South Dakota License Law
Under South Dakota law, a broker's trust account must be maintained at:
AAny federally insured financial institution✓ Correct
BOnly the Bank of South Dakota
COnly national banks headquartered in South Dakota
DAny FDIC or NCUA insured institution in the United States
Explanation
South Dakota requires broker trust accounts to be held at a federally insured financial institution. This ensures client funds are protected.
People Also Study
Related South Dakota Questions
- In South Dakota, a property manager who embezzles money from client trust accounts faces:Property Management
- In South Dakota, the 'Community Reinvestment Act' (CRA) requires federally regulated financial institutions to:Finance
- A South Dakota property held in a revocable living trust avoids probate because:Property Ownership
- In South Dakota, which financial institution is specifically chartered to make mortgage loans for housing?Finance
- In South Dakota, when a property is held in a trust, the trustee's authority is defined by:Property Ownership
- In South Dakota, a property manager's primary obligation when managing trust funds is to:Property Management
- In South Dakota, a real estate broker's trust account must be reconciled:South Dakota License Law
- In South Dakota, the 'Home Mortgage Disclosure Act' (HMDA) requires covered financial institutions to:Finance
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
State-Specific Concepts
Trust Account Rules
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 →