How to Get a South Dakota Real Estate License
Jay Gallagher
Real Estate Broker (Advice from an agent like you, not some tech nerd who never sold a home!)
This is a Step-by-Step guide on how to get a South Dakota Real Estate License. No matter where you live, from Sioux Falls to Rapid City or Aberdeen to my favorite town, Deadwood, or anywhere in between, becoming a real estate agent may be the best decision you ever make.
Note: South Dakota issues new licensees an Associate Broker license that’s equivalent to a Salesperson or Agent license in most states.
Below is all the info, links and documents to get your South Dakota Associate Broker license.
I also answer your questions at the very bottom.
Click on a question to go to the FAQ:
Meet the State Requirements
Learn exactly what the South Dakota Real Estate Commission (SDREC) requires before you can get a Real Estate License.
Complete Licensing Education
South Dakota requires only 116 hours of Real Estate Education to get licensed. Find the best Real Estate School for you.
Get Fingerprinted
Order two fingerprint cards from the SDREC and then get fingerprinted for a national and state background check.
Pick a Qualifying Broker
Meet the new boss! The good news is you get to pick the broker you want to work with. Learn how to pick the best.
Get E and O Insurance
Get E&O Insurance coverage through the state program or shop around on your own if your Qualifying Broker doesn’t supply it.
Pass the State Exam
Learn the fastest and easiest way to pass the South Dakota Associate Broker License Exam the very first time.
Submit the Application
Make sure you get it right the first time. Check the list, make sure you jumped through all the right hoops and hit send.
Get Background Checks
The SDREC will run your background checks once you submit your fingerprint cards with your final application.
Launch Your New Career
Now the fun begins. Learn how to get your new Real Estate Career off on the right foot by doing the right things to get business.
So, How Do You Get Your South Dakota Real Estate License?
1. Meet The State Requirements
To get your South Dakota Associate Broker License you must meet the following requirements:
- Must be 18 years of age or older.
- Be competent to transact business in a manner that safeguards the interest of the public.
- Be a citizen of the United States or resident of South Dakota.
- Complete the 116 Hour South Dakota Principles course and exam with a score of 75% or more.
- Must pass the South Dakota real estate license state and national exams.
- Must submit 2 fingerprint cards.
- Must pass both a National and State background check.
- Have a Consumer Credit Report run with no judgements.
- Proof of Errors and Omissions Insurance Coverage.
- Must submit completed application within 60 days of passing the exams.
Print out the South Dakota Application For License Resident Broker Associate.
2. Complete Pre-Licensing Education
South Dakota has one course with 116 hours of coursework that must be completed before you can apply for your South Dakota License:
- South Dakota Real Estate Principles Course
They have 4 levels of instruction.
I don’t recommend the basic level at all because it doesn’t included the most valuable part, the Real Estate License Practice Tests.
These practice tests actually guarantee you will pass the Real Estate Exam. Just take the practice tests until you consistently score 90 or higher and you are guaranteed to pass the South Dakota Real Estate Exam on your first try. I think these practice tests are the easiest way to ensure you pass.
3. Get Fingerprinted
SDREC requires you to submit fingerprint cards, commonly called hard cards for both a state and FBI background check. You have to fill out this SDREC Request Form and send it to the Commission office and they will mail you a set of fingerprint cards for free for the DCI and FBI background check.
Once you have the hard cards:
- Call your local Law Enforcement Agency and set up an appointment to be fingerprinted.
- 2 Fingerprint cards must be taken and signed by a law enforcement official.
- The LEO agency taking the fingerprints may charge a fee for the cards and processing.
- Sign and date the DCI finger print card on the back to avoid having the cards returned for signature and prolonging your application completion.
- Hold onto these cards and submit them to the Real Estate Commission with your completed application.
- A Certified check or money order for $43.25 made payable to DCI must be sent with the fingerprint cards for a processing fee.
