It's hard work to become a licensed real estate agent in the state of South Dakota. You've devoted hours of your life to taking courses, studying for exams, and mastering the complexities of the industry. You've painstakingly built your client base and logged countless miles on the road, traveling to property showings across the state. All of this effort has been worth it to create the career and lifestyle you've always wanted for yourself.
And you've chosen a great state in which to practice. South Dakota's real estate market is thriving, particularly in cities like Sioux Falls, Rapid City, and Aberdeen. You also have options in other states, such as Arkansas, Minnesota, Nevada, and Oregon, which all offer reciprocity for South Dakota real estate licenses.
Unfortunately, all of that hard work can be put in jeopardy by a single alleged violation or misconduct allegation. The South Dakota state licensing board can suspend or revoke your license in reaction to just one complaint, taking away all of the opportunities your career has to offer. It may seem severe, but state licensing boards aren't concerned with appearances. Oftentimes, they don't even understand all the nuances of a case before handing down career-ending punishments.
That's why it's important to meet any threat to your South Dakota real estate license with a thorough defense. The Lento Law Firm Professional License Defense Team is ready to step in and defend your license against any and all allegations. Call us today at 888-535-3686 or contact us online to schedule your confidential consultations, and learn how we can help protect your real estate career.
Regulatory Authority Governing Real Estate Licensure in South Dakota
In South Dakota, real estate professionals—including licensed salespersons, brokers, and property managers—are regulated by the South Dakota Real Estate Commission. This commission has the authority to issue real estate licenses, but they also wield the power to suspend, revoke, and enforce other disciplinary measures against licensees who fail to adhere to the state's real estate laws and professional standards as written in South Dakota Law 36-21A.
If you've already earned your real estate license in South Dakota, you're no doubt familiar with the state's Real Estate Commission. Well, so are we. The Lento Law Firm Professional License Defense Team knows the South Dakota Real Estate Commission inside and out. We have the knowledge and experience you can rely on if you find the Commission has started an investigation into your real estate license.
The Benefits and Dangers of Licensure Reciprocity
South Dakota doesn't offer real estate license reciprocity with other states, although it does allow applicants who already have an out-of-state license to earn their SD license simply by passing the State portion of the SD Real Estate Exam.
However, Arkansas, Minnesota, Nevada, and Oregon all recognize a South Dakota license, and several other states allow holders of SD real estate licenses to earn expedited licensure. This gives you valuable flexibility as a licensed South Dakota real estate agent. It also means that allegations against your South Dakota license could prevent you from practicing in reciprocal states, upping the ante when it comes to protecting your license's good standing.
This is why it's vital that you meet any investigation into your real estate license with a swift and strong defense. The best way to ensure that happens? Enlist the help of the Lento Law Firm's Professional License Defense Team the moment you become aware that the state is investigating your license.
Don't let allegations against your license take away your ability to practice real estate across the country. Contact the Lento Law Firm Professional License Defense Team and start your defense right away!
We will launch a thorough investigation into your case, gathering evidence and collecting witness testimonials. We'll present your case to the South Dakota Real Estate Commission and make sure they understand every nuance of your situation.
Remember, having your real estate license suspended or revoked can derail your career. Don't trust your future to anything less than the dedicated defense of the Lento Law Firm.
What Offenses Could Lead to South Dakota Real Estate Licenses Being Revoked?
Real estate professionals in South Dakota are held to high standards. Statutory and ethical violations will likely trigger investigations by the state Real Estate Commission and could ultimately result in the suspension or revocation of a real estate license. Such an investigation could also lead to a criminal investigation if the Commission uncovers evidence that laws have been broken.
In South Dakota, infractions leading to regulatory investigations include, but are not limited to:
- Misrepresentation and fraud. Engaging in deceptive business practices, making false or misleading statements, failing to disclose material information, or falsifying records can lead to severe penalties in South Dakota. Mortgage fraud and other forms of financial misrepresentation are particularly serious offenses, all of which could put your license in jeopardy.
- Unlicensed activity. Practicing real estate in South Dakota without a valid license or operating outside the legal scope of your licensure is a direct violation of state law. Any form of unlicensed practice will be aggressively pursued by regulators and could lead to criminal investigations.
- Trust account mismanagement. Mishandling client escrow funds, commingling accounts, or misappropriating money entrusted to you can lead to criminal charges, in addition to disciplinary action by the Real Estate Commission.
- Failure to disclose conflicts of interest. Engaging in transactions without disclosing financial or personal interests is a clear breach of trust that violates the state's standards for licensure.
- Breach of fiduciary duty. Real estate professionals have a legal obligation to act in their clients' best interests. Negligence, self-dealing, or unethical conduct can result in disciplinary action and permanently tarnish your reputation.
- Continuing education non-compliance. To maintain their licenses, South Dakota real estate professionals must complete state-mandated ongoing education courses. Failing to do so may result in a suspended or revoked license.
- Criminal convictions. Certain criminal offenses, particularly those related to fraud, theft, or financial misconduct, can trigger immediate disciplinary proceedings even if the crimes were not directly related to the real estate profession.
