How to Get Your Real Estate License in South Dakota?

Consider this article your guide to the requirements and process for becoming a licensed real estate professional or upgrading your current license in The Mount Rushmore State.

You’ll find details on all the basics, from licensing qualifications to timelines and costs. Also, the answers to commonly asked questions will further equip you to navigate the steps more easily.

You can start your walkthrough below.

Those earning their first real estate license are called broker associates in South Dakota rather than agents or salespeople.

To be eligible for this entry-level license, you must be legally considered an adult, 18 or older, and be a U.S. citizen or South Dakota resident.

You also have to complete the qualifying education.

Meeting that requirement takes 116 hours of working through state-approved coursework that instructs you in applying real estate laws, rules, and practices.

In addition to that, the pre-licensing course helps prepare you for the two portions of South Dakota’s mandatory licensing exam.

One part covers national principles and practices. The other assesses your knowledge of state real estate laws.

You must score 75 percent on each portion to pass the test and fulfill the examination condition.

Time is short for applying after passing the exam. The deadline is 60 days after you have tested successfully on both portions.

But before applying, you’ll need to get fingerprinted for a background check that you must clear to be licensed.

You initiate the check by submitting fingerprint cards when you apply.

Errors and omissions insurance is a must-have, too. The South Dakota Real Estate Commission stipulates that you include evidence of this professional liability coverage with your application.

One more action is necessary to receive an active license. As you’re not allowed to practice real estate independently with this license, you’ll need to pick a qualifying broker to work for.

To activate your license, that broker must complete the applicable section of your application.

You can use our guide on choosing the right broker to work for as a new agent to make this critical choice easier. And get a jumpstart by searching our directory for top real estate brokerages in South Dakota.

Responsible Broker is the title for the next level above those entering the profession.

This advanced level qualifies real estate professionals to operate a brokerage and supervise other licensees.

Upgrading to obtain this license has only a few requirements.

First, because the role is responsible for the activities of other licensees, experience is a prerequisite for the step up.

Specifically, you must have worked actively as a broker associate for two years.

Education is another requirement to qualify for this license.

You will need 24 hours beyond the 116-hour broker associate course. You get that in one course covering modern real estate laws, ethics, and operations specific to South Dakota.

No other exam is required for this step. You do not have to complete an application or undergo another background check.

You can request the upgrade once you have the requisite experience and finish the 24-hour Responsible Broker Course.

What Is Real Estate License Reciprocity?

Recognizing that agents and brokers prefer not to start from scratch to be licensed in a new state, many jurisdictions offer a form of license recognition known as reciprocity.

Simply stated, reciprocity gives you credit for qualifying for your current license, providing a fast track to get a new one.

Here’s what you need to know about how to get a real estate license in South Dakota if you are already licensed elsewhere.

You must submit a non-resident application with the appropriate fee and certificates of licensure from every state where you have held or currently hold a license.

No more pre-licensing education is required. But, you must pass the state section of the real estate exam.

Additionally, you are required to:

• Currently have an active real estate license.
• Be fingerprinted and pass the background check.
• Have insurance coverage for errors and omissions.

If you are a broker, you can get an equivalent license. What about agents?

The state doesn’t issue a salesperson license for those wanting to become a South Dakota real estate agent. However, it recognizes agent licensees from other states.

Once licensed, you must upgrade to a broker associate before your renewal date. That requires a 40-hour upgrade course.

South Dakota Real Estate License Reciprocity with Other US States

Some states enter into formal reciprocity agreements. Others have a policy to handle the recognition of what it took someone to earn their current license.

South Dakota is in the latter group. It issues equivalent licenses to those moving to the area.

Pre-Licensing Classroom Courses

Most of South Dakota’s real estate schools teach the 116 hours of broker associate coursework through live or virtual classroom portions combined with distance learning.

One of the state’s community colleges also offers instructor-led, in-person classes.

Studying in a classroom setting, even for only part of the time, provides a static schedule that makes planning easier. Plus, you get a structured, focused environment that e-learning lacks.

You also benefit from a more personalized learning experience that can keep you motivated and engaged, which can be difficult in a remote setting.

Classroom learning tends to be less budget-friendly than online courses, though. Moreover, in-person options may be limited in some geographic areas.

Pre-Licensing Online Courses

Whether you take a hybrid course with an online component or go to real estate school 100 percent online, you have flexibility and convenience with this format.

You can study at the speed that works best for your learning style. Over and above that, you can get your classwork done without a set schedule or location restrictions.

Since South Dakota schools offer a hybrid format, you can have some face-to-face interaction with an instructor. Although, you’ll miss out on that if your course is entirely online.

Virtual or self-paced classes can make collaboration with other students more difficult, and you must be self-motivated and hold yourself accountable when studying remotely.

If you decide to go this route, there’s an important caveat to heed before enrolling: Be sure you pick a school that’s on South Dakota’s list of approved pre-licensing providers.

To decide which format is ideal for you, read our A-to-Z guide comparing online real estate classes vs classroom courses.

Broker associate examinations are administered in person at PSI exam centers in the following South Dakota cities:

• Fargo
• Madison
• Rapid City
• Sioux Falls

You have 60 days from when you pass the exam to apply for your license. You can fill out a paper application and mail it to the Commission, or apply through the online portal.

