Title 36, PROFESSIONS AND OCCUPATIONS

The following information may not be disclosed by the transaction broker without the informed written consent of the customer: (1) That a buyer is willing to pay more than the asking price or lease rate offered for the property; (2) That a seller is willing to accept less than th…

Every responsible broker shall develop and maintain a written office policy that specifically sets forth agency and brokerage relationships that the broker may establish. At the first substantive contact with a seller or buyer who has not entered into a written agreement with a b…

No client or customer is liable for any misrepresentation made by the licensee arising out of their agency or brokerage agreement unless the client or customer knew of the misrepresentation. No licensee is liable for a misrepresentation of the licensee's client arising out of the…

This section supersedes only the duties of the parties under the common law, including fiduciary duties of an agent to a principal, to the extent inconsistent with this chapter. The common law continues to apply to the parties in all other respects. This chapter does not affect t…

A majority of the commission, in meetings duly assembled, may perform and exercise all of the duties and powers of the commission. Actions of the commission shall be taken upon a majority vote of those members present. Source: SL 1992, ch 273 , § 15.

Unless otherwise provided in the agreement or by law, no broker and licensee associated with that broker engaged as a seller's/landlord's or buyer's/tenant's agent, subagent, limited agent, or transaction broker owes any further duty or obligation to a client or customer after te…

Each applicant for licensure and registration as a real estate broker, property manager, or residential rental agent in this state shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and th…

The commission shall be an adjunct of the Department of Labor and Regulation, and shall retain all its prescribed functions, including administrative functions. The commission shall submit such records, information and reports in the form and at such times as required by the secr…

The commission shall adopt a seal with South Dakota Real Estate Commission engraved thereon, by which it shall authenticate its proceedings. Source: SL 1992, ch 273 , § 17.

The commission shall employ an executive director who shall perform the following duties: (1) Keep a record of all proceedings, transactions, communications and official acts of the commission; (2) Be custodian of all moneys received; (3) Deposit all moneys in depositories design…

The commission may employ personnel as may be necessary to carry out the provisions of this chapter. Source: SL 1992, ch 273 , § 19; SL 2018, ch 236 , § 1.

For the purposes of this chapter, an advertisement or advertising is any attempt, by publication or broadcast, whether oral, written or otherwise, to induce a person to use the services of a licensed real estate broker, real estate salesman or real estate firm. Source: SL 1992, c…

The location of the office of the executive director shall be at such places within the state as the commission may designate. The commission shall maintain all of its files, records, and property at the office of the executive director. Source: SL 1992, ch 273 , § 20.

The commission shall meet annually and at other times upon call by the executive director, chairperson, or upon a written request of three or more members of the commission. The place of meeting of the commission shall be at the office of the executive director or other places wi…

Whenever any filing or notice to the commission is provided for, the filing or notice shall be delivered in person or mailed to the commission at its principal place of business. The date of the filing or notice is the date upon which the document is received at the principal pla…

The compensation and reimbursement of expenses provided by law for members of the commission shall be paid from the funds of the commission. Source: SL 1992, ch 273 , § 23.

The commission may conduct, hold or assist in conducting or holding real estate courses or institutes, and incur and pay the necessary expenses in connection therewith, which courses or institutes shall be open to the licensees. The commission may charge a reasonable fee for such…

The commission may assist libraries, licensees, institutes and foundations, with financial aid or otherwise, in providing texts, sponsoring studies, surveys and programs for the benefit of the real estate business and the elevation of the real estate business. Source: SL 1992, ch…

The executive director of the commission shall make available a list of the names and addresses of all persons licensed by the commission under the provisions of this chapter, together with such other information relative to the enforcement of the provisions of this chapter as th…

Any person licensed under this chapter does not qualify for the exceptions set forth in this chapter including any transaction in which that person has a personal interest. Source: SL 1992, ch 273 , § 27; SL 2013, ch 179 , § 1.

No person, unless exempted under this chapter, may offer, attempt or agree to perform, or perform any act enumerated within this chapter without an active license issued by the commission. No person may collect compensation as a licensee under this chapter without having first co…

This chapter does not apply to the following: (1) Any person who as a bona fide owner or lessor, performs any of the acts described in §§ 36-21A-6 and 36-21A-12 with reference to property owned, or leased by the person, or to any regular employees thereof, if the acts are perform…

For the purposes of this chapter, an appraisal or an evaluation is the act or process of developing an opinion of value of real estate for another and for compensation. Source: SL 1992, ch 273 , § 3; SL 2013, ch 177 , § 3; SL 2020, ch 163 , § 1.

