South Dakota Real Estate Exam Prep questions with
Verified Answers.
Mark, a licensed broker, procures a ready, willing, and able buyer for his seller- principal.
The seller accepts the buyer's offer in writing, the experiences a change of heart and
withdraws the acceptance. In this situation, Mark - Correct Answer is entitled to collect a
commission.
A real estate company has entered into agency agreements with both a seller and a
buyer. The buyer is interested in making an offer on the seller's property. Can this occur? -
Correct Answer Yes, if the buyer and seller both give their consent to limited agency.
A seller's listing agreement has expired, and the seller lists with a different brokerage firm.
The original listing agent now has a buyer interested in the seller's property. The original
listing agent - Correct Answer cannot disclose to buy the buyer offers received on the
seller's property while it was listed with him.
A real estate salesperson has been working with buyers. After helping them negotiate for
their dream home, the buyers ask the salesperson if she can help them secure a
mortgage. The salesperson knows a lender that pays a fee for referring purchasers to
them. Should the salesperson refer the buyers to this lender? - Correct Answer No,
because this would be an unwise referral
A buyer contacts a real estate office and indicates an interest in purchasing a nearby
home. Without entering into a buyer agency relationship with the buyer, a salesperson
from the real estate office can do all of the following EXCEPT - Correct Answer prequalify
the buyer for a mortgage
A buyer prospect is interested in seeing two houses listed with ABC Real Estate company
but does not wish to enter into a buyer agency agreement. A salesperson from ABC Real
Estate Company can show the buyer an in-house listing if the - Correct Answer
Salesperson provides the buyer with an agency disclosure that ABC Real Estate
Company represents the seller.
In South Dakota, an exclusive-right-to-represent buyer contract - Correct Answer Must be
indicated as such in the buyer agency agreement.
,Buyer-brokerage contracts in South Dakota - Correct Answer must be in writing to be
enforceable.
All of the following provisions are included in the South Dakota Real Estate Commission's
rules regarding listing agreements EXCEPT that - Correct Answer A listing agreement
must be accompanied by a qualified expert's report of the property's condition .
Which of the following types of agency are recognized in South Dakota? - Correct Answer
Seller, buyer, and limited agency
In a limited agency situation, a broker may collect a commission from both the seller and
the buyer if - Correct Answer Both parties give their informed consent to the limited
compensation.
A buyer in interested in seeing a house listed with XYZ Realty but does not wish to enter
into an agency relationship. A salesperson from LMN Realty can show the buyer the
house if - Correct Answer XYZ Realty obtains the seller's written consent to sub agency.
When is a seller required to give a buyer a property condition disclosure report? - Correct
Answer Seller is not assisted by the licensed real estate licensee
Seller property condition disclosures must be delivered to the buyer - Correct Answer prior
to the buyer making a written offer.
A seller has no knowledge of any plumbing system problems on the property she is
selling. In actuality, however, the pipes are seriously corroded and will soon need to be
replaced. In the seller property condition disclosure, when responding to whether the
seller has any knowledge of plumbing system problems, she should respond - Correct
Answer "unknown."
In South Dakota, when a broker is listing a home and asks the seller to complete a
property condition disclosure, which of the following statements is true? - Correct Answer
Seller disclosure of known property conditions is required by South Dakota statute.
Five years ago, Unit 5B in a condominium community was the site of a brutal and highly
publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus
in a blood transfusion and died in the unit last year. AS the agent for the woman's estate,
what are your disclosure responsibilities to prospective purchasers of Unit 5B? - Correct
, Answer You are specifically relieved of liability for nondisclosure of either by South Dakota
license law.
A broker took a listing for a small office building. Because the property is in excellent
condition and produces a good, steady income, the broker's salesperson has decided to
purchase it as an investment. If the broker's salesperson wishes to buy this property, the
salesperson must - Correct Answer Inform the owner in writing that the salesperson is a
license before making an offer.
Six months after a buyer bought a house, the roof leaked during a rainstorm. When the
house was listed, the seller told the broker that the roof leaked, but they agreed not to tell
any prospective buyers. The broker claims that the buyer did not ask about the roof. Under
these facts, the buyer - Correct Answer can sue the broker for nondisclosure required by
the license law.
A real estate licensee the agency disclosure must be given to prospective
purchasers/tenants - Correct Answer before they are shown more than one property .
A real estate licensee has signed a brokerage agreement with a tenant who is looking for
an apartment to rent. The licensee does not charge a fee to prospective tenants; rather,
the licensee receives a commission from the land-lords. The licensee tells a landlord that
the prospective tenant could probably pay a somewhat higher rent than the landlord is
asking. Which of the following statements is true? - Correct Answer The licensee's
disclosure violated the statutory duties owned to the tenant.
All of the following are exempt from the Property Disclosure Act EXCEPT a - Correct
Answer Sale by a real estate licensee of a two-unit residential property.
A buyer and seller have agreed to limited agency representation. Legally, the salesperson
may - Correct Answer provide comparable market data to the buyer, after the seller has
given written permission to disclose this information.
A buyer who is a client of a broker wants to purchase a house that the broker has listed for
sale. Which of the following statements is true? - Correct Answer The seller and buyer
must be informed of the situation and agree to the broker's representing both of them.
A real estate broker representing a seller knows that the property has water damage in the
basement and that one of the tenants in the neighboring apartment building is a registered
Verified Answers.
