ARTICLE 20:69
REAL ESTATE BROKERS AND SALESPERSONS
Chapter
20:69:01 Definitions.
20:69:02 General rules.
20:69:03 Licensing and licenses.
20:69:04 Prelicensing education.
20:69:05 Disciplinary proceedings, Repealed.
20:69:06 Real estate auctioneer licenses.
20:69:07 Condominiums.
20:69:08 Mortgage brokers.
20:69:09 Real estate appraisers, Repealed.
20:69:10 Standards of professional appraisal practice.
20:69:11 Postlicensing and continuing education.
20:69:12 Time-share estates.
20:69:13 Time-share agents.
20:69:14 Property managers.
20:69:14.01 Residential rental agents.
20:69:15 Errors and omissions insurance.
20:69:16 Disclosure.
20:69:17 Agreements.
20:69:18 Real estate teams.
CHAPTER\r\n20:69:01
\r\n\r\n\r\nDEFINITIONS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:01:01 Definitions.
\r\n\r\n\r\n\r\n20:69:01:01. Definitions.\r\nWords defined in SDCL chapter 36-21A have the same meaning when used in this article.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 3 SDR 34, effective November 3, 1976;\r\n12 SDR 151, 12 SDR 155,\r\neffective July 1, 1986; transferred from § 20:56:01:01, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-89.
\r\n\r\n\r\nCHAPTER\r\n20:69:02
\r\n\r\n\r\nGENERAL\r\nRULES
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:02:01 Repealed.
\r\n\r\n20:69:02:02 Commission action.
\r\n\r\n20:69:02:03 Petition for declaratory ruling.
\r\n\r\n20:69:02:04 Commission action on petition.
\r\n\r\n20:69:02:05 Number of copies of petition for declaratory ruling -- Electronic\r\nfiling.
\r\n\r\n20:69:02:06 Number of copies of petition for promulgation of rule --\r\nElectronic filing.
\r\n\r\n20:69:02:07 Petition for contested case hearing.
\r\n\r\n20:69:02:08 Petition for review of decision on contested case.
\r\n\r\n\r\n\r\n20:69:02:01. Official\r\noffice.Repealed.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 7 SDR 31, effective October 6, 1980; 12\r\nSDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:02:01, 20 SDR\r\n18, effective August 16, 1993; repealed, 24 SDR 172,\r\neffective June 16, 1998.
\r\n\r\n\r\n20:69:02:02. Commission\r\naction. The commission may take any action by a mail ballot or by a\r\nconference telephone call. In case of a conference telephone call, the\r\nexecutive director shall participate in the call and take minutes of the\r\ncommission action. In case of a mail ballot, the results of the mail ballot\r\nshall be included in the minutes. A mail ballot or conference telephone call is\r\na meeting of the commission.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:02:03.01, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-21.
\r\n\r\n\r\n20:69:02:03. Petition\r\nfor declaratory ruling. Any person wishing the commission to issue its\r\nruling as to the applicability to that person of a statutory provision, rule,\r\nor order of the commission may file a petition with the commission in\r\nsubstantially the following form:
\r\n\r\n\r\nState\r\nof South Dakota
\r\n\r\nSouth\r\nDakota Real Estate Commission
\r\n\r\n\r\nPursuant\r\nto the provisions of SDCL 1-26-15, I, (name of petitioner), of (address of petitioner), am (title or capacity of petitioner), and do hereby petition the South Dakota Real Estate Commission for its declaratory ruling in regard to the following:
\r\n\r\n\r\n1. The\r\nstate statute or South Dakota Real Estate Commission rule or order in question\r\nis: (here identify and quote the pertinent statute, rule, or order);
\r\n\r\n\r\n2. The\r\nfacts and circumstances which give rise to the issue to be answered by the\r\ncommission's declaratory ruling are:
\r\n\r\n\r\n3. The\r\nprecise issue to be answered by the commission's declaratory ruling is:
\r\n\r\n\r\nDated\r\nat (city and state), this _____ day of __________ 20__.
\r\n\r\n\r\n_________________________
\r\n\r\n(Signature of petitioner)
\r\n\r\n\r\n\r\n
Source: SL 1975, ch\r\n16, § 1; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:07:01, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 1-26-15, 36-21A-89.
\r\n\r\n\r\n20:69:02:04. Commission\r\naction on petition. Upon receipt of a petition for a declaratory ruling,\r\nthe commission may request from the petitioner any other information it\r\nrequires for the issuance of its ruling. Following the receipt of the petition,\r\nthe commission shall issue its declaratory ruling and serve a copy of it by\r\nmail on the petitioner.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:07:02, 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\n\r\n\r\n\r\n20:69:02:07. Petition\r\nfor contested case hearing. A person aggrieved by any action of the\r\ncommission taken without a hearing may, within 30 days following the date of\r\nthe commission action, petition the commission for a hearing to be held at a\r\ntime and place established by the commission. The hearing is a contested case.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 5 SDR 21, effective September 21, 1978;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:09:01, 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 1-26-16, 1-26-18.
\r\n\r\n\r\nCross-Reference: Procedure to follow in\r\ncontested cases, SDCL 1-26-16 to 1-26-29.
\r\n\r\n\r\n20:69:02:08. Petition\r\nfor review of decision on contested case. Within 10 days after receipt of\r\nthe commission's decision, a party to the hearing may file a petition with the\r\ncommission for review of its decision. The commission, in its discretion, may deny\r\nthe petition, order a rehearing, or direct any other proceedings it considers\r\nappropriate. Upon rehearing or other proceedings, the commission may affirm,\r\nreverse, or modify its earlier decision. Notice of the commission's decision on\r\nthe petition to review shall be served by mail on the petitioner and other\r\naffected parties.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 5 SDR 21, effective September 21, 1978;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:09:06, 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\n\r\n\r\n\r\nCHAPTER 20:69:03
LICENSING AND LICENSES
Section
20:69:03:01 Application for license by examination.
20:69:03:02 Proof of education to accompany application.
20:69:03:02.01 Proof of passing score to accompany application.
20:69:03:03 Repealed.
20:69:03:04 Authority to take examination.
20:69:03:04.01 Registering for examination.
20:69:03:05 Failure to appear for examination.
20:69:03:06 Administration of examination.
20:69:03:06.01 Testing service.
20:69:03:07 Passing score on licensing examination.
20:69:03:08 Cheating on examination.
20:69:03:09 Reinstatement of licensees discharged from armed forces.
20:69:03:10 Application fee -- Brokers and salespersons.
20:69:03:11 Repealed.
20:69:03:12 Application fee -- Firm license.
20:69:03:12.01 Registration fee -- Broker or associate licensee business corporation or limited liability company.
20:69:03:13 Biennial renewal fee -- Broker.
20:69:03:14 Biennial renewal fee -- Salesperson.
20:69:03:15 Biennial renewal fee -- Firm.
20:69:03:16 Office management.
20:69:03:17 Commission split -- Out-of-state.
20:69:03:18 Transferred.
20:69:03:19 Advance compensation.
20:69:03:20 Repealed.
20:69:03:21 Repealed.
20:69:03:22 Nonresident licensee as applicant -- Certificate of licensure required.
20:69:03:22.01 Nonresident licensee -- Renewal of license on active status -- Certificate of licensure required.
20:69:03:23 Supervising broker to be licensed in South Dakota.
20:69:03:24 South Dakota resident licensed as salesperson by examination in another state -- Requirements for obtaining a broker associate license in South Dakota.
20:69:03:25 Nonresident salesperson licensed in South Dakota -- Time to qualify for broker associate upon establishing residency in state.
20:69:03:26 Fees -- Certification of licensure, additional license, duplicate license, and transfer of license.
20:69:03:27 Late renewal fee.
20:69:03:01. Application\r\nfor license by examination. An applicant for license by examination shall\r\nfile an application with the commission on a form provided by the commission\r\nwithin 60 days after the date of notice of having passed the examination. The application\r\nshall be accompanied by the fee prescribed by § 20:69:03:10.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:03:01, 20 SDR\r\n18, effective August 16, 1993; 24 SDR 172, effective\r\nJune 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-35.
\r\n\r\n\r\n20:69:03:02. Proof\r\nof education to accompany application.\r\nAn applicant for a license by examination shall submit proof that the applicant\r\nsuccessfully completed the required education within the two years before the\r\ndate of application.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993; 24 SDR 172, effective\r\nJune 16, 1998; 30 SDR 40, effective September 30,\r\n2003.
\r\n\r\nGeneral Authority:SDCL 36-21A-31.
\r\n\r\nLaw Implemented:SDCL 36-21A-31.
\r\n\r\n\r\n20:69:03:02.01. Proof\r\nof passing score to accompany application. An applicant for license by\r\nexamination shall submit proof that the applicant successfully completed the\r\nlicensing examination.
\r\n\r\n\r\nSource: 24 SDR\r\n172, effective June 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-41.
\r\n\r\n\r\n20:69:03:03. Photograph\r\nto accompany application.Repealed.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:03:02, 20 SDR 18, effective August 16, 1993; repealed, 26 SDR 41, effective September 29, 1999.
\r\n\r\n\r\n20:69:03:04. Authority\r\nto take examination. A person may not take the real estate examination\r\nunless the person has completed the prescribed prerequisite education and\r\nregistered to take the examination.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; 15 SDR 100, effective January 10, 1989;\r\ntransferred from § 20:56:03:06, 20 SDR 18,\r\neffective August 16, 1993; 24 SDR 172, effective June\r\n16, 1998; 30 SDR 40, effective September 30, 2003.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-89(2).
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-41.
\r\n\r\n\r\n20:69:03:04.01. Registering\r\nfor examination. A person registering to take the real estate examination\r\nmust complete the prerequisite education before submitting the registration.
\r\n\r\n\r\nSource: 24 SDR\r\n172, effective June 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-34, 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-41.
\r\n\r\n\r\n20:69:03:05. Failure\r\nto appear for examination. A person registered to take an examination must\r\nappear in person to take the examination as scheduled. If the person fails to\r\ndo so, the person forfeits the examination fee and must register again to take\r\nthe examination.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 2 SDR 7, effective July 30, 1975; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:03:07, 20 SDR\r\n18, effective August 16, 1993; 24 SDR 172, effective\r\nJune 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-41.
\r\n\r\n\r\n20:69:03:06. Administration\r\nof examination. The licensing examination shall be conducted under the\r\nsupervision of the executive director of the commission. The examiner shall\r\nrequire identification supplied to the registered person by the commission for admission\r\nto the examination room. Before beginning the examination, the person must\r\nstate in writing that the person has not solicited or received any information\r\nconcerning the contents of the examination about to be written and during or\r\nsubsequent to the examination will not disclose its contents.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:03:08, 20 SDR\r\n18, effective August 16, 1993; 24 SDR 172, effective\r\nJune 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-36.
\r\n\r\n\r\n20:69:03:06.01. Testing\r\nservice. The commission may negotiate an agreement with a testing service\r\nfor examination development, administration, scoring, reporting, and analysis.
\r\n\r\n\r\nSource: 24 SDR\r\n172, effective June 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-36.
\r\n\r\n\r\n20:69:03:07. Passing\r\nscore on licensing examination. The passing score on the licensing\r\nexaminations is 75.
\r\n\r\n\r\nSource: 7 SDR\r\n31, effective October 6, 1980; 10 SDR 54, effective\r\nDecember 5, 1983; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:03:08.01, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-41.
\r\n\r\n\r\n20:69:03:08. Cheating\r\non examination. The examination of any person who is caught cheating during\r\nan examination is void.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:03:09, 20 SDR 18, effective August 16, 1993; 24 SDR\r\n172, effective June 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(1).
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-41.
\r\n\r\n\r\n20:69:03:09. Reinstatement\r\nof licensees discharged from armed forces. Application for reinstatement of\r\na license by a former licensee discharged from the armed forces shall be made\r\non forms provided by the commission.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\nrepealed, 12 SDR 102, effective December 22, 1985;\r\nreadopted, 18 SDR 101, effective December 17, 1991;\r\ntransferred from § 20:56:03:14, 20 SDR 18,\r\neffective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-67, 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-67.
\r\n\r\n\r\n20:69:03:10. Application\r\nfee -- Brokers and salespersons. The application fee for brokers, including\r\nrestricted brokers, and salespersons is $225.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 16 SDR 36, effective\r\nAugust 29, 1989; transferred from § 20:56:03:20, 20 SDR\r\n18, effective August 16, 1993; 24 SDR 172, effective\r\nJune 16, 1998; 26 SDR 41, effective September 29,\r\n1999; 29 SDR 48, effective October 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-49.
\r\n\r\nLaw Implemented:SDCL 36-21A-49.
\r\n\r\n\r\n20:69:03:11. Reapplication\r\nfee -- Brokers and salesmen.Repealed.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; 16 SDR 36, effective August 29,\r\n1989; transferred from § 20:56:03:21, 20 SDR 18,\r\neffective August 16, 1993; repealed, 24 SDR 172,\r\neffective June 16, 1998.
\r\n\r\n\r\n20:69:03:12. Application\r\nfee -- Firm license. The application fee for a firm license is $100.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 16 SDR 36, effective\r\nAugust 29, 1989; transferred from § 20:56:03:22, 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-38.
\r\n\r\nLaw Implemented:SDCL 36-21A-38.
\r\n\r\n\r\n20:69:03:13. Biennial\r\nrenewal fee -- Broker. The biennial renewal fee for a broker's license,\r\nincluding restricted licenses, is $125.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 4 SDR 35, effective December 22, 1977;\r\n7 SDR 31, effective October 6, 1980; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; 13 SDR 31, effective September 23,\r\n1986, effective January 1, 1988; 15 SDR 100,\r\neffective January 10, 1989; transferred from § 20:56:03:23, 20 SDR 18, effective August 16, 1993; 24 SDR\r\n172, effective June 16, 1998; 26 SDR 41, effective\r\nSeptember 29, 1999; 29 SDR 48, effective October 10,\r\n2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-61.
\r\n\r\nLaw Implemented:SDCL 36-21A-61.
\r\n\r\n\r\n20:69:03:14. Biennial\r\nrenewal fee -- Salesperson. The biennial renewal fee for a salesperson's\r\nlicense is $125.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 4 SDR 35, effective December 22, 1977;\r\n7 SDR 31, effective October 6, 1980; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; 13 SDR 31, effective September 23,\r\n1986, effective January 1, 1988; 15 SDR 100,\r\neffective January 10, 1989; transferred from § 20:56:03:24, 20 SDR 18, effective August 16, 1993; 24 SDR\r\n172, effective June 16, 1998; 26 SDR 41, effective\r\nSeptember 29, 1999; 29 SDR 48, effective October 10,\r\n2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-61.
\r\n\r\nLaw Implemented:SDCL 36-21A-61.
\r\n\r\n\r\n20:69:03:15. Biennial\r\nrenewal fee -- Firm. The biennial renewal fee for a firm license is $125.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 13 SDR 31, effective\r\nSeptember 23, 1986, effective January 1, 1988; 15 SDR\r\n100, effective January 10, 1989; 16 SDR 36, effective\r\nAugust 29, 1989; transferred from § 20:56:03:25, 20 SDR\r\n18, effective August 16, 1993; 29 SDR 48, effective\r\nOctober 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-61.
\r\n\r\nLaw Implemented:SDCL 36-21A-61.
\r\n\r\n\r\n20:69:03:18. Transferred\r\nto §§ 20:69:16:01 and 20:69:16:02.
\r\n\r\n\r\n\r\n\r\n
Source:\r\n1 SDR 33, effective January 1, 1975; 10 SDR 54, effective December 5, 1983; 12\r\nSDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1,\r\n1986; 15 SDR 100, effective January 10, 1989; 18 SDR 101, effective December\r\n17, 1991; transferred from § 20:56:12:20, 20 SDR 18, effective August 16,\r\n1993; 35 SDR 305, effective July 1, 2009;\r\n47 SDR 37, effective October 5, 2020.
\r\n\r\n\r\n\r\n
20:69:03:21. Reciprocal agreements. Repealed.
Source: 20 SDR 18, effective August 16, 1993; 48 SDR 60, effective December 6, 2021.
20:69:03:22. Nonresident licensee as applicant -- Certificate of licensure required. A nonresident licensee who is an applicant for licensure in this state shall submit a certificate of licensure from the licensing agency of the current state in which the applicant holds an active license. The certificate of licensure shall be completed within 30 days before the date of application, stating that the applicant's license is on active status and in good standing and that no complaint is pending.
Source: 20 SDR 18, effective August 16, 1993; 35 SDR 305, effective July 1, 2009; 48 SDR 60, effective December 6, 2021.
General Authority: SDCL 36-21A-54, 36-21A-89(3).
Law Implemented: SDCL 36-21A-54.
20:69:03:23. Supervising\r\nbroker to be licensed in South Dakota. A licensed nonresident salesperson\r\nor broker associate shall be associated with a licensed South Dakota broker or\r\na nonresident broker licensed by the commission.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(3).
\r\n\r\nLaw Implemented:SDCL 36-21A-54.
\r\n\r\n\r\n20:69:03:26. Fees\r\n-- Certification of licensure, additional license, duplicate license, and\r\ntransfer of license. Fees include the following:
\r\n\r\n\r\n\r\n
(1) For\r\neach certification of licensure, $15;
\r\n\r\n(2) For\r\neach additional license, a biennial fee of $30;
\r\n\r\n(3) For\r\neach license included in a statement of registration to change an office or\r\nplace of business, $15;\r\nand
\r\n\r\n(4) For\r\neach license included in a statement of registration to change association with\r\na responsible broker, $15.
\r\n\r\n\r\n\r\n
Source:\r\n34 SDR 323, effective July 3, 2008; 47 SDR 37, effective October 5, 2020.
\r\n\r\nGeneral\r\nAuthority: SDCL 36-21A-60.
\r\n\r\nLaw\r\nImplemented: SDCL 36-21A-60.
\r\n\r\n\r\n\r\n
CHAPTER\r\n20:69:04
\r\n\r\n\r\nPRELICENSING\r\nEDUCATION
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:04:01 Application\r\nfor approval of classroom instruction.
\r\n\r\n20:69:04:01.01 Certificate of approval.
\r\n\r\n20:69:04:01.02 Criteria for approval of classroom instruction.
\r\n\r\n20:69:04:02 Contents of broker associate prelicensing course.
\r\n\r\n20:69:04:03 Contents of broker associate upgrade course.
\r\n\r\n20:69:04:04 Contents of responsible broker course.
\r\n\r\n20:69:04:05 Order of courses to be passed.
\r\n\r\n20:69:04:06 Conditions for credit for alternative courses.
\r\n\r\n20:69:04:07 Application for credit for alternative courses.
\r\n\r\n20:69:04:08 Qualifications for classroom instructor.
\r\n\r\n20:69:04:08.01 Instructors.
\r\n\r\n20:69:04:08.02 Application for approval of instructor -- Guest speakers exempt.
\r\n\r\n20:69:04:08.03 Utilization of guest speakers -- Résumé to accompany course\r\napplication.
\r\n\r\n20:69:04:08.04 Certificate of instructor approval -- Approval certificates not\r\nissued to guest speakers.
\r\n\r\n20:69:04:09 Educational facilities.
\r\n\r\n20:69:04:09.01 Instructional techniques.
\r\n\r\n20:69:04:10 Approval\r\nof classroom instruction, distance education, or independent study course.
\r\n\r\n20:69:04:10.01 Auditing.
\r\n\r\n20:69:04:11 Withdrawal of approval for course or instructor.
\r\n\r\n20:69:04:11.01 Denial of approval for course or instructor.
\r\n\r\n20:69:04:12 Withdrawal of approval for inactivity.
