1.3 License Maintenance and Renewal

License Term and Renewal

South Dakota real estate licenses run a two-year term and must be renewed before the expiration date or the licensee may not practice. Renewal requires completing the continuing-education obligation, submitting the renewal through the SDREC online portal, and paying the renewal fee.

Continuing Education — 24 Hours Per Cycle

Active brokers and broker associates must complete 24 hours of continuing education during the preceding two license years. The catch is the topic split:

Required Subject Areas (the 12-hour core)

At least 12 hours must come from SDREC's Required topic list, which includes:

• Real estate contracts
• Real estate license law and Commission rules
• Fair housing
• Professional ethics
• Environmental issues
• Antitrust
• Americans with Disabilities Act (ADA)
• Brokerage services / agency

CE Hours By License Type

Daily Cap and Approval

Exam point: A licensee cannot cram 24 hours into a weekend — the 8-hour daily cap means CE credit is limited regardless of how long a class runs. Hours above 8 in one day are not credited.

Post-License Education for New Broker Associates

A brand-new Broker Associate carries an extra obligation on top of ordinary CE: post-license education, totaling 60 hours across the first two renewal cycles. This is a favorite distractor — candidates confuse it with regular CE.

Timing note: Period 2 begins January 1 of the year after a new broker associate completes Period 1, and must be finished within the following two license years.

Key point: Post-license education is separate from and in addition to the regular 24-hour CE requirement. Failing to complete post-license hours can block renewal even if ordinary CE is done.

Property Manager Post-License

Property managers licensed on or after January 1, 2019 must complete 30 hours of post-license education, all drawn from Required course topics.

Non-Resident Licensees

Non-resident brokers and broker associates holding a South Dakota license may be exempt from South Dakota CE if they satisfy the CE requirements of their home (resident) state and provide proof of that compliance to SDREC. The South Dakota license still renews on schedule and the fee still applies.

License Status Definitions

Knowing which statuses permit practice is heavily tested:

Trap: An inactive license is still a valid license — it simply cannot be used to conduct business until reactivated by affiliating with a Responsible Broker and meeting any CE shortfall. An expired or revoked license is a different problem entirely.

Reinstating and Reactivating

Moving from one status back to active follows different paths:

• Inactive to active: affiliate with a Responsible Broker and certify that CE is current; no exam retake.
• Expired (short lapse): typically renew late with a reinstatement fee and proof of CE, within the window SDREC allows.
• Expired (long lapse): may require re-qualifying, including re-examination, depending on how long the license sat lapsed.
• Suspended: practice resumes only after the suspension term ends and any conditions (fines, extra education) are satisfied.
• Revoked: the most severe outcome — the licensee generally must reapply as a new candidate, and SDREC may bar reapplication for a set period.

CE Audit and Recordkeeping

SDREC audits a sample of renewals each cycle. The licensee — not the school — bears the burden of proving completion, so keep CE certificates for the period SDREC specifies. Falsely certifying CE that was never completed is a disciplinary offense. Approved providers report many credits electronically, but licensees should still verify their hours posted before submitting a renewal. Plan CE early in the two-year cycle; the 8-hour daily cap plus the 12-hour Required-topic floor mean last-minute cramming cannot rescue a non-compliant licensee before the expiration date.