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Real Estate License Online in South Dakota (A Complete Guide)

Last updated on August 5, 2021

Real Estate License Online in South Dakota

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As homeownership needs arise in South Dakota, the real estate industry is becoming a popular form of employment. Not only that but real estate agents are needed more than ever.

If you’re interested in this career path, you first need to obtain a real estate license. 

However, the process behind getting a license can be confusing, considering the number of requirements you have to go through before you can get your hands on a real estate license. 

Don’t worry!

In this article, I’ve compiled a complete 2021 guide on how to get a real estate license online in South Dakota. With this, you’ll know exactly what to do. 

So let’s get started right away.

Note: real estate agents/salespeople are referred to as Associate Brokers in South Dakota, while a real estate broker is referred to as a Responsible Broker.

Real Estate License Qualifications in South Dakota

To qualify to get a real estate license, you must: 

  • Be at least 18-years old
  • Hold a high-school diploma or GED
  • Be a US citizen or legal alien

Yep, that’s all you need! 

The 6 Steps to Getting a Real Estate License Online in South Dakota

Now, to fully understand the requirements, we’ll provide a step-by-step guide. Here’s a summary of the steps:

Step 1: Take a real estate pre-licensing course

Step 3: Pass the South Dakota real estate exam

Step 2: Complete a background check

Step 4: Obtain Errors and Omissions Insurance

Step 5: Apply for a real estate license

Step 6: Gain broker sponsorship

Let’s get into the details.

Step 1: Take a real estate pre-licensing course

Before anything else, you must take a 116-hour real estate pre-licensing course in an approved real estate school. 

Now, to gain a course certificate of completion, most schools will have an end-of-course exam that you need to pass. This is to see if you really learned anything.  

The great news is that you can take 100 hours of the pre-licensing course online! 

Note: the 16 remaining hours must be completed in person at the South Dakota School of Real Estate located in Sioux Falls.

If you’re looking for a reliable online real estate school, we highly recommend Global Real Estate School. They offer all 100 hours of real estate pre-licensing courses, more than most online real estate schools in South Dakota. 

With this, you’ll be able to study most of your educational requirements from the comfort of your home! 

Step 2: Pass the South Dakota real estate exam

After you’ve completed the pre-licensing course and received your certificate of completion, you’ll be eligible to sit for the South Dakota real estate exam. 

To apply and schedule for the exam, you can do that online through the PSI website

Note: you need to create an account with the PSI to apply/schedule from there.

Now, the South Dakota real estate exam has 2 parts - the Broker Multiple-Choice Exam and the Broker Simulation Exam. 

For the Broker Multiple-Choice Exam, you have to answer 105 out of 140 questions correctly to pass (that’s a score of 75%). You’re given 3.5 hours to complete it. 

The Broker Simulation Exam gives you 10 problems that you have to solve within 3.5 hours. Again, you need a score of at least 75% to pass. 

When arriving at the examination center, be at least 15 minutes early, or else you won’t be admitted. Also, don’t forget to bring 2 forms of identification, your course completion certificate, and an examination fee of $98. 

For more information regarding the procedures and exam, consult the PSI handbook.

Step 3: Complete a background check

The next step is to submit a background check. This will require sending copies of your fingerprints to the South Dakota Real Estate Commission (SDREC). 

To do so, you may contact SDREC and request the fingerprint packet or you can fill out this form and have the copies mailed to you. 

Note: the form will be mailed along with your other documents in the final application.

In South Dakota, while felons are eligible for a real estate license, the decision will rest with the Commission They will judge your trustworthiness based on when the crime was committed and the severity of the crime.  

Step 4: Obtain Errors and Omissions Insurance

Then, you will have to apply for Errors and Omissions Insurance. You can obtain that here

This insurance protects you, the Associate Broker, from any lawsuits based on negligence or errors that you may have committed.

For more information on this, visit the SDREC website.

Step 5: Apply for a real estate license

When all that’s done, you can now apply for your real estate license.

For this process, you need to complete the license application form. Then, mail it, along with your fingerprints, original proof of course completion certificate, exam score reports, E&O insurance, and a cheque amounting to $225 and a cheque of $43.25 (to the Division of Criminal Investigation DCI) to:

South Dakota Real Estate Commission

221 W. Capitol Ave Suite 101

Pierre, South Dakota 57501

The application may take 2 to 4 weeks to process due to conducting the background check.

Step 6: Gain broker sponsorship

When you receive your real estate license, it will still be inactive. 

To activate it, you need to get a sponsoring Principal Broker. 

Note: if you want to receive an active real estate license right away, you must find a Principal Broker before applying for your real estate license (step 5).

Usually, people rush through this process in order to get started ASAP. 

However, you should take time to evaluate all local options based on their credibility, commission structure, and corporate culture.

Different brokerage firms may have different requirements when it comes to agents. Some firms may expect agents to work a 9 to 5 and dress formally to work, while others may be more flexible giving their agents the freedom to decide how they want to work.

Real Estate License in South Dakota FAQs

How long is the real estate pre-licensing course in South Dakota?

In South Dakota, the pre-licensing course is a total of 116 hours. You can take 100 hours online, while the remaining 16 hours should be taken in the South Dakota School of Real Estate. 

Does South Dakota require real estate post-licensing courses?


New Associate Brokers are required to take 60 hours of real estate post-licensing courses within the first 2 years of their license. 

Get more info on this here. 

When do I have to complete real estate continuing education courses in South Dakota?

In South Dakota, you’ll have to complete a total of 24 hours of real estate CE courses every 2 years in order to renew your license. 

If you’re looking for a great online CE course, we recommend the ones offered by McKissock.

Real Estate License Online in South Dakota (A Complete Guide) McKissock

This online real estate school offers the best value for money. I mean, for $260, you get unlimited access to all CE courses in the state, plus 100+ job aides, a boot camp, coaching tools, and other cool resources. This school aims to help you succeed in your career.  


So, if you’re looking to get a real estate license in South Dakota, the 6 steps listed above contain everything you need to know about the process in the state.

So what are you waiting for?

Apply for a real estate pre-licensing course today and get started on your journey to financial freedom!

Good luck!

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