\r\n\r\n20:69:04:13 Credit for previously unapproved courses.
\r\n\r\n20:69:04:14 Classroom hour.
\r\n\r\n20:69:04:15 Length of course.
\r\n\r\n20:69:04:16 Examination.
\r\n\r\n20:69:04:17 Reexamination.
\r\n\r\n20:69:04:18 Schedule.
\r\n\r\n20:69:04:19 Prelicensing education certificate of attendance.
\r\n\r\n20:69:04:20 Course provider reporting requirements.
\r\n\r\n20:69:04:21 Preregistration allowed -- Notice of cancellation required.
\r\n\r\n20:69:04:22 Application for approval of distance education or independent\r\nstudy course.
\r\n\r\n20:69:04:23 Additional requirements for distance education course\r\nofferings.
\r\n\r\n20:69:04:24 Distance education defined.
\r\n\r\n20:69:04:25 Independent study defined.
\r\n\r\n20:69:04:26 Standards for distance education.
\r\n\r\n20:69:04:27 Criteria for distance education or independent study course\r\napproval.
\r\n\r\n20:69:04:28 Student certification required
\r\n\r\n20:69:04:29 Material change.
\r\n\r\n\r\n\r\n20:69:04:01. Application\r\nfor approval of classroom instruction. A course provider desiring to give\r\napproved classroom instruction to prospective real estate licensees shall apply\r\non a form provided by the commission. The application must be filed with the\r\ncommission at least 30 days before the course begins.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:04:01, 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999; 28 SDR 28, effective September 2,\r\n2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:01.01. Certificate\r\nof approval. The commission shall grant a certificate of approval for each\r\ncourse of study approved by the commission. The certificate is valid for three\r\nyears.
\r\n\r\n\r\nSource: 24 SDR\r\n172, effective June 16, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:01.02. Criteria\r\nfor approval of classroom instruction. The application form for approval of\r\nclassroom instruction shall include the following information and enclosures:
\r\n\r\n\r\n(1) Name,\r\naddress, and telephone number of the course provider;
\r\n\r\n(2) The\r\ntitle of the course;
\r\n\r\n(3) A\r\ncomplete description or copies of all materials to be distributed to the\r\nparticipants;
\r\n\r\n(4) The\r\ndate and exact location of each presentation of the course;
\r\n\r\n(5) The\r\nduration and time of the course;
\r\n\r\n(6) A\r\ncomprehensive, detailed outline of the subject matter together with course\r\nobjectives, the time sequence of each segment, the faculty for each segment,\r\nand the teaching technique used in each segment;
\r\n\r\n(7) The\r\nmethod of evaluation of the program;
\r\n\r\n(8) The\r\nprocedure for measuring attendance; and
\r\n\r\n(9) A\r\ndescription of the faculty, including name, professional educational\r\nbackground, and practical or teaching experience. A complete résumé may be\r\nfurnished.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\n20:69:04:04. Contents of responsible broker course. The responsible broker course is a course in brokerage. The course must be a minimum of 24 hours long and contain a final examination which demonstrates knowledge of the subject areas. The course must include the following subject areas:
(1) Advertising compliance;
(2) Brokerage best practices;
(3) Business ethics;
(4) Business and strategic planning;
(5) Compensation planning;
(6) Policy review and risk management;
(7) State specific contracts;
(8) Exit strategies, including selling and transferring of ownership;
(9) Human resource essentials, including instruction on the differences between an employee and an independent contractor;
(10) Legal issues; and
(11) Trust accounting and finance.
Source: 2 SDR 7, effective July 30, 1975; transferred from § 20:56:04:21, 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:04:02.03, 20 SDR 18, effective August 16, 1993; 23 SDR 110, effective January 9, 1997; 30 SDR 40, effective September 30, 2003; 35 SDR 305, effective July 1, 2009; 49 SDR 51, effective November 27, 2022.
General Authority: SDCL 36-21A-31.
Law Implemented: SDCL 36-21A-31.
20:69:04:07. Application\r\nfor credit for alternative courses. An application for credit under\r\n§ 20:69:04:06 must be accompanied by an authenticated transcript from the\r\ncollege, university, vocational school, or prelicensing\r\neducation school and a description of the course or courses completed.
\r\n\r\n\r\nSource: 2 SDR\r\n7, effective July 30, 1975; transferred from § 20:56:04:23, 10 SDR 54, effective December 5, 1983; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:04:02.06, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-31, 36-21A-34.
\r\n\r\nLaw Implemented:SDCL 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:08. Qualifications\r\nfor classroom instructor. An applicant seeking commission approval to teach\r\nprelicensing education must furnish evidence satisfactory to the commission\r\nthat the applicant has at least one of the following qualifications:
\r\n\r\n\r\n\r\n
(1) A bachelor's\r\ndegree in the field in which the person is to teach;
\r\n\r\n\r\n\r\n
(2) A valid\r\nteaching certificate or credential from South Dakota or another state\r\nauthorizing the holder to teach in the field of instruction being offered;
\r\n\r\n\r\n\r\n
(3) Five years of\r\nfull-time experience in a professional trade or technical occupation in the\r\napplicable field; or
\r\n\r\n\r\n\r\n
(4) Any combination\r\nof at least five years of full-time applicable field experience and college\r\nlevel education.
\r\n\r\n\r\n\r\n
In addition to meeting at\r\nleast one of the qualifications in subdivisions (1) to (4), inclusive, an\r\ninstructor seeking approval to provide instruction of the broker associate\r\nprelicensing course, broker associate upgrade course, or responsible broker\r\ncourse shall complete the responsible broker course prior to approval.
\r\n\r\n\r\n\r\n
Source: SL 1975, ch 16,\r\n§ 1; 7 SDR 31, effective October 6, 1980; 10 SDR 54, effective December 5,\r\n1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155,\r\neffective July 1, 1986; transferred from § 20:56:04:03, 20 SDR 18,\r\neffective August 16, 1993; 28 SDR 28, effective September 2, 2001; 30 SDR 40,\r\neffective September 30, 2003; 35 SDR 305, effective July 1, 2009; 41 SDR 219,\r\neffective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented: SDCL 36-21A-30.1, 36-21A-31.
\r\n\r\n\r\n\r\n
20:69:04:08.01. Instructors.\r\nNo instructor may teach prelicensing courses unless\r\napproved, by name, by the commission. However, a guest speaker may teach a\r\ndesignated section of a prelicensing course pursuant\r\nto § 20:69:04:08.03.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:08.02. Application\r\nfor approval of instructor -- Guest speakers exempt. An applicant for\r\ninstructor approval shall apply on a form provided by the commission. A guest\r\nspeaker is exempt from making application if requesting approval pursuant to § 20:69:04:08.03.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:08.03. Utilization\r\nof guest speakers -- Résumé to accompany course application. A course\r\nprovider may utilize guest speakers with expertise in a particular area in any\r\napproved course if an approved instructor is present at the time of the presentation.\r\nA course provider may utilize a guest speaker without an approved instructor\r\npresent with the prior written approval of the commission.
\r\n\r\n\r\nAn\r\napplication for approval of a course utilizing guest speakers must include a\r\nrésumé of each speaker.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:08.04. Certificate\r\nof instructor approval -- Approval certificates not issued to guest speakers.\r\nThe commission shall grant a certificate of approval for each instructor\r\napproved by the commission. Certificates of approval will not be issued to guest\r\nspeakers who make application pursuant to § 20:69:04:08.03.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:09. Educational\r\nfacilities. An approved course of instruction must have the classrooms and\r\nother facilities and personnel necessary to implement the program as determined\r\nby the real estate commission.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:04:04, 20 SDR\r\n18, effective August 16, 1993; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4)
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:09.01. Instructional\r\ntechniques. Classroom courses must be presented to students through\r\ninteractive instructional techniques. Interactive instruction includes\r\nproviding a student the opportunity for immediate exchange with an instructor\r\nin a classroom setting and immediate assessment and remediation through\r\ncomputer assisted or other audio or audiovisual interactive instruction. An\r\ninstructor may not provide instruction primarily by having students read text\r\nmaterial, listen to audio tapes, watch video tapes or films, or study questions\r\nsimilar to those on the state licensing examinations.
\r\n\r\n\r\nSource: 26 SDR\r\n41, effective September 29, 1999; 28 SDR 28,\r\neffective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:10. Approval\r\nof classroom instruction, distance education, or independent study course.\r\nPrior to the contemplated date of opening, the commission shall notify the\r\napplicant in writing of its decision to grant or deny approval. No applicant\r\nmay accept students without the commission's approval.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:04:05, 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999; 28 SDR 28, effective September 2,\r\n2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:10.01. Auditing.\r\nThe commission may audit courses.
\r\n\r\n\r\nSource: 24 SDR\r\n172, effective June 16, 1998; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:11. Withdrawal\r\nof approval for course or instructor. If the commission at any time\r\ndetermines that a person or course approved pursuant to chapter 20:69:04 is not\r\ncontinuing to meet the requirements of SDCL chapter 36-21A and this chapter, it shall immediately notify the course provider in writing detailing the deficiencies requiring correction. The school's approval by the commission shall continue 90 days from the date of the commission's written notice to the course provider, and if, at the expiration of that period, the course provider has failed to correct to the commission's satisfaction the deficiencies noted, the commission may withdraw approval of the course or instructor.
\r\n\r\n\r\nIf\r\nthe commission disciplines an instructor who holds a real estate license for\r\nacts committed as a licensee, the commission may also withdraw that licensee's\r\napproval as an instructor.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 10 SDR 54, effective December 5, 1983;\r\n12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:04:08, 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999; 28 SDR 28, effective September 2,\r\n2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\nCross-Reference: Procedure to follow in\r\nlicensing matters, SDCL 1-26-16 to 1-26-19.1.
\r\n\r\n\r\n20:69:04:11.01. Denial\r\nof approval for course or instructor. The commission may deny approval of a\r\nreal estate course or instructor if it determines that either is not in\r\ncompliance with SDCL chapter 36-21A and this article. Any person aggrieved by denial of approval by the commission may file a written request for a hearing pursuant to § 20:69:02:07.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\nCross-Reference: Procedure for a\r\ncontested case, SDCL chapter 1-26.
\r\n\r\n\r\n20:69:04:12. Withdrawal\r\nof approval for inactivity. The commission may withdraw its approval for\r\nany course that has not been offered for at least one year.
\r\n\r\n\r\nSource: 7 SDR\r\n31, effective October 6, 1980; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:04:08.01, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:13. Credit\r\nfor previously unapproved courses. A person completing any course which has\r\nnot received prior commission approval shall submit a complete list of the\r\ncourses taken, the number of hours of study for each course, and the\r\nqualifications of the instructors and shall answer any additional questions\r\nwhich the commission may have. After review of the information, the commission\r\nmay approve the course and give the applicant credit for meeting all or a\r\nportion of the educational requirements imposed by SDCL chapter 36-21A.
\r\n\r\n\r\nSource: SL 1975, ch\r\n16, § 1; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; 18 SDR 101, effective December 17,\r\n1991; transferred from § 20:56:04:10, 20 SDR 18,\r\neffective August 16, 1993; 28 SDR 28, effective\r\nSeptember 2, 2001; 30 SDR 40, effective September 30,\r\n2003.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31.
\r\n\r\n\r\n20:69:04:14. Classroom\r\nhour. A classroom hour is a period of at least 50 minutes of actual\r\nclassroom instruction out of each 60-minute segment. Additional study\r\nassignments are not counted as hours of classroom instruction.
\r\n\r\n\r\n\r\n
Source: 2 SDR 7,\r\neffective July 30, 1975; 12 SDR 102, effective December 22, 1985; 12 SDR 151,\r\n12 SDR 155, effective July 1, 1986; transferred from § 20:56:04:13, 20 SDR\r\n18, effective August 16, 1993; 28 SDR 28, effective September 2, 2001; 41 SDR\r\n219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\nLaw Implemented: SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n\r\n
20:69:04:15. Length\r\nof course. No more than eight hours of instruction may be offered in one\r\nday.
\r\n\r\n\r\nSource: 2 SDR\r\n7, effective July 30, 1975; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:04:14, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:16. Examination.\r\nA final examination must be given in each course. A copy of the final\r\nexamination and the answers must be filed with the commission.
\r\n\r\n\r\nSource: 2 SDR\r\n7, effective July 30, 1975; 10 SDR 54, effective\r\nDecember 5, 1983; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:04:15, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:17. Reexamination.\r\nA candidate for a license who fails the final examination of a prelicensing course may retake the examination without\r\nretaking the education.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; 18 SDR 101,\r\neffective December 17, 1991; transferred from § 20:56:04:15.01, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(2).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:18. Schedule.\r\nA schedule of all courses offered, including the date, time, and place where\r\nthey will be offered, must be furnished to the commission before the courses\r\nbegin.
\r\n\r\n\r\nSource: 2 SDR\r\n7, effective July 30, 1975; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:04:16, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34.
\r\n\r\n\r\n20:69:04:19. Prelicensing education certificate of attendance.\r\nA course provider shall provide an individual certificate of attendance to each\r\nlicensee upon completion of the prelicensing course\r\nunder the following conditions. The certificate shall contain the licensee's\r\nname, the course title, the date, the location of the course, the number of\r\napproved credit hours, and the signature of the course provider or instructor.\r\nNo certificate of attendance may be issued to a licensee who is absent for more\r\nthan ten percent of the classroom hours.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\n20:69:04:20. Course\r\nprovider reporting requirements. The course provider shall submit a list of\r\nparticipants to the commission within ten days after completion of a course.\r\nThe course provider shall provide a course evaluation form to each licensee for\r\ncompletion and submit the completed course evaluations to the commission within\r\nten days after completion of a course.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\n20:69:04:21. Preregistration allowed -- Notice of cancellation\r\nrequired. A course provider offering approved prelicensing\r\neducation courses may require preregistration with a\r\nregistration cutoff date. The requirement must be advertised prior to each course.\r\nA course provider must notify registrants if the course is cancelled. The\r\nnotification must be made at least 48 hours before the time of the beginning of\r\nthe course.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\n20:69:04:22. Application\r\nfor approval of distance education or independent study course. A course\r\nprovider desiring to give approved independent study or distance education\r\ncourses to prospective real estate licensees shall apply on a form provided by\r\nthe commission. The application must be filed with the commission at least 30\r\ndays before the course is offered.
\r\n\r\n\r\nThe\r\napplication form shall include the following information and enclosures:
\r\n\r\n\r\n(1) Name,\r\naddress, and telephone number of the course provider;
\r\n\r\n(2) Course\r\ntitle;
\r\n\r\n(3) The\r\nspecific subject matter requirement met by the course;
\r\n\r\n(4) The\r\nnames of any instructor who will be available to answer student questions, the\r\nmeans of contact, and the hours of availability;
\r\n\r\n(5) The\r\noverall structure, functioning, and administration of the proposed course;
\r\n\r\n(6) A\r\ncomplete list of all lessons, modules, and learning objectives for each;
\r\n\r\n(7) An\r\nexplanation of the remediation process which is in effect to accomplish mastery\r\nof material when specific deficiencies are identified; and
\r\n\r\n(8) A\r\ndescription of the procedures used to ensure exam security.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001; 30 SDR 40, effective\r\nSeptember 30, 2003.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:23. Additional\r\nrequirements for distance education course offerings. In addition to the\r\nrequirements of § 20:69:04:21, an application for approval of a distance\r\neducation course must include the following:
\r\n\r\n\r\n(1) A\r\ncomplete description of any hardware, software, or other technology to be used\r\nby the provider and needed by the student to effectively engage in the delivery\r\nand completion of the course material and an assessment of the availability and\r\nadequacy of the equipment, software, or other technologies to the achievement\r\nof the course's instructional claims; and
\r\n\r\n\r\n(2) An\r\nexplanation of how the course measures, documents, and records that the student\r\nhas engaged in the required interactive exercises, achieved the required level\r\nof mastery, and spent the required amount of time completing the course and how\r\nthe course provides protection against loss of student data due to hardware or\r\nsoftware failure or against inadvertent loss by the student.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:24. Distance\r\neducation defined. As used in this chapter, a distance education course is\r\none in which instruction takes place in other than a traditional classroom\r\nsetting, the instructor and student are in physically separate locations, and\r\ninstructional methods include interactive video-based instruction, computer\r\nconferencing, interactive audio, interactive computer software, and\r\ninternet-based instruction.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:25. Independent\r\nstudy defined. As used in this chapter, an independent study is a course in\r\nwhich no interaction with an instructor is planned or implied as part of the\r\nlearning process.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:26. Standards\r\nfor distance education. A distance education course must provide mastery of\r\nthe material. The course must:
\r\n\r\n\r\n(1) Divide\r\nthe material into major learning units, each of which is further divided into\r\nmodules of instruction;
\r\n\r\n\r\n(2) Specify\r\nlearning objectives for each learning unit or module of instruction. Learning\r\nobjectives must be comprehensive enough to ensure that if all the objectives\r\nare met, the entire content of the course will be\r\nmastered;
\r\n\r\n\r\n(3) Specify\r\nan objective, quantitative criterion for mastery used for each learning\r\nobjective and provide a structured learning method designed to enable students\r\nto attain each objective;
\r\n\r\n\r\n(4) Provide\r\na means of diagnostic assessment of each student's performance on an ongoing\r\nbasis during each module of instruction, including appropriate remediation if\r\nrequired; and
\r\n\r\n\r\n(5) Require\r\nthat the student demonstrate adequate comprehension of all material covered by\r\nthe learning objectives for the module or unit before completing that module or\r\nunit.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:27. Criteria\r\nfor distance education or independent study course approval. The commission\r\nmay approve any prelicensing course that is provided\r\nby a public or private school, organization, person, corporation, society, or\r\nsimilar organization. The commission, when acting on an application for\r\napproval of a course, shall consider the following minimum criteria:
\r\n\r\n\r\n(1) The\r\ncourse provider must specify the learning objectives for each lesson and\r\nclearly demonstrate that the objectives cover the required subject matter.\r\nObjectives must be specific to ensure that all relative content is covered\r\nadequately to ensure mastery of the objectives;
\r\n\r\n\r\n(2) The\r\ncourse provider must demonstrate that the course includes the same or\r\nreasonably similar informational content as a course that would otherwise\r\nqualify for the requisite number of hours of classroom-based instruction, and\r\nthat students must proceed through and demonstrate comprehension of all the\r\nmaterial;
\r\n\r\n\r\n(3) If\r\nthe course is a distance education course, it must include consistent and\r\nregular interactive events as appropriate to the medium. The interactive\r\nelements must be designed to promote student involvement in the learning\r\nprocess, and must directly support the student's achievement of the course's learning\r\nobjectives. The course approval submission must identify the types of\r\ninteractive events included in the course and specify how the interactive\r\nevents contribute to the achievement of the stated learning objectives;
\r\n\r\n\r\n(4) The\r\ncourse must require that the student demonstrate mastery of the learning\r\nobjectives as designated for each lesson in order to successfully complete the\r\nlesson. The course must provide a mechanism of individual remediation to\r\ncorrect any deficiencies identified during the instruction and assessment\r\nprocess. In independent study courses, this remediation may be accomplished by\r\nquizzes or other exercises with detailed rationales in the answer key provided\r\nto students;
\r\n\r\n\r\n(5) The\r\ncourse provider must measure, at regular intervals, the student's progress\r\ntoward and completion of the mastery requirement of each lesson or module\r\ncovering all the required subject matter. In the case of computer-based\r\ninstruction, the course software must include automatic shutdown after a period\r\nof inactivity;
\r\n\r\n\r\n(6) The\r\napplicant must demonstrate that approved instructors are available to answer\r\nstudent questions regarding course content at reasonable times and by\r\nreasonable means, including in-person contact, individual and conference\r\ntelephone calls, E-mail, and fax. Communication by written postal\r\ncorrespondence alone is insufficient to satisfy the requirements of this\r\nsubdivision.
