Agency

In South Dakota, the agency relationship between a broker and salesperson is best described as:

AA partnership where profits are shared equally
BA principal-agent relationship where the salesperson acts as a sub-agent of the broker✓ Correct
CAn employer-employee relationship that overrides real estate law
DAn independent contractor relationship with no supervisory requirements

Explanation

In South Dakota, a salesperson operates under the broker's license as a sub-agent of the broker. The broker is the principal, and the salesperson acts as the broker's agent in conducting real estate activities. The broker remains responsible for the salesperson's licensed activities.

Related South Dakota Agency Questions

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 →