Free South Dakota Real Estate Practice Exam

Q1.In South Dakota, what is the consequence for a broker who commingles personal funds with trust account funds beyond the allowed amount?

• A.Automatic license suspension
• B.Mandatory additional education only
• C.Subject to disciplinary action by the Real Estate Commission
• D.Civil penalties but no license consequences

Q2.Under South Dakota real estate law, what is the maximum commission rate a broker may charge?

• A.6% of the sale price
• B.8% of the sale price
• C.10% of the sale price
• D.No maximum rate is specified by law

Q3.A property is described as 'the NW 1/4 of the SE 1/4 of Section 12, Township 3 North, Range 2 East.' How many acres does this property contain?

• A.20 acres
• B.40 acres
• C.80 acres
• D.160 acres

Q4.Under South Dakota law, which of the following would constitute grounds for disciplinary action against a broker's license?

• A.Failing to complete continuing education by the renewal deadline
• B.Commingling client funds with personal funds
• C.Making substantial misrepresentations to clients
• D.All of the above

Q5.A South Dakota buyer wants to cancel a purchase agreement due to unsatisfactory inspection results. The inspection contingency deadline was February 15th, but the buyer didn't receive the inspection report until February 18th due to weather delays. The buyer notifies the seller of cancellation on February 20th. What is the likely outcome?

• A.The buyer can cancel because the delay was due to weather
• B.The buyer cannot cancel because the deadline has passed
• C.The buyer can cancel only if the seller agrees
• D.The contract is automatically void due to the weather delay

Q6.Under the Equal Credit Opportunity Act (ECOA), which of the following information may a lender NOT consider when evaluating a mortgage application?

• A.The applicant's employment history
• B.The applicant's credit score and payment history
• C.The applicant's plans for childbearing
• D.The applicant's debt-to-income ratio

Q7.Which federal agency has primary authority over environmental site assessments and contaminated property cleanup?

• A.Department of Housing and Urban Development (HUD)
• B.Federal Trade Commission (FTC)
• C.Environmental Protection Agency (EPA)
• D.Consumer Financial Protection Bureau (CFPB)

Q8.Under South Dakota regulations, what constitutes adequate supervision when a broker has agents working from multiple locations?

• A.Monthly phone calls with each agent
• B.Quarterly in-person office visits
• C.Regular contact, transaction review, and availability for guidance consistent with the complexity and experience level of each agent
• D.Annual performance reviews only

Q9.According to South Dakota Real Estate Commission rules, what must a licensee do if they witness another licensee engaging in discriminatory practices?

• A.Ignore it unless directly asked about it
• B.Report it to the South Dakota Real Estate Commission
• C.Confront the licensee privately first
• D.Report it only if a complaint is filed

Q10.Under South Dakota law, when does the statute of limitations begin to run for challenging a deed based on fraud?

• A.From the date the deed was executed
• B.From the date the deed was recorded
• C.From the date the fraud was discovered or reasonably should have been discovered
• D.From the date possession was taken under the deed

Q11.A property's net operating income is $120,000 annually, and similar properties are selling at a capitalization rate of 8%. Using the income approach, what is the estimated property value?

• A.$960,000
• B.$1,200,000
• C.$1,500,000
• D.$1,800,000

Q12.A property is discovered to have underground storage tanks that leaked petroleum products. Which federal law primarily governs the cleanup and liability for this environmental contamination?

• A.Clean Water Act
• B.CERCLA (Superfund)
• C.Resource Conservation and Recovery Act
• D.Toxic Substances Control Act

Q13.Which federal law requires disclosure of lead-based paint hazards in residential properties built before 1978?

• A.Fair Housing Act
• B.Truth-in-Lending Act
• C.Residential Lead-Based Paint Hazard Reduction Act
• D.CERCLA

Q14.In South Dakota, which of the following situations would automatically terminate a listing agreement?

• A.The property is damaged by fire
• B.The property owner files for bankruptcy
• C.The property owner dies
• D.The property fails to sell within 60 days

Q15.When a property management agreement in South Dakota includes authority to sign leases on behalf of the owner, this authority must be:

• A.Implied from the management relationship
• B.Specifically granted in writing
• C.Approved by the Real Estate Commission
• D.Limited to leases under one year only