How To Become A Real Estate Agent In South Dakota
Below, we'll outline the training and licensing steps necessary for a real estate career in South Dakota.
What Does "Broker" Mean in South Dakota?
The majority of states refer to entry-level real estate licensees as "salespersons" or "sales agents" and only use the term "broker" for an advanced license level that qualifies real estate professionals to own a brokerage firm, supervise new agents, handle financial transactions, and more.
In South Dakota, however, entry-level licensees are called "broker associates" and the next level of licensing is known as a "responsible broker."
What Are South Dakota's Real Estate Pre-Licensing Education Requirements?
SD REC requires 116 hours of pre-licensing coursework from an approved provider.
AgentCampus by 360training doesn't offer South Dakota pre-license courses at this time, unfortunately – only continuing education. You can find a school-approved for pre-license training on SD REC's website.
Who is Eligible to Become a Real Estate Agent in South Dakota?
To qualify for a broker associate's license in South Dakota, you need to:
- Be 18 or over
- Be a U.S. citizen or resident of South Dakota
- Be competent to transact the business of a licensee in a manner that safeguards the interest of the public
What Else Do I Need to Do to Earn My South Dakota Real Estate License?
Aside from completing your pre-license application, you need to:
- Pass all THREE portions of the license exam
- Acquire Errors & Omissions (E&O) insurance
- Complete a fingerprinting-based background check
- Submit your application
What is the South Dakota Real Estate Licensing Exam Like?
South Dakota's broker associate licensing exam is administered by a third-party testing service named PSI. They have testing locations in Sioux Falls and Rapid City. In most states, there are two portions of the exam, but in South Dakota, there are THREE:
- 100-question multiple-choice National portion, for which you have 2.5 hours
- 57-question multiple-choice State-specific portion, for which you have 1.5 hours
- 11-problem Broker Simulation portion, for which you have 3 hours
You'll learn whether you passed each section before you leave the testing center. You need to pass all three portions to apply for the exam.
What is the Deadline for my South Dakota Real Estate License Application?
You have 60 days after passing your state licensing exam to turn in your application. If you pass the portions on different dates, you have 60 days from the last portion you pass.
How Often Does a South Dakota Real Estate License Have to Be Renewed?
If your application isn't submitted by the November 30th deadline, you'll be subject to a late fee. If SD REC doesn't have your application by January 1st, your license will be placed on non-renewal status but you'll still be able to be reactivated with a late fee until June 30th. If you haven't renewed by July 1st, your license will be invalidated, and you'll have to begin the licensing process from scratch.
Proof of continuing education and E&O coverage are due December 31st. If you miss these, you'll be placed in inactive status from January 1st until you turn in the information.
What Are the Real Estate Post-Licensing Requirements in South Dakota?
South Dakota requires you to complete 60 hours of post-license education for your first two active license renewals. Specifically, you need to complete 30 hours per active license cycle.
Since the expiration dates are universal, your first license renewal period will be somewhat shorter than others because it consists of the remainder of the current license year and the entirety of the next. That means you'll have somewhere between one and two years to complete your first 30 post-license hours.
Unfortunately, AgentCampus by 360training doesn't offer South Dakota post-license courses at this time.
What Are South Dakota's Continuing Education Requirements for Real Estate?
South Dakota requires you to complete 24 Continuing Education hours from an approved provider every 2 years, including:
- 12 hours on mandatory topics, including:
- Real Estate Contracts
- Real Estate License Law
- Fair Housing
- Americans with Disabilities Act
- Ethics
- Environmental Issues
- Antitrust
- Brokerage Services
- 12 hours of approved electives
Continuing Education requirements begin after your post-license deadline – in other words, your third renewal period.
SD REC has to receive proof of your CE credits by December 31st of your renewal year.
What Kind of Jobs Can I Get with a South Dakota Real Estate License?
- Residential real estate agent
- Commercial real estate agent
- Managing broker
- Property manager
Within each career, a wide range of niches and specialties are possible. Some practice areas are more profitable than others, and unsurprisingly, those often require additional certifications or licenses.
To get an idea of your potential earnings in South Dakota, you should look at the Bureau of Labor Statistics wage data:
| Job Title | Average Hourly Wage | Average Yearly Wage |
|---|---|---|
| Sales Agents | $28.50 | $59,290 |
| Property Managers | $17.95 | $37,340 |
With commission-based careers like real estate, individual income varies a lot, because it's based on how well you sell. As a result, some real estate professionals make far below those averages, while others make much more. In South Dakota, the top 90th percentile of agents make $104,690.