Either way, in addition to the application and background check fees, you will need to include several items with your application:

• Original passing score report for the exam
• Fingerprint cards for the background check
• Certificate for errors and omissions insurance

Rather than mailing paper certificates, the Commission delivers licenses electronically.

You’ll receive an email once your application is approved. That notification contains a link to access and print your license.

The preparatory course is the biggest variable in your time commitment to getting your license.

You can complete the classroom portion of the hybrid course in 2-3 weeks. Time spent on the online portion, which is usually 54 hours, depends on the pace you set.

If you do supplemental exam prep, plan on taking up to three weeks to review the 116 hours of course material. The timeline can be similar for scheduling and taking the exam.

Allow 1-3 weeks for fingerprinting and completing the criminal background check. Due diligence in searching for a qualifying broker will likely take two weeks or more.

The Commission indicates you should allow 2-4 weeks for application processing.

If you take the self-paced online course and study full time, your completion time is about three weeks. Add up to three weeks to take advantage of an exam prep program.

Also, factor in the following ballpark time frames for remaining actions:

• Wait time for exam appointment: Up to 3 weeks
• Taking the exam: Up to 4.5 hours (plus travel time)
• Identifying a broker: At least 2 weeks
• Fingerprinting and background check: Up to 3 weeks
• Waiting for the licensing decision: About 2-4 weeks

Our guide on how long it takes to get a real estate license in South Dakota can give you an idea of the timeline for completing all the steps in the licensing process.

Each applicant has to submit to a state and federal criminal background investigation as part of the licensing process.

Fingerprinting is required for this background check, which can be done by a local law enforcement agency or a fingerprinting service.

Your first financial outlay is for pre-licensing education. Broker associate candidates should budget at least $699 for an online course, twice that for a hybrid format.

Plan to pay approximately $400 for the Responsible Broker Course.

For the broker associate license, you also have to cover the cost of the following fees:

• Exam registration: $98 per exam session
• Criminal records search: $43.25
• Application fee: $225

The errors and omissions insurance premium under the South Dakota group policy is $187 annually.

Refer to our guide on South Dakota real estate license costs for complete information on associated licensing fees.

You have at least a two-day wait. PSI won’t schedule a new appointment the day you take the exam. However, you can call the next day and book a test slot for the following day if one is available.

Your eligibility for retakes ends one year after you initially fail the exam. There’s no limit to how many times you can retest within that period.

To avoid retakes, read our article on how to pass the South Dakota real estate exam the first time.

PSI requires registration and a $98 exam fee for every testing attempt.

To avoid shelling out for exam retakes, read our tips on how to study for the real estate exam.

The retake fee is $98 for each exam session.

You may be denied a license if your felony involves moral turpitude. South Dakota statutes define that term as conduct contrary to honesty and good morals.

It also refers to behavior that shows a conscious disregard for societal norms or duties owed to fellow human beings or society in general.

Violent crimes, sex offenses, or acts involving serious harm or injury to others are a few examples of such behavior and, therefore, potential disqualifiers for licensure.

Refer to our guide on getting a South Dakota real estate license with violations for more details on the topic.

As it is for felonies, crimes of moral turpitude that are charged as misdemeanors can derail your chances of becoming a licensed real estate professional in South Dakota.

The Commission is looking for a reputation of good moral character. Crimes like fraud, larceny, theft, and issuing bad checks are at variance with that.

How negatively your conviction for a pertinent offense impacts your chances depends on your case, as the Commission makes decisions according to the facts of the particular situation.

The Commission reviews each application separately and distinct from others. So, whether you can get a real estate license if you have a DUI depends on which factors carry more weight.

For example, if you have three or more convictions, you have a felony record. The severity of that classification and the pattern of conduct may lead the Commission to deny your application.

That’s because they may construe repeated instances of DUI as evidence of your unwillingness to obey the law and the conduct as a serious breach of responsibility you owe the public.

South Dakota’s real estate license requirements don’t include a high school diploma.

While getting your license or taking the next step in your real estate career may feel intimidating, remember that you have at your disposal a wealth of resources to keep you well-informed all along the way.

You can start with understanding what it’s like to work as a real estate agent as a career from insights provided by some of the top realtors in the country.

If you’re wondering what benefits you can get from being a part of a real estate team, our article on how to join a real estate team provides information on the pros and cons.

For your first steps after getting your license, refer to our guide on what to do after passing the real estate exam.

With your new license in hand, give your business a marketing boost by taking advantage of what we can offer.

To help you build and grow your real estate career quickly, we at Real Estate Bees created a directory for real estate professionals.

It’s designed to help you get more exposure for your business, including receiving leads. Create a free profile by signing up here.

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About the Author

Kristina Morales is both a licensed mortgage loan originator and real estate agent in the State of Ohio. Inspired by her years of working with buyers and sellers and seeing a need for more consumer education, Kristina created loanfully.com, an online educational resource for borrowers and industry professionals. In addition to real estate sales and mortgage lending, Kristina had an extensive corporate career in banking, treasury, and corporate finance. She ended her corporate career as an Assistant Treasurer at a publicly traded oil & gas company in Houston, TX. Kristina obtained her MBA from the Weatherhead School of Management at Case Western Reserve University and her B.A in Business Management from Ursuline College.