\r\n\r\n\r\n(7) The\r\ncourse provider shall provide reasonable security to ensure that the student\r\nwho receives credit for the course is the student who enrolled in and completed\r\nthe course. Both the school and the student must certify in writing that the\r\nstudent has successfully completed the course; and
\r\n\r\n\r\n(8) The\r\ncourse provider must require that the student pass a comprehensive exam of 100\r\nmultiple-choice questions with a minimum passing score of 80 percent.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-30.1, 36-21A-31, 36-21A-34, 36-21A-89(4).
\r\n\r\n\r\n20:69:04:28. Student\r\ncertification required. Any school offering an approved distance education\r\nor independent study course must obtain from each student a statement attesting\r\nthat all assignments and examinations completed are the work of the enrolled student.
\r\n\r\n\r\n\r\n
Source: 28 SDR 28,\r\neffective September 2, 2001; 41 SDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented: SDCL 36-21A-89(4).
\r\n\r\n\r\n\r\n
20:69:04:29. Material\r\nchange. A course provider of an approved real estate course shall\r\nimmediately notify the commission of any material change contained in the\r\napplication for approval or in the attached exhibits. A course provider may\r\nseek approval of a course subsequent to a course offering by submitting all\r\ninformation requested.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(4).
\r\n\r\nLaw Implemented:SDCL 36-21A-89(4).
\r\n\r\n\r\n20:69:05:01. Complaints authorized -- Procedure following filing -- Electronic filing. Repealed.
Source: SL 1975, ch 16, § 1; 2 SDR 7, effective July 30, 1975; 3 SDR 34, effective November 3, 1976; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:06:01, 20 SDR 18, effective August 16, 1993; 35 SDR 305, effective July 1, 2009; 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:01.01. Commission staff to investigate complaints. Repealed.
Source: 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:02. Dismissal of complaint. Repealed.
Source: SL 1975, ch 16, § 1; 2 SDR 7, effective July 30, 1975; 5 SDR 21, effective September 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:02, 20 SDR 18, effective August 16, 1993; 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:03. Informal disposition. Repealed.
Source: SL 1975, ch 16, § 1; 2 SDR 7, effective July 30, 1975; 5 SDR 21, effective September 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:03, 20 SDR 18, effective August 16, 1993; 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:04. Assurance of voluntary compliance or consent order. Repealed.
Source: 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:06:03.01, 20 SDR 18, effective August 16, 1993; 37 SDR 112, effective December 8, 2010; 48 SDR 60, effective December 6, 2021.
20:69:05:05. Formal proceedings. Repealed.
Source: SL 1975, ch 16, § 1; 2 SDR 7, effective July 30, 1975; 5 SDR 21, effective September 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:04, 20 SDR 18, effective August 16, 1993; 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:06. Contents\r\nof commission complaint. Repealed
\r\n\r\n
Source:\r\nSL 1975, ch 16, § 1; 12 SDR 102, effective December 22, 1985; 12 SDR 151,\r\n12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989;\r\ntransferred from § 20:56:06:05, 20 SDR 18, effective August 16, 1993; 44\r\nSDR 71, effective October 24, 2017.
\r\n\r\n\r\n\r\n
20:69:05:07. Date\r\nof hearing. Repealed
\r\n\r\n
Source:\r\nSL 1975, ch 16, § 1; 2 SDR 7, effective July 30, 1975; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:06:07, 20 SDR 18,\r\neffective August 16, 1993; 44 SDR 71, effective October 24, 2017.
\r\n\r\n\r\n\r\n
20:69:05:08. Answer. Repealed.
Source: SL 1975, ch 16, § 1; 3 SDR 34, effective November 3, 1976; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:08, 20 SDR 18, effective August 16, 1993; 44 SDR 71, effective October 24, 2017; 48 SDR 60, effective December 6, 2021.
20:69:05:09. Disqualification. Repealed.
Source: SL 1975, ch 16, § 1; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:09, 20 SDR 18, effective August 16, 1993; 48 SDR 60, effective December 6, 2021.
20:69:05:10. Per diem and mileage. Repealed.
Source: 2 SDR 7, effective July 30, 1975; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:12, 20 SDR 18, effective August 16, 1993; 48 SDR 60, effective December 6, 2021.
20:69:05:11. Final action by commission. Repealed.
Source: 2 SDR 7, effective July 30, 1975; 5 SDR 21, effective September 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:06:13, 20 SDR 18, effective August 16, 1993; 48 SDR 60, effective December 6, 2021.
CHAPTER 20:69:06
REAL ESTATE AUCTIONEER LICENSES
Section
20:69:06:01 Transferred.
20:69:06:01.01 Definitions.
20:69:06:02 Auctioneers -- License required.
20:69:06:03 Qualifications of applicants.
20:69:06:04 Duties of auctioneer.
20:69:06:05 Listings to be in writing.
20:69:06:06 Auction advertisements.
20:69:06:07 Auction sale procedure.
20:69:06:07.01 Auction with reserve sale procedure.
20:69:06:07.02 Absolute auction sale procedure.
20:69:06:07.03 Secured party or lien holder not prohibited from bidding at an absolute auction -- Conditions.
20:69:06:07.04 Internet auction sale procedure.
20:69:06:08 Auctioneer to maintain records.
20:69:06:09 Certain acts prohibited.
20:69:06:10 Rules applicable to real estate brokers, broker associates, and salespersons.
20:69:06:02. Auctioneers\r\n-- License required. A restricted broker's license, referred to in this\r\nchapter as an auctioneer's license, is required for any person not licensed as\r\na real estate broker who is acting as a real estate auctioneer. A real estate salesperson\r\nor broker associate acting under the auspices and supervision of a licensed\r\nreal estate broker may sell real estate at auction without an auctioneer's\r\nlicense. A real estate broker may obtain an auctioneer's license without\r\nexamination.
\r\n\r\n\r\nSource: 1 SDR\r\n33, effective January 1, 1975; 3 SDR 34, effective\r\nNovember 3, 1976; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:12:01, 20 SDR 18, effective August 16, 1993; 23 SDR\r\n110, effective January 9, 1997; 26 SDR 41, effective September\r\n29, 1999; 29 SDR 48, effective October 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-47, 36-21A-89(7).
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-12.
\r\n\r\n\r\n20:69:06:03. Qualifications of applicants. An applicant for a real estate auctioneer’s license, in addition to the other requirements in SDCL chapter 36-21A, shall furnish evidence of completion of one hundred and sixteen classroom hours within the two years before the date of application in a course on the principles and practices of real estate.
Source: 1 SDR 33, effective January 1, 1975; 2 SDR 7, effective July 30, 1975, and omitted as a temporary rule; readopted and transferred from § 20:56:12:08, 20 SDR 18, effective August 16, 1993; 23 SDR 110, effective January 9, 1997; 29 SDR 48, effective October 10, 2002; 35 SDR 305, effective July 1, 2009; 47 SDR 37, effective October 5, 2020; 50 SDR 19, effective August 30, 2023.
General Authority: SDCL 36-21A-47, 36-21A-89(2)(5).
Law Implemented: SDCL 36-21A-30.
20:69:06:04. Duties\r\nof auctioneer. An auctioneer may list, advertise, show, and sell real\r\nproperty or business opportunities at auction only. An auctioneer may also\r\nclose a real estate auction sale.
\r\n\r\n\r\nSource: 1 SDR\r\n33, effective January 1, 1975; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:12:21, 20 SDR\r\n18, effective August 16, 1993; 28 SDR 28, effective\r\nSeptember 2, 2001; 30 SDR 40, effective September 30,\r\n2003.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(7).
\r\n\r\nLaw Implemented:SDCL 36-21A-1, 36-21A-6, 36-21A-47.
\r\n\r\n\r\n20:69:06:09. Certain acts prohibited. Prohibited acts by an auctioneer include the following:
(1) Knowingly receiving or using a rafter bid, puffing of a bid, or any type of bid rigging such as utilizing the services of a shill;
(2) Knowingly permitting an unlicensed individual to call or take bids in an auction sale; or
(3) Knowingly misleading or creating a false impression among the seller, buyer, or bidders in the advertising, conduct, and closing of an auction.
Source: 5 SDR 12, effective August 14, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from § 20:56:12:24, 20 SDR 18, effective August 16, 1993; 37 SDR 112, effective December 8, 2010; 47 SDR 37, effective October 5, 2020; 50 SDR 19, effective August 30, 2023.
General Authority: SDCL 36-21A-89(5).
Law Implemented: SDCL 36-21A-47, 36-21A-68.
CHAPTER\r\n20:69:07
\r\n\r\n\r\nCONDOMINIUMS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:07:01 Notice of intent to sell domestic condominium.
\r\n\r\n20:69:07:02 Rejection of filing.
\r\n\r\n20:69:07:03 Properly filed defined.
\r\n\r\n20:69:07:04 Inspection fee.
\r\n\r\n20:69:07:05 Rejection for insufficient funds check.
\r\n\r\n20:69:07:06 Deposit and expenditure of fees.
\r\n\r\n20:69:07:07 Public offering statement to accompany questionnaire.
\r\n\r\n20:69:07:08 Conversion condominiums.
\r\n\r\n20:69:07:09 Other information.
\r\n\r\n20:69:07:10 Waiver.
\r\n\r\n\r\n\r\n20:69:07:01. Notice\r\nof intent to sell domestic condominium. When a domestic condominium project\r\nis offered for sale in this state, the developer shall notify the commission in\r\nwriting of the intention to sell the offering. The notice of intent must be on\r\na form approved by the commission.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:08, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-10.
\r\n\r\n\r\n20:69:07:02. Rejection\r\nof filing. The commission may reject a filing that does not have the notice\r\nof intent to sell, does not have a questionnaire properly completed by the\r\ndeveloper, or does not include the fee required in SDCL 43-15A-11 and § 20:69:07:04.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:11, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-11.
\r\n\r\n\r\n20:69:07:03. Properly\r\nfiled defined. A notice of intent to sell is not properly filed until the\r\ncommission has notified the developers in writing that all necessary\r\nrequirements have been met.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:12, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-13.
\r\n\r\n\r\n20:69:07:04. Inspection\r\nfee. An estimated inspection fee in the amount of $100 for each $300,000\r\nvalue of the project must be included with the notice of intent.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:13, August 16, 1993; 23 SDR 110, effective January 9, 1997.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-14.
\r\n\r\n\r\n20:69:07:05. Rejection\r\nfor insufficient funds check. The commission shall reject any notice of\r\nintent to sell if it is accompanied by an insufficient funds check for either\r\nthe registration fee or inspection fee or both.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:14, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-11, 43-15A-14.
\r\n\r\n\r\n20:69:07:06. Deposit\r\nand expenditure of fees. The commission shall deposit the fees that it\r\ncollects in the enforcement of SDCL 43-15A in the general fund of the commission and shall expend them to defray the costs of registration and inspection. The commission representative inspecting the project is entitled to a fee not to exceed $75 per day and mileage in the amount of 35 cents per mile or actual reimbursement for first class transportation expenses. If the amount expended by the commission representative is greater than the estimated amount paid by the developer pursuant to § 20:69:07:04, the commission shall bill the developers for the excess amount. The excess amount must be paid immediately or the commission shall reject the notice of intention to sell.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:15, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-15.
\r\n\r\nLaw Implemented:SDCL 43-15A-14, 43-15A-15.
\r\n\r\n\r\n20:69:07:07. Public\r\noffering statement to accompany questionnaire. A public offering statement\r\n(POS) shall accompany and be part of the questionnaire\r\nand must be in a form prescribed by the commission.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:17, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-2 to 43-15A-7, 43-15A-11, 43-15A-18 to 43-15A-25.
\r\n\r\n\r\n20:69:07:08. Conversion\r\ncondominiums. The POS for conversion condominiums must conform in all\r\naspects to the requirements of § 20:69:07:07 except that additional\r\ninformation as required by the commission must be incorporated.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:18, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-2 to 43-15A-7, 43-15A-11, 43-15A-18 to 43-15A-25.
\r\n\r\n\r\n20:69:07:09. Other\r\ninformation. In order to facilitate its powers of inspection, the\r\ncommission may require the submission of additional information. The failure to\r\nsubmit such additional information is grounds for the commission to reject the\r\napplication.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:20, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30.
\r\n\r\nLaw Implemented:SDCL 43-15A-11, 43-15A-13, 43-15A-16 to 43-15A-18, 43-15A-26.
\r\n\r\n\r\n20:69:07:10. Waiver.\r\nThe commission may waive any of the requirements of this chapter for good cause\r\nshown and may accept, at its discretion, registration forms used in another\r\nstate.
\r\n\r\n\r\nSource: 3 SDR\r\n34, effective November 3, 1976; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:13:21, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 43-15A-30
\r\n\r\nLaw Implemented:SDCL 43-15A-11.
\r\n\r\n\r\nCHAPTER\r\n20:69:08
\r\n\r\n\r\nMORTGAGE\r\nBROKERS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:08:01 Definitions.
\r\n\r\n20:69:08:02 to 20:69:08:07 Repealed.
\r\n\r\n20:69:08:08 No advance fee.
\r\n\r\n20:69:08:09 Written contract\r\nrequired.
\r\n\r\n20:69:08:10 Full disclosure required.
\r\n\r\n20:69:08:11 Contents of mortgage loan disclosure\r\nstatement.
\r\n\r\n20:69:08:12 Restrictions on chargeable costs and\r\nexpenses.
\r\n\r\n20:69:08:13 Repealed.
\r\n\r\n\r\n\r\n20:69:08:01. Definitions.\r\nThe term, lender, means a bank or trust company, savings bank, savings and loan\r\nassociation, insurance company, federal land bank, licensed mortgage broker or\r\nmortgage lender, or state or federal agency or its employees or any wholly\r\nowned subsidiary of any of the entities listed in this section.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 5 SDR 21, effective\r\nSeptember 21, 1978; 7 SDR 13, effective October 6,\r\n1980; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:17:01, 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-1, 36-21A-47, 36-21A-89(8).
\r\n\r\n\r\n20:69:08:02. Persons\r\nto whom license law applicable.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:17:03, 20 SDR 18, effective August 16, 1993; 23 SDR\r\n110, effective January 9, 1997; repealed, 26 SDR 41\r\neffective September 29, 1999.
\r\n\r\n\r\n20:69:08:03. Persons\r\nand organizations exempt from licensing.Repealed.
\r\n\r\n\r\nSource: 5 SDR\r\n21, effective September 21, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:17:03.01, 20 SDR 18, effective August\r\n16, 1993; repealed, 26 SDR 41, effective September\r\n29, 1999.
\r\n\r\n\r\n20:69:08:04. Mortgage\r\nbrokers affiliated with a firm exempt from trust account requirements.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 10 SDR 54, effective\r\nDecember 5, 1983; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:17:09, 20 SDR 18, effective August 16, 1993; repealed, 26 SDR 41, effective September 29, 1999.
\r\n\r\n\r\n20:69:08:05. Trust\r\naccount requirements.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:17:32, 20 SDR 18, effective August 16, 1993; repealed, 26 SDR 41, effective September 29, 1999.
\r\n\r\n\r\n20:69:08:06. Office\r\nrequirements.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:17:33, 20 SDR 18, effective August 16, 1993; repealed, 26 SDR 41, effective September 29, 1999.
\r\n\r\n\r\n20:69:08:07. Auditing.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:17:34, 20 SDR\r\n18, effective August 16, 1993; repealed, 26 SDR 41,\r\neffective September 29, 1999.
\r\n\r\n\r\n20:69:08:08. No\r\nadvance fee. A real estate broker acting as a mortgage broker may not\r\naccept compensation in advance from a potential borrower for the procurement of\r\na loan.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:17:36, 20 SDR 18, effective August 16, 1993; 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47, 36-21A-84.
\r\n\r\n\r\n20:69:08:09. Written\r\ncontract required. Before a real estate broker performs any services for a\r\npotential borrower, the broker and the borrower must enter into a written\r\ncontract specifying the duties and conditions under which the broker is to\r\nperform services. The contract must fully disclose estimated compensations and\r\nexpenses and must have a definite expiration date.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:17:37, 20 SDR 18, effective August 16, 1993; 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:08:10. Full\r\ndisclosure required. In all dealings between a borrower and a real estate\r\nbroker, the broker shall fully and fairly inform the prospective borrower of\r\nall liabilities, costs, and other financial obligations that can or will be\r\nincurred by the borrower if the borrower uses the services of the broker.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:17:38, 20 SDR 18, effective August 16, 1993; 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:08:11. Contents\r\nof mortgage loan disclosure statement. When a real estate broker arranges a\r\nloan for a borrower, the following mortgage loan disclosure statement shall be\r\nprepared by the broker and the borrower:
\r\n\r\n\r\n(1) Summary\r\nof loan terms:
\r\n\r\n\r\n(a) Principal\r\namount of loan;
\r\n\r\n(b) Estimated\r\ndeductions from principal amount:
\r\n\r\n\r\n(i) Costs and\r\nexpenses;
\r\n\r\n(ii)Brokerage commission;
\r\n\r\n(iii) Liens and other amounts to be paid on\r\nauthorization of borrower;
\r\n\r\n\r\n(c) Estimated\r\ncash payable to borrower;
\r\n\r\n\r\n(2) General\r\ninformation concerning loans:
\r\n\r\n\r\n(a) The\r\namount of principal and interest payable, the interest rate, the number of\r\npayments and whether they are monthly or quarterly, and whether there is a\r\nfinal or balloon payment to pay off the loan in full. If there is a balloon\r\npayment, the following cautionary instructions shall be printed in bold type on\r\nthe contract: CAUTION TO\r\nBORROWER: IF YOU DO NOT HAVE THE FUNDS TO PAY THE BALLOON PAYMENT\r\nWHEN DUE, IT MAY BE NECESSARY FOR YOU TO OBTAIN A NEW LOAN AGAINST YOUR\r\nPROPERTY FOR THIS PURPOSE AND YOU MAY BE REQUIRED AGAIN TO PAY COMMISSION AND\r\nEXPENSES FOR ARRANGING THE LOAN. KEEP THIS IN MIND IN DECIDING UPON THE AMOUNT\r\nAND TERMS OF THE LOAN THAT YOU OBTAIN AT THIS TIME;
\r\n\r\n\r\n(b) Other\r\ninformation necessary, including the land description, types of instruments to\r\nbe executed, and type of lien that will be against the property if the\r\ninstruments are executed;
\r\n\r\n\r\n(c) Any\r\nprepayment penalty and full disclosure of its terms;
\r\n\r\n\r\n(d) Whether\r\ncredit life or credit disability will be required of the borrower as a\r\ncondition of making the loan;
\r\n\r\n\r\n(3) Deductions\r\nfrom loan proceeds:
\r\n\r\n\r\n(a) Estimated\r\ncosts and expenses to be paid by the borrower out of the principal amount of\r\nthe loan including appraisal fees, escrow fees, abstract or title insurance\r\nfees, notary fees, attorney fees, recording fees, credit investigation fees,\r\nand other costs and expenses;
\r\n\r\n\r\n(b) An\r\nestimate of the liens and other amounts to be paid out of the principal amount\r\nof the loan, on authorization of the borrower, including fire or other property\r\ninsurance premiums, credit life or disability insurance premiums, beneficiary\r\nstatement fees, reconveyance or similar fees, liens\r\nagainst property securing the loan, or other fees.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:17:39, 20 SDR 18, effective August 16, 1993; 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:08:12. Restrictions\r\non chargeable costs and expenses. In addition to the initial written\r\ncontract, the real estate broker shall give to the potential borrower an\r\nestimate of the amount of chargeable costs and expenses that will be collected\r\nby the broker in case no loan is found for the borrower. An estimated total\r\ncost to the borrower under these conditions shall be stated to the borrower and\r\nmay not exceed the amount customarily charged for the same or comparable\r\nservice in the community where the service was rendered. All of these costs and\r\nexpenses, if actually expended and chargeable to the borrower, must have been\r\nactually and reasonably expended for the potential borrower's benefit.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:17:40, 20 SDR\r\n18, effective August 16, 1993; 26 SDR 41, effective\r\nSeptember 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(8).
