrelated listing photographer.

Written instructions from all parties or a court order.

5 / 50

At first substantive contact with a South Dakota buyer who has no written brokerage agreement, what must the licensee provide?

Only an oral statement at closing.

Only a business card with no relationship explanation.

Nothing until an offer is accepted.

Written disclosure of the offered agency and brokerage relationships on the prescribed disclosure form.

6 / 50

A South Dakota buyer’s agent knows about a material issue that requires expertise the agent lacks. What must the agent advise the client to obtain?

A guarantee from the agent despite the lack of expertise.

No advice until after the sale closes.

Expert advice on that issue.

Only an unrelated sales advertisement.

7 / 50

How often must the South Dakota responsible broker reconcile the trust account to bank statements, the trust ledger and the check register?

Only once every four years.

At least monthly.

Only when a client complains.

Only when the account closes.

8 / 50

Which statement describes the South Dakota Real Estate Commission’s membership?

Three members, all employed by testing companies.

Five members elected by local real estate boards.

Seven members, all required to hold broker licenses.

Five appointed members: three active brokers and two members of the public.

9 / 50

A South Dakota buyer asks the buyer’s agent about a registered sex offender near the property. The agent has actual knowledge. What does the buyer-agent statute require?

Conceal all actual knowledge even after the client asks.

Conduct a new neighborhood investigation in every transaction.

Disclose only if the seller separately approves.

Disclose the actual knowledge to the client upon the inquiry.

10 / 50

A South Dakota customer signs the acknowledgment of receiving a brokerage disclosure form. Does that acknowledgment itself create a contract with the licensee?

No; acknowledging receipt does not itself constitute a contract.

Yes, it automatically creates an exclusive buyer agreement.

Yes, it automatically makes the licensee a limited agent.

Yes, it guarantees payment of whatever fee the broker later chooses.

11 / 50

A South Dakota consumer asks by phone for a listed home’s address and price. Is that initial informative response, by itself, representation of the caller?

No; those inquiries are among the informative acts that do not constitute representation.

Yes, every price inquiry creates exclusive buyer agency.

Yes, if the home costs more than the average listing.

Yes, unless the caller later refuses a showing.

12 / 50

For the ordinary initial South Dakota broker associate license, how much approved prelicense education is required?

40 class hours.

60 class hours.

116 class hours.

90 class hours.

13 / 50

What is the minimum age stated in South Dakota’s real estate license eligibility statute?

19 years.

21 years.

25 years.

18 years.

14 / 50

A South Dakota broker proposes keeping every dollar above a seller’s specified net price as the broker’s compensation. How is that arrangement treated?

It is mandatory whenever the seller wants a fixed net.

It is permitted whenever the property is residential.

It is a prohibited net listing.

It is lawful merely because the broker expects a large profit.

15 / 50

What consent is required before a South Dakota licensee may act as a limited agent for both buyer and seller?

Only the seller’s oral permission.

Only a buyer’s mortgage application.

No consent when both parties use the same office.

Informed written consent of all parties to the transaction.

16 / 50

A South Dakota buyer agency agreement must describe what about the property being sought?

Only the name of a bank the buyer might use.

The type and geographical area of property sought by the client.

Only the address of the brokerage’s office.

No property description of any kind.

17 / 50

An applicant holds an active real estate license in another state and passed that state’s licensing examination. Under South Dakota’s examination reciprocity provision, what examination is required for similar-level South Dakota licensure?

No examination under any circumstances.

Only the national portion again.

Only a home inspector examination.

The South Dakota state portion.

18 / 50

Who has statutory authority to determine the contents of South Dakota’s real estate licensing examination?

Each applicant’s employing brokerage.

The South Dakota Real Estate Commission.

Each applicant’s chosen lender.

The seller in the applicant’s first transaction.

19 / 50

A South Dakota licensee wants to offer an owner’s property on terms different from those authorized by the owner. What must the licensee do?

Use the new terms and inform the owner after closing.

Assume that a lower price needs no authorization.

Treat a neighbor’s approval as the owner’s approval.

Obtain the owner’s authorization for those terms before offering them.

20 / 50

A South Dakota broker is asked to threaten nonpayment of an appraisal fee unless the appraiser reports a desired value. Is that permitted?

Yes, the broker can demand any value needed to close.

No; using payment pressure to influence the value conclusion is prohibited.

