South Dakota Agency Law: Representation and Disclosure Rules

South Dakota's agency law follows general real estate principles with specific written disclosure requirements.

Agency Types in South Dakota **Seller's Agent**: Full fiduciary duties (OLDCAR) to seller. Must disclose known material facts to buyers regardless of representation. **Buyer's Agent**: Written buyer agency agreement required. Full fiduciary duties to buyer. **Dual Agent**: Represents both parties. Requires written informed consent from both before the relationship begins.

Disclosure Requirements SD requires written agency disclosure at **first substantive contact** — when discussing specific properties or client needs. Verbal disclosure alone is not sufficient.

Written Buyer Agency Agreement Without a written buyer agency agreement, a licensee working with a buyer is presumed to represent the seller. This is a commonly tested scenario: the agent who shows homes to a buyer without any written agreement represents the seller, not the buyer.

No Transfer Tax — Exam Context South Dakota's lack of a state real estate transfer tax is a material fact for buyers comparing SD to other states. This also simplifies closing cost calculations — no transfer tax line item for SD transactions.

Common Exam Questions **Q**: A SD licensee shows homes to a buyer for three weeks without a written agreement. Who does the licensee represent? **A**: The seller — without a written buyer agency agreement, the licensee represents the seller.

Q: What is the state real estate transfer tax in South Dakota? A: There is no state real estate transfer tax in South Dakota.

[Practice South Dakota agency questions at CARealestate.com/states/south-dakota](https://carealestate.com/states/south-dakota)