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:08:13. Real\r\nestate law applicable.Repealed.
\r\n\r\n\r\nSource: 4 SDR\r\n71, effective April 30, 1978; 5 SDR 21, effective\r\nSeptember 21, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:17:41, 20 SDR\r\n18, effective August 16, 1993; repealed, 26 SDR 41,\r\neffective September 29, 1999.
\r\n\r\n\r\nCHAPTER\r\n20:69:09
\r\n\r\n\r\n\r\n
REAL\r\nESTATE APPRAISERS
\r\n\r\n(Repealed. 23 SDR\r\n110, effective January 9, 1997)
\r\n\r\n\r\n\r\nCHAPTER\r\n20:69:10
\r\n\r\n\r\nSTANDARDS\r\nOF PROFESSIONAL APPRAISAL PRACTICE
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:10:01 Definitions.
\r\n\r\n20:69:10:02 Departure provisions.
\r\n\r\n20:69:10:03 Standards for developing an appraisal.
\r\n\r\n\r\n\r\n20:69:10:01. Definitions.\r\nThe following terms apply to this chapter:
\r\n\r\n\r\n(1) "Analysis,"\r\nthe act or process of providing information, recommendations, or conclusions on\r\ndiversified problems in real estate other than estimating value, for another\r\nand for compensation;
\r\n\r\n\r\n(2) "Appraisal,"\r\nthe act or process of estimating value of real estate for another and for\r\ncompensation;
\r\n\r\n\r\n(3) "Cash\r\nflow analysis," an analysis of the anticipated movement of cash in or out\r\nof real estate;
\r\n\r\n\r\n(4) "Feasibility\r\nanalysis," an analysis of the cost-benefit relationship of an economic\r\nendeavor;
\r\n\r\n\r\n(5) "Investment\r\nanalysis," an analysis that reflects the relationship between acquisition\r\nprice and anticipated future benefits of a real estate investment;
\r\n\r\n\r\n(6) "Market\r\nanalysis," an analysis of real estate market conditions for a specific\r\ntype of property;
\r\n\r\n\r\n(7) "Report,"\r\nany communication, written or oral, of an appraisal, review, or analysis; and
\r\n\r\n\r\n(8) "Review,"\r\nthe act or process of critically studying a report prepared by another, for\r\nanother, and for compensation.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:18.01:01, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-89.
\r\n\r\n\r\n20:69:10:02. Departure\r\nprovisions. An appraiser may enter into an agreement to perform an\r\nassignment that calls for something less than, or different from, the work that\r\nwould otherwise be required by the specific guidelines if, before entering into\r\nsuch an agreement the appraiser has determined that the assignment to be\r\nperformed is not so limited in scope that the resulting appraisal, review, or\r\nanalysis would tend to mislead or confuse the client, the users of the report,\r\nor the public and the appraiser has advised the client that the assignment\r\ncalls for something less than, or different from, the work required by the\r\nspecific guidelines and therefore the report will include a qualification that\r\nreflects the limited or differing scope of the appraisal, review, or analysis.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:18.01:02, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-89.
\r\n\r\n\r\nCHAPTER 20:69:11
POST-LICENSING AND CONTINUING EDUCATION
Section
20:69:11:01 Continuing education defined.
20:69:11:01.01 Distance education defined.
20:69:11:01.02 Independent study defined.
20:69:11:01.03 Interactive defined.
20:69:11:01.04 Standards for distance education.
20:69:11:01.05 Required continuing education subject areas.
20:69:11:01.06 Elective continuing education subject areas.
20:69:11:02 Continuing education requirements.
20:69:11:02.01 Postlicensing education defined.
20:69:11:02.02 Postlicensing education course requirements -- Time to complete.
20:69:11:03 Classroom hour.
20:69:11:03.01 Length of course.
20:69:11:04 Requirements for inactive licensee -- Exceptions.
20:69:11:04.01 Requirements for nonresidents -- Exceptions.
20:69:11:05 Exceptions and extensions.
20:69:11:06 Nonqualifying courses.
20:69:11:07 Criteria for post-licensing or continuing education course approval.
20:69:11:07.01 Criteria for distance education or independent study course approval.
20:69:11:08 Application for approval of classroom instruction -- Fee required.
20:69:11:08.01 Application for approval of distance education or independent study courses -- Fee required.
20:69:11:08.02 Additional requirements for distance education courses.
20:69:11:08.03 Student certification required.
20:69:11:08.04 Classroom, distance education, and independent study course application fees -- Postlicensing course as continuing education course subject to application fee.
20:69:11:09 Approval of out-of-state courses.
20:69:11:10 ARELLO certified courses approved for postlicensing or continuing education.
20:69:11:11 Certificate of approval.
20:69:11:11.01 Course accreditation renewal.
20:69:11:11.02 Course accreditation reinstatement.
20:69:11:12 Material change.
20:69:11:13 Denial of approval for a course or instructor.
20:69:11:13.01 Withdrawal of approval for a course or instructor.
20:69:11:14 Same or duplicate courses.
20:69:11:15 Repealed.
20:69:11:16 Repealed.
20:69:11:17 Facilities.
20:69:11:17.01 Schedule.
20:69:11:18 Auditing.
20:69:11:19 Postlicensing or continuing education certificate of attendance.
20:69:11:19.01 Course provider reporting requirements -- Course evaluation.
20:69:11:20 Preregistration allowed -- Notice of cancellation required.
20:69:11:21 Limit on independent study courses.
20:69:11:22 Instructors.
20:69:11:23 Application for approval of instructors -- Guest speakers exempt.
20:69:11:24 Utilization of guest speakers -- Résumé to accompany course application.
20:69:11:25 Certificate of instructor approval -- Approval certificates not issued to guest speakers.
20:69:11:01. Continuing\r\neducation defined. As used in this chapter, continuing education means\r\naccredited educational experience derived from a licensee's participation in\r\napproved lectures, seminars, or courses on real estate law, or in other related\r\nareas in real estate that have been approved by the commission, to maintain and\r\nimprove the professional skills and upgrade the standard of all real estate\r\nlicensees.
\r\n\r\n\r\n\r\n
Source: 5 SDR 12,\r\neffective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102,\r\neffective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986;\r\ntransferred from § 20:56:19:01, 20 SDR 18, effective August 16, 1993; 23\r\nSDR 110, effective January 9, 1997; 28 SDR 28, effective September 2, 2001; 41\r\nSDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented: SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n\r\n
20:69:11:01.01. Distance\r\neducation defined. As used in this chapter, a distance education course is\r\none in which instruction takes place in other than a traditional classroom\r\nsetting, the instructor and student are in physically separate locations, and instructional\r\nmethods include interactive video-based instruction, computer conferencing,\r\ninteractive audio, interactive computer software, and internet-based\r\ninstruction.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\n20:69:11:01.02. Independent\r\nstudy defined. As used in this chapter, an independent study is a course in\r\nwhich no interaction with an instructor is planned or implied as part of the\r\nlearning process.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\n20:69:11:01.03. Interactive\r\ndefined. As used in this chapter, interactive means the course structure\r\nand technologies promote active student involvement with the course content,\r\nincluding the ability to access or bypass optional content, submit questions or\r\nanswer test items and receive direct feedback, and communicate with other\r\nstudents and the instructor on an immediate or reasonably delayed basis.\r\nInteractive instruction specifically excludes courses that only provide passive\r\ndelivery of instructional content.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-63.
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:01.04. Standards\r\nfor distance education. A distance education course must provide mastery of\r\nthe material. The course must:
\r\n\r\n\r\n(1) Divide\r\nthe material into major learning units, each of which is further divided into\r\nmodules of instruction;
\r\n\r\n\r\n(2) Specify\r\nlearning objectives for each learning unit or module of instruction. Learning\r\nobjectives must be comprehensive enough to ensure that if all the objectives\r\nare met, the entire content of the course will be\r\nmastered;
\r\n\r\n\r\n(3) Specify\r\nan objective, quantitative criterion for mastery used for each learning\r\nobjective and provide a structured learning method designed to enable students\r\nto attain each objective;
\r\n\r\n\r\n(4) Provide\r\na means of diagnostic assessment of each student's performance on an ongoing\r\nbasis during each module of instruction, including appropriate remediation\r\nwhere required; and
\r\n\r\n\r\n(5) Require\r\nthat the student demonstrate adequate comprehension of all material covered by\r\nthe learning objectives for the module or unit before completing that module or\r\nunit.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n20:69:11:01.05. Required continuing education subject areas. Required continuing education subject areas may only be in the following subject areas:
(1) Real estate ethics;
(2) Legislative issues that influence real estate practice including both pending and recent legislation;
(3) The administration of licensing provisions of real estate law and the administrative rules;
(4) Real estate brokerage, including agency, contracts, trust accounting, fiduciary duties, and risk management;
(5) Fair housing:
(6) Environmental issues;
(7) Antitrust; and
(8) The Americans with Disabilities Act; and
(9) Property Management, including financial management of a property, landlord and tenant procedures and operations, and fiduciary duties related to property management.
Source: 41 SDR 219, effective July 1, 2015; 49 SDR 51, effective November 27, 2022.
General Authority: SDCL 36-21A-63, 36-21A-89.
Law Implemented: SDCL 36-21A-62, 36-21A-63, 36-21A-89(7).
20:69:11:01.06. Elective continuing education subject areas. Elective continuing education subject areas may only be in the following subject areas:
(1) Real estate finance;
(2) Real estate market measurement and evaluation, including site, evaluations, market data, and feasibility studies;
(3) Real estate mathematics;
(4) Real property management;
(5) Real property exchange;
(6) Land development, use, planning, and zoning;
(7) Real estate securities and syndication;
(8) Real estate portfolio management;
(9) Accounting and taxation as applied to real property;
(10) Real estate business planning;
(11) Real estate appraisal;
(12) Real estate marketing procedures;
(13) Technology as applied to the practice of real estate;
(14) Home inspection;
(15) Real estate negotiation;
(16) Real estate investment; and
(17) Real estate safety.
Source: 41 SDR 219, effective July 1, 2015; 48 SDR 60, effective December 6, 2021.
General Authority: SDCL 36-21A-63.
Law Implemented: SDCL 36-21A-62, 36-21A-63.
20:69:11:02. Continuing\r\neducation requirements. A licensee shall complete 24 hours of continuing\r\neducation in the subject areas prescribed in §§ 20:
\r\n\r\n
Source: 18 SDR 101,\r\neffective December 17, 1991; transferred from § 20:56:19:02.01, 20 SDR 18,\r\neffective August 16, 1993; 24 SDR 172, effective June 16, 1998; 26 SDR 41,\r\nadopted September 29, 1999, effective January 1, 2000; 28 SDR 28, effective\r\nSeptember 2, 2001; 41 SDR 219, effective July 1, 2015
\r\n\r\nGeneral Authority: SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented: SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n\r\n
20:69:11:02.01. Postlicensing\r\neducation defined. As used in this chapter, postlicensing education means\r\nthe curriculum of continuing education that a broker associate is required to\r\ncomplete within the first two active license cycles after initial licensure.\r\nThe subject areas are prescribed by the commission and build on the basic real\r\nestate principles and practices acquired during the prelicensing education\r\ncourses.
\r\n\r\n\r\n\r\n
Source: 35 SDR 305,\r\neffective July 1, 2009; 41 SDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-30.2.
\r\n\r\nLaw Implemented: SDCL 36-21A-30.2.
\r\n\r\n\r\n\r\n
20:69:11:02.02. Postlicensing\r\neducation course requirements -- Time to complete. All sixty hours of\r\npostlicensing education must include study in the required continuing education\r\nsubject areas as described in § 20:69:11:01.05. Any hours a licensee has completed\r\nin the subject areas of negotiation, business planning, technology, or\r\nmarketing before July 1, 2015, count towards the licensee's postlicensing\r\neducation requirement.
\r\n\r\n\r\n\r\n
Upon completion of the\r\npostlicensing education requirements, broker associates must comply with the\r\ncontinuing education requirements pursuant to SDCL 36-21A-62 and\r\n§ 20:69:11:02 for all subsequent renewal cycles.
\r\n\r\n\r\n\r\n
Source: 35 SDR 305,\r\neffective July 1, 2009; 41 SDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL\r\n36-21A-30.2.
\r\n\r\nLaw Implemented: SDCL\r\n36-21A-30.2.
\r\n\r\n\r\n\r\n
20:69:11:03. Classroom\r\nhour. A classroom hour is a period of at least 50 minutes of actual\r\nclassroom instruction out of each 60-minute segment. Additional study\r\nassignments are not counted as hours of classroom instruction.
\r\n\r\n\r\n\r\n
Source: 5 SDR 12,\r\neffective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102,\r\neffective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986;\r\ntransferred from § 20:56:19:03, 20 SDR 18, effective August 16, 1993; 28\r\nSDR 28, effective September 2, 2001; 41 SDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL\r\n36-21A-89(9).
\r\n\r\nLaw Implemented: SDCL\r\n36-21A-62, 36-21A-63.
\r\n\r\n\r\n\r\n
20:69:11:03.01. Length\r\nof course. No more than eight hours of instruction may be offered in one\r\nday.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\n20:69:11:04. Requirements for inactive licensee -- Exceptions. An inactive licensee is not required to meet the continuing education requirements. An inactive licensee who wishes to activate the individual's license shall complete 24 hours of continuing education within the licensee's current licensing period or within two years preceding the licensee's current licensing period. A licensee whose license is placed on inactive status during either of the first two license cycles after initial licensure shall complete the postlicensing education required during that cycle to activate the license. Courses taken to activate a license may not be used to renew a license.
Source: 5 SDR 12, effective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:19:04, 20 SDR 18, effective August 16, 1993; 35 SDR 305, effective July 1, 2009; 37 SDR 112, effective December 8, 2010; 41 SDR 219, effective July 1, 2015; 48 SDR 60, effective December 6, 2021.
General Authority: SDCL 36-21A-89(7).
Law Implemented: SDCL 36-21A-65.
20:69:11:04.01. Requirements for nonresidents -- Exceptions. A nonresident licensee licensed in this state is not required to meet the continuing education requirements.
A nonresident licensee in inactive status in this state who seeks to make the license active shall first provide a certificate of licensure to the commission staff from the licensing agency of the state where the nonresident licensee maintains residency, stating the nonresident's license is on active status and in good standing and that no complaint is pending.
Source: 48 SDR 60, effective December 6, 2021.
General Authority: SDCL 36-21A-89(3).
Law Implemented: SDCL 36-21A-65.
20:69:11:06. Nonqualifying\r\ncourses. The following courses do not qualify for postlicensing or\r\ncontinuing education purposes:
\r\n\r\n\r\n\r\n
(1) Courses in\r\nmechanical office and business skills, such as typing, keyboarding,\r\nspeed-reading, memory improvement, language, and report writing;
\r\n\r\n(2) Sales promotion\r\nor other meetings held in conjunction with a licensee's general business;
\r\n\r\n(3) A course\r\ncertified by the use of a challenge examination. All students must complete the\r\nrequired number of classroom hours to receive certification;
\r\n\r\n(4) Meetings which\r\nare a normal part of the in-house staff or employee training;
\r\n\r\n(5) Orientation\r\ncourses for licensees, such as those offered through local real estate boards;
\r\n\r\n(6) Development\r\ncourses for instructors;
\r\n\r\n(7) Personal development\r\nor motivational courses; and
\r\n\r\n(8) Courses\r\ndesigned to promote the sale of a product or service.
\r\n\r\n\r\n\r\n
Source: 5 SDR 12,\r\neffective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 151,\r\n12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; 18\r\nSDR 101, effective December 17, 1991; transferred from § 20:56:19:06, 20\r\nSDR 18, effective August 16, 1993; 23 SDR 110, effective January 9, 1997; 28\r\nSDR 28, effective September 2, 2001; 35 SDR 305, effective July 1, 2009; 41 SDR\r\n219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-30.2, 36-21A-63.
\r\n\r\nLaw Implemented: SDCL 36-21A-30.2, 36-21A-63.
\r\n\r\n\r\n\r\n
20:69:11:07. Criteria for post-licensing or continuing education course approval. The commission may approve any course, seminar, conference, or equivalent that is provided by the commission, or by a public or private school, organization, association, person, corporation, society, or similar organization. The commission, to approve a course, shall require that:
(1) A course has a total instruction time of not less than three hours;
(2) A course offered via electronic means with real time visual and audio interaction between instructor and student, allows the instructor or a proctor to continuously view all participating students on a monitor or other viewing device or screen, or otherwise demonstrates to the executive director’s satisfaction the capability to track and record the presence and participation of students;
(3) A course provider certify to the best of its knowledge the attendance of each student at the course. The course provider shall submit its criteria for measuring attendance in the application for course approval on a form provided by the commission;
(4) A course provider maintain for a minimum of three years records of students successfully completing a course;
(5) Credit is earned on the basis of attendance or, in the case of independent study or distance education courses, completion of the course;
(6) Each course of study have a coordinator or administrator supervising the program. The coordinator must be qualified, either through previous education or experience, to administer a real estate course of study, to evaluate course content and instructors, and to analyze examinations; and
(7) All instructors in a real estate course of study file with the commission credentials showing the necessary specialized preparation, training, and experience to ensure competent instruction. The commission shall approve each instructor individually. Approval must be obtained from the commission before the instructor's lecture in an approved course of study. Instructors, lecturers, seminar leaders, and others who present a post-licensing or continuing education course must have at least one of the following qualifications:
(a) A bachelor's, graduate, or postgraduate degree in the field in which the person is to teach;
(b) A valid teaching credential or certificate from South Dakota or another state authorizing the holder to teach in the field of instruction being offered;
(c) Five years of full-time experience in a professional, trade, or technical occupation in the applicable field;
(d) Any combination of at least five years of full-time applicable field experience and college-level education; or
(e) Expertise in specialized courses as approved by the commission.
In addition to meeting at least one of the qualifications in (a) to (e), inclusive, an instructor seeking approval to teach real estate agency law specific to South Dakota shall complete an approved training course.
Source: 5 SDR 12, effective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from § 20:56:19:07, 20 SDR 18, effective August 16, 1993; 24 SDR 172, effective June 16, 1998; 25 SDR 90, effective December 28, 1998; 28 SDR 28, effective September 2, 2001; 35 SDR 305, effective July 1, 2009; 48 SDR 60, effective December 6, 2021.
General Authority: SDCL 36-21A-30.2, 36-21A-63.
Law Implemented: SDCL 36-21A-30.2, 36-21A-63.
