If an individual sells her own house, what is true about her need for a real estate license?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

When an individual sells her own house, she does not need a real estate license. In many jurisdictions, including South Dakota, homeowners are permitted to sell their own property without the assistance of a licensed real estate professional. This is known as "For Sale by Owner" (FSBO). The rationale behind this is that selling one's own property does not constitute engaging in real estate brokerage as defined by law, which typically includes activities such as representing others in real estate transactions or conducting transactions on behalf of others for a fee.

While using a licensed professional can provide valuable expertise in marketing, negotiation, and legal aspects of the sale, the homeowner retains the right to handle the transaction independently. This means they can list the property, negotiate terms, and finalize sales without the formalities or regulations governing licensed real estate agents.

In contrast, obtaining a real estate license, needing a temporary license, or relying solely on a verbal agreement are not applicable in this situation; the independent seller is fully within her rights to manage her own property's sale.

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