South Dakota Real Estate Licensure
Exam Questions and Answers 100%
PASS
A real estate licensee offered to rebate part of his commission to the buyer if the
buyer would increase his offer to a level that the agent knew would be high enough
for the seller to accept. Under these circumstances: - CORRECT ANSWER-this
information must be disclosed to the seller before the offer is accepted by the
seller.
A mobile home park is defined as: - CORRECT ANSWER-2 contiguous mobile
home sites for rent or sale.
A property owner intends to build an addition onto the back of his house. He
should check: - CORRECT ANSWER-zoning ordinances, local building codes and
CC&Rs
In the correct order, list the chain of events necessary to comply with the agency
disclosure law: - CORRECT ANSWER-disclose, elect, confirm
,What are examples of artificial monuments? - CORRECT ANSWER-Canals and
streets. A monument is an object that marks property lines or the like. Streets may
or may not be artificial. Canals are not natural, therefore artificial.
With an exclusive listing, a broker may be subject to disciplinary action for: -
CORRECT ANSWER-Failing to include a definite termination date.
The insects that are considered to be the most destructive to wood are -
CORRECT ANSWER-dry-wood termites.
Which of the following pairs of words are synonymous (the same)? - CORRECT
ANSWER-The construction loan is often a short-term or interim loan. When the
construction is completed, the take-out loan is used to pay off the construction
loan.
Power of attorney can be terminated by the: - CORRECT ANSWER-revocation
by the principal, incapacity of the parties to the power of attorney, death of the
attorney-in-fact.
Which of the following is an example of police power? - CORRECT ANSWER-
zoning, building codes and health & safety codes
When subdividers evaluate the topography of land, - CORRECT ANSWER-
hillside topography property is less desirable than flat mainstream property
The best possible estate to have is: - CORRECT ANSWER-fee simple.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,Personal property can: - CORRECT ANSWER-be alienated, hypothecated and
real.
In the event of a conflict between local building codes and the Health and Safety
Code, which would prevail? - CORRECT ANSWER-the more stringent of the
two.
Zoning is not: - CORRECT ANSWER-retroactive.
A man bought a small apartment building. He put a down payment on the
property and financed the rest with a loan. One year later the property was
appraised. His equity had increased 300%. This is an example of: - CORRECT
ANSWER-leverage.
If a business is sold without complying with the Bulk Sales Act: - CORRECT
ANSWER-the assets still belong to the vendor as far as creditors are concerned. If
the Bulk Sales Law is not complied with, creditors still have a claim on the assets
of the vendor (seller) purchased by the vendee (buyer). This is why it is very
important for the vendee (buyer) to see that the Bulk Sales Law is complied with.
When is a properly licensed real estate salesperson most likely to get his/her
commission? - CORRECT ANSWER-When escrow closes.
Commissions rate price fixing is a violation of the: - CORRECT ANSWER-
Sherman Anti-Trust Laws. Sherman Antitrust Act is a federal law passed in 1890
that committed the American government to opposing monopolies. The law
, prohibits contracts, combinations, or conspiracies "in the restraint of trade or
commerce."
Gross rent multiplier is obtained by: - CORRECT ANSWER-The gross rent
multiplier is obtained by dividing the sales price or value by the gross monthly rent.
Who is more likely to earn the commission? - CORRECT ANSWER-Until the
seller's acceptance is communicated to the buyer, there is no contract. Therefore,
the one who communicates the seller's acceptance to the buyer is more likely to
earn the commission.
The effect of depreciation is: - CORRECT ANSWER-The basis goes down. Basis,
as it relates to income property goes down each year as the owner deducts
depreciation. It may also go up with the addition of capital improvements. Basis or
book value will never reach zero because the land does not depreciate.
When the property of the borrower is not adequate security for the loan, the
instrument the lender will most likely employ is a(n): - CORRECT ANSWER-
blanket mortgage. A blanket encumbrance is used to place a lien simultaneously on
more than one property by a single financing instrument.
