How to Become a Real Estate Agent in South Dakota

Who can apply

• Be at least 18 years old.
• Be a U.S. citizen or a resident of South Dakota.
• Be competent to transact real estate business in a way that safeguards the public.
• Pass a state and FBI fingerprint-based criminal background check.
• The Commission may deny a license for a felony or a misdemeanor involving moral turpitude, discipline by another regulator, an unpaid judgment, or misstatements on the application.

Step by step

1. Complete the 116-hour broker associate prelicensing course with a Commission-approved provider.
2. Register with PSI and pass both the South Dakota state portion and the national portion of the broker associate exam.
3. Within 60 days of passing the last exam portion, mail the broker associate application with the $225 fee. Late applications void the exam score. You must also apply within two years of finishing the prelicensing courses.
4. Include DCI and FBI fingerprint cards with a separate $50 check to DCI (South Dakota residents may use Livescan after the Commission confirms it received the application).
5. Enroll in errors and omissions insurance, either the Commission's group policy through RISC or your own policy with a certificate of coverage.
6. Have a responsible broker complete the Qualifying Broker section to activate the license. Without one, the license is issued inactive.
7. Complete 60 hours of postlicense education over your first two license periods (30 hours in each).

Official application →

Training and exam

Training: 116 classroom hours in a Commission-approved prelicensing course. The license application must be made within two years of completing the course. Applicants currently licensed in another state do not need to show proof of education. After licensure, new broker associates must complete 60 postlicense hours: 30 Required hours in Postlicense Period 1 (the current and following license year) and 30 Required hours in Postlicense Period 2 (the following two license years).

Exam: PSI. Two parts: a South Dakota state portion and a national portion. Per the PSI candidate bulletin (10/1/2023), the national portion has 90 items (100 points, some scored up to 2 points) in 150 minutes and the state portion has 52 items in 120 minutes; you need 75% on each, plus 5 to 10 unscored experimental questions. If you pass one portion and fail the other, you retake only the failed portion. The exam fee is stated inconsistently: DLR's exam page says $105 at registration, DLR's fee schedule says $294 total ($98 for each of 3 portions), and the 2023 PSI bulletin says $98. Confirm with PSI when you register. You must apply for the license within 60 days of passing.

What it costs in South Dakota

Fixed amounts are set by the state. Items marked “your quote” are priced by private sellers, so enter what you’re quoted.

How long it takes

The Real Estate Commission's application form says to allow 2 to 4 weeks for it to process your application.

What other sites get wrong about South Dakota

After you're licensed

Renewal: Licenses renew every two years. Renewal applications are due November 30; online renewal runs October 1 through June 30. A license not renewed by January 1 goes to non-renewal status, and it becomes invalid on July 1 if still not renewed. Late penalty is $20 per month. Renewal fee is $125. Active licensees need 24 hours of CE every two license years, with at least 12 in Required subjects (contracts, license law, fair housing, ethics, environmental issues, antitrust, ADA, brokerage services, property management). New broker associates instead complete the 60-hour postlicense program.

Good to know in South Dakota

Responsible broker: Your license stays inactive until a South Dakota responsible broker requests it. To activate right away, the responsible broker completes the Qualifying Broker section of your application.

E&O insurance: Every active licensee must carry errors and omissions insurance. You can enroll in the group policy through RISC (risceo.com/states/south-dakota), or file a certificate from another carrier admitted in South Dakota or your home state before the license is issued.

Out-of-state licensees: Non-residents must pass the South Dakota state exam, submit fingerprint cards with $50 to DCI, proof of E&O, and a certificate of license history from every state where they have held a license (dated within 30 days). Proof of prelicensing education is not required if you are licensed in another state.

Renewal deadlines: Continuing education and proof of group E&O coverage are due December 31 (proof of an outside E&O policy is due by your expiration date). Licensees missing either are placed on inactive status January 1 until the Commission receives it.

Sources

• SDREC — License Types & Requirements
• SDREC — Examination Information
• SDREC — Fee Schedule
• SDREC — Applications for Licensing
• SDREC — Combo License Application (Rev. 10/2026)
• SDREC — Errors & Omissions Insurance
• SDREC — License Renewal
• SDREC — Continuing Education Requirements
• SDREC — FAQ
• SDREC — Licensing Information for Non-Residents
• PSI — South Dakota Real Estate Broker Associate Candidate Information Bulletin