Key Takeaways
- The South Dakota Real Estate Commission (SDREC) regulates real estate licensees under SDCL Chapter 36-21A
- SDREC consists of five members appointed by the Governor: three licensed brokers and two public members
- SDREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- The Commission is part of the South Dakota Department of Labor and Regulation
- South Dakota requires 116 hours of pre-license education for broker associate applicants
South Dakota Real Estate Commission (SDREC)
The South Dakota Real Estate Commission (SDREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in South Dakota under the South Dakota Codified Law Chapter 36-21A (Real Estate Licensing Act).
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SDREC Structure and Authority
Commission Members
SDREC consists of five members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Active real estate brokers | 3 | Must hold active SD broker license |
| Public members | 2 | Not licensed in real estate |
Members may not all be of the same political party and serve staggered terms.
Key SDREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve pre-license and CE courses |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Consumer Protection | Protect public interests in real estate transactions |
South Dakota Real Estate Licensing Act (SDCL 36-21A)
The South Dakota Codified Law Chapter 36-21A is the primary statute governing real estate licensing in South Dakota. Key provisions include:
- Who must be licensed - Definitions of broker and broker associate activities
- License types - Broker associate, responsible broker, property manager, home inspector
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
SDREC Administrative Rules
SDREC adopts administrative rules (ARSD Title 20:69) that implement the Licensing Act. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: South Dakota uses unique terminology - the entry-level license is called "Broker Associate" (equivalent to "salesperson" in other states). The supervising license is called "Responsible Broker."
License Types in South Dakota
South Dakota has several license categories:
Primary License Types
| License Type | Description |
|---|---|
| Broker Associate | Entry-level license (equivalent to "salesperson" in most states) |
| Responsible Broker | Supervising broker who can operate a brokerage |
| Property Manager | Restricted broker license for property management only |
| Residential Rental Agent | Limited license for rental activities |
| Home Inspector | License for property inspections |
Key Distinction: In South Dakota, the starting license is called "Broker Associate" - this can be confusing because in most states "broker" denotes an advanced license. In South Dakota, it simply refers to what other states call a salesperson or real estate agent.
SDREC Contact Information
| Resource | Information |
|---|---|
| Website | dlr.sd.gov/realestate |
| Main Office | 217 W. Missouri Avenue, Pierre, SD 57501 |
| Phone | (605) 773-3600 |
| dlr.realestate@state.sd.us |
How many members serve on the South Dakota Real Estate Commission?
What is the entry-level real estate license called in South Dakota?