Yes, if the seller believes the property is worth more.

Yes, because brokers may never supply factual corrections instead.

21 / 50

In South Dakota, does paying a broker’s compensation by itself determine that the payer has an agency relationship with the broker?

Yes, whoever pays is always the broker’s only client.

Yes, but only if payment is by check.

No; payment or promised payment does not determine agency.

Yes, unless the commission is split with another broker.

22 / 50

A South Dakota seller signs acceptance of a buyer’s offer. What copy-delivery duty applies?

Keep it private until the lender approves financing.

Give it only to the party paying the broker.

Provide it only after the buyer demands it in court.

Promptly provide the accepted offer to both buyer and seller.

23 / 50

A South Dakota responsible broker makes a proper written appointment of different agents for buyer and seller. Is the broker a limited agent solely because of making those appointments?

Yes, every appointment automatically creates limited agency for the broker.

No; appointment alone does not make the responsible broker a limited agent.

Yes, unless no commission is charged.

No, because the clients lose all representation.

24 / 50

A South Dakota broker associate has passed the exam but has not yet received the license or affiliated with a broker. May the associate begin licensed brokerage business?

Yes, passing alone authorizes brokerage work.

No; the license must be received and the required broker association established.

Yes, if no commission is collected until later.

Yes, if the first client signs a waiver.

25 / 50

A South Dakota seller cannot complete the contracted sale through no fault of the buyer. Does the broker have a right to take the buyer’s deposit as the broker’s commission?

Yes, whenever the commission has been earned.

No; the broker has no right to any portion for that purpose.

Yes, up to half the deposit.

Yes, if the broker originally introduced the buyer.

26 / 50

A South Dakota responsible broker is authorized by written employment contract to hold the principal’s money until settlement. Under the general deposit rule, when must it go into the special trust account?

On the first legal banking day after the contract is accepted.

Within 30 days after closing.

Only after every inspection contingency expires.

At the next annual renewal.

27 / 50

In a South Dakota cobrokerage sale, where is earnest money ordinarily held unless buyer and seller agree otherwise?

In either licensee’s personal checking account.

In the marketing vendor’s operating account.

In a broker’s trust account.

In an unrecorded cash drawer until year-end.

28 / 50

Which description best fits a South Dakota transaction broker?

An agent who must advocate exclusively for the seller.

A broker assisting with a transaction without acting as any party’s agent or advocate.

An agent who automatically represents both parties as clients.

A broker free of all disclosure and accounting duties.

29 / 50

A South Dakota licensee advertises the sale of personally owned property in the licensee’s individual name. What disclosure is required?

That the property owner is a licensee.

That the owner has no license, even when untrue.

No license-status disclosure for any personally owned property.

Only the original purchase price.

30 / 50

A South Dakota buyer offers a nonnegotiable note as earnest money. What permission is required before the licensee accepts it?

The licensee’s principal’s written permission.

Only the buyer’s oral assurance that payment will arrive.

No permission if the note has a large face value.

Only an unsigned note made by the licensee.

31 / 50

A South Dakota responsible broker supervises affiliated licensees as independent contractors. Does that arrangement remove the broker’s statutory responsibility for their real estate activities?

Yes, independent-contractor status eliminates all broker responsibility.

Yes, if the associate works from home.

No; responsibility applies to employees and independent contractors.

Yes, if the associate pays personal business expenses.

32 / 50

How is South Dakota’s 60-hour initial broker associate postlicensing education divided?

All 60 hours may be postponed until the fifth renewal.

30 hours in the initial active licensing period and 30 in the second active licensing period.

Only 15 hours in each period, with no further requirement.

The116 prelicense hours eliminate all postlicensing education.

33 / 50

A South Dakota seller’s agent actually knows of an adverse material defect. The interested buyer is a customer, not a client. What duty applies?

No disclosure because the buyer is not represented.

Disclosure only if the buyer pays the listing commission.

Disclose the known adverse material fact to the customer.

Disclosure only after the deed is recorded.

34 / 50

A South Dakota customer refuses to sign the acknowledgment of the required brokerage disclosure. What must the licensee do?

Sign the customer’s name without authorization.

Note the refusal on a copy of the disclosure and retain it.

Destroy the disclosure and leave no record.

Treat the refusal as written consent to limited agency.

35 / 50

How long must South Dakota licensees preserve listings, offers, closing statements and other transaction records under the general retention statute?