20:69:11:07.01. Criteria\r\nfor distance education or independent study course approval. The commission\r\nmay approve any course that is provided by the commission, a public or private\r\nschool, organization, person, corporation, society, or similar organization.\r\nThe commission, when acting on an application for approval of a course, shall\r\nconsider the following minimum criteria:
\r\n\r\n\r\n(1) The\r\ncourse provider must specify the learning objectives for each lesson and\r\nclearly demonstrate that the course covers the required subject matter.\r\nObjectives must be specific to ensure that all relative content is covered\r\nadequately to ensure mastery of the objectives;
\r\n\r\n\r\n(2) The\r\ncourse provider must demonstrate that the course includes the same or\r\nreasonably similar informational content as a course that would otherwise\r\nqualify for the requisite number of hours of classroom-based instruction, and\r\nthat students must proceed through and demonstrate comprehension of all the\r\nmaterial;
\r\n\r\n\r\n(3) If\r\nthe course is a distance education course, it must include consistent and\r\nregular interactive events as appropriate to the medium. The interactive\r\nelements must be designed to promote student involvement in the learning\r\nprocess, and must directly support the student's achievement of the course's\r\nlearning objectives. The course approval submission must identify the types of\r\ninteractive events included in the course and specify how the interactive\r\nevents contribute to the achievement of the stated learning objectives;
\r\n\r\n\r\n(4) The\r\ncourse must require that the student demonstrate mastery of the learning\r\nobjectives as designated for each lesson in order to successfully complete the\r\nlesson. The course must provide a mechanism of individual remediation to\r\ncorrect any deficiencies identified during the instruction and assessment\r\nprocess. In independent study courses, this remediation may be accomplished by\r\nquizzes or other exercises with detailed rationales in the answer key provided\r\nto students.
\r\n\r\n\r\n(5) The\r\ncourse provider must measure, at regular intervals, the student's progress\r\ntoward and completion of the mastery requirement of each lesson or module\r\ncovering all the required subject matter. In the case of computer-based\r\ninstruction, the course software must include automatic shutdown after a period\r\nof inactivity;
\r\n\r\n\r\n(6) The\r\napplicant must demonstrate that approved instructors are available to answer\r\nstudent questions regarding course content at reasonable times and by\r\nreasonable means, including in-person contact, individual and conference\r\ntelephone calls, E-mail, and fax. Communication by written postal\r\ncorrespondence alone is insufficient to satisfy the requirements of this\r\nsubdivision.
\r\n\r\n\r\n(7) The\r\ncourse provider shall provide reasonable security to ensure that the student\r\nwho receives credit for the course is the student who enrolled in and completed\r\nthe course. Both the school and the student must certify in writing that the\r\nstudent has successfully completed the course; and
\r\n\r\n\r\n(8) The\r\ncourse provider must require that the student pass an appropriate exam to\r\nsuccessfully complete and receive credit. An examination will be considered\r\nappropriate if it contains at least five multiple-choice questions for each\r\nhour of credit and requires a minimum passing score of 80 percent.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n20:69:11:08. Application\r\nfor approval of classroom instruction -- Fee required. An application for\r\napproval of classroom instruction shall be on a form provided by the\r\ncommission. The application must be filed with the commission at least 20 days\r\nbefore a course is offered and must be accompanied by an application fee\r\npursuant to § 20:69:11:08.04. The application form shall include the\r\nfollowing information and enclosures:
\r\n\r\n\r\n\r\n
(1) Name, address,\r\nand telephone number of the course provider;
\r\n\r\n(2) The title of\r\nthe course;
\r\n\r\n(3) A complete\r\ndescription or copies of all materials to be distributed to the participants;
\r\n\r\n(4) The date and\r\nexact location of each presentation of the course;
\r\n\r\n(5) The duration\r\nand time of course;
\r\n\r\n(6) A\r\ncomprehensive, detailed outline of the subject matter together with course\r\nobjectives, the time sequence of each segment, faculty for each segment, and\r\nteaching technique used in each segment;
\r\n\r\n(7) The method of\r\nevaluation of the program;
\r\n\r\n(8) The procedure\r\nfor measuring attendance; and
\r\n\r\n(9) A description\r\nof the faculty, including name, professional educational background, and\r\npractical or teaching experience. A complete résumé shall be furnished.
\r\n\r\n\r\n\r\n
Source: 5 SDR 12,\r\neffective August 21, 1978; 10 SDR 54, effective December 5, 1983; 12 SDR 102,\r\neffective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15\r\nSDR 100, effective January 10, 1989; transferred from § 20:56:19:08, 20\r\nSDR 18, effective August 16, 1993; 25 SDR 90, effective December 28, 1998; 28\r\nSDR 28, effective September 2, 2001; 41 SDR 219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-63.
\r\n\r\nLaw Implemented: SDCL 36-21A-63.
\r\n\r\n\r\n\r\n
20:69:11:08.01. Application\r\nfor approval of distance education or independent study courses -- Fee\r\nrequired. An application for approval of a distance education or\r\nindependent study course shall be on a form provided by the commission and must\r\nbe accompanied by an application fee pursuant to § 20:69:11:08.04. The\r\napplication form shall include the following information and enclosures:
\r\n\r\n\r\n(1) Name,\r\naddress, and telephone number of the course provider;
\r\n\r\n(2) Course\r\ntitle;
\r\n\r\n(3) The\r\nspecific subject matter requirement met by the course;
\r\n\r\n(4) The\r\nnames of any instructor who will be available to answer student questions, the\r\nmeans of contact, and the hours of availability;
\r\n\r\n(5) The\r\noverall structure, functioning, and administration of the proposed course;
\r\n\r\n(6) A\r\ncomplete list of all lessons, modules, and learning objectives for each;
\r\n\r\n(7) An\r\nexplanation of the remediation process which is in effect to accomplish mastery\r\nof material when specific deficiencies are identified; and
\r\n\r\n(8) A\r\ndescription of the procedures used to ensure exam security.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63.
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:08.02. Additional\r\nrequirements for distance education courses. In addition to the\r\nrequirements of § 20:69:11:08.01, an application for approval of a\r\ndistance education course must include the following:
\r\n\r\n\r\n(1) A\r\ncomplete description of any hardware, software, or other technology to be used\r\nby the provider and needed by the student to effectively engage in the delivery\r\nand completion of the course material and an assessment of the availability and\r\nadequacy of the equipment, software, or other technologies to the achievement\r\nof the course's instructional claims; and
\r\n\r\n\r\n(2) An\r\nexplanation of how the course measures, documents, and records that the student\r\nhas engaged in the required interactive exercises, achieved the required level\r\nof mastery, and spent the required amount of time completing the course and how\r\nthe course provides protection against loss of student data due to hardware of\r\nsoftware failure or against inadvertent loss by the student.
\r\n\r\n\r\nSource: 25 SDR\r\n90, effective December 28, 1998.
\r\n\r\nGeneral Authority:SDCL 36-21A-63.
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:08.03. Student\r\ncertification required. Any school offering an approved distance education\r\nor independent study course must obtain from each student a statement attesting\r\nthat all assignments and examinations completed are the work of the enrolled\r\nstudent.
\r\n\r\n\r\n\r\n
Source: 25 SDR 90,\r\neffective December 28, 1998; 28 SDR 28, effective September 2, 2001; 41 SDR\r\n219, effective July 1, 2015.
\r\n\r\nGeneral Authority: SDCL 36-21A-63.
\r\n\r\nLaw Implemented: SDCL 36-21A-63.
\r\n\r\n\r\n\r\n
| \r\n | \r\n \r\n Education\r\n | \r\n \r\n Renewal\r\n | \r\n
\r\n Classroom\r\n | \r\n \r\n | \r\n \r\n | \r\n
| \r\n | \r\n \r\n | \r\n \r\n | \r\n
| \r\n | \r\n \r\n | \r\n \r\n | \r\n
| \r\n | \r\n \r\n | \r\n \r\n | \r\n
| \r\n | \r\n \r\n | \r\n \r\n | \r\n
20:69:11:11. Certificate\r\nof approval. The commission shall grant a certificate of approval for each\r\ncourse approved by the commission. The certificate remains valid for three\r\nyears. A certificate of approval for a seminar course shall be valid for the duration\r\nof the seminar.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 10 SDR 54, effective\r\nDecember 5, 1983; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:09, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:11.02. Course\r\naccreditation reinstatement. A course approval that has expired may be\r\nreinstated if a renewal application is filed within six months of the date of\r\nexpiration. A course provider must file a new application for approval of a\r\ncourse that has been expired for more than six months.
\r\n\r\n\r\nSource: 29 SDR\r\n48, effective October 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:12. Material\r\nchange. A course provider of each approved real estate course shall\r\nimmediately notify the commission of any material changes contained in the\r\napplication for approval or in the attached exhibits. A course provider may\r\nseek approval of a course subsequent to a course offering by submitting all\r\ninformation requested.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:12, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n20:69:11:13. Denial\r\nof approval for a course or instructor. The commission may deny approval of\r\na real estate course or instructor if it is determined that either is not in\r\ncompliance with SDCL chapter 36-21A and this article. A person aggrieved by denial of approval by the commission may file a written request for a hearing pursuant to § 20:69:02:07.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:13, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:13.01. Withdrawal of approval for\r\na course or instructor. If the commission at any time determines that a\r\ncourse or an instructor approved pursuant to chapter 20:69:11 is not continuing\r\nto meet the requirements of SDCL chapter 36-21A and this chapter, it shall immediately notify the course provider in writing detailing the deficiencies requiring correction. The approval by the commission shall continue 90 days from the date of the commission's written notice to the course provider, and if, at the expiration of that period, the course provider has failed to correct to the commission's satisfaction the deficiencies noted, the commission may withdraw approval of the course or instructor.
\r\n\r\n\r\nIf\r\nthe commission disciplines an instructor who holds a real estate license for\r\nacts committed as a licensee, the commission may also withdraw that\r\ninstructor's approval as an instructor.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:14. Same\r\nor duplicate courses. Credit for a course may be given only once to an\r\nindividual during a \r\nreporting period.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 10 SDR 54, effective\r\nDecember 5, 1983; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:14, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63.
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:15. School\r\nfees.Repealed.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:16, 20 SDR 18, effective August 16, 1993; repealed, 23 SDR 110, effective January 9, 1997.
\r\n\r\n\r\n20:69:11:17. Facilities.\r\nEach course provider must have the classrooms, facilities, equipment, and\r\npersonnel necessary to implement the course.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:19:18, 20 SDR 18, effective August 16,\r\n1993; repealed, 23 SDR 110, effective January 9,\r\n1997; readopted, 25 SDR 90, effective December 28,\r\n1998; 28 SDR 28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63.
\r\n\r\n\r\n20:69:11:17.01. Schedule.\r\nThe course provider shall provide a schedule of all courses, including the\r\ndate, time, and place where they will be offered to the commission before the\r\ncourses begin.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\n\r\n20:69:11:18. Auditing.\r\nThe commission or its representatives may audit courses.
\r\n\r\n\r\nSource: 5 SDR\r\n12, effective August 21, 1978; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:19:19, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-63
\r\n\r\n\r\n20:69:11:19.01. Course\r\nprovider reporting requirements -- Course evaluation. The course provider\r\nmust submit a list of participants to the commission within ten days after\r\ncompletion of a course. The course provider must provide a course evaluation\r\nform to each licensee for completion. The course provider must submit the\r\ncompleted course evaluations to the commission within ten days after completion\r\nof a course.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n20:69:11:20. Preregistration allowed -- Notice of cancellation\r\nrequired. A course provider offering approved continuing education courses\r\nmay require preregistration with a cutoff date for\r\npermission to attend. The requirement must be advertised prior to each course.\r\nThe course provider must notify registrants if the course is cancelled. The\r\nnotification must be made at least 48 hours before the time of the beginning of\r\nthe course.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:19:21, 20 SDR 18, effective August 16, 1993; 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62, 36-21A-63.
\r\n\r\n\r\n20:69:11:23. Application\r\nfor approval of instructors -- Guest speakers exempt. An applicant for\r\ninstructor approval shall apply on a form provided by the commission. A guest\r\nspeaker is exempt from making application if requesting approval pursuant to\r\n§ 20:69:11:24.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\n20:69:11:24. Utilization\r\nof guest speakers -- Résumé to accompany course application. A course\r\nprovider may utilize guest speakers with expertise in a particular area in any\r\napproved course if an approved instructor is present at the time of the\r\npresentation. A course provider may utilize a guest speaker without an approved\r\ninstructor being present with the prior written approval of the commission.
\r\n\r\n\r\nAn\r\napplication for approval of a course utilizing guest speakers must include a\r\nrésumé of each speaker.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\n20:69:11:25. Certificate\r\nof instructor approval -- Approval certificates not issued to guest speakers.\r\nThe commission shall grant a certificate of approval for each instructor\r\napproved by the commission. Certificates of approval will not be issued to guest\r\nspeakers who make application pursuant to § 20:69:11:24.
\r\n\r\n\r\nSource: 28 SDR\r\n28, effective September 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-63, 36-21A-89(9).
\r\n\r\nLaw Implemented:SDCL 36-21A-62.
\r\n\r\n\r\nCHAPTER\r\n20:69:12
\r\n\r\n\r\nTIME-SHARE\r\nESTATES
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:12:01 Definitions.
\r\n\r\n20:69:12:02 Registration of time-share estates.
\r\n\r\n20:69:12:03 Registration fee.
\r\n\r\n20:69:12:04 Inspection fee.
\r\n\r\n20:69:12:05 Disclosure statement.
\r\n\r\n20:69:12:06 Encouragement to read the disclosure statement.
\r\n\r\n20:69:12:07 Additional disclosure statement requirements.
\r\n\r\n20:69:12:08 Nonconforming disclosure statements.
\r\n\r\n20:69:12:09 Offer, transfer, or disposal under a void statement.
\r\n\r\n20:69:12:10 Additional filings required.
\r\n\r\n20:69:12:11 Filing of option unacceptable.
\r\n\r\n20:69:12:12 Acquisition solicitation requirements for agents.
\r\n\r\n20:69:12:13 Sales solicitation requirements for agents.
\r\n\r\n20:69:12:14 Limitation on plan managers.
\r\n\r\n20:69:12:15 Renewal of time-share filings.
\r\n\r\n20:69:12:16 Responsible managing employee -- Designation, duties, and\r\nchange.
\r\n\r\n20:69:12:17 Copy of disclosure statement to be given to prospective\r\npurchasers.
\r\n\r\n20:69:12:18 Issuance of registration number.
\r\n\r\n20:69:12:19 Plan\r\nmanager or RME designated for time-share unit or\r\ntime-share plan located in the state.
\r\n\r\n20:69:12:20 Material change in disclosure statement.
\r\n\r\n20:69:12:21 Mutual right to cancel contract.
\r\n\r\n20:69:12:22 Retention of copy of contract.
\r\n\r\n20:69:12:23 Preexisting time-share unit.
\r\n\r\n20:69:12:24 Persons responsible for filing of preexisting time-share\r\nplan.
\r\n\r\n20:69:12:25 Plan manager for preexisting time-share plan.
\r\n\r\n20:69:12:26 Mixed-use project containing existing time-share unit or\r\nplan.
\r\n\r\n20:69:12:27 Law and rules to be available.
\r\n\r\n20:69:12:28 Agent and special escrow account.
\r\n\r\n20:69:12:29 Plan manager and special account.
\r\n\r\n20:69:12:30 Developer and special escrow account.
\r\n\r\n20:69:12:31 Developer's escrow agreement when funds deposited.
\r\n\r\n20:69:12:32 Developer's escrow agreement when financial plan submitted.
\r\n\r\n20:69:12:33 Exclusions from funds placed in escrow.
\r\n\r\n20:69:12:34 Integrated special escrow account.
\r\n\r\n20:69:12:35 Account open for inspection.
\r\n\r\n20:69:12:36 Unprofessional conduct.
\r\n\r\n20:69:12:37 Cause for suspension or revocation.
\r\n\r\n\r\n\r\n 20:69:12:01. Definitions.\r\nA
\r\n\r\n
(1) "Agent"\r\nor "time-share agent"\r\nmeans a
\r\n\r\n
(2) "Commission"
\r\n\r\n
(3) "Developer"
\r\n\r\n
(4) "Facility"
\r\n\r\n
(5) "Invitee"
\r\n\r\n
(6) "Material\r\nchange" means
\r\n\r\n
(7) "Multiple\r\nlocation time-share plan"\r\nmeans a time-share\r\nplan that includes time-share units located both in this state and in another\r\nstate or country;
\r\n\r\n\r\n\r\n
(8) "Outside\r\npublic contact" or "OPC"\r\nmeans an individual\r\nwho contacts invitees but neither
\r\n\r\n
(9) "Registrant"
\r\n\r\n
(1
\r\n\r\n
(1
\r\n\r\n
(1
\r\n\r\n
(1
\r\n\r\n
(1
\r\n\r\n
Source:\r\n10 SDR 68, effective January 1, 1984; 10 SDR 121, amended May 17, 1984,\r\nretroactively effective January 1, 1984; 12 SDR 102, effective December 22,\r\n1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:20:01, August 16, 1993; 47 SDR 37, effective October 5, 2020.
\r\n\r\nGeneral\r\nAuthority: SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw\r\nImplemented: SDCL 36-21A-47, 43-15B-1, 43-15B-3, 43-15B-6.
\r\n\r\n\r\n\r\n
Cross-Reference:\r\nLimited time-sharing licenses, ch 20:69:13.
\r\n\r\n\r\n\r\n
20:69:12:02. Registration\r\nof time-share estates. All applications for registration of time-share\r\nestates must be on forms approved by the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:20:02, August 16, 1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 43-15B-6.
\r\n\r\n\r\n\r\n\r\n20:69:12:03. Registration\r\nfee. Applications for registration must be accompanied by a fee of $25 for\r\neach time-share unit. The total fee may not exceed $1,000. The fee is payable\r\nin advance and must be made to the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:20:03, August 16, 1993; 26 SDR 41,\r\neffective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 43-15B-4, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-4.
\r\n\r\n\r\n20:69:12:04. Inspection\r\nfee. The inspection fee required by SDCL 43-15B-5 including actual and necessary expenses shall accompany the application.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:04, August 16,\r\n1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 43-15B-6.
\r\n\r\n\r\n\r\n\r\n20:69:12:05. Disclosure\r\nstatement. An application for registration must include a disclosure\r\nstatement.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:05, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:06. Encouragement\r\nto read the disclosure statement. The following must be printed on the\r\nbottom half of the face page of the disclosure statement, in centered boldface\r\ncapital letters:
\r\n\r\n\r\nTHIS\r\nHANDBOOK IS PREPARED AND ISSUED BY THE DEVELOPER OF (RESORT NAME) . THE DEVELOPER STRONGLY\r\nENCOURAGES YOU TO REVIEW THIS HANDBOOK WHEN CONSIDERING THE PURCHASE OF A\r\nMEMBERSHIP.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:06, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:07. Additional\r\ndisclosure statement requirements. In addition to the requirements\r\nprescribed in § 20:69:12:06, disclosure statements distributed to the\r\npublic must meet the following requirements:
\r\n\r\n\r\n(1) Provide\r\na brief description of the method by which the time-share plan or units is to\r\nbe offered;
\r\n\r\n(2) Provide\r\na description of the amount and types of units offered by the developer for the\r\ntime-share plan; and
\r\n\r\n(3) A\r\nsummary of the developer's escrow agreement.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:20:07, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:08. Nonconforming\r\ndisclosure statements. A disclosure statement not in conformance with the\r\nrequirements of §§ 20:69:12:06 and 20:69:12:07 is void.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:12:08, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-2, 43-15B-3, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:12:09. Offer,\r\ntransfer, or disposal under a void statement. An offer, transfer, or\r\ndisposal of a time-share unit or plan made under a void disclosure statement is\r\nvoidable at the option of the purchaser.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:09, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-2, 43-15B-3, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:12:10. Additional\r\nfilings required. In addition to the application, fees, and disclosure\r\nstatement, a developer shall file the following with the commission to register\r\na time-share project:
\r\n\r\n\r\n(1) A\r\nfinancial statement not more than 90 days old prepared according to generally\r\naccepted accounting principles and certified by the developer or by a certified\r\npublic accountant. If an audited financial report is filed, it must be the most\r\ncurrent report and may not be more than 15 months old. A false or fraudulent\r\nfinancial statement submitted by the developer may be grounds for cancellation,\r\nsuspension, or revocation of registration;
\r\n\r\n\r\n(2) A\r\npolicy of title insurance, a preliminary title report, abstract of title, or\r\ncertificate of title not more than 90 days old at the time of filing of a\r\ntime-share plan;
\r\n\r\n\r\n(3) A\r\ncertified copy of the articles of incorporation and bylaws, if a corporation, or a partnership registration if a partnership\r\nor joint venture at the time of filing a time-share plan;
\r\n\r\n\r\n(4) A\r\ncopy of a special escrow agreement as required in § 20:69:12:30;
\r\n\r\n\r\n(5) The\r\nname and address of person in the state to receive service of process. Any\r\nchange of name or address must be promptly reported to the commission.
