Agency
A South Dakota buyer's agent who receives a bonus from the seller for closing the transaction must:
ARefuse the payment entirely
BDisclose the bonus to the buyer client and obtain consent, as undisclosed compensation creates a conflict of interest✓ Correct
CAccept the bonus as it does not affect their agency relationship
DReport the bonus to the Real Estate Commission immediately
Explanation
An agent receiving compensation from the opposing party creates a potential conflict of interest. The buyer's agent must disclose any compensation received from the seller to the buyer client and obtain consent. Undisclosed dual compensation violates fiduciary duties.
Related South Dakota Agency Questions
- The duty of 'reasonable care and diligence' requires a South Dakota real estate agent to:
- In South Dakota, a real estate agent who recommends their own affiliated title company to a buyer must:
- When does an agency relationship with a seller typically terminate in South Dakota?
- In South Dakota, a real estate agent who creates a false sense of urgency to pressure a buyer into making a quick decision on a property is:
- In South Dakota, an agent who is asked to hold earnest money but deposits it in their personal account is violating which duty?
- South Dakota requires that agency relationships be disclosed:
- In South Dakota, a seller's agent who presents an offer to the seller and is instructed by the seller to inform the buyer the offer is unacceptable (without a formal counteroffer) should:
- In South Dakota, the seller instructs the listing agent to tell buyers that the property has no foundation issues, but the agent knows this to be false. The agent should:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →