CHAPTER 199
(SB 155)
Corporation and limited liability company
may be formed for real estate business.
ENTITLED, An Act to
permit salespersons and broker associates within the same firm to form a
business corporation or limited liability company under certain conditions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That
§
36-21A-46.1
be amended to read as follows:
36-21A-46.1.
A real estate salesperson or broker associate employed by or otherwise associated
with a broker may form a business corporation or limited liability company under
all
the following
conditions:
(1)
The business corporation or limited liability company does not engage in real estate
transactions as a third-party agent or in any other capacity requiring a license under this
chapter;
(2)
The business corporation or limited liability company does not advertise or otherwise
hold itself out as a real estate brokerage company;
(3)
The employing or associating broker is not relieved of any obligation to supervise the
employed or associated licensee or any other requirement of this chapter or the rules
adopted pursuant to this chapter;
(4)
The employed or associated licensee is not relieved of any personal liability for any
licensed activities by interposing the corporate or limited liability form;
(5)
The business corporation or limited liability company is owned solely by an individual
real estate salesperson or broker associate, or by that person and that person's spouse
,
or by that person and other salespersons and broker associates within the same firm as
that person
; and
(6)
The business corporation or limited liability company is approved by and registered
with the commission. The registration fee for an approved business corporation or
limited liability company shall be established by rule promulgated pursuant to chapter
1-26. The fee may not exceed one hundred dollars.
Signed February 23, 2006