1.2 South Dakota License Requirements
Key Takeaways
- Broker Associate applicants must be at least 18 and a U.S. citizen or qualified resident, and pass a fingerprint-based background check.
- Pre-license education is 116 hours: 100 hours national content plus 16 hours of South Dakota content that must be completed in a live classroom.
- The PSI exam has 142 scored questions (90 national + 52 state) and runs 4.5 hours total; you must score 75% on EACH portion separately.
- The exam fee is $105 per sitting and the registration stays valid 12 months; you must apply within 60 days of passing or the score voids.
- Responsible Broker requires roughly two years of active experience plus 24 additional approved hours on top of the original 116.
Broker Associate License Requirements
South Dakota issues a Broker Associate license only after an applicant satisfies five gates: eligibility, education, examination, background check, and a timely application.
1. Eligibility
- Be at least 18 years of age.
- Be a U.S. citizen or otherwise lawfully eligible, and meet residency/identity requirements per SDCL 36-21A.
- Demonstrate honesty, truthfulness, and good reputation — SDREC reviews criminal history for suitability.
2. Pre-License Education — 116 Hours
Complete 116 hours of SDREC-approved pre-license education. The hours split into a national block and a live-classroom South Dakota block:
| Course Content | Hours | Delivery |
|---|---|---|
| National principles and practices | 100 | Online or classroom |
| South Dakota law and practice | 16 | Live classroom required |
| Total | 116 | — |
High-yield trap: The 16 South Dakota hours cannot be completed online — they must be live/classroom. A candidate who took 116 hours entirely online has NOT met the requirement.
3. The Licensing Exam (PSI)
The exam is delivered by PSI at test centers in Sioux Falls, Rapid City, and Madison (or online proctored where offered). It is two separately scored parts you must each clear:
| Detail | Value |
|---|---|
| Total scored questions | 142 multiple choice |
| National portion | 90 questions |
| State portion | 52 questions |
| Total time | 4.5 hours |
| Passing score | 75% on EACH portion |
| Minimum to pass National | 68 of 90 correct |
| Minimum to pass State | 39 of 52 correct |
| Exam fee | $105 per sitting (valid 12 months) |
Because the portions are scored independently, you can pass one and retake only the other within the 12-month registration window — a frequent exam point.
4. Background Check
Applicants submit fingerprints for a state and federal criminal background check processed through the Division of Criminal Investigation (DCI) and the FBI. Budget a separate fingerprint/background fee (commonly about $43.25, paid to the fingerprint vendor). A criminal record is not an automatic bar; SDREC weighs it for suitability. Disclose past convictions honestly — concealing them is itself grounds for denial.
Worked Example: Passing-Score Math
Because the cut score is a flat 75% per portion, you can compute the minimums directly. On the national portion, 75% of 90 = 67.5, which rounds up to a required 68 correct. On the state portion, 75% of 52 = 39, so you need 39 correct. A candidate who scores 70 on national but only 36 on state has failed even though the combined raw total (106 of 142, about 75%) looks like a pass — the portions never average together. This is the single most common scoring misconception on the South Dakota exam.
Responsible Broker License Requirements
To upgrade from Broker Associate to Responsible Broker (the license that lets you run a brokerage and hold the trust account), you must layer experience and education onto the original requirements.
| Requirement | Detail |
|---|---|
| Experience | Roughly two years of active licensed real estate experience |
| Additional education | 24 approved hours of responsible-broker / broker coursework |
| Cumulative education | 116 (pre-license) + 24 = 140 hours |
| Examination | Pass both national and state portions at 75% each |
| Trust account | Must establish and reconcile a compliant trust (escrow) account |
Fees at a Glance
Verify current amounts on the SDREC site before you pay — fees change. As of 2026:
| Fee Type | Amount |
|---|---|
| Exam fee (PSI) | $105 per sitting |
| Original license / application fee | set by SDREC fee schedule (commonly around $225) |
| Fingerprint / background check | about $43.25 to the vendor |
Application Process — Step by Step
- Complete 116 hours at an SDREC-approved school (16 SD hours live).
- Pass the course final at the school's required threshold.
- Submit fingerprints for the background check.
- Register and pay the $105 PSI exam fee; schedule a seat.
- Pass both portions at 75% each (retake only the failed portion if needed, within 12 months).
- Apply to SDREC within 60 days of passing — see deadline below.
- Pay the original license fee and submit required forms.
- Affiliate with a Responsible Broker who activates your license.
Critical deadline: File the Broker Associate application within 60 days of passing the exam. Miss it and the passing score is void — you must retake (and re-pay) the exam. This 60-day rule is one of the most tested state facts.
Common Application Mistakes
| Mistake | Consequence |
|---|---|
| Took all 116 hours online | SD's 16-hour block must be live classroom; education rejected |
| Waited 70 days to apply after passing | Passing score voided; must retake the exam |
| Listed no Responsible Broker | License issues but stays inactive — cannot practice |
| Concealed a prior conviction | Grounds for denial independent of the underlying offense |
| Let exam registration sit past 12 months | $105 registration forfeits; re-register and re-pay |
Affiliation rule: A Broker Associate's license is issued to the individual but held under a Responsible Broker. You cannot list, show, or close for compensation until your Responsible Broker has activated your affiliation with SDREC. Changing firms requires a transfer — your old broker releases you and the new Responsible Broker re-affiliates the license before you may work for them.
A candidate completed all 116 pre-license hours through a fully online program. Why might SDREC reject the education?
On the PSI exam, a candidate passes the national portion but fails the state portion. What is the correct outcome?
How long after passing the exam does an applicant have to file the Broker Associate application before the score is voided?