Broker Nina holds both an active South Dakota real estate broker license and a property management company that manages residential rentals. A tenant files a complaint with the SDREC alleging that Nina's property management company engaged in discriminatory tenant screening. Nina argues that property management activities are not regulated by the SDREC because they are not 'real estate brokerage' as defined by SDCL Chapter 36-21A. Which of the following is the most accurate analysis of the SDREC's jurisdiction in this case?
Correct Answer
B) The SDREC has jurisdiction because property management activities, including tenant screening for residential rentals, fall within the definition of acts requiring a real estate license under SDCL Chapter 36-21A
Under SDCL Chapter 36-21A, property management activities — including leasing, renting, and managing residential properties for compensation — constitute acts requiring a real estate license in South Dakota. Because Nina holds a South Dakota broker license and is performing licensed activities through her property management company, the SDREC has jurisdiction over her conduct in those activities, including allegations of discriminatory tenant screening that may also constitute violations of her duties as a licensee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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