\r\n\r\nThe\r\nformat for filing shall be prescribed by the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:10, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-3, 43-15B-6.
\r\n\r\n\r\nCross-Reference: Accounting principles,\r\n§ 20:37:11:08.
\r\n\r\n\r\n20:69:12:11. Filing\r\nof option unacceptable. A developer who has only an option to purchase a\r\nproperty for a time-share plan may not file with the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:11, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-2, 43-15B-3, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:12:12. Acquisition\r\nsolicitation requirements for agents. An agent, including the developer if\r\nit is also the agent, may not solicit or encourage others to attend a\r\ntime-share sales presentation or to contact an agent or developer if the\r\ntime-share unit is located in the state, whether the solicitation is conducted\r\nin the state or out-of-state, unless the agent files and the commission accepts\r\nthe following:
\r\n\r\n\r\n(1) The\r\ntime-share plan or plans for which it is providing prospective purchasers;
\r\n\r\n(2) Its\r\nprincipal office address and telephone number; and
\r\n\r\n(3) If\r\na corporation, the name, address, and telephone number of its responsible\r\nmanaging employee.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:12, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:13. Sales\r\nsolicitation requirements for agents. An agent, including the developer if\r\nit is also the agent, may not sell or offer to sell an interest in a time-share\r\nplan for a developer if the time-share unit is located in the state whether the\r\nsale or offer for sale is made in the state or out-of-state, unless the agent\r\nfiles and the commission accepts the following:
\r\n\r\n\r\n(1) The\r\ntime-share plan or plans it intends to sell;
\r\n\r\n(2) Its\r\nprincipal office address and telephone number;
\r\n\r\n(3) If\r\na corporation, the name, address, and telephone number of its responsible\r\nmanaging employee; and
\r\n\r\n(4) A\r\ncopy of the special escrow agreement as required by § 20:69:12:28.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:13, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:14. Limitation\r\non plan managers. A plan manager, including the developer if it is also the\r\nplan manager, may not undertake the duties, responsibilities, and obligations\r\nof managing a time-share plan if the time-share unit is located in the state\r\nunless the plan manager files and the commission accepts the following:
\r\n\r\n\r\n(1) The\r\ntime-share plan or plans that it intends to manage;
\r\n\r\n(2) Its\r\nprincipal office address and telephone number;
\r\n\r\n(3) If\r\na corporation, the name, address, and telephone number of its responsible\r\nmanaging employee;
\r\n\r\n(4) A\r\nsworn statement from the developer listing the plan manager's duties,\r\nresponsibilities, and obligations;
\r\n\r\n(5) A\r\nsworn statement from the plan manager stating its duties, responsibilities, and\r\nobligations, as set out in § 20:69:12:19; and
\r\n\r\n(6) The\r\naddress where all accounting records, including receipts, expenditures, and\r\npayment vouchers, are maintained.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:14, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:15. Renewal\r\nof time-share filings. A filing required by this chapter shall be renewed\r\nby December 31 of each year on a form prescribed by the commission. Failure to\r\nrenew by the specified date will result in forfeiture of the right to engage in\r\nthe sale of a time-share plan. A forfeited registration may be restored within\r\n90 days upon payment of a registration fee of $25 for each time-share unit and\r\nmeeting all of the renewal requirements. The registration fee shall accompany\r\nthe renewal application. The fee for renewal may not exceed $250. No sale or\r\noffer for sale of a time-share plan may be made until registration has been\r\nrestored. A current financial statement is required for renewal in the same\r\nform as required in § 20:69:12:10.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:20:15, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:16. Responsible\r\nmanaging employee -- Designation, duties, and change. The commission may\r\nnot accept the filing of a corporate time-share agent or corporate plan manager\r\nunless the corporation has designated a responsible managing employee and prescribed\r\nthe RME's duties, responsibilities, and obligations.
\r\n\r\n\r\nThe\r\ncorporate RME is responsible for the direct\r\nmanagement of the corporation's time-share operations. The commission does not\r\nconsider the corporate RME to have the direct\r\nmanagement of the corporation's time-share operation unless the RME meets the following requirements:
\r\n\r\n\r\n(1) Is a bona fide employee of the corporation and has direct\r\ncontrol, supervision, and management of the corporation's time-share\r\noperations;
\r\n\r\n\r\n(2) Has\r\nfull knowledge and control of the corporation's accounting practices;
\r\n\r\n\r\n(3) Has\r\nfull knowledge and control over the moneys belonging to and in the custody of\r\nthe corporation in connection with the time-share operation; and
\r\n\r\n\r\n(4) Has\r\nfull access to all books, records, and documents materially related to the\r\ncorporation's part in the time-share operation whether they are kept in the\r\nstate or out-of-state.
\r\n\r\n\r\nThe\r\nname, address, and telephone number of the RME must\r\nbe filed with the commission. If there is a change in RME,\r\nthe name of the new RME must be reported to the\r\ncommission in writing within ten days after the change. A plan manager may\r\nmanage one or more time-share plans. A plan manager may have one or more RMEs. If a developer or plan manager of two or more\r\ntime-share plans, at least one of which includes time-share units located in\r\nthis state, maintains its principal office or has primary management and\r\naccounting functions out-of-state, the duties of the RME\r\nspecified in this section may be divided between two or more RMEs provided that at least one RME\r\nis located in the state.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:20:16, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:17. Copy\r\nof disclosure statement to be given to prospective purchasers. A registrant\r\nor other person attempting to sell a time-share estate or plan shall provide to\r\nprospective purchasers a copy of the disclosure statement which is a true,\r\naccurate, and complete reproduction of the statement filed and accepted by the\r\ncommission. The registrant or other person attempting to sell a time-share plan\r\nor estate shall give the prospective purchaser an opportunity to read the\r\nstatement.
\r\n\r\n\r\nProspective\r\npurchasers receiving a copy of the disclosure statement shall sign a statement\r\nacknowledging receipt of the disclosure statement on a receipt form prescribed\r\nby the commission. The receipt must be kept at the principal office of the\r\ndeveloper for a period of two years from the date of the receipt and is subject\r\nto inspection upon notice by the commission or the commission's representative.\r\nIf the principal office is not located in this state, the developer is subject\r\nto the out-of-state inspection requirements of § 20:69:12:19.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:17, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:18. Issuance\r\nof registration number. The commission shall issue a registration number to\r\na time-share plan in consecutive order of receipt of filing provided that the\r\nfiling complies with the requirements of this chapter. The commission shall print\r\nthe registration number and the date of acceptance on the upper right-hand\r\ncorner of the face page of the disclosure statement.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:18,\r\nAugust 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:19. Plan\r\nmanager or RME designated for time-share unit or\r\ntime-share plan located in the state. All time-share plans must have a plan\r\nmanager or an RME designated.
\r\n\r\n\r\nThere\r\nmust be a plan manager or an RME in the state if a\r\ntime-share unit or time-share plan is located in the state whether or not a\r\ntime-share unit or time-share plan is offered for sale in the state or\r\nout-of-state.
\r\n\r\n\r\nThere\r\nmust be a plan manager or an RME in the state for a\r\nmultiple location time-share plan if the plan includes a time-share unit or\r\ntime-share plan located in the state.
\r\n\r\n\r\nA\r\nplan manager's duties, responsibilities, and obligations include the following:
\r\n\r\n\r\n(1) Management\r\nand maintenance of the time-share units;
\r\n\r\n(2) Assessments\r\nand the collection of maintenance fees;
\r\n\r\n(3) Payment\r\nof real property taxes due on the time-share units under the plan manager's\r\nauthority;
\r\n\r\n(4) Supervision\r\nof the occupancy scheduling so that time-share unit owners or users will be\r\nprovided the use of time-share units;
\r\n\r\n(5) Provision\r\nto time-share owners and users of a copy of the house rules of the building;
\r\n\r\n(6) Supervision\r\nof the enforcement of the house rules; and
\r\n\r\n(7) The\r\nkeeping of a detailed and accurate record, in chronological order, of receipts\r\nand expenditures.
\r\n\r\n\r\nAll\r\naccounting records of the plan manager are subject to inspection by the\r\ncommission or the commission's representative. Accounting records must be kept\r\nat the principal office of the plan manager, which may be located in this state\r\nor in another state.
\r\n\r\n\r\nIf\r\nthe accounting records are not kept in this state, they shall be made available\r\nfor inspection in this state upon notice. If the records are not made\r\navailable, they shall be inspected at the place where they are kept and all\r\ncosts, including the travel expense, per diem, and salary of the inspector,\r\nmust be borne by the plan manager. The commission may require the plan manager\r\nto remit the amount of the estimated cost in advance of the inspection. Failure\r\non the part of the plan manager to comply with the commission's request to\r\nremit the amount of the estimated cost may be grounds for cancellation,\r\nsuspension, or revocation of registration of the project.
\r\n\r\n\r\nIf\r\nthe principal office of the developer is not in the state, a failure to make\r\navailable upon the commission's request bookkeeping records, computer records,\r\nor any other records of the developer on the time-share plan may be grounds for\r\ncancellation, suspension, or revocation of the plan manager's registration.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:20, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-3, 43-15B-4, 43-15B-5, 43-15B-6.
\r\n\r\n\r\n20:69:12:20. Material\r\nchange in disclosure statement. A developer shall notify the commission in\r\nwriting of any material changes in the disclosure statement.
\r\n\r\n\r\nA\r\ndeveloper shall file a supplemental disclosure statement which specifies, in\r\ndetail, the material changes that have occurred.
\r\n\r\n\r\nThe\r\nsupplemental disclosure statement must be filed with the commission within 20\r\ndays after the material changes become known to the developer.
\r\n\r\n\r\nUpon\r\nacceptance of the supplemental disclosure statement by the commission, a true,\r\naccurate, and complete copy of the supplemental disclosure statement must be\r\ngiven to each purchaser adversely affected by the material change and to each\r\nprospective purchaser. A receipt from each purchaser and prospective purchaser\r\nmust be taken and filed as required in §20:69:12:17.\r\nThe developer is not in violation of this chapter if the purchaser fails to\r\nreturn the receipt and the developer can verify that a statement was sent to\r\nthe purchaser.
\r\n\r\n\r\nThe\r\ncommission may independently determine that a material change has occurred and require the\r\ndeveloper to prepare a supplemental disclosure statement disclosing the\r\nmaterial change in a form approved by the commission.
\r\n\r\n\r\nIf\r\nthe purchaser has received title by instrument of record in the sale of an\r\ninterest in an ownership plan, the developer is not required to give the\r\npurchaser a supplemental disclosure statement.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:21, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:21. Mutual\r\nright to cancel contract. A developer or purchaser may cancel a contract by\r\ngiving the other party written notice within seven calendar days after\r\nexecution of the contract or after the purchaser's receipt of a disclosure\r\nstatement, whichever occurs later.
\r\n\r\n\r\nThe\r\npurchaser is entitled to a refund of all sums paid within 30 days after notice\r\nof cancellation if all materials received on the date of sale are returned to a\r\nspecified address of the seller or within 60 days if all sales materials are\r\nnot returned.
\r\n\r\n\r\nA\r\ndeveloper or agent shall furnish each purchaser at the time the contract for\r\npurchase of a membership is signed the following cancellation notice prepared\r\nexactly as follows:
\r\n\r\n\r\nNOTICE TO BUYER: YOU OR THE DEVELOPER MAY CANCEL THIS\r\nTRANSACTION WITHIN SEVEN (7) CALENDAR DAYS AFTER THE EXECUTION OF THE CONTRACT\r\nOR AFTER YOUR RECEIPT OF THE DISCLOSURE STATEMENT, WHICHEVER OCCURS LATER. YOU\r\nARE ENTITLED TO A REFUND OF ALL SUMS YOU PAID WITHIN 30 DAYS AFTER NOTICE OF\r\nCANCELLATION WHEN ALL MATERIALS RECEIVED ON THE DATE OF SALE ARE RETURNED TO\r\nTHE ADDRESS STATED BELOW OR WITHIN 60 DAYS IF ALL SALES MATERIALS ARE NOT\r\nRETURNED. TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED\r\nWRITTEN CANCELLATION NOTICE TO:
\r\n\r\n\r\n(Insert\r\nname and address of developer)
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n102, effective December 22, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:20:22, August\r\n16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:22. Retention\r\nof copy of contract. A copy of a contract from each sale of a time-share\r\nplan must be retained by the developer for a period of at least one year after\r\nthe parties to the time-share plan have completely performed all of their obligations.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:23, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:23. Preexisting\r\ntime-share unit. Preexisting time-share units and time-share plans for\r\npreexisting time-share units must comply with the requirements of this chapter\r\nand the provisions of SDCL 43-15B by January 1, 1985.
\r\n\r\n\r\nTime-share\r\nunits not existing by July 1, 1983, are subject to this chapter when it takes\r\neffect.
\r\n\r\n\r\nA\r\ndeveloper, agent, or plan manager shall submit evidence, such as an agreement,\r\ncontract, or document, at the time of filing of a preexisting time-share plan\r\nto show that a time-share unit or plan was created prior to July 1, 1983.
\r\n\r\n\r\nPreexisting\r\ntime-share plans must be filed on a form prescribed by the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:24, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:24. Persons\r\nresponsible for filing of preexisting time-share plan. In addition to the\r\nrequirements of this chapter, a developer, agent, or plan manager presently\r\nassociated with a preexisting time-share plan shall file at the time of filing\r\nof a preexisting time-share plan a certified statement giving the location of\r\nthe preexisting time-share unit and time-share plan, the number of time-share\r\nunits, the nature of the ownership of the units, the ownership or use period,\r\nthe date, and an explanation of how the time-share plan was created, the number\r\nof purchasers who purchased time-share plans, and the name and address of the\r\nplan manager.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:25, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:25. Plan\r\nmanager for preexisting time-share plan. A preexisting time-share plan must\r\nhave a plan manager. Any provision relating to a plan manager in this chapter\r\nis applicable to a plan manager of a preexisting time-share plan.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:26, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:26. Mixed-use\r\nproject containing existing time-share unit or plan. Additional time-share\r\nunits may not be created in a mixed-use project containing an existing\r\ntime-share unit or time-share plan and a residential unit unless the project is\r\nlocated in a hotel or in a place designated for hotel use, resort use, or\r\ntransient vacation rentals and all of the requirements of this chapter relating\r\nto time-share use are met.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:27, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:27. Law\r\nand rules to be available. A developer or agent must comply with the\r\nfollowing:
\r\n\r\n\r\n(1) Have\r\na copy of SDCL 43-15B and a copy of this chapter available for inspection by any prospective purchaser;
\r\n\r\n\r\n(2) Advise\r\neach prospective purchaser that copies are available at the time any interest\r\nin a time-share plan is offered for sale in this state or out-of-state; and
\r\n\r\n\r\n(3) Provide\r\ncopies upon request.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:28, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:28. Agent\r\nand special escrow account. An agent shall establish and maintain a special\r\nescrow account in a federally insured depository in this state for the deposit\r\nof any moneys received from the purchaser. A special escrow account with a\r\nfederally insured depository doing business in another state may be established\r\nupon approval by the commission; but if all sales are conducted in this state,\r\na special escrow account must be established and maintained in this state.
\r\n\r\n\r\nThe\r\nescrow agreement shall provide that no moneys received from a purchaser may be\r\ndisbursed until after the expiration of the seven-day period in which a\r\npurchaser may rescind the contract. The agreement shall include a statement on\r\nthe method of disbursement of funds in escrow.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 16 SDR 36, effective\r\nAugust 29, 1989; transferred from § 20:56:20:29, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:29. Plan\r\nmanager and special account. A plan manager shall establish and maintain a\r\nspecial account in a bank or trust company in this state for the deposit of any\r\nmoneys received. A special account with a bank or trust company doing business\r\nin another state may be established upon approval by the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:30, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:30. Developer\r\nand special escrow account. A developer shall establish and maintain a\r\nspecial escrow account with a bank, licensed escrow company, or a trust company\r\nin this state. A special escrow account with a bank, licensed escrow company,\r\nor trust company doing business in another state may be established upon\r\napproval by the commission.
\r\n\r\n\r\nThe\r\ndeveloper shall place in the special escrow account all funds, except those\r\nexcluded by §20:69:12:33,\r\npaid by the purchasers of time-share ownership or use plans or submit to the\r\ncommission for approval a financial plan for the protection of the purchasers.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:31, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:31. Developer's\r\nescrow agreement when funds deposited.\r\nIf a developer elects to place in the special escrow account all funds, except\r\nthose excluded by § 20:69:12:33, the escrow agreement must provide for the\r\nfollowing:
\r\n\r\n\r\n(1) The\r\npurchaser's right to refund at any time the time-share units or facilities are\r\nno longer available as provided in the contract in an amount which represents\r\nthe purchaser's pro rata share of the moneys in the escrow account;
\r\n\r\n\r\n(2) If\r\na deed, title, or assignment of lease of the time-share plan free and clear of\r\nany liens is transferred to the benefit of the purchaser, withdrawal by the\r\ndeveloper of all of the funds which have been placed in escrow on behalf of the\r\npurchaser;
\r\n\r\n\r\n(3) If\r\na deed, title, or assignment of lease of the time-share plan free and clear of\r\nany liens is not transferred to the benefit of the purchaser, withdrawal by the\r\ndeveloper of a proportion of the moneys placed in escrow which is in the ratio\r\nof the time made available to the purchaser in relation to the total amount of\r\ntime which the purchaser has a right to use under the contract.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:32, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 43-15B-3, 43-15B-6.
\r\n\r\n\r\nExample:
\r\n\r\nExamples\r\nfor subdivision (3):
\r\n\r\n\r\n(1) If\r\nthe total time available to a time-share plan purchaser under the purchaser's\r\nplan is 100 days and in a given year the purchaser uses 10 of those days, the\r\ntime-share plan seller that year may withdraw one-tenth of the moneys placed in\r\nescrow for the purchaser.
\r\n\r\n\r\n(2) If\r\nthe time-share purchaser is entitled to 10 days a year and it is a 40-year\r\nplan, the time share seller may withdraw each year one-fortieth of the moneys\r\nplaced in escrow for the purchaser.
\r\n\r\n\r\n20:69:12:32. Developer's\r\nescrow agreement when financial plan submitted. If a developer elects to\r\nsubmit a financial plan for protection of the purchasers to the commission for\r\napproval, the developer shall furnish the commission a certified statement of a\r\nsummary of all underlying financial obligations of the time-share plan,\r\nincluding agreements of sale, leases, mortgages, liens, and a projected payment\r\nplan which provides for payment in full of all underlying financial obligations\r\nbefore the final receipts from the purchasers of their payments; a description\r\nof the source of means by which such payments will be made; and a description\r\nof arrangements with banks, licensed escrow companies, trust companies or\r\nlending institutions relating to the receipt of purchaser's moneys and\r\ndisbursements on account of the payment plan.
