Which action is an EXCEPTION that would not lead to license suspension or revocation in South Dakota?

Depositing earnest money into the firm's escrow account is considered a standard and acceptable practice in real estate transactions. This action reflects compliance with ethical standards and proper handling of client funds, which is essential to maintaining a real estate license.

In South Dakota, real estate professionals are required to safeguard earnest money by placing it into an escrow account that is controlled by the real estate firm. This ensures that the funds are available for their intended purpose and protects both the buyer and seller in the transaction. Thus, this practice would not lead to disciplinary actions such as suspension or revocation of a real estate license.

In contrast, the other actions mentioned—such as depositing earnest money into a personal account, failing to notify clients of material defects, and engaging in deceptive marketing practices—are serious violations of professional conduct. Each of these actions directly undermines the trust placed in real estate professionals and can lead to significant penalties, including license suspension or revocation.