South Dakota Real Estate Exam Practice Questions (2025)

South Dakota's real estate salesperson exam has 120 questions: 80 national and 40 state-specific. You need 70% (84/120) to pass.

National Section Questions

Q1: An investor purchases a property for $480,000. The annual NOI is $33,600. What is the cap rate? - Cap Rate = $33,600 / $480,000 = 7%

Q2: Which type of listing gives the seller the right to sell the property themselves without paying a commission? A) Exclusive right to sell B) Exclusive agency C) Open listing D) Net listing Answer: B — An exclusive agency listing gives the broker the exclusive right to represent the seller, but the seller can sell without owing a commission if they find the buyer themselves.

Q3: Under TRID, within how many business days of loan application must the Loan Estimate be delivered? Answer: 3 business days.

South Dakota-Specific Questions

Q4: The South Dakota Real Estate Commission (SDREC) has how many members? A) 3 B) 5 C) 7 D) 9 Answer: B — SDREC has 5 members.

Q5: South Dakota real estate license law is found in: A) SDCL Chapter 36-21A B) SDCL Title 43 (Property) C) SD Admin Rules Chapter 20:69 D) SD Real Estate Practices Act Answer: A — South Dakota Codified Laws Chapter 36-21A governs real estate licensees.

Q6: South Dakota has a state real estate transfer tax: A) True — $1.00 per $1,000 B) False — South Dakota has no state real estate transfer tax C) True — $2.25 per $1,000 D) True — only on commercial properties Answer: B — South Dakota has no state real estate transfer tax. This is one of a small number of states with no transfer tax.

Q7: South Dakota requires salesperson applicants to complete how many total education hours? A) 40 hours prelicense B) 40 hours prelicense + 76 hours post-license within 1 year = 116 total C) 90 hours prelicense D) 60 hours prelicense Answer: B — SD requires 40 hours prelicense (to sit for the exam) plus 76 hours of post-license education within the first year of licensure.

Q8: South Dakota licenses are renewed every: A) 1 year B) 2 years C) 3 years D) 4 years Answer: B — South Dakota real estate licenses renew every 2 years with 12 hours of CE per cycle.

Q9: In South Dakota, a broker must retain transaction records for: A) 3 years B) 5 years C) 7 years D) 10 years Answer: B — South Dakota requires 5 years of record retention.

Q10: South Dakota is which type of state regarding state income tax? A) Has a flat income tax B) Has no state income tax C) Has a graduated income tax D) Taxes only real estate income Answer: B — South Dakota has no state income tax and no state sales tax — a selling point for real estate, especially for out-of-state buyers.

Key South Dakota Topics - **SDREC**: 5 members; **SDCL Chapter 36-21A** - **40 hours prelicense + 76 hours post-license** (116 total within first year) - **No state transfer tax** — unique selling point for SD real estate - **No state income tax** — frequently referenced in SD real estate context - **5-year record retention**

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