South Dakota Real Estate Exam Prep Flashcards

South Dakota Real Estate Exam Prep Flashcards For which of the following acts may the South Dakota Real Estate Commission suspend or revoke a licensee's license?Having been found liable in a civil trial for illegal discrimination 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 XYZ Realty obtains the seller's written consent to sub agency.A person holding a salesperson's license is permitted to do all the following real estate activities EXCEPT Own a substantial interest in a real estate firm.If a broker tells a lender that the sales price on a property is something above its actual sales price, the Broker can lose his or her license and be fined and imprisoned.A person successfully completed her real estate education requirement on November 1, 2000. What is the latest date on which she may apply for the salesperson's examination?November 1, 2002 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?Yes, if the buyer and seller both give their consent to limited agency.What are the procedures that must be followed when a salesperson decides to terminate his or her affiliation with the employing broker?The salesperson, the broker with whom the licensee was associated, and the broker with whom the licensee is about to associate must all give written notice to the South Dakota Real Estate Commission.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 sex offender. The broker must disclose The water damage, but not the presence of the registered sex offender.When advertising real property, real estate licenseesMust indicate in ads the name of real estate firm with which the licensee is associated 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

prequalify the buyer for a mortgage A buyer's broker receives a $1,000 earnest money check.How should the broker proceed?The check should be given to the listing broker who must deposit the money in a special bank account.Commissions earned by a broker in a real estate sales transaction are determined by the agreement of the broker and his or her principal.When is a seller required to give a buyer a property condition disclosure report?Seller is not assisted by the licensed real estate licensee

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 is entitled to collect a commission.In South Dakota, licenses are renewedBiennially, by November 30 of the year the current license expires.Which of the following examples of advertising is not a violation of South Dakota law?A website indicating the salesperson form XYZ Brokerage represents buyers in their efforts to find homes and commercial property.In South Dakota, all of the following would be grounds for revoking a broker's license EXCEPT Agreeing with a seller to accept a listing for more than the normal commission rate.If an accepted offer does not close and the broker and salesperson have expenses directly relating to the transaction, the broker, may not disperse earnest funds from the trust account to pay for the expenses.In a limited agency situation, a broker may collect a commission from both the seller and the buyer if Both parties give their informed consent to the limited compensation.All of the following statements regarding the South Dakota Real Estate Commission are true EXCEPT that members of the commission are selected by the state association of REALTORS.An applicant for a real estate license in South Dakota mustNot have been convicted of a felony.In South Dakota, all of the following are the consequences for a salesperson's or broker associate's failure to inform the South Dakota Real Estate Commission of a change of firms with which he or she is associated EXCEPT there are no consequences to the salesperson or broker associate since the former broker is required to inform the real estate commission of the change of association.Three weeks before N begins his real estate pre licensing class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. An offer is accepted while N is taking the class and closes the day before N passes the examination and receives his salesperson's license. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment?No, state law prohibits lawsuits to collect commissions unless the injured party is a licensed broker and the license was in effect before the agreement was reached.All of the following would constitute unprofessional conduct

EXCEPT

sharing a commission with a broker in another state.In South Dakota, applications for any real estate license must Contain a picture of the applicant.An unlicensed individual engages in activities for which a real estate license is required. What are the penalties that he South Dakota Real Estate Commission can impose?The South Dakota Real Estate Commission has no jurisdiction; the matter may be referred to a state's attorney.The South Dakota Real Estate Commission has the power to revoke a salesperson's license if the salesperson Deposits a buyer's down payment in his or her own bank account.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 Inform the owner in writing that the salesperson is a license before making an offer.

A South Dakota real estate sales person may lawfully collect compensation from His or her sponsoring broker only.All of the following provisions are included in the South Dakota Real Estate Commission's rules regarding listing agreements EXCEPT that A listing agreement must be accompanied by a qualified expert's report of the property's condition .How are members of the South Dakota Real Estate Commission selected?By the governor.Renewal of a salesperson's real estate license requires completion of six hours of real estate contracts, license law, or a combination, and six hours of real estate law.Inactive licenses are required toPay the same renewal fee that inactive licensees pay.All funds received by a broker on behalf of his or her principal must be deposited in an escrow or trust account On the first banking day after acceptance of the contract.All of the following must appear in a written listing agreement EXCEPT The proper legal description of the property being sold.A person must be licensed as a real estate broker or salesperson if that person is Engaging in real estate business.In South Dakota, a broker may have his or her license suspended or revoked for all of the following actions

EXCEPT

Depositing earnest money into the firm's escrow account.In South Dakota, an exclusive-right-to-represent buyer contract Must be indicated as such in the buyer agency agreement."Engaging in the real estate business" consists of acting for another and for a fee in all of the following activities

EXCEPT

renting rooms at a lodging establishment licensed as such.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?No, because this would be an unwise referral Which of the following is a requirement to obtain a real estate salesperson's license in South Dakota?Successful completion of a course of 60 classroom, correspondence, or distance learning hours in a general principles and practices of real estate, including license law and rules.A broker signs a listing agreement with a seller. The

agreement contains the following clause: " If the Property

has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, the agreement Is illegal in South Dakota.Who of the following is exempt from the provisions of the South Dakota Real Estate License Act?A property owner who sells or leases his or her own property Listings based on a net price areIllegal in South Dakota at any time.Salesperson Janet paid the telephone company to list her name in the directory under the real estate heading as "

Janet, Real Estate Salesperson, Residential Property Is My Specialty." Based on this information, Janet must also include The name of the real estate firm with which she is associated.