Four years.

Six months.

One year.

Only until the commission is paid.

36 / 50

Which statement about revoking a South Dakota real estate license is correct?

Revocation must comply with the statutory administrative procedure, and the decision may be appealed.

Revocation can occur without following any administrative procedure.

A local trade association can revoke the state license by itself.

The Commission’s decision can never be appealed.

37 / 50

The South Dakota Commission requests a broker’s trust deposit slips and individual principal ledgers for inspection. What must the broker do?

Provide only advertising samples.

Refuse unless every former client separately agrees.

Make those records available for inspection.

Wait until the records are four years old.

38 / 50

A South Dakota listing agent knows a serious title defect is expected to survive closing. How is that fact treated under the adverse-material-fact definition?

It is excluded because it concerns title rather than a physical defect.

It is included as an adverse material fact.

It is irrelevant once a purchase offer is signed.

It becomes confidential solely because the seller dislikes it.

39 / 50

Who may sign a South Dakota agency agreement on behalf of the responsible broker?

Any unlicensed friend of the seller without authorization.

Only a lender, never the responsible broker.

Every salesperson automatically, even if the broker prohibits it.

The responsible broker or a salesperson or broker associate authorized by that broker.

40 / 50

A South Dakota seller’s property is already under a sale contract when a new written offer arrives. What should the seller’s agent do?

Present the written offer in a timely manner.

Discard it because the first contract ends every offer-presentation duty.

Present it only if it includes a higher commission.

Wait until the agent’s listing expires.

41 / 50

A South Dakota broker acts as subagent for another broker’s client. What permission is required?

Only the subagent’s personal preference.

Only an unsigned social-media message from a stranger.

The client’s written permission.

No permission because the brokers know each other.

42 / 50

During a South Dakota conversation, a buyer starts discussing specific financial qualifications that could affect bargaining. What type of contact is this?

Only a general informational inquiry regardless of detail.

A completed agency agreement without any writing.

Substantive contact.

An automatic limited-agency consent.

43 / 50

A South Dakota limited agent learns that the seller would accept less than the asking price. No informed written consent to disclose is given. May the agent tell the buyer?

No; that price flexibility is protected.

Yes, because representing both parties removes confidentiality.

Yes, if telling the buyer would speed up closing.

Yes, whenever the buyer asks about negotiating room.

44 / 50

What form must a South Dakota appointed-agent designation take?

Only an unsigned oral understanding between two salespersons.

An automatic designation created by a business card.

A decision made solely by the buyer’s lender.

A written appointment through the responsible broker.

45 / 50

A South Dakota applicant receives written notice of passing the examination. Within how long must the applicant file the license application and required documents?

60 days from the notice date.

30 days from starting prelicense school.

Six months from the first real estate transaction.

Any time before the next two-year license renewal.

46 / 50

May a South Dakota transaction broker advise one party to the detriment of another party?

Yes, if the favored party pays more of the fee.

Yes, whenever the broker prefers that party’s offer.

No; the statute prohibits that conduct.

Yes, because transaction brokers owe no duties.

47 / 50

A South Dakota seller asks an agent to keep a known material roof defect confidential. Does the statutory definition of confidential information protect that defect?

Yes, every fact becomes confidential if a seller requests it.

Yes, unless the buyer offers the full asking price.

Yes, until the buyer hires the seller’s broker.

No; material facts about the property’s physical condition are excluded.

48 / 50

A South Dakota licensee wants to acquire an interest in a property listed with the licensee’s office through a third party. What must be disclosed to the owner?

Nothing because a third party is named as purchaser.

Only an oral hint after the closing.

Only the third party’s favorite property features.

The licensee’s intention or true position in writing.

49 / 50

Under South Dakota’s transaction-broker statute, must the transaction broker independently investigate a buyer’s financial condition?

No; that independent investigation is not a duty imposed by this provision.

Yes, the broker must personally audit every bank account.

No, and the broker may therefore conceal known adverse material facts.

Yes, but only when the buyer pays cash.

50 / 50

A South Dakota licensee proposes two sale contracts, hiding one from the lender to help the buyer qualify for a larger loan. How is that conduct treated?

It is allowed if both buyer and seller privately approve.

As unprofessional conduct.

It is allowed if the second contract is never recorded.

It is allowed if the licensee takes no extra fee.

Your score is

What does this South Dakota practice exam cover?

