South Dakota Contracts
Practice Questions & Answers (2026)
Contract law questions on the South Dakota real estate exam test both general contract principles and South Dakota-specific transaction requirements. The South Dakota Real Estate Commission tests how South Dakota contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under South Dakota law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong SD-specific timeframe or rule.
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South Dakota Contracts — Practice Questions & Answers
137 questions on Contracts from the South Dakota real estate question bank. First 10 are free — sign up to unlock all 137.
Q1. Which element is NOT required for a valid real estate contract in South Dakota?
Explanation
Notarization is not required for a valid real estate sales contract. The required elements are offer and acceptance (mutual assent), consideration, competent parties, legal purpose, and in writing (Statute of Frauds).
Q2. Under the Statute of Frauds, real estate contracts in South Dakota must be:
Explanation
The Statute of Frauds requires real estate contracts to be in writing and signed by the parties to be legally enforceable. Oral real estate agreements are generally unenforceable.
Q3. A buyer submits an offer. Before the seller accepts, the buyer changes their mind and withdraws the offer. This is an example of:
Explanation
Revocation occurs when the offeror withdraws their offer before it is accepted by the offeree. A revocation terminates the offer and no contract is formed.
Q4. A seller accepts a buyer's offer but changes the closing date. This creates:
Explanation
A counteroffer is made when the seller changes any terms of the buyer's original offer. A counteroffer terminates the original offer and creates a new offer that the buyer may accept, reject, or counter.
Q5. An option contract in real estate gives the optionee the:
Explanation
An option contract gives the optionee (potential buyer) the right, but not the obligation, to purchase the property at a specified price within a specified period. The optionor (seller) is bound but the optionee is not.
Q6. When a real estate contract is said to be 'executed,' it means:
Explanation
An executed contract is one in which all parties have fully performed their duties and obligations. This is different from an executory contract, in which some obligations remain to be performed.
Q7. For a real estate purchase contract in South Dakota to be enforceable, which element is NOT required?
Explanation
Notarization is not required for a purchase contract to be enforceable in South Dakota. The essential elements are offer/acceptance, consideration, legal purpose, and competent parties.
Q8. A counteroffer in South Dakota real estate has which legal effect?
Explanation
A counteroffer legally rejects the original offer and constitutes a new offer. The original offeror is no longer bound and may accept, reject, or counter the new offer.
Q9. The South Dakota Seller's Property Condition Disclosure (SPCD) is required for:
Explanation
The South Dakota Seller's Property Condition Disclosure is required for residential properties with 1–4 units. Commercial and agricultural properties are generally exempt.
Q10. Under South Dakota law, when must the Seller's Property Condition Disclosure be delivered to the buyer?
Explanation
The SPCD must be delivered to the buyer as soon as practicable before closing. If the buyer has not received it, they have the right to rescind the contract.
Q11. If a contingency in a South Dakota purchase agreement is not satisfied, what typically happens?
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