\r\n\r\n\r\nThe\r\ndeveloper shall submit an escrow agreement which provides for the following:
\r\n\r\n\r\n(1) The\r\npurchaser's right to refund at any time the time-share units or facilities are\r\nno longer available as provided in the contract in an amount which represents\r\nthe purchaser's pro rata share of the moneys in the escrow account;
\r\n\r\n\r\n(2) Deposit\r\nof all funds, except those excluded by § 20:69:12:33 paid by the\r\npurchasers of the time-share ownership or use plan in the special escrow\r\naccount;
\r\n\r\n\r\n(3) Payment\r\nin full of all underlying financial obligations of the time-share plan before\r\nthe final receipts from the purchasers of their payments;
\r\n\r\n\r\n(4) Modification\r\nof the payment plan with the approval of the commission upon change of\r\ncircumstances. However, any payment plan must provide for payment in full of\r\nall underlying obligations before the final receipts from the purchasers of\r\ntheir payments, and no additional encumbrances may be placed on any property subject\r\nto the time-share plan without the approval of the commission;
\r\n\r\n\r\n(5) Collection\r\nof funds and making of disbursements by the bank, escrow\r\ncompany, or trust company according to the payment plan submitted to the\r\ncommission by the developer;
\r\n\r\n\r\n(6) After\r\npayment of the underlying financial obligations, any interests in the\r\ntime-share property must be conveyed to the purchaser in an ownership plan and\r\nin a use plan. The developer shall convey to a disinterested third party, such\r\nas a nonprofit corporation or club or trust company, an interest in the\r\nproperty necessary to ensure the use of the property for the period of time\r\nconveyed by the developer in the time-share plan; and
\r\n\r\n\r\n(7) Approval\r\nby the commission of an amendment to the escrow agreement.
\r\n\r\n\r\nA\r\ndeveloper must have the holders of the underlying financial obligations submit\r\nto the commission annually statements of balances owing on the underlying\r\nfinancial obligations.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:33, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:33. Exclusions\r\nfrom funds placed in escrow. Purchaser's funds to be placed in an escrow\r\naccount need not include operational expenses, such as office expenses and\r\nsales commissions, maid services, telephone charges, special assessments, club\r\ndues, and maintenance fees.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:34, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:34. Integrated\r\nspecial escrow account. If a developer also performs the function of plan\r\nmanager and sales agent, it may establish and maintain a single special escrow\r\naccount in a bank, licensed escrow company, or trust company for the deposit of\r\nany moneys received from purchasers.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:35, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:35. Account\r\nopen for inspection. A developer, agent, or plan manager shall provide\r\ninformation on the developer's, agent's, or plan\r\nmanager's respective account to the commission upon written request. The\r\naccount is subject to inspection upon notice by the commission or commission's\r\nrepresentative. If the accounting records are not kept in this state,\r\nprovisions on inspections and production of records in § 20:69:12:19 of\r\nthese rules are applicable.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:36, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:12:36. Unprofessional\r\nconduct. A developer or agent of time-share plans or units may not do any\r\nof the following:
\r\n\r\n\r\n(1) Use\r\na promotional device without fully disclosing that the device is being used for\r\nthe purpose of soliciting sales of time-share plans or units;
\r\n\r\n\r\n(2) Misrepresent\r\nor deceptively represent a material fact concerning the time-share plans or\r\ntime-share units, including the following:
\r\n\r\n\r\n(a) The\r\namount or period of time the units and facilities will be available to a\r\npurchaser;
\r\n\r\n(b) The\r\nlocation or locations of the offered units and facilities;
\r\n\r\n(c) The\r\nsize, nature, or characteristics of the offered units and facilities;
\r\n\r\n(d) The\r\nrights of a purchaser, if any, to exchange the purchaser's rights to units in\r\none location for rights to units in another location; and
\r\n\r\n(e) The\r\ncontents of the contract or the purchaser's rights, privileges, or benefits\r\nunder the contract;
\r\n\r\n\r\n(4) Fail\r\nto honor or comply with all provisions of the contract with the purchaser; and
\r\n\r\n\r\n(5) Include,\r\nin any contract, provisions purporting to waive a right or benefit provided for\r\npurchases pursuant to law.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 16 SDR 36, effective\r\nAugust 29, 1989; transferred from § 20:56:20:38,\r\nAugust 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-71, 43-15B-3, 43-15B-6.
\r\n\r\n\r\n20:69:12:37. Cause\r\nfor suspension or revocation. The commission may suspend or revoke a\r\nregistration by a developer, agent, or plan manager for violation by the\r\nregistrant or its employees of any of the provisions of this chapter, chapter\r\n20:69:13, or SDCL 43-15B after a hearing conducted pursuant to SDCL 1-26.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:20:39, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:13:01 Definition\r\nof time-share agent.
\r\n\r\n20:69:13:02 Time-share\r\nagents -- License required.
\r\n\r\n20:69:13:03 OPC\r\nexempt from licensing.
\r\n\r\n20:69:13:04 Persons\r\nand organizations exempt from licensing or examination.
\r\n\r\n20:69:13:05 Application.
\r\n\r\n20:69:13:06 Application\r\nfee.
\r\n\r\n20:69:13:07 Repealed.
\r\n\r\n20:69:13:08 Grounds\r\nfor denial of license.
\r\n\r\n20:69:13:09 Examination.
\r\n\r\n20:69:13:10 Authorization\r\nto take examination.
\r\n\r\n20:69:13:11 Repealed.
\r\n\r\n20:69:13:12 Administration\r\nof examination.
\r\n\r\n20:69:13:13 Cheating\r\non examination.
\r\n\r\n20:69:13:14 Results\r\nof examination.
\r\n\r\n20:69:13:14.01 Rights\r\nto passing score.
\r\n\r\n20:69:13:15 Biennial\r\nrenewal fee.
\r\n\r\n20:69:13:16 Cancellation\r\nof license upon failure to pay fee.
\r\n\r\n20:69:13:17 Rep
20:69:13:18 Trust\r\naccount requirements.
\r\n\r\n20:69:13:19 Office\r\nrequirements.
\r\n\r\n20:69:13:20 Auditing.
\r\n\r\n20:69:13:21 Real\r\nestate law applicable.
\r\n\r\n20:69:13:22 Supervising\r\nagent.
\r\n\r\n\r\n\r\n
\r\n\r\n
20:69:13:01. Definition\r\nof time-share agent. A time-share agent is a person who works for another\r\nperson for compensation and performs at least one of the following functions:
\r\n\r\n\r\n(1) Directly\r\nor indirectly lists, sells, exchanges, buys, rents, manages, offers, or\r\nattempts to negotiate a sale, option, exchange, purchase, lease, or rental of\r\nan interest or use in a time-share estate;
\r\n\r\n\r\n(2) Advertises\r\nas engaging in or holds out to be engaged in any of the activities listed in\r\nsubdivision (1) of this section; or
\r\n\r\n\r\n(3) Directly\r\nor indirectly negotiates, offers, or attempts to negotiate a loan or financing\r\nfor the purchase of a time-share estate.
\r\n\r\n\r\nSource: 10 SDR\r\n121, adopted May 17, 1984, retroactively effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:21:00, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-6, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:02. Time-share\r\nagents -- License required. Persons who act as time-share agents within\r\nthis state must be licensed according to this chapter and must comply with the\r\nprovisions of this chapter.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:21:01, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:13:03. OPC exempt from licensing. An outside public\r\ncontact is exempt from licensing under this chapter.
\r\n\r\n\r\nSource: 10 SDR\r\n121, adopted May 17, 1984, retroactively effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective\r\nJuly 1, 1986; transferred from § 20:56:21:01.01, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-6, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\nCross-Reference: Definitions,\r\n§ 20:69:12:01(8).
\r\n\r\n\r\n20:69:13:04. Persons\r\nand organizations exempt from licensing or examination. Real estate brokers\r\nare exempt from licensing under this chapter. A real estate broker or\r\nsalesperson may obtain a time-share license without examination.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:21:02, August\r\n16, 1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 43-15B-6.
\r\n\r\n\r\n\r\n\r\n20:69:13:05. Application.\r\nAn applicant for a time-share agent's license shall file an application on a\r\nform provided by the commission.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:21:03, August 16, 1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(2), 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:06. Application\r\nfee. The application fee for a time-share agent's license is $225.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 16 SDR\r\n36, effective August 29, 1989; transferred from § 20:56:21:05, August 16,\r\n1993; 26 SDR 41, effective September 29, 1999; 29 SDR 48, effective October 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-49, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-49, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:07. Photograph\r\nto accompany application.Repealed.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:21:06, August 16, 1993; repealed, 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\n\r\n20:69:13:09. Examination.\r\nAny person, not otherwise exempted by this chapter, who meets the\r\nqualifications of this chapter must pass an examination for a time-share\r\nagent's license to be given by the commission at a time, place, and in a manner\r\nestablished by the commission. The commission shall determine the contents of\r\nthe examination and the rating and standards for passing. A passing grade of 75\r\nis required.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:08, August 16,\r\n1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(2), 36-21A-47, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:10. Authorization\r\nto take examination. A person may not take the time-share agent's\r\nexamination unless authorized by the commission in writing to take the\r\nexamination.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:21:09, August 16, 1993; 26 SDR 41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(2), 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:11. Failure\r\nto appear for examination.Repealed.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:10, August 16,\r\n1993; repealed, 26 SDR 41, effective September 29,\r\n1999.
\r\n\r\n\r\n20:69:13:12. Administration\r\nof examination. The licensing examination must be conducted under the\r\nsupervision of the executive director of the commission or a designee of the\r\nexecutive director. Identification supplied to the applicant by the commission is\r\nrequired for admission to the examination room. Before beginning the\r\nexamination, the applicant must certify in writing that the applicant has not\r\nsolicited or received any information about the contents of the examination\r\nabout to be written and that during or subsequent to the examination the\r\napplicant will not disclose its contents to any person.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:21:11, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:13. Cheating\r\non examination. The examination of an applicant for a time-share agent's\r\nlicense who is caught cheating during the examination must be declared void.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:12, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:14. Results\r\nof examination. The applicant must be notified in writing of the\r\nexamination results.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:13, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-36, 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:14.01. Rights\r\nto passing score. Upon notification that a person has passed the time-share\r\nexamination, a person has 60 days to apply for a time-share agent's license, or\r\nthe passing score is forfeited.
\r\n\r\n\r\nSource: 26 SDR\r\n41, effective September 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-89(2), 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-89(2), 43-15B-6.
\r\n\r\n\r\n20:69:13:15. Biennial\r\nrenewal fee. The biennial renewal fee for a time-share agent's license is\r\n$125.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 13 SDR 31, effective\r\nSeptember 23, 1986, effective January 1, 1988; 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:21:16, August\r\n16, 1993; 26 SDR 41, effective September 29, 1999; 29\r\nSDR 48, effective October 10, 2002.
\r\n\r\nGeneral Authority:SDCL 36-21A-61, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-61, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:16. Cancellation\r\nof license upon failure to pay fee. Failure to remit the renewal fee or\r\nregistration statement or both by the registration deadline automatically\r\ncancels the license of a time-share agent. In addition, if an insufficient\r\nfunds check is presented to the commission for payment of the renewal fee, the\r\ncommission may cancel the license of the time-share agent.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; 15 SDR 100, effective\r\nJanuary 10, 1989; transferred from § 20:56:21:17, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-61, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n 20:69:13:17. Replacement\r\nof license and change of address. Repealed
\r\n\r\n
Source:\r\n10 SDR 68, effective January 1, 1984; 12 SDR 102, effective December 22, 1985;\r\n12 SDR 151, 12 SDR 155, effective July 1, 1986; 18 SDR 101, effective December\r\n17, 1991; transferred from § 20:56:21:19, August 16, 1993; 34 SDR 323,\r\neffective July 3, 2008; 47 SDR 37, effective October 5, 2020.
\r\n\r\n\r\n\r\n
20:69:13:18. Trust\r\naccount requirements. All the requirements relating to trust accounts\r\nimposed by SDCL Chapter 36-21A or Article 20:69 upon real estate agents apply to time-share agents.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; transferred from\r\n§ 20:56:21:20, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\nCross-References:
\r\n\r\nHandling of money received by broker for principal, SDCL 36-21A-80.
\r\n\r\nDeposit\r\nslip and ledger sheet for special trust account, SDCL 36-21A-82.
\r\n\r\nDocuments\r\nkept by broker remitting immediately to principal, SDCL 36-21A-83.
\r\n\r\nCompleted\r\ntransaction required for compensation of broker, SDCL 36-21A-84.
\r\n\r\nActs constituting unprofessional conduct, SDCL 36-21A-71(5).
\r\n\r\n\r\n20:69:13:19. Office\r\nrequirements. A time-share agent must have an office physically located in\r\nthe state of South Dakota before transacting any sales of real estate located\r\nin the state of South Dakota.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:21, August 16,\r\n1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-51, 43-15B-6, 43-15B-7.
\r\n\r\n\r\n20:69:13:20. Auditing.\r\nThe time-share agent must maintain all records of all sales transactions made\r\nwithin this state at the office required by § 20:69:13:19,\r\nand these records are subject to audit by the commission or its agents.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 12 SDR 102, effective\r\nDecember 22, 1985; 12 SDR 151, 12 SDR\r\n155, effective July 1, 1986; transferred from § 20:56:21:22, August 16,\r\n1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:13:21. Real\r\nestate law applicable. Unless inconsistent with this chapter and chapter\r\n20:69:12, the real estate law contained in SDCL Chapter 36-21A and Article 20:69 applies to time-share agents.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n151, 12 SDR 155, effective July 1, 1986; transferred\r\nfrom § 20:56:21:24, August 16, 1993.
\r\n\r\n\r\n\r\n\r\n\r\n\r\n20:69:13:22. Supervising\r\nagent. A developer must designate a real estate broker or time-share agent\r\nlicensed in South Dakota as the supervising agent who has general\r\nsuperintending control over all time-share agents employed in South Dakota by\r\nthat person. The supervising agent is also responsible for the actions of all\r\noutside public contacts who are employed by the principal or by the supervising\r\nagent.
\r\n\r\n\r\nSource: 10 SDR\r\n68, effective January 1, 1984; 10 SDR 121, amended\r\nMay 17, 1984, retroactively effective January 1, 1984; 12 SDR\r\n151, 12 SDR 155, effective July 1, 1986; 15 SDR 100, effective January 10, 1989; transferred from\r\n§ 20:56:21:25, August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89, 43-15B-6.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 43-15B-6, 43-15B-7.
\r\n\r\n\r\nCross-Reference: Definitions,\r\n§ 20:69:12:01(3).
\r\n\r\n\r\nCHAPTER 20:69:14
\r\n\r\n\r\nPROPERTY MANAGERS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:14:01 Property\r\nmanager license.
\r\n\r\n20:69:14:02 Persons\r\nto whom license law applicable.
\r\n\r\n20:69:14:02.01 Qualifications\r\nof applicants.
\r\n\r\n20:69:14:03 Exemptions\r\nfrom examination.
\r\n\r\n20:69:14:04 Trust\r\naccount requirements.
\r\n\r\n20:69:14:05 Auditing.
\r\n\r\n20:69:14:06 Contracts\r\nto be in writing.
\r\n\r\n20:69:14:07 Full\r\ndisclosure required.
\r\n\r\n20:69:14:08 Real\r\nestate law applicable.
\r\n\r\n20:69:14:09 Powers\r\nof commission in disciplinary matters.
\r\n\r\n20:69:14:10 Broker\r\nsubject to chapter.
\r\n\r\n20:69:14:11 Financial\r\nobligations and records.
\r\n\r\n20:69:14:12 Property\r\nmanagement accounting.
\r\n\r\n20:69:14:13 Required\r\ncontinuing education during initial biennial licensing cycle.
\r\n\r\n\r\n\r\n20:69:14:01. Property\r\nmanager license. The property manager license is a restricted broker's\r\nlicense pursuant to SDCL 36-21A-47.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:02, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-47.
\r\n\r\nLaw Implemented:SDCL 36-21A-47.
\r\n\r\n\r\n20:69:14:02. Persons\r\nto whom license law applicable. A person may not act as a property manager\r\nin this state unless the person holds a property manager license pursuant to\r\nthis chapter or otherwise complies with the provisions of this chapter.\r\nIndividuals must be licensed as individual property managers. Partnerships,\r\nassociations, or corporations must be licensed as firms.
\r\n\r\n\r\nSource: 15 SDR 100, effective January\r\n10, 1989; transferred from § 20:56:22:03, 20 SDR 18, effective August 16,\r\n1993.
\r\n\r\nGeneral Authority: SDCL 36-21A-47.
\r\n\r\nLaw Implemented: SDCL 36-21A-27, 36-21A-28, 36-21A-37, 36-21A-38, 36-21A-47.
\r\n\r\n\r\nCross-Reference: Persons and entities\r\nexempted from this chapter, SDCL 36-21A-29.
\r\n\r\n\r\n20:69:14:02.01. Qualifications\r\nof applicants. An applicant for a property manager's license, in addition\r\nto the other requirements in SDCL chapter 36-21A, shall furnish evidence of completion of 40 hours of education within the two years before the date of application in a course on the fundamentals of property management.
\r\n\r\n\r\nSource: 23 SDR\r\n110, effective January 9, 1997; 28 SDR 28, effective\r\nSeptember 2, 2001.
\r\n\r\nGeneral Authority:SDCL 36-21A-47, 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47.
\r\n\r\n\r\n20:69:14:03. Exemptions\r\nfrom examination. A real estate broker may obtain a property manager\r\nlicense without an examination. A broker associate may manage property\r\nindependently of a responsible broker if the broker associate has fulfilled the\r\neducation and experience requirements of SDCL 36-21A-31.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:04, 20 SDR 18, effective August 16, 1993; 23 SDR\r\n110, effective January 9, 1997; 26 SDR 41, effective\r\nSeptember 29, 1999.
\r\n\r\nGeneral Authority:SDCL 36-21A-47.
\r\n\r\nLaw Implemented:SDCL 36-21A-6, 36-21A-47.
\r\n\r\n\r\nCross-References: Broker defined, SDCL 36-21A-6.
\r\n\r\n\r\n20:69:14:04. Trust\r\naccount requirements. All of the requirements relating to trust accounts\r\nimposed by SDCL Chapter 36-21A or this article on real estate brokers apply to property managers.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:29, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-80, 36-21A-82.
\r\n\r\n\r\nCross-References:
\r\n\r\nHandling of money received by broker for principal, SDCL 36-21A-80.
\r\n\r\nDeposit\r\nslip and ledger sheet for special trust account, SDCL 36-21A-82.
\r\n\r\nActs constituting unprofessional conduct, SDCL 36-21A-71(5).
\r\n\r\nFinancial\r\nobligations and records, § 20:69:14:11.
\r\n\r\n\r\n20:69:14:05. Auditing.\r\nThe property manager must maintain all records of all South Dakota transactions\r\nat the property manager's office. These records are subject to audit by the\r\ncommission or its agents.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:30, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:14:06. Contracts\r\nto be in writing. Before a property manager performs any services, the\r\nproperty manager and client must enter into a written management agreement\r\nspecifying the duties and conditions under which the property manager is to\r\nperform services. A management agreement may include a provision for automatic\r\nrenewal at expiration if it contains a provision for written cancellation on\r\nterms agreeable to all parties to the agreement.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:31, 20 SDR 18, effective August 16, 1993; 23 SDR\r\n110, effective January 9, 1997.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-30, 36-21A-47.
