Becoming a Licensed Realtor in South Dakota | The Path to Success

South Dakota Realtor

In South Dakota, becoming a realtor can be an exciting and rewarding career endeavor. A realtor is a licensed professional representing buyers and sellers in real estate transactions. They often work under the supervision of brokers and are responsible for marketing properties, negotiating deals, and managing the transaction process. As a realtor, you can help people find their dream homes, navigate the complexities of the real estate market, and start an LLC in South Dakota.

However, before starting your journey to Becoming a Realtor in South Dakota, you must complete several steps to obtain your real estate license. This comprehensive guide will walk you through the entire process, so you can confidently begin your new career.

Webinarcare Editorial Team will help you gain knowledge through thorough research and market study. Before becoming a realtor in South Dakota, all the steps in this article must guide you.

What is a Realtor?

A realtor is a licensed real estate professional member of the National Association of Realtors (NAR) and adheres to their code of ethics. They may work as individuals, within a real estate brokerage, or as part of a limited liability company (LLC) or a corporation. Their services include representing buyers and sellers in real estate transactions, assisting with property management, and providing guidance on real estate investments, including rental properties.

The requirements to become a realtor in South Dakota may vary, but here are the general steps:

  1. Education: Complete the required pre-licensing real estate education courses. In South Dakota, this typically involves completing a certain number of hours of approved coursework.
  2. Examination: Pass the South Dakota-approved real estate licensing exam. The exam tests your knowledge of real estate laws, practices, and ethics. Study materials and exam preparation courses are available to help you succeed.
  3. Application: Submit a real estate license application to the South Dakota Real Estate Commission. This application includes documentation such as proof of education, exam results, background check, and fees.
  4. Background Check: South Dakota requires applicants to undergo a criminal background check. This usually involves providing fingerprints and consent for the background investigation.
  5. Join a Brokerage: Agents must work under a licensed real estate broker in South Dakota. Find a reputable brokerage that aligns with your career goals and values and provides new agents with the necessary support and mentorship.
  6. Membership: Consider joining the National Association of Realtors (NAR) and local real estate associations. Membership offers valuable resources, networking opportunities, and access to multiple listing services (MLS), simplifying clients’ buying and selling process.

It’s crucial to note that real estate licensing requirements can change, and it is recommended to check with the South Dakota Real Estate Commission for the most up-to-date and specific requirements.

Embarking on the journey to become a realtor in South Dakota is not simply about selling houses, it’s about building dreams, yours included. Take the leap and start an LLC. With every property you sell, you’re not just making a living; you’re creating a business that can evolve, grow, and create lasting success.

WEBINARCARE EDITORIAL TEAM

How to Become a Realtor in South Dakota

Suppose you’re considering becoming a realtor and want to form a professional corporation in South Dakota. In that case, it’s essential to understand the steps and requirements involved in obtaining your license and starting your professional journey. This step-by-step guide will walk you through the entire process of becoming a realtor, from understanding the requirements to choosing a brokerage.

Step 1: Understand The Requirements

Before becoming a realtor in South Dakota, you must understand the requirements to obtain your South Dakota real estate license. South Dakota has unique requirements, so it’s crucial to familiarize yourself with the specific rules and regulations. In general, to become a realtor in South Dakota, you must:

  • Be at least 18 years old.
  • Have a high school diploma or equivalent
  • Complete the required pre-license education
  • Pass the South Dakota real estate licensing exam
  • Submit your application and fees to the South Dakota real estate commission
  • Complete a background check
  • Obtain Errors & Omissions (E&O) insurance

It’s important to note that South Dakota may have additional requirements or prerequisites to become a licensed realtor. Check with the South Dakota real estate commission for the most up-to-date information.

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Step 2: Complete Pre-License Education

To become a realtor in South Dakota, you must fulfill South Dakota pre-license education requirements. Typically, this involves completing a certain number of hours of coursework from an approved real estate school. The curriculum usually covers real estate principles, practices, and laws specific to South Dakota.

