Can a person who has not yet received their salesperson's license sue for a commission if an agreement was made before passing the examination?

In South Dakota, and many other jurisdictions, the law requires individuals to be licensed in order to sue for a commission on a real estate transaction. This is based on the premise that engaging in real estate activities, including earning commissions, without a proper license is considered illegal practice. Therefore, even if an agreement was made prior to passing the examination, the individual is not legally entitled to enforce that agreement to collect a commission.

The legislation emphasizes public protection and the importance of licensure in real estate transactions, aiming to ensure that all agents meet specific educational and ethical standards. Consequently, any agreement made before obtaining a license would be treated as void, preventing the individual from pursuing legal action to claim a commission.