- An out-of-state licensee may split a commission with South Dakota licensee so long as out-of-state licensee does not perform any of the negotiations within South Dakota.
- An out-of-state licensee cannot bring a lawsuit in South Dakota.
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BIZ BROKER STATE |
ReciprocityAny State* * Must pass the State portion of the SD Real Estate exam. |
Specific to South Dakota- This State requires Mandatory E&O Insurance Coverage (see Rice) |
Reverse ReciprocityThese states specifically mention South Dakota in their Reciprocity: Arkansas, Illinois, Minnesota, Montana, Oklahoma, Oregon These States recognize any other State licenses but may have additional requirements: Alaska, Alabama, Colorado, Georgia, Idaho, Indiana, Kansas, Kentucky, Maine, Nebraska, North Carolina, Rhode Island, Tennesee, Vermont, Washington CustomsTitle companies, lenders, real estate agents, and attorneys may handle closings. Conveyance is by warranty deed. Mortgages are the usual security instruments. *There’s a statute which stipulates that all land must be platted in lots or described by sectional references rather than by metes and bounds unless it involves property described in documents recorded prior to 1945. *There’s another statute called the Affidavit of Possession Statute. Certain exceptions aside, it provides that any person having an unbroken chain of title for 22 years thereafter has a marketable title free of any defects occurring prior to that 22-year period. South Dakota uses ALTA policies and endorsements. Sellers pay the transfer taxes and split the other closing costs, fees, and premiums with the buyers. South Dakota has no state income tax. |
LinksBIZ BROKER STATEThe rules are very clear in this State that a Business Broker must hold a real estate license to sell a business.
36-21A-6. Real estate broker and broker defined. For the purposes of this chapter, a broker or a real estate broker is any person who does any of the following: (3) For another and for compensation or consideration or with the intention or expectation of receiving compensation or consideration, directly or indirectly, lists, sells, exchanges, buys, rents, manages, offers or attempts to negotiate a sale, option, exchange, purchase, lease or rental of any business opportunity or business, or its goodwill, inventory or fixtures, or any interest therein; https://dlr.sd.gov/realestate/publications/license_law_book.pdf |