South Dakota guide

Buyer Representation Agreements in South Dakota: NAR Settlement and SDCL Requirements

Before a real estate agent in South Dakota can show you a home, you have to sign a written buyer agreement that spells out how the agent gets paid.

Reading as buyer.

TL;DR

Before a real estate agent in South Dakota can show you a home, you have to sign a written buyer agreement that spells out how the agent gets paid. This rule comes from a settlement that started August 17, 2024, and it applies to almost every agent in SD because they all work under rules. The good news is the fee is negotiable, and the agreement makes sure the agent legally has to look out for you.

Before you start — 9 things to know

  • In South Dakota, you must sign a written buyer agreement with an agent before they can take you on your first home tour. This is a rule from the August 17, 2024 settlement, and every agent in SD follows it.

  • The agreement has to say exactly how much the agent will be paid — either a flat dollar amount or a percentage. A vague phrase like 'whatever the seller offers' is not allowed.

  • If the seller offers to cover part of your agent's fee, your agent cannot charge you more than that offer. You won't be stuck paying extra if the seller is already covering it.

  • South Dakota's own law (ARSD 20:69) does not require a written buyer agreement, but the rules do. So in practice, any SD agent who lists homes on the will need you to sign one.

  • Along with the buyer agreement, your SD agent must give you an agency disclosure form. This form explains whether the agent works for you, for the seller, or as a neutral go-between.

  • The fee is negotiable. You can ask for a lower percentage, a flat fee, an hourly rate, or a shorter time period before signing.

  • You can sign a short-term agreement that only covers one house or one weekend of tours. You don't have to commit to a long exclusive contract on day one.

  • If you don't want to sign any buyer agreement, the agent legally can't show you homes as your representative. You can still attend open houses on your own or work with a transaction broker who represents neither side.

  • Read the agreement before signing. Pay attention to the fee, how long it lasts, whether it's exclusive, and what happens if you find a home on your own.

The timeline — step by step

  1. Interview one or more SD agents. You can talk with them, ask about their experience, and discuss their fee before signing anything.

  2. Negotiate the fee and the length of the agreement. Decide if you want exclusive (only this agent) or non-exclusive, and how long it should last.

  3. Review the agency disclosure form. Your SD agent must give you this so you understand who they legally represent.

  4. Sign the written buyer agreement before the first home tour. The fee amount must be spelled out in dollars or a percentage.

  5. Tour homes with your agent. They now legally represent you and can negotiate on your behalf.

  6. When you make an offer, ask the seller to cover all or part of your agent's fee as part of the deal. Many SD sellers still do this.

  7. At closing, your agent's fee is paid based on the agreement. If the seller covers it, you don't pay; if not, the fee comes out of your funds.

Common questions

Do I really have to sign a buyer agreement in South Dakota before seeing a house?
Yes, if you are working with an agent — which is almost every agent in SD. The settlement that took effect August 17, 2024 requires a signed written agreement before your first tour.
Can I negotiate the agent's fee?
Yes. The fee is fully negotiable — you can ask for a lower percentage, a flat fee, or a different time period before you sign.
What if the seller offers to pay my agent's fee?
Your agent cannot charge you more than what the seller is offering toward your side. If the seller covers the full agreed fee, you pay nothing extra.
What happens if I don't want to sign anything?
An SD agent cannot represent you on tours without a signed agreement. You can attend open houses on your own, or work with a transaction broker who is neutral and doesn't represent either side.
How long does the buyer agreement last?
That's negotiable. It can cover a single home, a single weekend, a few weeks, or several months — whatever you and the agent agree to in writing.
Is this a South Dakota state law?
No. SD state law (ARSD 20:69) does not require a written buyer agreement on its own. The rule comes from the settlement and applies to agents working under rules, which covers nearly all SD agents.
What is the agency disclosure form my SD agent gave me?
It's a separate SD-required form (under ARSD 20:69) that explains who the agent legally represents — you, the seller, or both as a neutral party. You should get this with your buyer agreement.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

  1. [1]
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