Real estate salesperson or broker associate
may form certain corporations or limited liability companies.
ENTITLED, An Act to
provide for the licensing of certain real estate corporations and limited
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
be amended by adding thereto a NEW SECTION to read as
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
(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;
(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 27, 2001.