These questions put South Dakota rules into everyday situations: explaining agency to a buyer, advertising a listing, signing an agreement, handling earnest money and disclosing a personal interest. Each explanation identifies the correct answer and explains why the other choices do not fit.

Practice topic	Questions
Commission powers	4
Licensing requirements	6
Agency and disclosures	20
Agreements and advertising	8
Transactions and trust accounts	12

Use the content outlines in the PSI South Dakota candidate information bulletin to plan the rest of your study. The state outline covers Commission powers, licensing requirements and activities of licensees. The national portion covers general subjects such as property ownership, valuation, financing, contracts and agency.

How many questions are on the South Dakota real estate exam?

The PSI bulletin lists 90 national questions, worth 100 points, with 150 minutes and 52 state questions with 120 minutes. A small number of unscored experimental questions may also be included and count against the examination time. Check the Commission’s exam information page and current bulletin when scheduling your appointment.

How to study for the South Dakota real estate exam

Take the practice test once without looking up the answers. Note the subjects you miss, then use the linked statute to review the complete requirement.
Learn the relationship terms: client, customer, responsible broker, appointed agent, limited agent and transaction broker. Their duties and consent requirements differ.
Pay attention to first substantive contact. Separate an initial request for basic information from a conversation about a buyer’s finances or negotiating position.
Review agreements and advertising together. Know the required written terms, the property-management renewal exception and when the brokerage name or licensed-owner status must appear.
Follow earnest money through the transaction. Separate written authority to hold funds, the deposit deadline, monthly reconciliation and authority to release disputed funds.
Retake the same 50-question bank after studying the missed topics. Explain the rule in your own words before selecting the answer.

Practice calculations with our real estate math guide and review vocabulary with our real estate terms and flashcards.

South Dakota sample questions and explanations

Sample 1

A South Dakota customer signs the acknowledgment of receiving a brokerage disclosure form. Does that acknowledgment itself create a contract with the licensee?

A. No; acknowledging receipt does not itself constitute a contract.
B. Yes, it automatically creates an exclusive buyer agreement.
C. Yes, it automatically makes the licensee a limited agent.
D. Yes, it guarantees payment of whatever fee the broker later chooses.

Answer: A. No; acknowledging receipt does not itself constitute a contract. SDCL 36-21A-147 distinguishes the disclosure receipt acknowledgment from a brokerage contract. Source: SDCL 36-21A-147.

Sample 2

Which South Dakota agreement may include an automatic-renewal clause under the express statutory exception?

A. A property management agreement with agreed written-cancellation terms.
B. Every buyer agency agreement, without limitation.
C. Every listing agreement, without any cancellation provision.
D. Only an unsigned verbal listing.

Answer: A. A property management agreement with agreed written-cancellation terms. SDCL 36-21A-130 prohibits automatic renewal of the listed agency agreements but permits it in property management agreements with written-cancellation provisions agreeable to all parties. Source: SDCL 36-21A-130.

Sample 3

A South Dakota accepted purchase agreement fails to close and the parties dispute the trust funds. What allows the broker to disburse them?

A. A unilateral demand from only the seller.
B. The broker’s personal opinion about who deserves the funds.
C. A request by an unrelated listing photographer.
D. Written instructions from all parties or a court order.

Answer: D. Written instructions from all parties or a court order. SDCL 36-21A-81 restricts disbursement of trust funds after an accepted transaction does not close to the stated written instructions or court order. Source: SDCL 36-21A-81.

South Dakota real estate exam FAQs

Is this South Dakota practice test free?

Yes. All 50 questions, explanations, source links and the final answer review are free, without registration.

Can I retake the practice exam?

Yes. Use the restart control on the results screen to practice the same question bank again.

Who administers the South Dakota real estate exam?

The Commission directs candidates to PSI. Use its examination information page and the current candidate bulletin for scheduling and test-day requirements.

What is the initial real estate license in South Dakota?

South Dakota’s entry license is a broker associate license. The ordinary initial route requires at least 116 hours of approved prelicense education, passing the required examination and satisfying the other licensing qualifications. The minimum age is 18. See the Commission’s license types and requirements for the complete process.

Official South Dakota study resources

The questions and explanations were checked against these official sources on September 21, 2026. Each quiz explanation also links to the section supporting the answer.

Looking for another state? Visit the state practice exam directory.