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

To become a real estate broker associate in South Dakota, you must get a real estate license. That’s why we created this step-by-step guide to help you do just that.

So, if you’re ready to start a new career in an exciting industry, let’s dive in.

How to Get Your Real Estate License in South Dakota

Here’s a step-by-step breakdown of what it takes to become a real estate broker associate in South Dakota. Follow these steps to ensure you meet all the state’s licensing requirements.

Step 1: Meet Basic Requirements

To begin the process, you need to meet the following eligibility criteria:

• Be at least 18 years old.
• A high school diploma or equivalent (GED) is required.

Meeting these requirements ensures you're ready to pursue pre-licensing education and apply for the state exam.

Step 2: Complete Pre-Licensing Education

Before you can sit for the South Dakota real estate exam, you need to complete 116 hours of pre-licensing education from a state-approved school. This coursework covers essential topics to prepare you for the industry.

The major topics include:

• Real Estate Principles and Practices: Covers the foundational concepts of real estate transactions, property management, and brokerage operations.
• Contracts and Agency Law: Explains the legal aspects of contracts, agency relationships, and client-agent duties.
• Property Ownership and Title Transfers: Focuses on legal processes for ownership, deed preparation, and title insurance.
• Real Estate Finance: Discusses mortgage structures, loan processes, and financing strategies.
• Ethics and Professional Standards: Provides guidelines on agent conduct, addressing fair housing laws, professional behavior, and regulatory compliance.

Most programs include quizzes and a final exam at the end of the course. You must pass the final exam with a score of at least 70% to receive your course completion certificate. This certificate is required when you apply for the state licensing exam.

If you want to enroll in a real estate school, we partnered with Kaplan to provide exceptional real estate courses to South Dakota students. 

Sign up through US Realty Training and get a discount.

Step 3: Apply for the South Dakota Real Estate Exam

Once you complete your pre-licensing education, the next step is applying to take the state exam. PSI Exams administer the South Dakota real estate exam.

To apply, follow these steps:

1. Create an account on the PSI website.
2. Submit the exam application and fee. If the national and state exams are taken together, the cost is $196. If taken separately, the total cost is $294. Each exam is $98: national, state, and simulation exams. 
3. Upload your course completion certificate as part of your application.
4. Select a testing date and location.

PSI has testing centers across South Dakota, or you can opt for online proctoring. Be sure to register early, as testing slots can fill up quickly.

Step 4: Pass the South Dakota Real Estate Exam

The South Dakota real estate exam is designed to assess your understanding of both national and state-specific real estate concepts. The exam consists of two sections:

• National Section: 80 multiple-choice questions covering general real estate knowledge.
• State Section: 40 multiple-choice questions focused on South Dakota real estate laws and regulations.

To pass, you must score at least 75% on each section. This means answering at least 60 questions correctly in the national section and 30 questions in the state section.

How to Prepare for the Exam

We provide a South Dakota real estate crash course and exam prep package to make studying and passing easy. This program provides 8+ hours of video content that explains concepts, vocabulary, historical events, and laws on the exam. 

You get unlimited practice exams, vocab flashcards, an eBook study guide, and 2,000+ question and answer videos.

Step 5: Submit Your Application for a South Dakota Real Estate License

After passing the exam, you’ll need to submit your application for a South Dakota real estate license. This application goes through the South Dakota Real Estate Commission and requires several supporting documents.

To apply, follow these steps:

1. Complete the license application form on the South Dakota Real Estate Commission’s website.
2. Provide proof of passing the state exam (PSI will forward this to the Commission).
3. Submit your fingerprints and background check results. South Dakota requires a background screening, which typically costs around $43.
4. Pay the license application fee..
5. Upload sponsorship verification from a licensed real estate broker.

Make sure all materials are submitted accurately to avoid delays in processing. You can submit the application online, and most approvals take 2-4 weeks.

Step 6: Get Sponsored by a Broker

Before your license becomes active, you need to be sponsored by a licensed real estate broker in South Dakota. Your broker will mentor you and provide essential tools to launch your career, such as access to the Multiple Listing Service (MLS).

It’s important to research different brokerages and find one that aligns with your career goals. Look for a brokerage that offers support for new broker associates, including training, marketing tools, and networking opportunities.

Step 7: Receive Your South Dakota Real Estate License

Once your application is approved and you’ve secured a sponsoring broker, you will receive your South Dakota real estate license. You are now ready to start working as a licensed real estate broker associate and begin building your business.

