South Dakota Practice TestProperty Management

South Dakota Property Management
Practice Questions & Answers (2026)

Property management questions on the South Dakota exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to South Dakota. The South Dakota Real Estate Commission tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. South Dakota's landlord-tenant law has specific provisions — including notice requirements and tenant protections — that differ from what national study materials cover. These questions often involve scenarios where a property manager must navigate competing obligations to the owner-client and the tenant.

Practice Questions

South Dakota Property Management — Practice Questions & Answers

95 questions on Property Management from the South Dakota real estate question bank. First 10 are free — sign up to unlock all 95.

Q1. A South Dakota property manager who collects rent on behalf of property owners is performing which activity?

A.A real estate activity requiring a broker's license
B.A purely administrative task not requiring a license
C.A regulated banking activity
D.A construction management service

Explanation

Property management activities performed on behalf of others for compensation, including collecting rents, constitute real estate activities requiring a broker's license under SDCL 36-21A.

Q2. A South Dakota property management agreement should include all of the following EXCEPT:

A.Management fee structure
B.Scope of authority to spend owner funds
C.The owner's social security number
D.Term and termination provisions

Explanation

While a management agreement needs financial and authority provisions, including an owner's social security number in the agreement itself is not a required element and raises privacy concerns.

Q3. In South Dakota, a residential lease for a term exceeding one year must be:

A.Approved by the SDREC
B.In writing to be enforceable under the Statute of Frauds
C.Recorded with the county register of deeds
D.Notarized by a South Dakota notary public

Explanation

Under the Statute of Frauds, leases for terms exceeding one year must be in writing to be enforceable in South Dakota.

Q4. South Dakota's residential landlord-tenant law governs the relationship between residential landlords and tenants. A landlord's failure to maintain habitable conditions may give tenants the right to:

A.Purchase the property at a discount
B.Terminate the lease or seek rent reduction
C.File a complaint with the SDREC
D.Withhold rent without any consequence

Explanation

South Dakota law requires landlords to maintain rental units in a habitable condition. Failure to do so may allow tenants to terminate the lease, seek rent reduction, or pursue other remedies depending on the circumstances.

Q5. In South Dakota, how many days' notice must a landlord typically give before entering a tenant's unit for non-emergency repairs?

A.12 hours
B.24 hours
C.48 hours
D.72 hours

Explanation

South Dakota law generally requires landlords to provide at least 24 hours' advance notice before entering a rental unit for non-emergency inspections or repairs.

Q6. The South Dakota Homeowners Association Act primarily governs:

A.Commercial property owners associations
B.HOAs in planned residential communities
C.Agricultural co-ops
D.Tribal land management organizations

Explanation

The South Dakota Homeowners Association Act (SDCL Chapter 43-15B) provides a framework for the operation of homeowners associations in planned residential developments.

Q7. An HOA in a South Dakota subdivision has the authority to enforce CC&Rs primarily through:

A.Arrest of violating owners
B.Fines, legal action, and in some cases liens against the property
C.Eminent domain
D.Licensing revocation through the SDREC

Explanation

HOAs enforce CC&Rs through fines, injunctions, and in some cases placing assessment liens on properties for unpaid fees or fines, subject to the HOA's governing documents and state law.

Q8. A South Dakota property manager receives a security deposit. This deposit must be:

A.Deposited into the property manager's personal account
B.Held in a separate trust or escrow account
C.Invested in South Dakota municipal bonds
D.Paid to the owner immediately upon receipt

Explanation

Security deposits must be held in a separate trust or escrow account apart from the property manager's or owner's operating funds, to protect the tenant's deposit.

Q9. Under South Dakota law, what is the maximum security deposit a landlord may charge for an unfurnished residential unit?

A.One month's rent
B.Two months' rent
C.Three months' rent
D.There is no statutory limit

Explanation

South Dakota limits security deposits for residential rentals to one month's rent for unfurnished units, protecting tenants from excessive upfront costs.

Q10. When a South Dakota residential tenancy ends, the landlord must return the security deposit within:

A.7 days
B.14 days
C.21 days
D.30 days

Explanation

South Dakota requires landlords to return security deposits within 21 days of the end of the tenancy, along with an itemized statement of any deductions.

Q11. A South Dakota commercial lease where the tenant pays a fixed base rent plus a percentage of their gross sales is called a:

A.Net lease
B.Gross lease
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