When choosing a real estate school, ensuring the South Dakota real estate commission approves them is important. Many schools offer online and in-person courses, so consider your learning preferences when selecting a program. Additionally, consider the school’s reputation and course pass rates, as this can indicate the quality of their instruction. However, you can still enroll in real estate courses before your licensing exam. Here are the real estate courses and schools in South Dakota.

  • South Dakota Real Estate Commission, Real Estate Express, and The CE Shop

Step 3: Pass The Real Estate Licensing Exam

After completing the required pre-license education, the next step is to pass the South Dakota real estate licensing exam. The exam typically consists of two parts: a national portion that covers general real estate principles and a specific portion that covers South Dakota real estate laws and regulations.

To prepare for the exam, consider using study materials and practice exams provided by your pre-license education provider. Additionally, seek out other resources, such as online practice tests and exam prep books, to ensure you’re well-prepared for the test.

On exam day, bring the required identification and any necessary materials. Remember to arrive early to allow for any registration processes, and be prepared to spend several hours at the testing center. Once you’ve completed the exam, you will receive your results. If you pass, you can move on to the next step in the licensing process. If you don’t pass, don’t be discouraged. South Dakota allows multiple attempts, so take the time to review the areas where you struggled and retake the exam when ready. The exam fee is $190.

Make sure to pass the first attempt of the licensing exam.

Step 4: Submit Your Application and Fees

After passing the South Dakota real estate licensing exam, you must submit your license application and fees to the South Dakota real estate commission. The application typically requires you to provide information about your education, exam results, and background check. Be sure to complete the application accurately and thoroughly, as any discrepancies or omissions may delay the processing of your license.

The licensing fee in South Dakota costs $125. However, there are additional costs associated with processing your background check. Review the fee schedule for South Dakota and ensure you submit the correct amount with your application.

Step 5: Complete a Background Check

You must complete a background check as part of the licensing process in South Dakota. This ensures you meet the moral character requirements of the South Dakota real estate commission. The background check typically involves submitting your fingerprints and any necessary forms to the appropriate agency for processing.

Review the guidelines for South Dakota and follow the instructions to ensure your background check is completed accurately and efficiently.

Step 6: Obtain Errors & Omissions (E&O) Insurance

Obtaining Errors & Omissions (E&O) Insurance is required to obtain your real estate license in South Dakota. E&O insurance is a type of professional liability insurance that protects realtors from claims related to mistakes or negligence in their professional services.

If E&O insurance is required in South Dakota, research and select a policy that meets the state’s requirements before submitting your license application. Even if it’s not a requirement in South Dakota, it’s still a good idea to consider obtaining E&O insurance to protect yourself and your business—the costs of obtaining E&O insurance range from $500 to $1,000 per year.

Step 7: Choose a Brokerage and Start Your Career

Once you’ve obtained your South Dakota real estate license, the final step is to choose a brokerage to work under. A brokerage is a real estate firm that employs licensed agents and brokers. As a new realtor, you’ll work under the supervision of a broker who can provide guidance, support, and resources to help you succeed in your new career.

When choosing a brokerage, consider its reputation, commission structure, training and support programs, and company culture. Selecting a brokerage that aligns with your professional goals and provides an environment where you can thrive is essential. You can also find ways to become a realtor by starting a rental property LLC in South Dakota.

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Step 8: Pursue NAR membership

Join the National Association of Realtors to become a realtor. Find your local real estate association and confirm the membership criteria, including an application and an annual fee. If you join NAR, you can enroll in continuing education and other professional courses. You can also access market data and services to help you be more efficient as a realtor.

NAR

Average Income of a Realtor in South Dakota

The average income for a realtor in South Dakota varies depending on experience, location, and market conditions. Still, according to the Bureau of Labor Statistics, the median annual wage for a realtor in South Dakota is around $47,000.