If you are a subagent of the listing broker, you are working for the: - CORRECT
ANSWER-Seller. "Subagent" means a person to whom an agent delegates agency
powers. However, "subagent" does not include an associate licensee who is acting
under the supervision of an agent in a real property transaction.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Exam Questions and Answers 100%
PASS
A real estate licensee offered to rebate part of his commission to the buyer if the
buyer would increase his offer to a level that the agent knew would be high enough
for the seller to accept. Under these circumstances: - CORRECT ANSWER-this
information must be disclosed to the seller before the offer is accepted by the
seller.
A mobile home park is defined as: - CORRECT ANSWER-2 contiguous mobile
home sites for rent or sale.
A property owner intends to build an addition onto the back of his house. He
should check: - CORRECT ANSWER-zoning ordinances, local building codes and
CC&Rs
In the correct order, list the chain of events necessary to comply with the agency
disclosure law: - CORRECT ANSWER-disclose, elect, confirm
,What are examples of artificial monuments? - CORRECT ANSWER-Canals and
streets. A monument is an object that marks property lines or the like. Streets may
or may not be artificial. Canals are not natural, therefore artificial.
With an exclusive listing, a broker may be subject to disciplinary action for: -
CORRECT ANSWER-Failing to include a definite termination date.
The insects that are considered to be the most destructive to wood are -
CORRECT ANSWER-dry-wood termites.
Which of the following pairs of words are synonymous (the same)? - CORRECT
ANSWER-The construction loan is often a short-term or interim loan. When the
construction is completed, the take-out loan is used to pay off the construction
loan.
Power of attorney can be terminated by the: - CORRECT ANSWER-revocation
by the principal, incapacity of the parties to the power of attorney, death of the
attorney-in-fact.
Which of the following is an example of police power? - CORRECT ANSWER-
zoning, building codes and health & safety codes
When subdividers evaluate the topography of land, - CORRECT ANSWER-
hillside topography property is less desirable than flat mainstream property
The best possible estate to have is: - CORRECT ANSWER-fee simple.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,Personal property can: - CORRECT ANSWER-be alienated, hypothecated and
real.
In the event of a conflict between local building codes and the Health and Safety
Code, which would prevail? - CORRECT ANSWER-the more stringent of the
two.
Zoning is not: - CORRECT ANSWER-retroactive.
A man bought a small apartment building. He put a down payment on the
property and financed the rest with a loan. One year later the property was
appraised. His equity had increased 300%. This is an example of: - CORRECT
ANSWER-leverage.
If a business is sold without complying with the Bulk Sales Act: - CORRECT
ANSWER-the assets still belong to the vendor as far as creditors are concerned. If
the Bulk Sales Law is not complied with, creditors still have a claim on the assets
of the vendor (seller) purchased by the vendee (buyer). This is why it is very
important for the vendee (buyer) to see that the Bulk Sales Law is complied with.
When is a properly licensed real estate salesperson most likely to get his/her
commission? - CORRECT ANSWER-When escrow closes.
Commissions rate price fixing is a violation of the: - CORRECT ANSWER-
Sherman Anti-Trust Laws. Sherman Antitrust Act is a federal law passed in 1890
that committed the American government to opposing monopolies. The law
, prohibits contracts, combinations, or conspiracies "in the restraint of trade or
commerce."
Gross rent multiplier is obtained by: - CORRECT ANSWER-The gross rent
multiplier is obtained by dividing the sales price or value by the gross monthly rent.
Who is more likely to earn the commission? - CORRECT ANSWER-Until the
seller's acceptance is communicated to the buyer, there is no contract. Therefore,
the one who communicates the seller's acceptance to the buyer is more likely to
earn the commission.
The effect of depreciation is: - CORRECT ANSWER-The basis goes down. Basis,
as it relates to income property goes down each year as the owner deducts
depreciation. It may also go up with the addition of capital improvements. Basis or
book value will never reach zero because the land does not depreciate.
When the property of the borrower is not adequate security for the loan, the
instrument the lender will most likely employ is a(n): - CORRECT ANSWER-
blanket mortgage. A blanket encumbrance is used to place a lien simultaneously on
more than one property by a single financing instrument.
If you are a subagent of the listing broker, you are working for the: - CORRECT
ANSWER-Seller. "Subagent" means a person to whom an agent delegates agency
powers. However, "subagent" does not include an associate licensee who is acting
under the supervision of an agent in a real property transaction.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