4. Pick a Qualifying Broker
All Realtors must work under the supervision of a Broker who’s responsible for monitoring their activities. The good news is that you get to pick a broker to place your real estate Associate Broker license under.
If you want to activate the license immediately, your responsible broker will need to complete the Qualifying Broker section included in the application.
You can submit your application without having a Qualifying broker sign your application. If you elect to do this, upon approval of your application, you’ll receive an e-mail saying your license will remain on an inactive status until requested by a responsible broker with whom you wish to associate.
I highly suggest that you talk to a broker BEFORE you submit your application. SDREC requires you to submit proof of E&O insurance with your application. If your broker is willing to cover your insurance then this will save you the time and expense of getting your own E&O insurance.
If you’re a new agent, I recommend you go with one of the big box real estate brokerages. ReMax, Keller Williams and Century 21 are a good place to start. The reason I recommend these brokerages for new agents is because the big box brokerages have training programs in place to help you make the transition from Rookie Agent to seasoned pro.
5. Get Errors and Omissions Insurance
The SDREC (South Dakota Real Estate Commission) requires proof of Errors and Omissions Insurance with the application. Check with your sponsoring broker and see if you’ll be covered under their insurance.
If you’re covered by your Sponsoring Broker, then get a copy of their proof of insurance and submit that with your application.
If your Sponsoring Broker requires you to supply your own insurance you can buy insurance through a Group Insurance Program that is sponsored by the SDREC. You can download an SDREC Group Errors and Omissions Insurance Form here.
You are also free to shop around chose your own Insurance provider. Simply submit proof of insurance along with your certificate of coverage from your insurance company.
6. Pass The State and National Exams
Remember, you only have 60 days to submit your application after you pass your exams. If you take more than 60 days, you’ll have to take the exams all over again.
South Dakota has three exams you must be pass before you can apply for your Associate Broker License.
- South Dakota Real Estate Laws and Rules Exam
- National multiple-choice exam
- Simulation exam with various scenarios
The South Dakota Real Estate Broker Associate Licensing Examinations are administered by PSI under a contract with the SDREC.
You can print out the SDREP Candidate Handbook here for all the information on the testing process.
The South Dakota Real Estate Broker Associate Licensing Examinations are administered by computer at two PSI Test Centers in Sioux Falls and Rapid City, South Dakota.
PSI has Test Center locations nationwide so you can request to take the exams even if you are out of state. Go to the PSI website for a complete list of PSI Test Center locations.
Passing the exams is the number one thing that people worry about. Passing the exams will be a piece of cake if you pick a Pre-Licensing Education Course that includes the online practice tests. I highly recommend that you take these tests until you consistently pass them with a score of 90 or above. If you can do that, you are guaranteed to pass the actual exams.
7. Submit Your Application
SDREC doesn’t have an online option to submit an application. You can download a copy of the Application For License Resident Associate Broker here.
To get your South Dakota Associate Broker license, the following items need to be submitted to the SDREC:
Every question must be answered or the application will be returned for completion. Submit the following along with the completed application form:
- Check or Money Order for the application fee of $225.00.
- Original education certification (Form 101) showing completion of Pre-Licensing Education.
- Errors and omissions certificate of coverage must accompany application.
- Original Exam passing score reports for all three exams.
- Completed SD and FBI fingerprint cards
- Separate Check or Money Order for $43.25 made payable to DCI for background check.
Mail the entire packet to:
South Dakota Real Estate Commission
217 West Missouri Ave.
Pierre, South Dakota 57501
8. Pass The Background Checks
Once your application and fingerprint cards are received by the SDREC, they conduct both a state background check through the state Division of Criminal Investigation (DCI) and a national background check through the FBI database.
SDREC also runs a consumer credit check looking for any unpaid judgements on your record.
