Real Estate - Definitions

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36-21A-1. Definitions.

Terms used in this chapter mean:

(1)    "Agency," any relationship by which one person acts for or on behalf of a client subject to the client's reasonable direction and control;

(2)    "Agency agreement," a written agreement between a broker and a client that creates a fiduciary relationship between the broker and client. The payment or promise of payment of compensation to a responsible broker does not determine whether an agency relationship has been created between any responsible broker or licensees associated with the responsible broker and a client;

(3)    "Auction," any public sale of real estate as defined in § 36-21A-11 or business property as defined in subdivision 36-21A-6 (3) at public offering to the highest bidder;

(4)    "Auctioneer," any person licensed under this chapter who auctions, offers, attempts, or agrees to auction real estate or business opportunities;

(5)    "Broker associate," any broker acting in association with or under the auspices of a responsible broker;

(6)    "Client," any person, including a seller, landlord, buyer, or tenant, who has entered into an agency relationship with a real estate licensee;

(7)    "Commission," the South Dakota Real Estate Commission;

(8)    "Consumer," any person seeking or receiving services from a real estate broker;

(9)    "Customer," any party to a real estate transaction who does not have an agency relationship with a licensee;

(10)    "Designated broker," any broker licensee designated by a responsible broker to act for the company in the conduct of real estate brokerage;

(11)    "In-company transaction," any transaction in which both the seller or landlord and the buyer or tenant receive real estate services from the same broker or from licensees associated with the same broker;

(12)    "Licensee," any person holding a license issued pursuant to this chapter;

(13)    "Limited agent," any licensee who has a written agency relationship with both the seller and the buyer in the same in-company transaction;

(14)    "Person," any individual, corporation, limited liability company, partnership, limited partnership, association, joint venture, or any other entity, foreign or domestic;

(15)    "Purchaser," any person who acquires or attempts to acquire or succeeds to an interest in real property;

(16)    "Responsible broker," any person holding a broker's license issued pursuant to this chapter who is responsible for the real estate activities conducted by those licensees acting in association with or under the auspices of the responsible broker;

(17)    "Served actively," if referring to a real estate salesman or broker associate, having the license on an active status with the commission;

(18)    "Single agent," any licensee who represents only one party to a transaction;

(19)    "Subdivider," a person who causes land to be subdivided into a subdivision for that person or others, or who undertakes to develop a subdivisio