How to Get a Real Estate License in South Dakota

In South Dakota, real estate is still a people-first business. Whether you’re helping a family buy their first home in Sioux Falls, working with land buyers outside Rapid City, or building long-term client relationships in a smaller community, being a licensed real estate agent here means wearing a lot of hats–and being trusted to do it well. It’s a career that rewards local knowledge, consistency, and a genuine connection to the communities you serve. 

The state’s licensing process is designed to make sure new broker associates understand both the business side of real estate and the laws that protect buyers and sellers. While there are a few requirements to complete before you can start working with clients, the path itself is clear and approachable if you know what to expect. Below, we’ll break down each part of the process so you can move forward with a realistic picture of what it takes to become a licensed real estate agent in South Dakota. 

Here’s a quick look at the steps to becoming a licensed real estate agent in South Dakota:

• Be at least 18 years old
• Complete 116 hours of prelicensing education
• Complete fingerprinting and a background check
• Pass the South Dakota real estate exam
• Submit license application
• Affiliate with a licensed South Dakota real estate broker

Table of Contents

• Steps to Getting a Real Estate License in South Dakota
• South Dakota Real Estate License Renewal and Continuing Education
• South Dakota Real Estate License Reciprocity for Broker Associates

Steps to Getting a Real Estate License in South Dakota

South Dakota’s real estate licensing process follows a clear sequence, but each step must be completed in the correct order before you can legally practice as a real estate agent, known in South Dakota as a broker associate:

Step 1: Meet South Dakota’s Real Estate Licensing Requirements

Before enrolling in prelicensing education, you must meet South Dakota’s basic eligibility requirements for a real estate license. To qualify, you must:

• Be at least 18 years old
• Be a U.S. citizen or lawful resident
• Be of reputable character under state law
  

Meeting these requirements allows you to move forward with education and exam preparation.

Step 2: Complete 116 Hours of Prelicensing Education

Once you confirm eligibility, the next step is South Dakota’s prelicensing education requirement. The state mandates 116 hours of prelicensing coursework as required by the South Dakota Real Estate Commission (SDREC), which covers both national principles and South Dakota-specific real estate laws and practices. 

Prelicensing education is designed to prepare you for both the licensing exam and real-world transactions, including contracts, agency relationships, and compliance requirements. Many students choose online courses to complete their education at their own pace. 

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Step 3: Complete Fingerprinting and a Background Check

All South Dakota real estate license applicants must complete a fingerprint-based background check as part of the licensing process. Fingerprints are submitted to the South Dakota Division of Criminal Investigation and the FBI for review.

This step is required before your license application can be approved and helps ensure consumer protection across the state’s real estate industry.

Step 4: Pass the South Dakota Real Estate Exam

After completing your education and background check, you must pass the South Dakota real estate exam, administered by PSI. The exam includes:

• A national real estate portion
• A South Dakota state law portion

You must pass both sections to meet the exam requirement for licensure.

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Step 5: Submit Your South Dakota Real Estate License Application

Once you’ve passed the exam, you must submit your broker associate license application to the SDREC within the required timeframe. Your application must include: 

• Proof of completed prelicensing education
• Exam results
• Background check documentation
• Required application fees

Once reviewed and approved, your license will be issued by the SDREC.

Step 6: Activate Your License Under an Affiliate Broker

To begin practicing real estate in South Dakota, your real estate license must be activated under a licensed responsible broker. This broker will oversee your transactions and ensure you’re meeting state requirements.

Choosing the right affiliate broker matters, especially early in your career. Look for a brokerage that offers clear guidance, accessible mentorship, and training opportunities for new agents. Commission structure, technology tools, marketing support, and local market presence are also worth considering. The right affiliate broker can make a meaningful difference in how confident and prepared you feel as you start working with clients. 

Once your license is activated, you’re legally authorized to represent buyers and sellers throughout South Dakota. 

South Dakota Real Estate License Renewal and Continuing Education

South Dakota real estate licenses are renewed on a biennial cycle, and staying current with continuing education (CE) requirements is necessary to keep your license active. All real estate licenses must be renewed by November 30th of the renewal year. While the renewal process is consistent statewide, education requirements differ depending on whether you’re renewing for the first time or have already completed post-licensing education.

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First-Time License Renewal Requirements

Newly licensed broker associates in South Dakota must complete 60 hours of post-licensing education in place of standard CE. This requirement is spread across two renewal cycles and is divided into two required periods:

• Postlicense Period 1 begins as soon as your real estate license is issued. You must complete 30 hours of post-licensing education between the current license year and the following license year.
• Postlicense Period 2 begins on January 1st of the year after you complete Postlicense Period 1. During this period, you must complete the remaining 30 hours of post-licensing education within the next two license renewal cycles.

During Postlicense Period 2, broker associates are required to complete 30 hours in specific subject areas, which include:

• Real estate contracts
• Real estate license law
• Fair housing 
• Ethics
• Environmental issues
• Antitrust
• The Americans with Disabilities Act (ADA)
• Brokerage services

All post-licensing education must be completed within the required timeframes to remain eligible for license renewal and continued practice in South Dakota.

Continuing Education for Subsequent Renewals

After completing both post-licensing periods, broker associates move into South Dakota’s standard CE requirements. For each renewal cycle, licensees must complete:

• 24 hours of approved CE every two years
• At least 12 hours in required subject areas, which may include contracts, license law, ethics, fair housing, and related topics

CE must be completed by December 31st of the renewal year to avoid license issues.

South Dakota Real Estate License Reciprocity for Broker Associates

If you’re already licensed in another state and want to become a broker associate in South Dakota, it’s helpful to understand how reciprocity works. South Dakota does not have formal reciprocity agreements with any other states. This means there are no states that automatically transfer or waive all licensing requirements for South Dakota.

Instead, South Dakota offers a licensing-by-endorsement pathway for eligible out-of-state licensees. 

How Licensing-By-Endorsement Works in South Dakota

If you hold an active real estate license in another state and have passed the state’s real estate exam, South Dakota may allow you to:

• Apply for a South Dakota broker associate license without repeating prelicensing education
• Take only the South Dakota state law portion of the real estate exam
• Submit a license application, background check, and required fees

You’ll also need to provide proof that your out-of-state license is active and in good standing.