South Dakota Practice TestSouth Dakota License Law

South Dakota South Dakota License Law
Practice Questions & Answers (2026)

South Dakota license law questions make up a substantial portion of the SD state exam and cover rules that are specific to South Dakota — national study materials often miss these details entirely. The South Dakota Real Estate Commission tests its own licensing requirements, broker supervision standards, trust account rules, continuing education mandates, and advertising regulations. Candidates who pass the national portion comfortably often struggle on the state portion specifically because of these South Dakota-specific provisions. Every question in this section tests something the South Dakota Real Estate Commission enforces directly, so study each answer explanation carefully for the specific SD rule being tested.

Practice Questions

South Dakota South Dakota License Law — Practice Questions & Answers

112 questions on South Dakota License Law from the South Dakota real estate question bank. First 10 are free — sign up to unlock all 112.

Q1. Which agency regulates real estate licenses in South Dakota?

A.South Dakota Department of Commerce
B.South Dakota Real Estate Commission
C.South Dakota Bureau of Finance and Regulation
D.South Dakota Division of Professional Licensing

Explanation

The South Dakota Real Estate Commission (SDREC) is the state agency responsible for licensing and regulating real estate brokers and salespersons in South Dakota.

Q2. How many hours of pre-license education are required to obtain a South Dakota real estate salesperson license?

A.60 hours
B.90 hours
C.116 hours
D.150 hours

Explanation

South Dakota requires 116 hours of pre-license education before a candidate may sit for the salesperson licensing exam.

Q3. The South Dakota real estate salesperson licensing exam consists of how many questions?

A.100 questions
B.120 questions
C.140 questions
D.150 questions

Explanation

The South Dakota real estate salesperson exam contains 140 questions. Candidates must achieve a passing score to obtain their license.

Q4. What is the minimum passing score required on the South Dakota real estate licensing exam?

A.65%
B.70%
C.75%
D.80%

Explanation

A score of 70% or higher is required to pass the South Dakota real estate licensing exam.

Q5. In South Dakota, a real estate salesperson license must be held under:

A.The South Dakota Real Estate Commission directly
B.A sponsoring licensed broker
C.Any licensed real estate professional
D.A real estate franchise

Explanation

In South Dakota, a salesperson's license must be sponsored by and held under a licensed broker. Salespersons cannot practice independently.

Q6. What is South Dakota's state income tax treatment?

A.Flat 3% income tax
B.Progressive income tax similar to federal
C.No state income tax
D.Income tax only on investment property gains

Explanation

South Dakota has no state income tax, making it one of the few states with no personal income tax. This is an important fact for real estate licensees advising clients.

Q7. Which of the following activities requires a real estate license in South Dakota?

A.Selling your own personal residence
B.Negotiating a lease on behalf of another for compensation
C.Managing your own rental properties
D.Auctioning personal property

Explanation

Negotiating leases on behalf of another person for compensation requires a real estate license in South Dakota. Selling one's own property and managing one's own rentals do not require a license.

Q8. How long does a South Dakota real estate license remain valid before renewal is required?

A.1 year
B.2 years
C.3 years
D.4 years

Explanation

South Dakota real estate licenses are renewed on a two-year cycle. Licensees must complete required continuing education before the renewal deadline.

Q9. In South Dakota, how many continuing education hours are required per renewal period?

A.6 hours
B.12 hours
C.24 hours
D.30 hours

Explanation

South Dakota requires 12 hours of continuing education per two-year renewal period to maintain an active real estate license.

Q10. Which of the following is NOT exempt from South Dakota real estate licensing requirements?

A.An attorney acting within the scope of their practice
B.A court-appointed receiver managing property
C.A property manager receiving compensation to manage property for third parties
D.A trustee acting under a trust agreement

Explanation

Property managers who receive compensation to manage property owned by third parties must hold a real estate license in South Dakota. Attorneys, court-appointed receivers, and trustees acting within their official capacity are generally exempt.

Q11. When a South Dakota licensee's license is placed on inactive status, they may:

A.Continue practicing real estate with disclosure to clients
B.Only assist with transactions involving their own properties
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