\r\n\r\n\r\n20:69:14:07. Full\r\ndisclosure required. In all dealings between a client and property manager,\r\nthe property manager must inform the client of all liabilities, costs, and\r\nother financial obligations that may be incurred by the client if the client\r\nuses the services of the property manager.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:32, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47.
\r\n\r\n\r\n20:69:14:08. Real\r\nestate law applicable. Unless inconsistent with this chapter, the real\r\nestate law contained in SDCL Chapter 36-21A and this article applies to property managers.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:33, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47.
\r\n\r\n\r\n20:69:14:10. Broker\r\nsubject to chapter. A real estate broker who acts as a property manager is\r\nsubject to the provisions of this chapter.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:35, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-71.
\r\n\r\n\r\n20:69:14:11. Financial\r\nobligations and records. A property manager must deposit all security\r\ndeposits, damage deposits, advance fees, and rental proceeds received in a\r\nfederally insured financial institution and must make a full accounting to the\r\nclient. Rental proceeds must be disbursed pursuant to the contract between the\r\nproperty manager and owner. Records related to the receipt, deposit,\r\nmaintenance, and withdrawal of the funds must be maintained for four years\r\nfollowing the termination of a management contract.
\r\n\r\n\r\nSource: 15 SDR\r\n100, effective January 10, 1989; transferred from § 20:56:22:36, 20 SDR 18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-80, 36-21A-82.
\r\n\r\n\r\nCross-References:
\r\n\r\nAmount of deposit, SDCL 43-32-6.1.
\r\n\r\nReturn\r\nof deposit, SDCL 43-32-24.
\r\n\r\nHandling of money, SDCL 36-21A-88.
\r\n\r\n\r\n20:69:14:12. Property\r\nmanagement accounting. A property manager shall prepare and maintain a\r\nreceipts and disbursements journal or a check register for each trust account.\r\nTenant security deposits must be maintained as a separate balance in the\r\nowner's ledger or in a tenant ledger account. Receipts and disbursements must\r\nbe posted at least once each month, and all trust accounts must be reconciled\r\nat least once each month. Prenumbered receipt\r\ndocuments must be completed for any currency received by the property manager\r\nwhich belongs to a principal.
\r\n\r\n\r\nSource: 18 SDR\r\n101, effective December 17, 1991; transferred from § 20:56:22:37, 20 SDR 18, effective August 16, 1993; 21 SDR\r\n125, effective January 23, 1995; 23 SDR 110,\r\neffective January 9, 1997.
\r\n\r\nGeneral Authority:SDCL 36-21A-89.
\r\n\r\nLaw Implemented:SDCL 36-21A-47, 36-21A-71.
\r\n\r\n\r\n
\r\n\r\n
Source:\r\n45
General\r\nAuthority: SDCL 36-21A-89.
\r\n\r\nLaw\r\nImplemented: SDCL 36-21A-47, 36-21A-62.
\r\n\r\n\r\n\r\n
CHAPTER\r\n20:69:14.01
\r\n\r\n\r\n\r\n
RESIDENTIAL\r\nRENTAL AGENTS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:14.01:01 Residential rental agent license.
\r\n\r\n20:69:14.01:02 Persons to whom license law applicable.
\r\n\r\n20:69:14.01:03 Application for license.
\r\n\r\n20:69:14.01:04 Application fee.
\r\n\r\n20:69:14.01:05 Qualifications for license.
\r\n\r\n20:69:14.01:06 Supervision of residential rental agent.
\r\n\r\n20:69:14.01:07 Signing of leases by residential rental\r\nagent, if authorized.
\r\n\r\n20:69:14.01:08 Biennial renewal.
\r\n\r\n20:69:14.01:09 Powers of commission in disciplinary matters.
\r\n\r\n20:69:14.01:10 Biennial proof by residential rental\r\nagent of continuing education.
\r\n\r\n\r\n\r\n20:69:14.01:01. Residential\r\nrental agent license. The residential rental agent license is a restricted\r\nbroker's license pursuant to SDCL 36-21A-47.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1, 36-21A-47.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1, 36-21A-47.
\r\n\r\n\r\n20:69:14.01:02. Persons\r\nto whom license law applicable. A person may not act as a residential\r\nrental agent in this state unless the person holds a residential rental agent\r\nlicense pursuant to this chapter or is a real estate broker, salesperson, or\r\nproperty manager.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1, 36-21A-28, 36-21A-47.
\r\n\r\n\r\nCross-Reference: Persons and entities\r\nexempted from this chapter, SDCL 36-21A-29.
\r\n\r\n\r\n20:69:14.01:03. Application\r\nfor license. An applicant for a residential rental agent license must file\r\nan application on a form provided by the commission.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1, 36-21A-47.
\r\n\r\n\r\n20:69:14.01:04. Application\r\nfee. The application fee for a residential rental agent license is $60.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-49.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1.
\r\n\r\n\r\n20:69:14.01:05. Qualifications\r\nfor license. A person may obtain a residential rental agent license without\r\neducation or examination upon approval of the application by the commission and\r\npayment of the fee.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1, 36-21A-47.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1.
\r\n\r\n\r\nCross-References: Reputation, age,\r\ncompetence, and citizenship required for license -- Prior rejection or\r\nrevocation of license, SDCL 36-21A-30; Denial of application, SDCL 36-21A-33.
\r\n\r\n\r\n20:69:14.01:06. Supervision\r\nof residential rental agent. A person who holds a residential rental agent\r\nlicense must be under the direct supervision of a property manager or a real\r\nestate broker licensed by the commission.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1.
\r\n\r\n\r\n20:69:14.01:07. Signing\r\nof leases by residential rental agent, if authorized. A residential rental\r\nagent may sign leases if authorized by the broker or property manager with whom\r\nthe residential rental agent is associated. The lease shall also be endorsed by\r\nthe responsible broker or property manager of the residential rental agent.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1, 36-21A-47.
\r\n\r\nLaw Implemented:SDCL 36-21A-12.1.
\r\n\r\n\r\n20:69:14.01:08. Biennial\r\nrenewal. The biennial renewal fee for a residential rental agent license is\r\n$50.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1, 36-21A-61.
\r\n\r\nLaw Implemented:SDCL 36-21A-61.
\r\n\r\n\r\n20:69:14.01:09. Powers\r\nof commission in disciplinary matters. The commission shall discipline a\r\nresidential rental agent in the same manner as it disciplines a licensed real\r\nestate broker or salesperson.
\r\n\r\n\r\nSource: 27 SDR\r\n7, effective August 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-12.1.
\r\n\r\nLaw Implemented:SDCL 36-21A-47.
\r\n\r\n\r\n 20:69:14.01:10. Biennial\r\nproof by residential rental agent of continuing education. A residential\r\nrental agent shall provide to the commission proof of participation in not less\r\nthan 12 hours of approved continuing education in the preceding two-year\r\nperiod. The 12 hours of continuing education shall include study in the areas\r\nof property management, fair housing, lease of real property, real estate\r\ncontracts, or
\r\n\r\n
Source:\r\n27 SDR 7, effective August 3, 2000;\r\n45 SDR 45, effective October 9, 2018.
\r\n\r\nGeneral\r\nAuthority: SDCL 36-21A-12.1.
\r\n\r\nLaw\r\nImplemented: SDCL 36-21A-12.1.
\r\n\r\n\r\n\r\n
CHAPTER\r\n20:69:15
\r\n\r\n\r\nERRORS\r\nAND OMISSIONS INSURANCE
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:15:01 Definition of terms.
\r\n\r\n20:69:15:02 Insurance required.
\r\n\r\n20:69:15:03 Minimum standards.
\r\n\r\n20:69:15:04 Exceptions to coverage.
\r\n\r\n20:69:15:05 Group policy approval requirements.
\r\n\r\n20:69:15:06 Optional coverage.
\r\n\r\n20:69:15:06.01 Standards for optional coverage.
\r\n\r\n20:69:15:07 Time for filing of certification of optional coverage.
\r\n\r\n20:69:15:08 Nonpayment of premium.
\r\n\r\n20:69:15:08.01 Surrender of license for failure to provide proof of insurance.
\r\n\r\n20:69:15:09 Notification required for cancellation.
\r\n\r\n20:69:15:10 Proof of insurance required to activate license.
\r\n\r\n20:69:15:11 Authenticity of coverage.
\r\n\r\n\r\n\r\n20:69:15:01. Definition\r\nof terms. For the purposes of this chapter, a "qualified insurance\r\ncarrier" is an insurance carrier which maintains an A.M. Best financial\r\nsize category of class VI or higher and is and will remain, for the policy\r\nterm, authorized by the South Dakota Division of Insurance to do business in\r\nthis state as an errors and omissions insurance carrier of the type\r\ncontemplated by this chapter.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993; 27 SDR 7, effective\r\nAugust 3, 2000.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-120.
\r\n\r\n\r\n20:69:15:02. Insurance\r\nrequired. An applicant for issuance of a license on active status, a\r\nlicensee renewing a license, or an inactive licensee activating a license must\r\nsubmit proof of insurance coverage through the group plan or through\r\ncertification of optional coverage.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-120.
\r\n\r\n\r\n20:69:15:03. Minimum\r\nstandards. The group policy obtained by the commission shall cover all\r\nactivities contemplated by SDCL Chapter 36-21A and shall provide, at a minimum, the following terms and conditions:
\r\n\r\n\r\n(1) Not\r\nless than $100,000 single-limit liability coverage for each licensee per\r\noccurrence or claim made, not including costs for investigation or defense;
\r\n\r\n\r\n(2) An\r\nannual aggregate limit of not less than $500,000 per licensee;
\r\n\r\n\r\n(3) A\r\ndeductible amount of not greater than one percent of the total single-limit\r\nliability coverage amount for each occurrence and a like deductible amount for\r\ndefense and investigation;
\r\n\r\n\r\n(4) Coverage\r\nfor the vicarious liability for current or previously employed or contracted\r\nindividuals;
\r\n\r\n\r\n(5) An\r\nextended reporting provision of 90 days and an option to purchase an additional\r\nthree years extended reporting provision for a premium not to exceed 200\r\npercent of the premium charged for the last year of the terminating coverage;
\r\n\r\n\r\n(6) Coverage\r\nunder this section for covered acts in any state, United States territory, or\r\nCanada in which a covered individual, domiciled in South Dakota, holds a\r\nlicense; and
\r\n\r\n\r\n(7) Stacking\r\nof benefits.
\r\n\r\n\r\nThe\r\nminimum coverage applies to each individual licensee.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-121.
\r\n\r\n\r\n20:69:15:04. Exceptions\r\nto coverage. Except as provided in this section, coverage may not exclude\r\nclaims brought against the insured licensee arising out of an act or failure to\r\nact by the licensee when performing a professional service for which a license\r\nis required. Coverage may limit or exclude claims brought against a licensee\r\nwhich arise as follows:
\r\n\r\n\r\n(1) Out\r\nof claims or suits made or brought by any insured person against any other\r\ninsured person within the same firm or from compensation disputes between\r\nlicensees;
\r\n\r\n\r\n(2) Out\r\nof loss assumed under contract or agreement, except for liability the insured\r\nwould have had in the absence of such agreements;
\r\n\r\n\r\n(3) From\r\nany criminal, dishonest, fraudulent, or willful act or omission. This exclusion\r\ndoes not apply to any insured person who did not personally participate in\r\ncommitting such an act or omission and who, upon having knowledge of the act or\r\nomission, reported it;
\r\n\r\n\r\n(4) From\r\nunlawful discrimination committed by or for the insured person;
\r\n\r\n\r\n(5) From\r\nfines or penalties imposed by law;
\r\n\r\n\r\n(6) From\r\nfailure to maintain any type or amount of insurance for managed property;
\r\n\r\n\r\n(7) From\r\nbodily injury, personal injury, advertising injury, or property damage;
\r\n\r\n\r\n(8) From\r\nmanagement or sale of property in which the insured or spouse has more than a\r\n10 percent financial or ownership interest. This exclusion does not apply for\r\none year from the date a property is acquired under a guaranteed sale listing\r\ncontract if the property is listed for sale during that entire period;
\r\n\r\n\r\n(9) From\r\nrelated business activities for which a license is not required under this\r\nchapter;
\r\n\r\n\r\n(10) From\r\nany violation of the Securities Act of 1933 as amended through July 1, 1993, or\r\nthe Securities Exchange Act of 1934 as amended through July 1, 1993, or any\r\nstate blue sky or securities law or similar state or federal statutes;
\r\n\r\n\r\n(11) From\r\ninvolvement in any real estate investment contract or syndication as a partner,\r\njoint venturer, or underwriter;
\r\n\r\n\r\n(12) From\r\nhazardous materials, nuclear materials, or pollutants;
\r\n\r\n\r\n(13) From\r\nprior wrongful acts; or
\r\n\r\n\r\n(14) Standard\r\nexclusions.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-121.
\r\n\r\n\r\n20:69:15:05. Group\r\npolicy approval requirements. Any group policy to be issued must conform to\r\nthe standards and practices of the insurance industry and be approved by the\r\nSouth Dakota Division of Insurance.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-120.
\r\n\r\n\r\n20:69:15:06. Optional\r\ncoverage. An active licensee who chooses the option of obtaining errors and\r\nomissions insurance independently from a provider other than the group carrier\r\nunder contract with the commission must show evidence of coverage by providing\r\ncertification of coverage on a form prescribed by the commission. The form must\r\nshow proof that the licensee has coverage in compliance with the minimum\r\nstandards established by § 20:69:15:06.01. The form must be signed by an\r\nauthorized representative of the insurance company, and shall contain a\r\ncancellation notification clause as required by § 20:69:15:09.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993; 21 SDR 125, effective\r\nJanuary 23, 1995.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-120, 36-21A-122.
\r\n\r\n\r\n20:69:15:06.01. Standards\r\nfor optional coverage. A provider issuing insurance coverage pursuant to SDCL 36-21A-122 must be an admitted carrier in South Dakota or in the state in which the licensee being certified resides. All activities contemplated under SDCL chapter 36-21A must be covered.
\r\n\r\n\r\nThe\r\ninsurance must provide, at a minimum, not less than $100,000 single limit\r\nliability coverage for each licensee for each occurrence or claim made, not\r\nincluding the cost of investigation or defense, and an annual aggregate of\r\n$500,000 for each licensee, not including the cost of investigation and\r\ndefense. A responsible broker may comply with this requirement by certifying coverages of a minimum of $500,000/$1,000,000, if all\r\nlicensees associated with the broker are covered.
\r\n\r\n\r\nA\r\nperson who resides in and is licensed in a state that has a mandated program of\r\nerrors and omissions insurance and who is also licensed in South Dakota meets\r\nthe requirements for errors and omissions insurance in South Dakota upon\r\nproviding proof that the person meets the requirements of the person's state of\r\nresidence.
\r\n\r\n\r\nSource: 21 SDR\r\n125, effective January 23, 1995.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-121.
\r\n\r\n\r\n20:69:15:07. Time\r\nfor filing of certification of optional coverage. Certification of optional\r\ncoverage must be filed with the commission by 5:00 p.m. on the date of\r\nexpiration of coverage. If the certification is not filed on time, the\r\ncommission shall place the license on inactive status on that date.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993; 21 SDR 125, effective\r\nJanuary 23, 1995.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-122.
\r\n\r\n\r\n20:69:15:08. Nonpayment\r\nof premium. If a certifying insurance company which submitted certification\r\nof optional coverage notifies the commission that a licensee has not paid a\r\npremium, the commission shall place that licensee's license on inactive status\r\nas of the date of termination of coverage.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-122.
\r\n\r\n\r\n20:69:15:08.01. Surrender\r\nof license for failure to provide proof of insurance. When a licensee\r\nreceives notice of being placed on inactive status for failure to provide proof\r\nof insurance, the licensee shall immediately surrender the license and the licensee's\r\nidentification card to the commission.
\r\n\r\n\r\nSource: 21 SDR\r\n125. effective January 23, 1995.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-69.
\r\n\r\n\r\n20:69:15:09. Notification\r\nrequired for cancellation. If insurance under equivalent coverage is to be\r\nlapsed or nonrenewed, the providing company must\r\nnotify the Real Estate Commission of its intent to lapse or nonrenew\r\na minimum of 30 days before the expiration date of the term.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-122.
\r\n\r\n\r\n20:69:15:10. Proof\r\nof insurance required to reactivate license. A licensee whose license has\r\nbeen placed on inactive status for failure to provide proof of insurance may\r\nnot conduct any activities for which a license is required until proof of\r\ninsurance has been provided to the commission and the license has been\r\nactivated. The license shall be considered active as of the effective date of\r\nthe insurance.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-119.
\r\n\r\n\r\n20:69:15:11. Authenticity\r\nof coverage. A licensee may not willfully or knowingly cause or allow a\r\ncertificate of coverage to be filed with the commission which is false,\r\nfraudulent, or misleading.
\r\n\r\n\r\nSource: 20 SDR\r\n18, effective August 16, 1993.
\r\n\r\nGeneral Authority:SDCL 36-21A-119.
\r\n\r\nLaw Implemented:SDCL 36-21A-119.
\r\n\r\n\r\nCHAPTER\r\n20:69:16
\r\n\r\n\r\nSection
\r\n\r\n20:69:16:01 Disclosure -- Generally.
\r\n\r\n20:69:16:02 Repealed.
\r\n\r\n20:69:16:03 Appointed agent procedure.
\r\n\r\n20:69:16:04 Appointed agent disclosure.
\r\n\r\n20:69:16:05 Appointed agent responsibilities.
\r\n\r\n20:69:16:06 Designated broker.
\r\n\r\n20:69:16:07 Licensee's duty to responsible broker or designated broker.
\r\n\r\n20:69:16:08 Responsible broker or designated broker may appoint broker or\r\nbroker associate to exclusively represent client.
\r\n\r\n20:69:16:09 Responsible broker or designated broker appointing team to\r\nexclusively represent client -- Licensee within team representing both parties\r\nto same transaction.
\r\n\r\n20:69:16:10 Limited agency when appointed agent's client becomes\r\ninterested in listing procured by responsible broker or designated broker.
\r\n\r\nAppendix A Disclosure form, repealed, 32 SDR 53, effective October 11, 2005.
\r\n\r\n\r\n\r\n20:69:16:02. Open\r\nhouses.Repealed.
\r\n\r\n\r\nSource: 16 SDR\r\n36, effective August 29, 1989; transferred from § 20:56:04:12.02, 20 SDR 18, effective August 16, 1993; transferred from\r\n§ 20:69:03:18, 21 SDR 125, effective January 23,\r\n1995; repealed, 25 SDR 90, effective December 28,\r\n1998.
CHAPTER 20:69:17
\r\n\r\n\r\n\r\n
AGREEMENTS
\r\n\r\n\r\n\r\nSection
\r\n\r\n20:69:17:01 Agreements for brokerage services.
\r\n\r\nAppendix A Agreements, repealed, 32 SDR 53, effective October 11, 2005.
\r\n\r\n\r\n\r\nCHAPTER 20:69:18
\r\n\r\n\r\n\r\n
REAL ESTATE TEAMS
\r\n\r\n\r\n\r\n20:69:18:01 Team list required.
\r\n\r\n\r\n\r\n
\r\n\r\n
Source:\r\n46
General\r\nAuthority: SDCL 36-21A-89(11).
\r\n\r\nLaw\r\nImplemented: SDCL 36-21A-89(11).
\r\n\r\n\r\n\r\n