- Advertising violations. South Dakota enforces strict guidelines on marketing and promotional materials used by licensed professionals. Misleading advertisements, false claims, or improper brokerage branding can result in regulatory action.
By the time you've been made aware of a complaint against your license, the South Dakota Real Estate Commission has already begun its investigation. Regulators will be gathering evidence, reviewing records, and building a case, which means you'll need to act swiftly to protect both your reputation and your livelihood. The sooner you contact an experienced defense attorney, the better positioned you'll be to challenge the allegations and mitigate potential penalties.
The Lento Law Firm Professional License Defense Team is ready to provide strategic and persistent legal representation for South Dakota's real estate professionals. If you're facing the possibility of disciplinary measures against your license, we can help. Remember, your future in real estate could be on the line—don't trust your defense to anyone less than the best.
What Happens When Someone Files A Complaint Against My License In South Dakota?
When a complaint is filed against a South Dakota real estate licensee, it triggers a formal investigative and adjudicative process conducted by the South Dakota Real Estate Commission. This process will ultimately lead to either the dismissal of the complaint or the imposition of disciplinary actions, up to and including license suspension or revocation. Here's how the process works:
Step 1: Filing of a Complaint
The process begins when a formal complaint is submitted to the South Dakota Real Estate Commission. Complaints can come from clients, fellow licensees, regulatory agencies, or anyone else who alleges a violation of state real estate laws or professional standards. The complaint must detail the alleged misconduct or statutory violation that warrants investigation.
Step 2: Preliminary Review
Upon receiving the complaint, the Commission conducts an initial review to determine whether the allegations both have merit and fall within its jurisdiction. If the complaint does not involve a legal or ethical violation, it may be dismissed without further action. For example, a complaint based solely on an agent's slow response time or a personality conflict would likely not be enough to trigger a formal investigation.
If the charges have merit, the Commission may attempt reaching a resolution through an informal consultation. The licensee may have an opportunity to avoid formal procedures by going along with the Commission's recommendations during this step.
Step 3: Formal Investigation
After the informal consultation, or in lieu of it at the Commission's discretion, there will be a formal investigation. This investigation generally includes:
- Interviews with relevant parties
- Requests for documents and financial records
- Issuance of subpoenas where necessary
This is also the point at which the licensee will be notified of the complaint and given the opportunity to respond. It is critical to seek experienced legal representation as soon as you learn you are under investigation, as it means that the Commission is already moving forward.
Step 4: Licensee Response
The licensee has the right to respond to the allegations. This may include:
- Submitting a written rebuttal
- Providing exculpatory evidence
- Appearing for an informal interview
Having a strong, well-prepared defense at this stage can make the difference between earning a dismissal and having the case escalate to formal disciplinary proceedings.
Step 5: Consent Agreement
In some cases, the Commission may offer the licensee an opportunity to settle through a consent agreement. By signing a consent order, the licensee admits to wrongdoing and accepts the Commission's proposed disciplinary measures, which could include fines, additional education requirements, or even surrendering their license. Accepting a consent order without first getting legal guidance can literally mean forfeiting your career without a fight.
Step 6: Adjudicative Hearing
If the case proceeds to a formal hearing, the licensee has the opportunity to present their defense before the South Dakota Real Estate Commission. It is highly recommended that the licensee has qualified legal representation at this hearing. You can expect an attorney to:
- Challenge the Commission's evidence
- Present exculpatory testimony and documentation
- Argue mitigating circumstances that could result in reduced penalties
A successful defense at this stage can preserve your ability to continue practicing real estate in South Dakota.
Step 7: Final Determination
After the hearing, the Commission will issue a final ruling:
- Complaint Dismissed – No violation was found, and no further action is taken.
- Complaint Upheld – The licensee is found in violation, and sanctions are imposed. Such penalties may include:
- License suspension or revocation
- Fines of up to $500 per violation
- Mandatory ethics classes or remedial education
- Additional conditions imposed on future practice
Remember that any sanctions levied by the South Dakota Real Estate Commission could affect your ability to practice in Arkansas, Minnesota, Nevada, and Oregon because of those states' reciprocal recognition of your South Dakota real estate license. Even lesser penalties, such as formal warnings or fines, will be a matter of public record and could potentially harm your reputation in the industry. It's important that you take any complaint against your license as a serious threat to your job.
Defending Your Real Estate License in South Dakota
The Lento Law Firm Professional License Defense Team is ready to help protect your real estate license from any and all allegations in the state of South Dakota.
We are proud to offer a client-centric approach that will put your individual needs above everything else. No two cases are the same, and we believe that this approach is key to securing you the best possible outcome to your case. We will conduct a thorough investigation into your case to collect the evidence and eyewitness testimony we need to anchor your unique defense strategy.
Earning and maintaining a real estate license in South Dakota is hard work, and you shouldn't let a single complaint put it all to waste. Call the Lento Law Firm today at 888-535-3686 or contact us online to get started on your defense!
