Mount Rushmore State Licensing
How to Get Your South Dakota Real Estate License
South Dakota requires 116 hours of pre-licensing — one of the highest in the nation — split across three mandatory courses. Here's what you need to know.
South Dakota Real Estate Commission
The South Dakota Real Estate Commission (SDREC) oversees licensing. South Dakota has one of the most education-intensive entry requirements: 116 hours of pre-licensing coursework split across three courses — Principles (30 hrs), Law (30 hrs), and Finance/Appraisal/Closing (56 hrs).
The South Dakota real estate exam is administered by PSI: 80 national questions and 40 state questions, with a 75% passing score required on each portion.
After passing, you must work under a licensed South Dakota broker. The license is renewed every two years with 12 hours of continuing education.
South Dakota Fast Facts
Pre-Licensing Hours
116 hours across 3 mandatory courses — Principles, Law, and Finance/Appraisal/Closing.
Exam Format
80 national + 40 state questions via PSI. 75% passing score on each.
No State Income Tax
South Dakota has no personal income tax, making it attractive for investors and retirees.
Tribal Land
South Dakota has significant Native American tribal trust land. Title issues involving tribal land are unique and require specialist knowledge.
South Dakota Real Estate Exam FAQ
Why does South Dakota require 116 hours when most states require 60–90?
The three-course structure ensures candidates cover principles, legal issues, and financial/appraisal/closing topics in depth. Each course has a final exam that must be passed before moving to the next.
Is South Dakota a good state for real estate investment?
Many investors cite the lack of state income tax and relatively low property taxes as advantages. Agricultural land, vacation properties near the Black Hills, and commercial properties near Sioux Falls are common investment categories.