Carol Lawhun, CRS, ABR, CNE & Scott Lawhun, CNE

SD real estate licensees are required to carry errors and ommissions insurance. The state policy from RISC is going up in 2010 to a base price of $165.00. There are also three available endorements available for $15 each (one each for fair housing, environmental, and real estate regulatory complaints). The October/November 2009 issue of the South Dakota Real Estate View newsletter, pg 2,  published by the SD Real Estate Commission has a great explanation of this increase. Here is the access link to the newsletter:  http://www.state.sd.us/sdrec/newsletter/newsletters_list.htm.

Renewal fees for licenses expiring this December are $125.00 and due to be received by the commission no later than November 30, 2009. If the licensee has not completed their necessary continuing education should still make sure their renewal is received by the Real Estate Commission by November 30th. Renewals received after November 30th need to have a late fee included with them or they will be returned.

 New agents have the initial application fee of $225 - application must be received in the commission's office within 60 days of completing the two tests. If the license is issued during the year of 2009, the first renewal will be due November 30, 2010.

If an agent is part of a board of REALTORS, they will also have their initial board dues before being able to practice real estate. This will cover their orientation, pro-rated state and national Association of REALTOR dues, and the initial local board fees. There may also may a lockbox or lockbox key fee. Our local board ReaderKey lease increased by only $1 this year to $120. Our board also charges monthly for its dues instead of annually. I like having it spread out over time instead of all at once with everything else.

People looking to get their license will also need to pay for the real estate school (116 hour course), and for both of the required tests ($95 each time either test is taken).

A cost which varies greatly is the cost of post-licensing or continuing education required for renewing the license. If you are still looking for those classes, links are available from the SD Real Estate Commission (http://www.state.sd.us/sdrec). I am also teaching classes - the full schedule is available at www.RushmoreSchoolOfRealEstate.com.

If you have any questions, please contact me at 605-484-0557 or caroll@propertybyreferral.com

• Q:  What startup costs should be considered in starting a real estate career? 
• A:  The startup costs come in stages
• Real Estate School - SD Law currently requires the completion of 116 hours of Pre-License Education. The school can follow a couple of different formats. The entire 116 hours can be taught in the classroom or the school may use a self-paced course for the first 54 hours of education and finish with 62 hours in the classroom. Rushmore School of Real Estate, where I teach, uses the self-paced option. Each school sets its own price. Tests may be retaken if the student does not pass the first time.
• SD real estate tests - there are two tests which must be passed to qualify for a real estate Broker Associate License. Testing centers are in Rapid City & Sioux Falls. Each test is 3.5 hours. The national info & SD state law test must have both sections passed. The simulation tests over Information Gathering and Decision Making skills. It simulates real world type application. The test is administered by AMP - their website with a candidate handbook with great information is http://goamp.com/examination.aspx?p_category=REAL%20ESTATE&p_client_code=SDCT&p_exam_id=1303
• Each of the licensing tests cost $95 each time you take them. If you pass one and fail the other you only need to retake the one you failed.
• SD Real Estate License application - $225. It is possible to be turned down for 'moral turpitude' reasons. A person wondering if their application would be turned down or accepted may apply first & get approval pending finishing the qualifications. The full explanation and application can be found on the SD Real Estate Commission website - http://www.state.sd.us/sdrec/
• If you affiliate with a company which is part of the multiple listing service (mls), you will join the National Association of REALTORS (NAR), the SD Association of REALTORS, and your local board. Each association has fees associated with it. The initial fees will be paid to your local board when you affiliate with your company. This is a substantial fee which changes by board and by the month of the year you join.
• As a REALTOR, you will need to be able to open lock boxes at listed homes. The 2009 lease for the computerized key to access these boxes in our local board is $119.
• People getting their initial Broker Associate in 2009 will need to renew their license by the end of November 2010. Cost for renewal is $125. In order to renew they will also need to have completed 30 hours of post licensing education. These classes are offered by different providers and have varying costs.
• Equipment costs - each agent is an independent contractor and will need to supply their own equipment. these may include computer, printer, cell phone, and digital camera. There may also be software needs such as a contact manager.
• Routine business operating costs such as advertising, mailing, and flyers.
• Income is split with your owner broker; there may be monthly costs associated with your office. A good rule of thumb is to have three to six months income set aside to live on as your start your new business.

 If you have any questions, please contact me - Carol Lawhun, ABR, CNE, CRS, Instructor with Rushmore School of Real Estate & REALTOR with The Real Estate Group