A license shall be granted only to persons of reputable character who have attained the age of eighteen years; who are competent to transact the business of a licensee in a manner as to safeguard the interest of the public; and whose application for a license has not been rejecte…

An applicant for a broker associate license must have completed one hundred sixteen class hours of education in a course of study approved by the commission given by instructors approved by the commission or in an independent study or distance education course approved by the com…

Any broker associate receiving initial licensure as a broker associate after June 30, 2009, shall complete sixty class hours of education in a course of study approved by the commission given by instructors approved by the commission or in an independent study or distance educati…

An applicant for a responsible broker's license shall have served actively for two years as a licensed salesperson or broker associate, or a combination thereof, and shall furnish evidence of completion of twenty-four additional class hours beyond the broker associate level in a …

If otherwise qualified, the requirement of two years serving as a salesperson or broker associate may be waived if the applicant for a responsible broker's license certifies that the applicant has been refused association as a salesperson or broker associate by at least three lic…

An application may be denied for any one of the following reasons: (1) The applicant has written insufficient funds checks within the calendar year before application or has written an insufficient funds check for the application; (2) The applicant has been convicted of a felony …

An active licensed nonresident real estate salesperson, who establishes residency in South Dakota, shall upgrade to a broker associate license by completing the following before the current license expires: complete forty hours of prescribed education in a course approved by the …

An application for a license shall be in writing upon forms furnished by the commission and shall contain such data and information as the commission may require and shall be verified on oath or affirmation under penalty of perjury. Source: SL 1992, ch 273 , § 35.

An applicant for a license shall submit to a written examination to be conducted by the commission at such times and places as it may direct. The commission shall determine the contents of the examination. Source: SL 1992, ch 273 , § 36.

Upon notification in writing that the person has passed the examination, the person shall file the appropriate application for license with all the required documents to the commission within sixty days of the notice date. If the person fails to file an application and proof of r…

No partnership, association, limited liability company, or corporation may perform the services of a real estate broker as described in § 36-21A-6 , nor may a licensee associate or work for any partnership, association, limited liability company, or corporation performing any ser…

No license may be granted to a corporation, limited liability company, partnership or association, unless the corporation, limited liability company, partnership, or association designates a responsible broker who will represent the corporation, limited liability company, partner…

Upon dissolution of a corporation, partnership, limited liability company, or association, the responsible broker shall notify the commission within ten days by mail or e-mail. Source: SL 1992, ch 273 , § 39; SL 1996, ch 236 , § 3; SL 2011, ch 180 , § 4; SL 2022, ch 152 , § 1.

No person may be licensed until qualified by examination, except as otherwise provided by this chapter. Source: SL 1992, ch 273 , § 41; SL 1998, ch 233 , § 1.

An applicant who holds an active license in another state and who has successfully passed the real estate licensing examination in that same state may obtain a similar level of licensure in South Dakota if the applicant successfully passes the state portion of the examination in …

Upon passing the examination and completion of the other requirements, a license shall be issued to the successful applicant. Upon receiving the license and associating with a broker, he may conduct the business authorized by the license. Source: SL 1992, ch 273 , § 44.

A responsible broker may, or a real estate salesperson or broker associate employed by or otherwise associated with a responsible broker may, form a business corporation or limited liability company under the following conditions: (1) The business corporation or limited liability…

The commission may promulgate rules pursuant to chapter 1-26 to provide for the issuance of a restricted broker's license to auctioneers, property managers, mortgage brokers, or time-share or residential-rental agents. The licensee may perform only those duties specified by the l…

A person who has contracted with the South Dakota Housing Development Authority or the United States to operate housing units or has contracted with the United States in a subsidy program on behalf of the tenants is exempt from obtaining a property manager's license to manage tho…

The commission shall set, by rule promulgated pursuant to chapter 1-26 , an application fee not to exceed four hundred dollars. This fee shall accompany an application for individual licensure. Source: SL 1992, ch 273 , § 49; SL 1998, ch 233 , § 5; SL 2002, ch 181 , § 1; SL 2013,…

For the purposes of this chapter, an association is any body of persons united and acting together without a charter, but upon the methods and forms used by incorporated bodies for the prosecution of some common enterprise. It is an unincorporated society and not a partnership. I…

The commission may require a person whose license was revoked or suspended to meet and perform certain conditions before issuing or reinstating a license to that person. Such conditions may include the following: (1) Restitution of moneys; (2) Restitution of property; (3) Periodi…

Each person licensed under this chapter shall register the following place of business with the commission: (1) For a broker associate or real estate salesperson, the licensee's responsible broker's place of business; or (2) For a responsible broker or restricted broker, the lice…