How to Become a Real Estate Agent in South Dakota in 8 Easy Steps

Whether you’re from the Eastside or the Westside of South Dakota, there is plenty of real estate to go around! But first things first, you need to know how to become a real estate agent (or broker associate) in South Dakota. I will guide you through the process one step at a time, and before you know it, you’ll have more real estate clients popping up than you have corn.

Important Note: While most states call their real estate agents, salespersons or agents, South Dakota refers to them as broker associates. 

Quick Facts & Costs for South Dakota Licensees

Types of Licensees in South Dakota & How Much They Earn

• Broker associate (salary range: $30,500 to $85,000): Assists clients in buying, selling, and renting properties. 
• Responsible broker (salary range: $12,500 to $155,000): In charge of a brokerage, supervises other agents, handles money, and assists with transactions. 
• Residential rental agent (salary range: $28,500 to 149,500): This position primarily handles rental properties rather than larger sales transactions.

Step-by-Step Breakdown: How to Get a South Dakota Real Estate License

Step 1: Meet South Dakota Requirements

To be eligible for a South Dakota real estate license, you need to:

• Be at least 18 years old
• Be a US citizen or have legal working status in the US
• Not having a conviction for a felony or a misdemeanor involving moral turpitude (complete the Application for Predetermination (#3085) if needed)

Step 2: Choose a South Dakota Real Estate School

• Cost: Starting at $699
• Time commitment: 116 hours
• Helpful resource: Best Online Real Estate Schools

Completing 116 hours of prelicensing coursework to become a real estate agent in Idaho seems lofty, but it can be easily accomplished with a little hard work—and the right school. The courses will cover everything you’ll need to know to pass the exam, including financing, principles of real estate, calculations, contracts, and much more. However, once you get through those hours, you’ll be well on your way to becoming a successful broker in South Dakota.

Choose your coursework carefully so it fits your learning style, which can be in-person or online. Opting for an online class is the way many agents go because it provides flexibility and can often be completed quicker than in person. The CE Shop is an excellent option for South Dakota license education because it is self-paced and includes e-books and study materials. Check out their tiered packages to see if it’s the right fit for you. 

Enroll in The CE Shop

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Step 3: Pass the South Dakota Real Estate License Exam

• Cost: $294 ($98 per portion)
• Time commitment: State Multiple-Choice: 1.5 hours; National Multiple-Choice: 2.5 hours; Broker Simulation: 3 hours
• Helpful resource: 7 Hacks to Help You Ace Your Real Estate Exam and South Dakota Candidate Handbook

The South Dakota real estate exam differs a bit from other real estate exams. While it still has the typical national and state-focused multiple-choice questions, it also has broker simulation questions made up of information-gathering (IG) and decision-making (DM) questions. Each problem will have a primary issue and property type, where the IG questions test you on gathering all relevant information, and the DM questions are for making judgments or decisions based on the issue and property type.

You pass? Yay—move along with the next steps. If you fail—that’s ok too. You’ll have to retake the portion of the exam you failed, but you have as many attempts as needed for an entire year. 

Step 4: Join a Real Estate Brokerage

As a broker associate, you cannot operate independently, so finding a brokerage is essential to your success as a South Dakota real estate licensee. Schedule interviews at several firms, large and small, to see which company aligns most with your values and needs and provides you with the best resources. They will be required to sign off on your South Dakota real estate license application, so your license is active immediately after your application is accepted.

Step 5: Get Fingerprints & Background Check

• Cost: $43.25
• Time commitment: 1-2 weeks
• Helpful resource: Fingerprint Card Request Form

All applicants must submit fingerprints for eligibility for a South Dakota real estate license as part of a background check. Here are the details:

• Request fingerprint cards from the South Dakota Real Estate Commission
• Get fingerprinting done at a local law enforcement agency or fingerprint office, which may require a fee specific to the vendor.
• Return completed fingerprint cards to the Real Estate Commission with your completed application and a separate check for $43.25 made payable to the Division of Criminal Investigation (DCI).
• You must sign and date your fingerprint cards for them to be valid.

Step 6: Purchase E&O Insurance

• Cost: Varies
• Time commitment: 1 hour
• Helpful resource: Rice Insurance Services, LLC

To have an active license, all real estate agents in South Dakota must have Errors & Omissions (E&O) insurance. This protects real estate businesses from mistakes made during professional service. IREC works closely with Rice Insurance Services, LLC, to provide affordable options for South Dakota licensees.

Step 7: Apply for a South Dakota Real Estate License

• Cost: $225
• Time commitment: 1 hour plus 2-4 weeks for processing
• Helpful resource: South Dakota Real Estate License Application

Your last step in learning how to become a real estate agent in South Dakota is submitting your real estate license application. Your application needs to be submitted within 60 days of your passing exam, so it’s important to move forward with the process right away. Here are the items that need to be included with your application:

• Non-refundable application fee of $225.00
• Original education certification
• Errors and omissions certificate of coverage
• Original score reports from the exam
• Completed SD and FBI fingerprint cards and a separate check for $43.25 made payable to DCI

Mail these items to: South Dakota Real Estate Commission, 217 W. Missouri Ave., Pierre, SD 57501

Step 8: Start a Successful Career in South Dakota

All the steps are complete in the process of how to get a real estate license in South Dakota, so you’re ready to start making real estate transactions! However, there’s a lot to keep learning during your journey. Here are a few things to keep in your back pocket: 

• Stay on top of trends: Keep your eye on real estate trends to build your knowledge. This will make sure you’re the expert when talking to clients. 
• Maintain a work-life balance: Real estate can be a stressful profession, so keep your health at the forefront with regular time off, time management, and established boundaries. 
• Use direct mail services: Sending postcards and flyers to your farm area is a tried-and-true way of generating leads. 
• Optimize your social media: Social media marketing is a free and effective way to let people know you’re in real estate—make sure you tell everyone with a post (or two or three!). 
• Generate leads regularly: Having clients to work with is what will build your business and make you money. Leverage your network to create your pipeline or purchase real estate leads to move the needle faster. 

FAQs

Back to You

Now that you have all the steps of how to become a real estate agent in South Dakota, you’re off to the races! Print this article and use it as a step-by-step guide or checklist while you go through your journey.

Have other questions about getting your real estate license? Let us know below!