Mark, a licensed broker, procures a ready, willing, and able buyer for his seller- principal.
The seller accepts the buyer's offer in writing, the experiences a change of heart and
withdraws the acceptance. In this situation, Mark - Correct Answer is entitled to collect a
commission.
A real estate company has entered into agency agreements with both a seller and a
buyer. The buyer is interested in making an offer on the seller's property. Can this occur? -
Correct Answer Yes, if the buyer and seller both give their consent to limited agency.
A seller's listing agreement has expired, and the seller lists with a different brokerage firm.
The original listing agent now has a buyer interested in the seller's property. The original
listing agent - Correct Answer cannot disclose to buy the buyer offers received on the
seller's property while it was listed with him.
A real estate salesperson has been working with buyers. After helping them negotiate for
their dream home, the buyers ask the salesperson if she can help them secure a
mortgage. The salesperson knows a lender that pays a fee for referring purchasers to
them. Should the salesperson refer the buyers to this lender? - Correct Answer No,
because this would be an unwise referral
A buyer contacts a real estate office and indicates an interest in purchasing a nearby
home. Without entering into a buyer agency relationship with the buyer, a salesperson
from the real estate office can do all of the following EXCEPT - Correct Answer prequalify
the buyer for a mortgage
A buyer prospect is interested in seeing two houses listed with ABC Real Estate company
but does not wish to enter into a buyer agency agreement. A salesperson from ABC Real
Estate Company can show the buyer an in-house listing if the - Correct Answer
Salesperson provides the buyer with an agency disclosure that ABC Real Estate
Company represents the seller.
In South Dakota, an exclusive-right-to-represent buyer contract - Correct Answer Must be
indicated as such in the buyer agency agreement.
,Buyer-brokerage contracts in South Dakota - Correct Answer must be in writing to be
enforceable.
All of the following provisions are included in the South Dakota Real Estate Commission's
rules regarding listing agreements EXCEPT that - Correct Answer A listing agreement
must be accompanied by a qualified expert's report of the property's condition .
Which of the following types of agency are recognized in South Dakota? - Correct Answer
Seller, buyer, and limited agency
In a limited agency situation, a broker may collect a commission from both the seller and
the buyer if - Correct Answer Both parties give their informed consent to the limited
compensation.
A buyer in interested in seeing a house listed with XYZ Realty but does not wish to enter
into an agency relationship. A salesperson from LMN Realty can show the buyer the
house if - Correct Answer XYZ Realty obtains the seller's written consent to sub agency.
When is a seller required to give a buyer a property condition disclosure report? - Correct
Answer Seller is not assisted by the licensed real estate licensee
Seller property condition disclosures must be delivered to the buyer - Correct Answer prior
to the buyer making a written offer.
A seller has no knowledge of any plumbing system problems on the property she is
selling. In actuality, however, the pipes are seriously corroded and will soon need to be
replaced. In the seller property condition disclosure, when responding to whether the
seller has any knowledge of plumbing system problems, she should respond - Correct
Answer "unknown."
In South Dakota, when a broker is listing a home and asks the seller to complete a
property condition disclosure, which of the following statements is true? - Correct Answer
Seller disclosure of known property conditions is required by South Dakota statute.
Five years ago, Unit 5B in a condominium community was the site of a brutal and highly
publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus
in a blood transfusion and died in the unit last year. AS the agent for the woman's estate,
what are your disclosure responsibilities to prospective purchasers of Unit 5B? - Correct
, Answer You are specifically relieved of liability for nondisclosure of either by South Dakota
license law.
A broker took a listing for a small office building. Because the property is in excellent
condition and produces a good, steady income, the broker's salesperson has decided to
purchase it as an investment. If the broker's salesperson wishes to buy this property, the
salesperson must - Correct Answer Inform the owner in writing that the salesperson is a
license before making an offer.
Six months after a buyer bought a house, the roof leaked during a rainstorm. When the
house was listed, the seller told the broker that the roof leaked, but they agreed not to tell
any prospective buyers. The broker claims that the buyer did not ask about the roof. Under
these facts, the buyer - Correct Answer can sue the broker for nondisclosure required by
the license law.
A real estate licensee the agency disclosure must be given to prospective
purchasers/tenants - Correct Answer before they are shown more than one property .
A real estate licensee has signed a brokerage agreement with a tenant who is looking for
an apartment to rent. The licensee does not charge a fee to prospective tenants; rather,
the licensee receives a commission from the land-lords. The licensee tells a landlord that
the prospective tenant could probably pay a somewhat higher rent than the landlord is
asking. Which of the following statements is true? - Correct Answer The licensee's
disclosure violated the statutory duties owned to the tenant.
All of the following are exempt from the Property Disclosure Act EXCEPT a - Correct
Answer Sale by a real estate licensee of a two-unit residential property.
A buyer and seller have agreed to limited agency representation. Legally, the salesperson
may - Correct Answer provide comparable market data to the buyer, after the seller has
given written permission to disclose this information.
A buyer who is a client of a broker wants to purchase a house that the broker has listed for
sale. Which of the following statements is true? - Correct Answer The seller and buyer
must be informed of the situation and agree to the broker's representing both of them.
A real estate broker representing a seller knows that the property has water damage in the
basement and that one of the tenants in the neighboring apartment building is a registered
