Free South Dakota Agency Practice Test — LicenseIQ

Question 1

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 2

In a firm using appointed agency, Agent A is appointed to the seller and Agent B, who is not on A's team, is appointed to the buyer of the same property. The responsible broker supervises both. Which is correct?

Accepted Answer

Under 36-21A-141.1, knowledge is not imputed between appointed agents and the brokerage, and a broker does not become a limited agent solely by making appointments.

Question 3

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 4

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 5

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 6

Under SDCL 36-21A-141.1, an appointment of an affiliated licensee as an appointed agent must be:

Accepted Answer

The statute says the appointment shall be in writing and is made through the responsible broker.

Question 7

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 8

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 9

A limited agent learns the buyer is willing to pay $15,000 more than the current offer. Without the buyer's written authority, the limited agent:

Accepted Answer

36-21A-142 bars a limited agent from disclosing one client's confidential information to the other without express written authority, except where required by law or to avoid misrepresentation.

Question 10

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 11

Which South Dakota agency agreement may contain an automatic renewal provision?

Accepted Answer

36-21A-130 permits automatic renewal only in property management agreements that include written cancellation on mutually acceptable terms.

Question 12

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 13

A property is under contract when a second written offer arrives. The seller's agent must:

Accepted Answer

36-21A-132 requires presenting all written offers promptly, even when the property is subject to a contract. The agent need not seek more offers, but must present those received.

Question 14

Before a South Dakota licensee may act as a limited agent, the licensee must have:

Accepted Answer

36-21A-140 requires the informed written consent of all parties to the transaction.

Question 15

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 16

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 17

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 18

South Dakota agency agreements with sellers and buyers must be:

Accepted Answer

36-21A-130 requires agency agreements in writing and signed by all parties.

Question 19

A seller authorized a list price of $289,000. The listing agent advertises the home at $279,000 to draw calls. Under SDCL 36-21A-72 this is:

Accepted Answer

36-21A-72 bars advertising a sale price other than the actual price authorized.

Question 20

A consumer refuses to sign the acknowledgment on the relationships disclosure form. The licensee should:

Accepted Answer

36-21A-147 requires the licensee to note the refusal on a copy and keep that copy.

Question 21

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 22

A buyer client asks her buyer's agent whether any registered sex offenders live near a house. The agent has actual knowledge that one does. The agent must:

Accepted Answer

36-21A-138.1 relieves a buyer's agent of any duty to investigate or volunteer, but requires disclosure of actual knowledge when the client asks.

Question 23

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 24

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 25

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

South Dakota real estate agency practice test

1. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

2. In a firm using appointed agency, Agent A is appointed to the seller and Agent B, who is not on A's team, is appointed to the buyer of the same property. The responsible broker supervises both. Which is correct?

3. A property manager owes fiduciary duties primarily to the:

4. An agent authorized to perform a single specific act for a principal is a:

5. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

6. Under SDCL 36-21A-141.1, an appointment of an affiliated licensee as an appointed agent must be:

7. An agency relationship can be terminated by all of the following EXCEPT:

8. Which fiduciary duty continues even after the agency relationship has ended?

9. A limited agent learns the buyer is willing to pay $15,000 more than the current offer. Without the buyer's written authority, the limited agent:

10. The best way to create an agency relationship is a(n):

11. Which South Dakota agency agreement may contain an automatic renewal provision?

12. A material defect that a seller/agent must disclose is one that:

13. A property is under contract when a second written offer arrives. The seller's agent must:

14. Before a South Dakota licensee may act as a limited agent, the licensee must have:

15. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

16. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

17. Which of the following is a fiduciary duty an agent owes the principal?

18. South Dakota agency agreements with sellers and buyers must be:

19. A seller authorized a list price of $289,000. The listing agent advertises the home at $279,000 to draw calls. Under SDCL 36-21A-72 this is:

20. A consumer refuses to sign the acknowledgment on the relationships disclosure form. The licensee should:

21. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

22. A buyer client asks her buyer's agent whether any registered sex offenders live near a house. The agent has actual knowledge that one does. The agent must:

23. Which statement about dual agency is correct?

24. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

25. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Sources