How to Get a Real Estate Broker License in South Dakota
Last updated: March 1, 2026
South Dakota is a growing market with low cost of living and increasing demand in Sioux Falls, making it an excellent place to start a career as a real estate broker. Whether you're looking for a career change or entering the workforce for the first time, obtaining your real estate broker license in South Dakota is a structured process overseen by the South Dakota Real Estate Commission (SDREC).
South Dakota requires 116 hours of pre-license education, which is around the national average. Budget between $600 and $1,200 for the total licensing process, including education, application, and exam fees. Most aspiring real estate brokers complete the entire process in 3-5 months, depending on how quickly they move through the coursework and exam preparation.
South Dakota Real Estate Broker License Requirements
| Requirement | Details |
|---|---|
| Minimum Age | 18 years old |
| Pre-License Education | 116 hours |
| Degree Required | No |
| Exam Required | Yes — South Dakota Real Estate Broker Exam |
| Passing Score | 75% on each section |
| Background Check | Yes |
| Broker Sponsorship | Not required |
| Application Fee | $150 |
| Exam Fee | $75 |
| Governing Body | South Dakota Real Estate Commission (SDREC) |
| License Reciprocity | Partial |
Reciprocity: South Dakota has reciprocity with several states. State exam is generally required.
Steps to Get Your Real Estate Broker License in South Dakota
- 1
Complete 116 Hours of Broker Pre-License Education
116 hours of approved broker pre-license education including Broker Fundamentals, Finance, and South Dakota Law. Requires 2 years of active experience as a licensed salesperson. You must already hold an active real estate agent license.
Time: 2-4 months Cost: $575 - 2
Submit Your Broker License Application
Apply through the South Dakota Real Estate Commission (SDREC). You'll need proof of your agent experience, education transcripts, and the application fee of $150.
Time: 2-6 weeks for processing Cost: $150 - 3
Pass the South Dakota Real Estate Broker Exam
Schedule and pass the broker licensing exam administered by PSI. You must score at least 75% on each section to pass. The broker exam is more comprehensive than the agent exam.
Time: 2-4 weeks to prepare and take Cost: $75 - 4
Decide Your Brokerage Model
Choose whether to open your own brokerage, join a franchise, or work as an associate broker. Each option has different legal, financial, and operational requirements in South Dakota.
Time: Varies - 5
Activate Your Broker License
Once approved, the South Dakota Real Estate Commission (SDREC) will issue your broker license. You can now operate independently, open a brokerage, and sponsor real estate agents in South Dakota.
Time: 1-5 business days
Key Things to Know
- Education requirement: 116 hours of approved broker pre-license education including Broker Fundamentals, Finance, and South Dakota Law. Requires 2 years of active experience as a licensed salesperson.. Many providers offer online options, giving you flexibility to study on your own schedule.
- The licensing exam: The South Dakota Real Estate Broker Exam is administered by PSI. You'll need to score at least 75% on each section to pass. Study materials and practice exams are available from most education providers.
- Already licensed in another state? South Dakota has reciprocity with several states. State exam is generally required.
- Ongoing requirements: Once licensed, you'll need 24 hours of continuing education every 2 years. 24 hours of continuing education every 2 years.
How Much Does a Real Estate Broker License Cost in South Dakota?
| Cost Item | Estimated Range |
|---|---|
| Pre-License Education | $300 - $700 |
| Application Fee | $150 |
| Exam Fee | $75 |
| Total Estimated Cost | $600 - $1,200 |
License Renewal
- Renewal Period: Every 2 years
- Continuing Education: 24 hours
- CE Details: 24 hours of continuing education every 2 years
- Renewal Fee: $150
Tips for Success
- Choose your education provider carefully: Compare prices, format (online vs. in-person), and reviews. Some providers offer exam prep materials bundled with the course, which can save you money. Check the South Dakota Real Estate Commission (SDREC) website for a list of approved providers.
- Don't rush the exam: The 116-hour education requirement is manageable — many students complete it in 2-4 months while working full-time. Use practice exams to identify weak areas before scheduling your test date.
- Build your track record as an agent first: Brokers can operate independently and sponsor agents Most states require 1-3 years of active agent experience before you can apply for a broker license. Use this time to close deals, build client relationships, and develop your business skills.
- Plan your brokerage model: As a broker, you can open your own firm, join a franchise, or work as an associate broker. Each model has different startup costs, liability, and income potential. Research all options before committing.
Frequently Asked Questions
How long does it take to get a real estate broker license in South Dakota?
Most people complete the process in 2-4 months total. The pre-license education (116 hours) takes the longest. After completing education, the exam and application process typically adds 2-6 weeks.
How much does it cost to get a real estate broker license in South Dakota?
The total cost ranges from $600 to $1,200, including pre-license education, the application fee ($150), and the exam fee ($75).
Can I get a South Dakota real estate broker license with a criminal record?
The South Dakota Real Estate Commission (SDREC) evaluates criminal history on a case-by-case basis. Having a criminal record does not automatically disqualify you, but certain offenses may affect your eligibility. Contact the South Dakota Real Estate Commission (SDREC) for guidance before applying.
Do I need a college degree to become a real estate broker in South Dakota?
No. South Dakota does not require a college degree. You only need to complete the 116 hours of approved pre-license courses.
Can I take the pre-license courses online in South Dakota?
Many approved education providers offer pre-license courses online, allowing you to study at your own pace. Check the South Dakota Real Estate Commission (SDREC) website for a list of approved providers.
Sources
- https://dlr.sd.gov/realestate/
- Official website: South Dakota Real Estate Commission (SDREC)