South Dakota Real Estate Exam Prep / Questions & Expertly Verified Answers, 2025/ 2026.Mark, a licensed broker, procures a ready, willing, and able buyer for his seller- principal. The seller accepts the buyer's offer in writing, the experiences a change of heart and withdraws the acceptance. In this situation, Mark - Answer: is entitled to collect a commission.A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? - Answer: Yes, if the buyer and seller both give their consent to limited agency.A seller's listing agreement has expired, and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent - Answer: cannot disclose to buy the buyer offers received on the seller's property while it was listed with him.A real estate salesperson has been working with buyers. After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this lender? - Answer: No, because this would be an unwise referral A buyer contacts a real estate office and indicates an interest in purchasing a nearby home.Without entering into a buyer agency relationship with the buyer, a salesperson from the real estate office can do all of the following EXCEPT - Answer: prequalify the buyer for a mortgage A buyer prospect is interested in seeing two houses listed with ABC Real Estate company but does not wish to enter into a buyer agency agreement. A salesperson from ABC Real Estate 1 / 4
Company can show the buyer an in-house listing if the - Answer: Salesperson provides the buyer with an agency disclosure that ABC Real Estate Company represents the seller.In South Dakota, an exclusive-right-to-represent buyer contract - Answer: Must be indicated as such in the buyer agency agreement.Buyer-brokerage contracts in South Dakota - Answer: must be in writing to be enforceable.All of the following provisions are included in the South Dakota Real Estate Commission's rules regarding listing agreements EXCEPT that - Answer: A listing agreement must be accompanied by a qualified expert's report of the property's condition .Which of the following types of agency are recognized in South Dakota? - Answer: Seller, buyer, and limited agency In a limited agency situation, a broker may collect a commission from both the seller and the buyer if - Answer: Both parties give their informed consent to the limited compensation.A buyer in interested in seeing a house listed with XYZ Realty but does not wish to enter into an agency relationship. A salesperson from LMN Realty can show the buyer the house if - Answer: XYZ Realty obtains the seller's written consent to sub agency.When is a seller required to give a buyer a property condition disclosure report? - Answer: Seller is not assisted by the licensed real estate licensee Seller property condition disclosures must be delivered to the buyer - Answer: prior to the buyer making a written offer.A seller has no knowledge of any plumbing system problems on the property she is selling. In actuality, however, the pipes are seriously corroded and will soon need to be replaced. In the 2 / 4
seller property condition disclosure, when responding to whether the seller has any knowledge
of plumbing system problems, she should respond - Answer: "unknown."
In South Dakota, when a broker is listing a home and asks the seller to complete a property condition disclosure, which of the following statements is true? - Answer: Seller disclosure of known property conditions is required by South Dakota statute.Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. AS the agent for the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B? - Answer: You are specifically relieved of liability for nondisclosure of either by South Dakota license law.A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must - Answer: Inform the owner in writing that the salesperson is a license before making an offer.Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof. Under these facts, the buyer - Answer: can sue the broker for nondisclosure required by the license law.A real estate licensee the agency disclosure must be given to prospective purchasers/tenants -
Answer: before they are shown more than one property .
A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants; rather, the licensee receives a commission from the land-lords. The licensee tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking.Which of the following statements is true? - Answer: The licensee's disclosure violated the statutory duties owned to the tenant. 3 / 4
All of the following are exempt from the Property Disclosure Act EXCEPT a - Answer: Sale by a real estate licensee of a two-unit residential property.A buyer and seller have agreed to limited agency representation. Legally, the salesperson may - Answer: provide comparable market data to the buyer, after the seller has given written permission to disclose this information.A buyer who is a client of a broker wants to purchase a house that the broker has listed for sale.Which of the following statements is true? - Answer: The seller and buyer must be informed of the situation and agree to the broker's representing both of them.A real estate broker representing a seller knows that the property has water damage in the basement and that one of the tenants in the neighboring apartment building is a registered sex offender. The broker must disclose - Answer: The water damage, but not the presence of the registered sex offender.In South Dakota, the real estate license law is administered by the - Answer: South Dakota Real Estate Commission How are members of the South Dakota Real Estate Commission selected? - Answer: By the governor.The South Dakota Real Estate Commission has the authority to - Answer: make and enforce the rules by which all real estate licensees must abide.The South Dakota Real Estate Commission may undertake an investigation of a licensee based on all the following grounds EXCEPT - Answer: A random selection of licensees.
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