How to Pass the South Dakota Real Estate Exam on Your First Try

South Dakota has no state income tax and a straightforward licensing process. The exam is 120 questions — 80 national and 40 state-specific — with a 75% passing threshold. Administered by PSI.

South Dakota Exam Fast Facts - Questions: 120 (80 national + 40 state) - Passing score: 75% on each section (60 national, 30 state) - Time limit: 4 hours - Provider: PSI - Pre-license education: 116 hours (salesperson — one of the higher requirements in the Midwest) - Governing body: South Dakota Real Estate Commission (SDREC)

The South Dakota Real Estate Commission

SDREC has 5 members (3 licensees, 2 public members) appointed by the Governor. Members serve 4-year terms.

Key SDREC facts: - Salesperson licenses renew every 2 years; 24 hours of CE required - New salespersons must complete the licensing process and affiliate with a broker before practicing - The Real Estate Education, Research, and Recovery Fund provides compensation; max $15,000 per transaction - SDREC enforces South Dakota Codified Laws Chapter 36-21A

South Dakota Agency Law

South Dakota uses the Brokerage Relationships in Real Estate Transactions disclosure form. Must be provided at first contact.

South Dakota recognizes: - Seller's agent: fiduciary duties to seller - Buyer's agent: fiduciary duties to buyer - Dual agent: represents both with written consent; limited duties - Transaction broker: facilitates without representing either party

Key South Dakota rule: The transaction broker relationship must be affirmatively established with a written agreement. It is not the default.

South Dakota Disclosure Requirements

South Dakota's Sellers Disclosure Statement is required for residential transactions. Sellers must deliver the form before the buyer signs a purchase contract or within 5 days of signing the listing agreement.

Buyer rights: - Buyer has a right to rescind within 5 business days of receiving the disclosure

Required disclosures: - Structural and mechanical systems - Environmental hazards (lead, radon, underground tanks) - Well and septic system condition - Flood zone designation - Mineral rights status

Agricultural land: South Dakota has significant farmland. Transactions involving agricultural land require disclosure of water rights, drain tiles, and crop lease agreements.

South Dakota-Specific Topics

No state income tax: South Dakota has no state income tax, which makes it attractive for real estate investors. The exam may test implications for 1031 exchanges and investment properties.

Agricultural land issues: Common in South Dakota: - Crop share leases: Tenant pays a percentage of the crop as rent - Cash rent leases: Tenant pays a fixed dollar amount per acre - Farm lease termination: South Dakota farm leases require advance written notice (typically 6 months) to terminate — know the notice requirements - Drain tile systems: Drainage systems that improve agricultural land; must be disclosed and maintained by the property owner

Wall Drug towns and tourism: Western South Dakota's tourist-heavy economy (Mount Rushmore, Badlands) creates unique commercial real estate considerations, but these are more practical than exam-tested.

Topics That Catch Candidates Off Guard

Farm lease notice requirements: South Dakota requires specific advance notice to terminate agricultural leases. This comes up in exam questions about landlord-tenant and contract law.

116-hour pre-license education: One of the higher requirements in the Midwest — candidates should allow adequate time for coursework before scheduling the exam.

$15,000 Recovery Fund cap: Relatively low — know the specific amount.

Mineral rights disclosure: South Dakota's significant oil and agricultural activity means mineral rights are commonly severed. Know to disclose when mineral rights are NOT included.

Your 4-Week South Dakota Study Plan

Week 1: National — agency, contracts, ownership, land use, fair housing Week 2: National — financing, valuation, math, environmental Week 3: South Dakota-specific — SDREC, agency law, disclosure statement, agricultural land issues Week 4: Full practice exams. Target 80%+. Drill farm lease termination notices, mineral rights disclosure, and 5-day rescission.

Practice for the South Dakota Exam

[CARealestate.com/states/south-dakota](https://carealestate.com/states/south-dakota) has South Dakota-specific practice questions covering SDREC rules, agency law, the Sellers Disclosure Statement, and agricultural land topics. 5 free questions, no signup needed.

South Dakota's agricultural land questions — especially farm lease termination notice and drain tile disclosure — are the most state-specific topics and will not appear in national prep materials.