FAQs About Getting a Real Estate License in South Dakota

How Much Do South Dakota Real Estate Broker Associates Make?

Real estate broker associates in South Dakota earn varying incomes based on experience, market conditions, and the volume of transactions they close. 

According to recent data, the median annual salary for real estate broker associates in South Dakota is approximately $77,560, with top earners in the state making over $113,630 per year. 

Broker associates starting their careers typically earn around $38,250, but those in high-demand areas and with more experience can see their income grow significantly.​

Many new broker associates begin part-time, gradually building their client base. As they gain experience and develop connections, they often transition to full-time careers, increasing their earning potential through higher sales volumes and larger networks

How Much Does a South Dakota Real Estate License Cost?

The total cost to get your real estate license in South Dakota will vary, but here’s a breakdown of typical expenses:

• Pre-licensing education: $500 - $700
• Exam fee: $98 per exam
• License application fee: $225
• Background check and fingerprinting: $43

In total, you can expect to spend between $800 and $1,000 throughout the licensing process.

Is Becoming a Real Estate Broker Associate in South Dakota Worth It?

Becoming a real estate broker associate in South Dakota can be a rewarding investment if you're willing to put in the effort. The profession offers several benefits, including a flexible schedule, unlimited income potential, and opportunities for personal and professional growth. 

Many broker associates enjoy the freedom to set their own hours and shape their business according to their personal goals. However, the career also presents challenges.

It can take time to build a client base, especially for new broker associates, and the nature of the business may require working evenings or weekends to meet client needs.

With dedication and strategic planning, many broker associates find the profession both financially and personally fulfilling. Success often comes from consistent networking, excellent customer service, and adaptability in a competitive market. 

For those who are motivated and patient, real estate in South Dakota can provide a sustainable and lucrative career path.

What Should I Know Before Becoming a Real Estate Broker Associate?

Success in real estate takes time, especially for new broker associates who often spend the first few months learning the basics and building important relationships. 

It’s not uncommon for new broker associates to face slow starts, as developing a solid reputation and client base requires patience and persistence. 

Networking plays a crucial role in the industry; personal connections with clients, other broker associates, and industry professionals can significantly impact your success. 

Cultivating these relationships through local events or referrals is essential for generating leads.

Additionally, real estate is a commission-based profession, meaning your income depends entirely on the deals you close. 

Some months might be more profitable than others, and you’ll need to manage your finances wisely to handle these fluctuations. 

Understanding these realities and preparing accordingly will help set the right expectations as you embark on your real estate career​

Can I Get a South Dakota Real Estate License if I’m Already an Agent in Another State?

South Dakota offers reciprocity agreements with the following states, simplifying the licensing process for out-of-state broker associates:

• Minnesota
• North Dakota
• Iowa

If you hold a valid real estate license in one of these states, you may be eligible for an expedited path to licensure in South Dakota. This often means fewer education requirements and potentially skipping parts of the licensing exam. 

However, you may still need to pass the state-specific portion of the South Dakota real estate exam and meet additional requirements such as securing sponsorship from a licensed South Dakota broker​.

How Often Do I Renew My South Dakota Real Estate License?

Real estate licenses in South Dakota must be renewed every two years, requiring 24 hours of continuing education (CE). 

This includes 12 hours of mandatory topics like real estate contracts, ethics, and fair housing, along with 12 elective hours on approved subjects. 

New licensees may need additional post-licensing education during their first two cycles.

Courses can be taken online, but only 8 hours per day are allowed. After completing the CE, licensees must pay a renewal fee, which varies by license type, to keep their license active. 

All licenses typically expire on November 30, depending on the issuance year.​

What Should I Do After Getting My South Dakota Real Estate License?

After obtaining your South Dakota real estate license, the first step is to join a licensed brokerage, which is mandatory to begin practicing as a broker associate. 

A brokerage provides mentorship, access to tools like the Multiple Listing Service (MLS), and support as you start building your career.

Next, building your network is essential for success. Attend local events, join real estate associations, and connect with potential clients and fellow broker associates to establish relationships. 

Additionally, continuing your education by specializing in areas such as commercial real estate or property management can open new career opportunities and increase your earning potential​

Final Thoughts on Getting a Real Estate License in South Dakota

Getting your real estate license in South Dakota is the first step toward an exciting and potentially lucrative career. 

While the process requires effort, the rewards of flexibility, independence, and financial success make it worthwhile. 

If you’re ready to get started, enroll in our partnered South Dakota real estate licensing course today and get a discount.