Under what circumstance can the South Dakota Real Estate Commission investigate a licensee?

The South Dakota Real Estate Commission is authorized to initiate an investigation into a licensee primarily when there is a complaint or a potential violation reported. This reflects the regulatory framework under which the Commission operates, ensuring accountability and adherence to real estate laws and standards. When a complaint is filed, it indicates a concern about the conduct of a real estate professional, prompting the Commission to assess the situation thoroughly.

This mechanism serves as a protective measure for consumers and maintains the integrity of the real estate profession within the state. The Commission prioritizes complaints because they often point to specific instances of misconduct or potential breaches in regulation that require immediate attention.

Other options, such as conducting routine inspections or relying on self-evaluation reports, do not constitute the basis for investigation under normal circumstances. Investigations are typically reactionary to specific allegations or observed infractions rather than being based on arbitrary selection or voluntary submissions by the licensee. Therefore, the correct and applicable situation that allows the Commission to conduct an investigation is indeed the presence of a complaint or indication of a violation.