FAQs

What are the requirements to become a realtor in South Dakota?
To become a realtor in South Dakota, one must be at least 18 years old, have a high school diploma or equivalent, complete 116 hours of real estate education, and pass the state and national license exams.
Can I apply for a real estate license as soon as I finish the 116-hour pre-license education?
No, you have to complete your application process, including a background check and fingerprints, before you can sit for the real estate license exam.
How much time does it take to obtain a real estate license in South Dakota?
The time to obtain a real estate license in South Dakota varies based on the individual. After completing the state-required education and passing the exam, obtaining a real estate license can take 2-4 weeks, depending on the background check.
What is the format of the real estate license exam in South Dakota?
The real estate license exam in South Dakota is a multiple-choice exam that is in a timed format.
How much does it cost to obtain a real estate license in South Dakota?
The cost of obtaining a real estate license in South Dakota includes education fees, exam fees, application fees, and fingerprints. These fees range from $700 to $900, depending on the approved pre-license education provider.
Once I become a realtor in South Dakota, what is required for maintaining my license?
To maintain your real estate license in South Dakota, you must renew your license every two years (odd-numbered years) and complete 24 hours of continuing education.
Are there any education requirements for continuing my real estate license in South Dakota?
Yes, continuing education is required to renew your South Dakota real estate license. The continuing education requirement includes a mandatory three-hour course in real estate law along with electives.
Can I choose to attend a real estate school outside of South Dakota, or does it have to be in-state?
You can attend a real estate school in-state or out of the state as long as the school and programs are approved by the South Dakota Real Estate Commission.
What kinds of topics are covered in the 116-hour pre-license education for South Dakota real estate?
The 116-hour pre-license education for South Dakota real estate covers a range of topics including legal issues, finance and contracts, tenant management, marketing, brokerage, basic math skills, and property laws.
Is taking a real estate class in-person required, or are online classes also available?
Both in-person and online pre-license education courses are available and approved by the South Dakota Real Estate Commission.
How long does it typically take to complete the 116-hour pre-license education required to become a realtor in South Dakota?
It typically takes 3-6 months to complete the 116-hour pre-license education, depending on the course schedule and class format.
Can you work as a real estate agent in South Dakota without a real estate license?
No, you must possess a real estate license to operate as a real estate agent in South Dakota.
What score do you need to pass the real estate exam in South Dakota?
To pass the real estate exam in South Dakota, you must answer a minimum of 75 out of 100 questions correctly.
How often is the real estate license exam offered in South Dakota?
The real estate license exam in South Dakota is administered year-round by Pearson Vue.
Do I need any previous professional experience to become a realtor in South Dakota?
No previous professional experience in real estate is required to obtain a real estate license in South Dakota.
Can you obtain a real estate license in South Dakota if you have a criminal record?
Special review is required for considered applicants with previous criminal activity that can indicate lack of trustworthiness and pose a threat to fiduciary integrity.
How many questions are there on the South Dakota Real Estate Exam?
The South Dakota Real Estate exam has 100 scored questions and 20 simple non-scored field questions.
How long does it take to complete post-license courses in South Dakota?
The post-license courses completion differs from student to student, but there is a minimum of twenty-four hours required.
How long is the real estate license valid in South Dakota?
Real estate licenses in South Dakota are valid for two years, after which license holders are required to apply for renewal.
What gives the South Dakota Real Estate Commission authority in the state?
The South Dakota Real Estate Commission rules and regulations on Real Estate industry practice in the state as mandatedbby SDCL § 36-21A of The Law of South Dakota.
When does the South Dakota Real Estate Commission inspect real estate brokerages?
The South Dakota Real Estate Commission has the mandate to inspect real estate brokerages the latest after every two years.
How long does it take to receive your real estate license after passing the examination?
After felonly results are approved, it typically takes between 3-6 weeks to receive your realtors license in South Dakota.
Is the continuing education mandatory to work as a realtor in South Dakota?
Yes, continuing education is mandatory to renew realtors license in South Dakota.
Does South Dakota have a reciprocal real estate license affilitation with other states?
Yes. While South Dakota has unlimited reciprocity with Arizona, Iowa, Minnesota, Montana, Nebraska., and North Dakota, it carefully assesses applications coming from other places.
When should one start studying for the South Dakota Real Estate exam?
Most classes providedlast upto six months, starting your studies early increases your chances of completing in time.
When does a realtor application rejection by the South Dakota Real Estate Commission appeal become possible?
Rejected applicants may submit a written request for hearing and are given the right for appeal.
How are criminal cases identified during realtor license approval processes?
Applicants have to provide evidences of criminal history/records., convictions and other run-ins with law enforcing institutions within and out of the state.
Are continuing education carryover credits possible in South Dakota for renewal purpose?
Continuing education carryover credits are not approved in South Dakota.
Are there benefits attached to taking allied courses when taking South Dakota real estate license courses?
taking allied courses along your give you positives skill that can help in organizing and decision making and other related fields.
What are the forms that a candidate must submit to become a realtor in South Dakota?
Candidate applying for realtorship must submit the following; licensing application, learning outcome verification letter, fingerprints card, and national criminal history record check and identity check.

