Free South Dakota Property Practice Test — LicenseIQ

Question 1

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 2

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 3

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 4

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 5

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 6

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 7

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 8

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 9

Which transfer is exempt from South Dakota's property condition disclosure requirement?

Accepted Answer

43-4-43 exempts transfers to a spouse, child, parent, sibling, grandchild or grandparent. Installment sale contracts and duplex sales are covered transfers.

Question 10

A tenant moves out and leaves furniture worth about $300. When may the landlord presume it abandoned and dispose of it?

Accepted Answer

43-32-25 presumes property worth $500 or less abandoned 10 days after the tenant leaves. Property worth more must be stored for 30 days.

Question 11

A borrower facing default voluntarily conveys the property to the lender in exchange for release of the debt. This is a:

Accepted Answer

In a deed in lieu, the borrower voluntarily deeds the property to the lender, which avoids the foreclosure process; the lender must agree, and the borrower should get a written release of any remaining debt. In a short sale, the property is sold to a third party for less than owed with lender approval. Credit-reporting effects vary by lender and situation, so licensees should not promise a borrower any particular credit outcome.

Question 12

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 13

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 14

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 15

Which license requires a 40-hour Fundamentals of Property Management course?

Accepted Answer

The Commission's license-types page lists 40 hours of Fundamentals of Property Management for the property manager license. Residential rental agents have no listed education requirement.

Question 16

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 17

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 18

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 19

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 20

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 21

When must a South Dakota seller give the buyer the completed property condition disclosure statement?

Accepted Answer

43-4-38 requires delivery before the buyer makes a written offer.

Question 22

Which deed is exempt from the South Dakota transfer fee?

Accepted Answer

43-4-22 exempts transfers made under divorce, annulment or separate maintenance decrees or approved settlements. Ordinary sales for consideration are not exempt.

Question 23

A home sells for $412,750. What transfer fee will be charged when the deed is recorded?

Accepted Answer

$412,750 / $500 = 825.5, rounded up to 826 units; 826 x $0.50 = $413.00.

Question 24

When must a South Dakota licensee give the written real estate relationships disclosure to an unrepresented buyer?

Accepted Answer

36-21A-147 requires the written disclosure at the first substantive contact with a seller or buyer who has not signed a written agreement with a broker.

Question 25

Under current South Dakota Real Estate Commission policy, commission rebates to consumers are:

Accepted Answer

The Commission rescinded its rulings banning rebates and inducements; licensees may offer and advertise them if truthful and not misleading.

South Dakota real estate property practice test

1. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

2. A title search is performed primarily to:

3. Which action may a life tenant take WITHOUT the remainderman's consent?

4. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

5. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

6. When an owner dies with no will and no heirs, the property passes to the state through:

7. For a deed to be valid it must be:

8. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

9. Which transfer is exempt from South Dakota's property condition disclosure requirement?

10. A tenant moves out and leaves furniture worth about $300. When may the landlord presume it abandoned and dispose of it?

11. A borrower facing default voluntarily conveys the property to the lender in exchange for release of the debt. This is a:

12. An owner's title insurance policy protects against:

13. A special warranty deed warrants title only against defects that:

14. A life estate is measured by:

15. Which license requires a 40-hour Fundamentals of Property Management course?

16. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

17. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

18. Under the statute of frauds, a real estate sales contract must be:

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

20. 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?

21. When must a South Dakota seller give the buyer the completed property condition disclosure statement?

22. Which deed is exempt from the South Dakota transfer fee?

23. A home sells for $412,750. What transfer fee will be charged when the deed is recorded?

24. When must a South Dakota licensee give the written real estate relationships disclosure to an unrepresented buyer?

25. Under current South Dakota Real Estate Commission policy, commission rebates to consumers are:

Sources