Grounds for Denial of a License
The Commission may deny an application for license when one or more of the following conditions are present:
- The applicant has written insufficient funds checks within the calendar year before application or has written an insufficient funds check for the application;
- The applicant has been convicted of a felony or of a misdemeanor involving moral turpitude;
- The applicant has been disciplined by a regulatory agency in relation to activities as a real estate salesperson or broker, appraiser, mortgage broker, auctioneer or any other regulated licensee, including insurance, securities, law and commodities trading;
- The applicant has failed to satisfy the requirements as provided by this chapter;
- The applicant has failed the pre-license school examination;
- The applicant has not met education requirements;
- The applicant made deliberate misstatements, deliberate omissions, or misrepresentations or untruths on the application; or
- There is a current and unpaid judgment against the applicant.
9. Launch Your New Career!
Now the real fun (and work) begins. The best thing about being a Real Estate Agent is the freedom it gives you. You’re your own boss and you get to decide how to move your real estate career forward.
Books
Continuous learning is the hallmark of all successful agents. Here are some resources to get you going in the right direction.
Below are my best suggestions:
- Best Books to Learn Principles of Success.
- Best Books for Real Estate Agents.
- Best Books for Real Estate Agent Social Media Marketing
Tools
You’ll need some tools to get the job done. At the very least, you’ll need a good Customer Relationship Management (CRM) software and a Real Estate Agent Website.
Jay Answers Your Questions...
The best (and worst) thing about being a realtor is the freedom you have. Many agents just work part-time and only do 1-3 transactions a year. Other agents work 60+ hours a week and sell hundreds of homes a year.
The best way to answer the question of how much a Wyoming realtor makes is to show how much you are likely to make per transaction.
The average price of a home in South Dakota is $315,000. Say the average commission per side of the transaction is 5.5% and the average broker/agent split is 15/85. That means you will earn, on average, about $6700 per transaction. Not bad.
Of course this number will vary based on the average cost of real estate in your area, your commission rate and your broker split but that’s a good number to start with. Now you can dial up your income based on how hard and how effectively you work.
South Dakota requires 116 hours of coursework. If you elect to take these courses in a classroom setting, you’ll have to go to a designated place and sit for the entire time.
For this reason, most people take the courses online so they can take the courses at their own pace and any time they wish.
Most people find they can complete the online coursework in a fraction of the 116 hours. A motivated person can complete it in as little as two weeks but most people will take a month or more if they do a little bit every day.
The South Dakota Associate Broker Exams are not difficult IF you buy a test prep course.
The best test prep courses include practice tests that you can take over and over again until you know the material. If you can consistently take a practice test and score a 90 or higher, then you are practically guaranteed to pass the actual exam.
If you’re someone who gets nervous and their mind goes blank during testing, then maybe you should wait until your score on the practice tests is consistently 95 or better.
The best brokerage is the one that’s the best fit for you.
Call up a few local brokerages and schedule a time to sit down and talk to them. Discuss things like E&O insurance, commission splits, leads and don’t forget to find out about any desk fees, tech fees or insurance fees.
Remember, if you don’t like the brokerage, you can easily change brokers.
I don’t recommend that you use any brokers CRM or email address because those things are the heart of YOUR real estate business and if your clients information is locked into your broker’s CRM, then it will be harder to make the move. That’s why the tools are “free” or included in a tech fee, to make it difficult for you to leave.
Let’s break it all down.
- Fingerprint/Background check – $43.25
- Pre-licensing Educational courses – $699.00 – $1145.00
- Exam Prep Courses – $0.00 – $99.00 – (Some Pre-Licensing Includes Exam Prep)
- Exam costs – $294.00 total ($98 for each test. 3 test in total.)
- Errors and Omission Insurance – $187.00
- South Dakota Application Fee – $225.00
The cost of getting your South Dakota real estate license can vary depending on your situation and your needs. The cost for most agents will be as low as $1220.00 to as high as $1958.00.
Most agents who follow my recommendations will pay about $1320.00
