How to become a broker and real estate agent in South Dakota

Getting a real estate license in South Dakota means earning a broker associate license, the state's entry-level credential for anyone who wants to work as a broker and real estate agent. South Dakota is a "broker only" state, which means there is no separate salesperson license. The path requires finishing the required 116-hour education course from a commission-approved school, passing a three-portion licensing exam, filing a license application with a background check, and activating the license under a responsible broker.

South Dakota's broker-only licensing structure

South Dakota operates under a broker-only licensing system where the entry-level credential is the broker associate license, not a salesperson license. Every real estate professional in the state begins at the broker associate level, whether they plan to work in residential, commercial, or agricultural transactions. The broker associate license lets you handle real estate transactions, but a responsible broker oversees your work and holds a higher-level license that requires more education and experience.

The South Dakota Real Estate Commission, located at 217 W. Missouri Ave. in Pierre, administers the Real Estate Licensing Act under South Dakota Codified Law (SDCL) chapter 36-21A^[1]. The commission sets education standards, issues licenses, and enforces practice rules for broker associates, responsible brokers, auctioneers, property managers, residential rental agents, and home inspectors. The commission can be reached at 605-773-3600 or dlr.realestate@state.sd.us.

To upgrade from broker associate to responsible broker, a licensee must hold active broker associate status for at least 2 years, complete additional education, and pass the broker-level exam. The responsible broker assumes legal accountability for the broker associates they supervise.

The overall timeline from starting pre-licensing education to license activation varies based on study pace, exam scheduling, and application processing.

Who qualifies for a South Dakota real estate license

To qualify for a broker associate license, you must be at least 18 years of age, be a U.S. citizen or a resident of South Dakota, and meet the statutory requirements under SDCL chapter 36-21A^[1]. The commission does not require a high school diploma or GED for licensure. Applicants must also complete the required pre-licensing education and pass the licensing exam.

The statute lists specific grounds for denial under SDCL 36-21A-33^[1], including conviction of a felony, unpaid judgments, and material misstatements on the application. The commission reviews each applicant's background to determine whether the applicant is of reputable character and competent to transact real estate business in a manner that safeguards the public interest.

Complete the required pre-licensing education

Before registering for the licensing exam, you must finish a 116-hour pre-licensing course approved by the commission. The course covers real estate principles, contracts, license law, fair housing, and brokerage services, as outlined on the approved pre-licensing education page^[2]. The exam information page also notes that broker associate applications must be submitted within 2 years of finishing the pre-licensing coursework.

Course costs vary by provider and format. The total cost of licensing, including education, exam, application, and insurance fees, is covered in a separate guide.

Take the broker associate licensing exam

The broker associate licensing exam consists of three portions administered by PSI Services LLC: a national multiple-choice exam, a state multiple-choice exam, and a broker simulation exam. The SD Real Estate Commission fee schedule^[3] confirms three exam portions, each carrying a separate fee payable to the testing company. Candidates must score 75% or higher on each portion to pass, as stated on the license types and requirements page^[1].

Candidates schedule the exam through PSI's online scheduling portal or by calling 855-557-0623, as listed on the commission's exam information page^[4]. Computer-based testing centers are located in Madison, Rapid City, and Sioux Falls.

After passing all three portions, you have 60 days from the date of notice of passing to file a license application. If you pass the portions on different dates, the 60-day window starts from the last portion passed. If you do not file within 60 days, your passing score rights are forfeited.

File your license application

The broker associate license application requires a $225 fee, a $50 fingerprint-based background check, proof of errors and omissions (E&O) insurance, and a completed application form. The application forms^[5] are available as fillable PDFs on the commission's website. The $50 background check fee, effective October 1, 2025, is payable to the Division of Criminal Investigation, per the non-resident licensing page^[6].

Fingerprint cards must be requested from the Real Estate Commission, completed at a law enforcement agency or local fingerprint office, and returned to the commission with the processing check. An electronic Livescan option is also available for fingerprint submission. E&O insurance is required for all active licensees and can be obtained through the commission's group policy or a private insurer.

Activate your license under a responsible broker

Your license stays inactive until your sponsoring responsible broker asks the commission to activate it. You cannot conduct real estate business until activation occurs. The responsible broker supervises your work and holds legal accountability for your conduct as a broker associate.

For non-resident applicants, the responsible broker must obtain a South Dakota broker license, and if the company is a partnership, LLP, corporation, LLC, or association, a firm license must also be obtained, according to the non-resident licensing page^[6]. Non-resident applicants must also submit a certificate of license history from each state where they hold or have held a real estate license, dated within the last 30 days. South Dakota does not have formal reciprocity agreements with any specific states but offers an endorsement pathway for out-of-state licenseholders.

Post-licensing education and ongoing requirements

New broker associates must complete 60 hours of post-licensing education divided across their first two active license cycles, per the continuing education requirements page^[7]. Postlicense Period 1 requires 30 hours of required continuing education, completed between the current license year and the following license year. Postlicense Period 2 requires an additional 30 hours, completed within the two license years following Period 1.

After post-licensing education, licensees must complete 24 hours of continuing education every 2 years to maintain an active license, with at least 12 hours in required subject areas. Licenses renew every 2 years, with renewal applications due by November 30. Renewal, continuing education, and the broker upgrade pathway are covered in separate guides.

Becoming a real estate agent in South Dakota

REALTOR® membership is a voluntary professional designation separate from state licensure. It requires joining the National Association of REALTORS®^[8] through a local South Dakota board, which also enrolls you in the South Dakota Association of REALTORS®^[9] (SDR). Members agree to follow the NAR Code of Ethics and pay dues at the local, state, and national levels.

REALTORS® must complete ethics training and fair housing training every three years, per NAR requirements. Membership provides access to the Multiple Listing Service (MLS), professional development resources, and the REALTOR® brand.

Next steps

Start by reviewing the approved pre-licensing education providers^[2] on the commission's website and choosing a course format that fits your schedule. Once enrolled, complete the education requirement and schedule your exam. After passing, file your application within 60 days, complete the fingerprint background check, secure E&O insurance, and connect with a responsible broker to activate your license. Contact the South Dakota Real Estate Commission at 605-773-3600 or dlr.realestate@state.sd.us with questions about any step.