Broker and real estate agent licensing in South Dakota

South Dakota uses a broker-only licensing structure where every real estate licensee starts as a broker associate rather than a salesperson. To become a real estate broker in South Dakota, you must be at least 18 years old, complete a 116-hour pre-licensing course, pass the state licensing exam with a 75% score, and submit an application to the South Dakota Real Estate Commission. The terms broker and REALTOR® are not interchangeable: a broker holds a state-issued license, while a REALTOR® is a licensed professional who also belongs to the National Association of REALTORS®. South Dakota's two-tier system uses the broker associate as the entry-level license and the responsible broker as the supervisory license. Earning the full broker designation requires 2 years of active experience and an additional 24-hour course beyond the initial license.

South Dakota is a broker-only state

South Dakota does not issue a salesperson license. Under SDCL chapter 36-21A, the state offers two real estate license types for individuals: a broker associate license for new licensees and a responsible broker license for those in supervisory roles. An applicant for any real estate license must meet the statutory requirements in SDCL chapter 36-21A^[1], including age, citizenship, and education prerequisites. This structure means every South Dakota real estate licensee completes broker-level education, unlike states where salesperson education requirements are lower.

Because new licensees start as broker associates, the question of how to become a real estate agent in South Dakota leads to the broker associate pathway. A broker associate can conduct real estate transactions but must work under a responsible broker. The license stays inactive until a responsible broker contacts the commission to request activation.

The pathway to becoming a responsible broker builds on the broker associate license with additional experience and education.

Broker associate vs. responsible broker: what is the difference?

A broker associate is an entry-level licensee who conducts real estate transactions under supervision, while a responsible broker has met additional education and experience requirements and can operate independently, supervise other licensees, and manage a real estate firm. The South Dakota Real Estate Commission^[1] sets the requirements for each license type.

The application fee for both license types is $225, according to the commission's fee schedule^[2]. A license is valid for 2 years and renews for $125 per cycle.

How to become a broker associate in South Dakota

Becoming a broker associate requires completing pre-licensing education from a commission-approved provider, passing the PSI-administered licensing exam, submitting fingerprint cards for a background check, and filing a license application. The South Dakota Real Estate Commission maintains a list of approved pre-licensing education providers^[3] that offer the required course in classroom and distance learning formats.

After completing the course, candidates register for the exam through PSI or by calling 855-557-0623, per the commission's exam information page^[4]. The exam consists of 2 portions: a national section and a South Dakota state section. Testing is available at computer-based testing centers in Madison, Rapid City, and Sioux Falls.

Fingerprint cards must be submitted to the Division of Criminal Investigation (DCI) for a background check. The commission may deny a license for felony convictions, unpaid judgments, or misstatements on the application, per SDCL 36-21A-33^[1]. Broker associate applications must be submitted within 2 years of completing the pre-licensing course.

The broker associate license remains inactive until a responsible broker requests activation from the commission.

How to become a responsible broker

To upgrade from broker associate to responsible broker, you must hold an active broker associate license for at least 2 years, complete a 24-hour Responsible Broker Course, pass the licensing exam, and submit a $225 application. Under SDCL 36-21A-31^[5], the statute requires 24 additional class hours beyond the broker associate level, effective January 1, 2023.

The commission's approved education catalog includes a course titled "24 Hr Responsible Broker Course." An older administrative rule specified a lower minimum, and some education providers still reference that outdated figure. The current statute supersedes the prior rule.

The 2-year experience requirement means the licensee must have held active status as a broker associate, salesperson, or a combination for at least 2 years before applying. Out-of-state licensees who want a South Dakota responsible broker license can apply through a licensing-by-endorsement pathway, submitting a certificate of license history from each state where they hold or have held a license.

What a responsible broker can do

A responsible broker can operate an independent real estate business, supervise broker associates, manage trust accounts, and activate broker associate licenses. Every broker associate must affiliate with a responsible broker to begin practicing, because the broker associate license stays inactive until the responsible broker contacts the commission. According to the U.S. Bureau of Labor Statistics^[6], real estate brokers earned a median annual wage of $72,280 in 2024, compared to $56,320 for sales agents.

Responsible brokers who operate as a partnership, LLC, corporation, or association must also obtain a real estate firm license. The firm license application is available through the commission's licensing applications page^[7]. Active licensees must carry errors and omissions (E&O) insurance, which the commission processes through Rice Insurance Services Company (RISC), with group coverage certificates due by December 31 each year, per the commission's FAQ page^[8].

Becoming a real estate agent in South Dakota

NAR membership is separate from the state licensing process. In South Dakota, a licensee who wants to become a REALTOR® first obtains a broker associate or responsible broker license, then joins a local REALTOR® association. Membership at the local level provides automatic enrollment in the state and national REALTOR® associations. NAR reports approximately 1.4 million members nationally, with brokers and broker associates making up a significant share.

The distinction between these terms comes down to licensing versus professional association membership. "Real estate agent" is a generic term for anyone licensed to help clients buy, sell, or rent property. "Real estate broker" indicates a licensee who has met higher education and experience requirements. A REALTOR® is a broker or agent who also holds NAR membership and follows the association's Code of Ethics. In South Dakota, all licensees are brokers, so a South Dakota real estate agent is technically a broker associate.

Commercial real estate brokerage in South Dakota

Serving commercial clients in South Dakota does not require a separate license. The broker associate license covers all property types, including residential, commercial, agricultural, and industrial transactions. A licensee who wants to specialize in commercial real estate follows the same broker associate pathway and gains commercial expertise through on-the-job experience and brokerage training.

To supervise other commercial licensees or operate an independent commercial brokerage, the same responsible broker requirements apply: 2 years of active experience and the 24-hour responsible broker course.

Next steps

If you are ready to begin the licensing process, enroll in a commission-approved 116-hour pre-licensing course from the approved education provider list^[3]. After completing the course, schedule your exam with PSI, per the commission's exam information page^[4], or by calling 855-557-0623. Prepare your fingerprint cards with the $50 DCI fee, and submit your $225 application within 60 days of passing the exam. If you already hold a broker associate license with 2 years of active experience, enroll in the 24-hour Responsible Broker Course to begin the upgrade to responsible broker.