South Dakota License Law
Under South Dakota license law, a licensee who finds out their client has committed fraud in a previous transaction should:
AKeep the information confidential as client privileged information
BConsult legal counsel and potentially report to appropriate authorities — the licensee cannot assist in continuing fraud✓ Correct
CReport only to the SDREC and take no other action
DComplete the current transaction and address the fraud afterward
Explanation
A licensee who discovers client fraud may have obligations that override confidentiality — they cannot assist in furtherance of a crime and should consult legal counsel about their duties to report.
People Also Study
Related South Dakota Questions
- If a South Dakota real estate licensee wishes to place their license on inactive status, they must:South Dakota License Law
- In South Dakota, a licensee who fails to renew their license by the expiration date but continues to practice real estate is:South Dakota License Law
- When a South Dakota licensee's license is placed on inactive status, they may:South Dakota License Law
- A South Dakota licensee who changes their employing broker must:South Dakota License Law
- In South Dakota, the relationship between a real estate broker and their client is best described as:Agency
- Which of the following is a fiduciary duty owed by a South Dakota seller's agent to their client?Agency
- A South Dakota landowner discovers their property is in a Special Flood Hazard Area (SFHA). To develop the property, they may need to:Environmental
- A South Dakota broker who is found to have negligently supervised a salesperson who committed fraud may be subject to:Agency
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
State-Specific Concepts
DRE RegulationLicense Law
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 →