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South Dakota requires agency disclosure:

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Question & Answer

Review the question and all answer choices

A

At closing

Disclosure at closing is far too late to be meaningful β€” by that point, the buyer and seller have already negotiated, signed contracts, completed inspections, and made major financial commitments. Any confidential information shared during the transaction process would have already been potentially compromised. Closing-time disclosure would render the entire purpose of agency disclosure meaningless.

B

Before entering agreement or showing property

Correct Answer
C

Only if requested

Agency disclosure is not optional or conditional upon a consumer's request in South Dakota. Requiring consumers to ask for disclosure before receiving it defeats the protective purpose of the law, as most consumers don't know to ask and may not understand what agency relationships are. The disclosure obligation rests entirely on the licensee, not the consumer.

D

Never

South Dakota absolutely requires agency disclosure β€” answering 'never' is factually and legally incorrect. All U.S. states have implemented some form of agency disclosure requirement, and South Dakota is no exception. Selecting 'never' would indicate a fundamental misunderstanding of consumer protection principles in real estate.

Why is this correct?

South Dakota Codified Laws and the South Dakota Real Estate Commission rules require that licensees disclose their agency relationship to all parties at the earliest practicable opportunity β€” specifically before entering into any agency agreement or before showing a property to a prospective buyer. This timing requirement is intentional: it ensures buyers and sellers understand the nature of the licensee's representation before sharing any information that could be used against their interests. The disclosure must be made in writing, and the South Dakota Real Estate Commission provides standardized disclosure forms for this purpose.

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