Also Read

How to Save Money While Starting a Becoming Realtor in South Dakota

One of the first steps to saving money as a new realtor in South Dakota is to carefully research and compare the various licensing options available. While becoming licensed is a necessary expense, it’s worth exploring different courses and programs to find one that offers the most affordable yet quality education. By choosing a cost-effective licensing option, you can reduce your upfront expenses and start your new career on a budget.

In addition to saving money on licensing, it’s important to carefully consider the tools and resources you’ll need as a realtor. While it can be tempting to invest in the latest technology and flashy marketing materials, these expenses can quickly add up. Instead, focus on the essentials, such as a reliable laptop, a professional website, and access to a reputable real estate database. By prioritizing the tools that will directly impact your success as a realtor, you can save money while still establishing a strong foundation for your business.

Marketing is another area where new realtors often overspend in an effort to quickly build their client base. However, there are cost-effective ways to promote yourself and attract potential customers. Utilizing social media platforms, networking with other professionals in the industry, and creating informative content are all excellent ways to market yourself without breaking the bank. By developing a strategic and targeted marketing plan, you can effectively reach your target audience while staying within your budget.

Another key strategy for saving money as a new realtor in South Dakota is to take advantage of free or low-cost resources. Networking events, educational seminars, and professional development opportunities are all valuable ways to grow your skills and knowledge without spending a lot of money. Additionally, seeking out mentorship from experienced real estate agents can provide valuable guidance and support at no cost to you. By leveraging the resources available to you, you can continue to learn and grow in your new career without draining your finances.

Finally, it’s essential to prioritize financial planning as you embark on your journey as a realtor in South Dakota. Setting a budget, tracking your expenses, and establishing a savings plan can help you stay on track and avoid unnecessary financial stress. By being mindful of your spending and prioritizing your financial well-being, you can confidently navigate the challenges of starting a new career while still saving money for the future.

In conclusion, starting a career as a realtor in South Dakota doesn’t have to break the bank. By carefully researching licensing options, prioritizing essential tools and resources, developing a strategic marketing plan, utilizing free resources, and practicing financial planning, you can save money while still setting yourself up for success in the real estate industry. By being mindful of your spending and making strategic decisions, you can achieve your goals as a realtor without compromising your financial stability.

Conclusion

Becoming a realtor in South Dakota is a rewarding career choice that offers flexibility, the potential for financial success, and the opportunity to help people navigate the complex world of real estate. Following the steps outlined in this guide and dedicating yourself to learning and growth, you can embark on a successful and fulfilling career as a realtor in South Dakota.

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