Free South Dakota Real Estate Practice Exam

Q1.A South Dakota salesperson places an advertisement for a listed property on a social media website. Under South Dakota Commission rules, what must the advertisement include?

• A.The salesperson's personal cell phone number as the primary contact
• B.The name of the brokerage firm with which the salesperson is affiliated
• C.The full legal description of the property
• D.The seller's name and contact information

Q2.Under SDCL 36-21A-125 and SDREC disclosure rules, a South Dakota broker is representing a seller and becomes aware that the property's basement has a history of recurring water intrusion that the seller has not volunteered. The broker's buyer-client has not specifically asked about water issues. What is the broker's statutory obligation?

• A.The broker must disclose the known material adverse fact about the water intrusion to the buyer regardless of whether the buyer asked, because SDCL 36-21A-125 requires disclosure of all known material facts that adversely affect the value or desirability of the property
• B.The broker has no duty to disclose because the seller's agent owes fiduciary duties only to the seller, and disclosing the defect without the seller's consent would breach those duties under South Dakota law
• C.The broker is only required to disclose the water intrusion if the buyer or buyer's agent submits a written inquiry about water or basement conditions on the SDREC-approved disclosure form
• D.Disclosure is permissive, not mandatory; the broker may choose to disclose or remain silent based on the broker's professional judgment about materiality

Q3.A managing broker is reviewing her office's lending referral practices. One of her salespersons tells a Hispanic buyer that the firm only works with lenders who serve 'established neighborhoods,' effectively steering the buyer away from certain loan products in minority-concentrated census tracts. Under federal law, the managing broker's FIRST obligation is to:

• A.Immediately cease the practice, retrain the salesperson, and evaluate whether discriminatory referrals must be reported or remedied under the Fair Housing Act.
• B.Document the salesperson's statement in the transaction file and wait for a formal HUD complaint before taking action.
• C.Advise the buyer to contact HUD directly since the conduct was the salesperson's alone and does not create broker liability.
• D.Transfer the buyer's file to a different salesperson without disclosing the reason to maintain client confidentiality.

Q4.Under the Fair Housing Act, which statement about familial status discrimination is correct?

• A.Housing designated for seniors (62 and older) is exempt from familial status requirements
• B.Landlords can refuse to rent to families with children if the property has lead-based paint
• C.Pregnant women are not protected under familial status provisions
• D.Landlords can charge additional security deposits for families with children

Q5.Under SDCL Chapter 36-21A, which of the following statements about the appointment of South Dakota Real Estate Commission members is most accurate?

• A.Commission members are appointed by the Governor and serve staggered terms
• B.Commission members are elected by licensed real estate brokers statewide
• C.Commission members are appointed by the State Legislature and confirmed by the Governor
• D.Commission members serve indefinitely until they voluntarily resign

Q6.Under the Equal Credit Opportunity Act (ECOA), it is illegal for a lender to discriminate against a loan applicant based on which of the following?

• A.Credit history
• B.Marital status
• C.Income level
• D.Employment history

Q7.Under SDCL Chapter 36-21A, how many members serve on the South Dakota Real Estate Commission?

• A.Five members
• B.Seven members
• C.Nine members
• D.Three members

Q8.Under SDCL Chapter 36-21A, which of the following is a South Dakota supervising broker's responsibility regarding a salesperson licensed under their supervision?

• A.The broker is responsible only for the salesperson's actions during open houses but not during private showings
• B.The broker must actively supervise the licensed activities of all salespersons associated with the brokerage and may be disciplined for failure to do so
• C.The broker's supervisory duty ends once the salesperson completes their post-licensing education
• D.The broker is only liable for salesperson misconduct if the broker had actual knowledge of the misconduct at the time it occurred

Q9.A South Dakota buyer's agent is preparing to show property to a new client for the first time. Under SDCL Chapter 36-21A, when must the agent provide the required agency disclosure to this client?

• A.Before the buyer signs any purchase offer
• B.At the time of first substantive contact with the buyer
• C.Only after an agency agreement has been signed
• D.Within 24 hours of the first property showing

Q10.Wire fraud in real estate transactions most commonly occurs when:

• A.A seller fails to pay off an existing mortgage at closing
• B.A buyer's lender miscalculates closing costs
• C.A title company fails to record the deed within 24 hours
• D.A cybercriminal intercepts email communications and sends fraudulent wiring instructions

Q11.Under the Fair Housing Act, which of the following actions by a landlord would be considered illegal discrimination?

• A.Refusing to rent to a tenant because they have a criminal conviction for drug manufacturing
• B.Refusing to allow a tenant with a disability to install grab bars in the bathroom at their own expense
• C.Requiring all tenants to have renters insurance
• D.Charging a security deposit equal to one month's rent

Q12.South Dakota law requires licensees to provide an agency disclosure to prospective buyers and sellers. Under SDCL 36-21A-134, at what point must this disclosure be made?

• A.At or before the time of making or accepting an offer to purchase
• B.Only at the closing of a real estate transaction
• C.Within 24 hours after the first substantive contact with a prospective buyer or seller
• D.At the first scheduled showing of a listed property

Q13.Under South Dakota law, the Real Estate Commission initiates a formal investigation against a broker based on a written complaint alleging misappropriation of trust funds. The broker demands immediate access to all investigative files and witness statements compiled by Commission staff before any hearing is scheduled. Which statement most accurately reflects the Commission's authority and the broker's rights at this stage under SDCL Chapter 36-21A?

• A.The Commission may conduct its investigation confidentially and is not required to provide the broker with investigative files or witness statements prior to the formal hearing, though the broker retains due process rights to respond at the hearing itself.
• B.The Commission must provide the broker with complete copies of all investigative files and witness statements within 30 days of opening the investigation, as SDCL 36-21A mandates full pre-hearing disclosure to the licensee.
• C.The Commission loses jurisdiction over the broker if it fails to schedule a formal hearing within 60 days of receiving the written complaint, regardless of the complexity of the investigation.
• D.The broker may petition the circuit court to immediately suspend the Commission's investigation on the grounds that trust fund matters are exclusively governed by civil litigation between the parties.

Q14.What does a quiet title action accomplish in Arizona?

• A.It forces a neighbor to remove a fence that crosses a property boundary
• B.It removes an HOA's ability to enforce its deed restrictions
• C.It establishes legal ownership when title is disputed or clouded by competing claims
• D.It cancels an outstanding mortgage that has been fully paid off

Q15.Under RESPA (Real Estate Settlement Procedures Act), which of the following practices is prohibited?

• A.Paying kickbacks to real estate agents for referrals
• B.Charging borrowers for title insurance
• C.Providing borrowers with a Loan Estimate within three days
• D.Requiring borrowers to obtain homeowner's insurance