Free Course Final Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Course Final Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An affiliated licensee places a property advertisement. What firm identity must appear?

   1. A. The licensee's school
   2. B. The affiliated firm's name
   3. C. The closing agent's name
   4. D. The county assessor's name

   Answer: B

   Explanation: SDCL 36-21A-72 requires, "Each advertisement shall clearly state the name of the firm with which an individual licensee is associated."

   Reference: License Law Book — SDCL 36-21A-72(1)

2. 2How long must a South Dakota licensee preserve transaction listings, offers, and closing statements?

   1. A. Two years
   2. B. Three years
   3. C. Four years
   4. D. Five years

   Answer: C

   Explanation: SDCL 36-21A-74 requires a licensee to "preserve for four years all listings, offers to purchase, closing statements and other records."

   Reference: License Law Book — SDCL 36-21A-74

3. 3Which act in a South Dakota license application is expressly unprofessional conduct?

   1. A. Making a material false statement in the license application
   2. B. Changing a business telephone number
   3. C. Using electronic signatures
   4. D. Holding an open house

   Answer: A

   Explanation: SDCL 36-21A-71 includes "Making a material false statement in the licensee's application for a license."

   Reference: License Law Book — SDCL 36-21A-71(2)

4. 4Before a corporation performs brokerage services in South Dakota, what must the corporation obtain?

   1. A. A county business certificate only
   2. B. A firm license from the Commission
   3. C. An appraisal credential
   4. D. A title-insurance appointment

   Answer: B

   Explanation: SDCL 36-21A-37 bars a corporation from performing brokerage services until it is "licensed by the commission."

   Reference: Arsd 20 69 — SDCL 36-21A-37

5. 5To whom may a licensee pay transaction-related compensation under South Dakota license law?

   1. A. Any unlicensed referrer
   2. B. Only a person licensed under the chapter
   3. C. Any employee of the buyer
   4. D. Any person named by the seller

   Answer: B

   Explanation: SDCL 36-21A-71 prohibits "Paying compensation or commission in connection with a transaction to any person who is not licensed."

   Reference: License Law Book — SDCL 36-21A-71(12)

6. 6Which property identifier must a seller or lessor agency agreement contain?

   1. A. A tax estimate
   2. B. The proper legal description
   3. C. A neighborhood nickname
   4. D. An appraisal file number

   Answer: B

   Explanation: SDCL 36-21A-130 requires a seller or lessor agreement to contain "the proper legal description."

   Reference: License Law Book — SDCL 36-21A-130, seller or lessor agreements

7. 7A responsible broker ends affiliation with a licensed firm. What must the firm do?

   1. A. Dissolve immediately
   2. B. Name a new responsible broker and notify the Commission in writing
   3. C. Operate without a broker for 90 days
   4. D. Convert every associate to inactive status permanently

   Answer: B

   Explanation: SDCL 36-21A-38 requires the firm to "name a new responsible broker and notify the commission in writing."

   Reference: License Law Book — SDCL 36-21A-38

8. 8Which compensation practice supports independent-contractor status for an affiliated licensee?

   1. A. Salary with tax withholding
   2. B. Payment for work performed without withholding federal income or Social Security taxes
   3. C. Hourly pay with mandatory withholding
   4. D. Guaranteed wages unrelated to work

   Answer: B

   Explanation: SDCL 36-21A-124 requires compensation "on the basis of work performed without withholding and remitting federal income and social security taxes."

   Reference: License Law Book — SDCL 36-21A-124(2)

9. 9May a participating real estate licensee give a title opinion on the property's merchantability?

   1. A. Yes, after reviewing the abstract
   2. B. Yes, with broker approval
   3. C. No; giving that title opinion is prohibited
   4. D. Only if no attorney is available

   Answer: C

   Explanation: SDCL 36-21A-71 identifies "Giving a title opinion upon the merchantability of the title" as unprofessional conduct.

   Reference: License Law Book — SDCL 36-21A-71(23)

10. 10Absent written contractual authority to retain a principal's money, what must the responsible broker do?

    1. A. Remit it immediately to the principal
    2. B. Hold it until annual reconciliation
    3. C. Transfer it to the Commission
    4. D. Apply it to compensation

    Answer: A

    Explanation: SDCL 36-21A-80 says, "A responsible broker shall remit immediately to the responsible broker's principal all money" belonging to the principal.

    Reference: License Law Book — SDCL 36-21A-80