How to Become a Home Inspector in South Dakota (2026)
South Dakota has two tiers: Registered, then Licensed Home Inspector. The 40-hour course, 190-question PSI exam, $200 fee, 24 CE hours and 100-inspection step.
Short answer: As of November 2026, South Dakota requires every paid home inspector to hold a credential from the South Dakota Real Estate Commission. You start as a Registered Home Inspector after a 40-hour approved course and the state exam, then can upgrade to Licensed Home Inspector after one year and at least 100 paid inspections. Both tiers renew every two years with 24 hours of continuing education.
South Dakota's system dates from 2000, and it has two tiers with the same duties. The Commission's own page says that once licensed, "there is no distinction between the duties and responsibilities of a licensed home inspector and those of a registered home inspector". The upgrade is a mark of experience rather than a new scope of work. For the national overview, see how to become a home inspector.
South Dakota home inspector requirements at a glance
| Requirement | South Dakota, as of November 2026 |
|---|---|
| License required | Yes. Registered Home Inspector first, then optionally Licensed Home Inspector |
| Regulator | South Dakota Real Estate Commission, Department of Labor and Regulation |
| Law | SDCL chapter 36-21C; ARSD article 20:74 |
| Pre-license education | At least 40 hours from a Commission-approved course, completed within 2 years before applying |
| Field training or ride-alongs | None to register. The Licensed tier needs 1 year as a registered inspector and at least 100 paid inspections |
| Exam | State home inspector exam through PSI: 190 multiple-choice questions, passing score 75 |
| Application and license fees | $200 application fee; $133 PSI exam fee; fingerprint background check at your cost |
| Insurance or bond | No insurance requirement found in SDCL 36-21C or ARSD 20:74 |
| Renewal period | 2 years. Expires December 31 of the year after issuance |
| Continuing education | 24 hours per renewal |
| Reciprocity | Possible for holders of a license from a state with "substantially equivalent" standards (SDCL 36-21C-8) |
The exam: what South Dakota actually tests
The Commission's study guide describes a 190-question multiple-choice exam. About 90 percent covers the components of a home inspection taught in pre-licensing courses. The other 10 percent covers South Dakota's own home inspection laws and rules. You schedule with PSI online or by phone, pay $133 by card, and test on computer at sites in Madison, Rapid City and Sioux Falls. The passing score set in rule is 75 (ARSD 20:74:02:04).
The Commission does not name the National Home Inspector Examination on its page, but its study guide applies EBPHI's rule that candidates who fail must wait 30 days between attempts. EBPHI, which owns the NHIE, lists South Dakota as using the NHIE plus South Dakota questions and says South Dakota candidates must test through the state's own contracted administrator. Our National Home Inspector Exam guide covers the national content areas.
For the law portion, the Commission tells candidates to study definitions, who needs a license, requirements to become and stay licensed, grounds for discipline and the standards of practice, plus rules 20:74:04:07 and 20:74:04:08 on renewal. You can skip the rule chapters written for course sponsors and instructors.
How to become a home inspector in South Dakota, step by step
- Complete a 40-hour approved pre-licensing course. The Commission lists approved schools. As of November 2026 its list includes classroom courses from AmeriSpec, National Property Inspections and Professional Home Inspection Institute, and distance courses from American Home Inspectors Training, Inspection Certification Associates, InterNACHI, Pillar to Post and Professional Home Inspection Institute.
- Schedule and pass the PSI exam. Book through PSI's site, choose the South Dakota Real Estate Home Inspector exam and read the candidate handbook. Score 75 or better.
- Apply within 60 days. ARSD 20:74:02:06 says to file your registration application within 60 days after notice that you passed, with proof that you completed the education in the preceding two years.
- Submit to a background check. SDCL 36-21C-14 requires state and federal fingerprint checks through the Division of Criminal Investigation and the FBI, paid by the applicant.
- Pay the $200 application fee and receive your registration. You also need a high school diploma or equivalency and "good moral character" under SDCL 36-21C-5.
- Build your experience. Keep a log of every paid inspection on the Commission's Experience Log form.
- Upgrade to Licensed Home Inspector once you have at least one year as a registered inspector and 100 paid inspections, by submitting the Experience Log. SDCL 36-21C-4 also lists "a licensing examination approved by the commission", so ask the Commission whether your registration exam covers it.
What it costs to get started in South Dakota
| Item | Cost | Source or basis |
|---|---|---|
| Application fee | $200 | ARSD 20:74:02:08 |
| PSI exam | $133 | Published by the Real Estate Commission |
| Fingerprint background check | Check the current fee with the Commission | Paid by the applicant (SDCL 36-21C-14) |
| 40-hour course | Varies by school | Not set by the state |
| E&O insurance (not required by the state) | Insureon says a median of $989 a year | Insureon, for its own applicants, May 2026 |
| General liability (not required by the state) | Insureon says a median of $545 a year | Insureon, same page |
| Biennial renewal | $100 | ARSD 20:74:02:09 |
| Report software | Binsr Standard is $75 per inspector per month | Binsr pricing |
The state fees are set in rule, and the fee rules show no amendment since they took effect in 2001. Insurance figures are one broker's medians, not a South Dakota average. See home inspector insurance for what each policy covers.
How long it takes
The Registered tier takes as long as three things: finishing the 40-hour course, getting an exam date at one of three test sites, and filing your application, which the rules say must happen within 60 days of passing. If you fail, the 30-day wait adds a month. The Licensed tier takes at least a year by law, and in practice as long as it takes you to complete 100 paid inspections. See how long it takes to become a home inspector.
What home inspectors earn in South Dakota
BLS does not publish a figure for home inspectors alone. It counts them within SOC 47-4011, Construction and Building Inspectors, which also covers government building, electrical and plumbing inspectors. OEWS excludes the self-employed.
| May 2025, SOC 47-4011 | South Dakota | North Dakota | National |
|---|---|---|---|
| Employment | 200 | 180 | 146,720 |
| Median annual wage | $64,940 | $78,570 | $74,690 |
| Mean annual wage | $67,260 | $78,490 | $77,730 |
| 10th percentile | $47,670 | $55,150 | $47,140 |
| 90th percentile | $89,050 | $100,390 | $114,200 |
Source: BLS Occupational Employment and Wage Statistics, May 2025. With only about 200 jobs in the whole category statewide, these figures move a lot from year to year. See home inspector salary for how inspection fees translate into income.
Keeping your credential
- Expiry and renewal: a registration or license expires on December 31 of the year following issuance and renews every two years (SDCL 36-21C-10).
- Deadline: file the renewal by November 30 of the expiration year. Late renewals pay a $20 penalty for each month or part of a month, and no late renewal is accepted after June 30 of the following year.
- Fee: $100 per biennial renewal.
- Continuing education: 24 hours at each renewal (ARSD 20:74:04:07). You "may not conduct home inspections" until the hours are done, and the same hours cannot count for two renewal periods. The Commission's renewal page says the hours must be finished by December 31 of the expiration year, or you go on inactive status until they are. Under ARSD 20:74:04:08, the Commission may grant extensions for health, military service or other good cause, and may exempt a nonresident who meets the reciprocity rules and their home state's requirements. See home inspector continuing education.
What is specific to South Dakota
A written contract with set contents. ARSD 20:74:06:03 requires every inspection contract to be in writing and list the client's and inspection company's signatures, the areas inspected, general exclusions, date, price, both parties' names and addresses, the property address, who receives the report, and your license or registration number. Build all nine items into your template agreement once. Binsr's agreements support multiple signers with an IP-and-timestamp audit trail, which helps if you ever need to show who signed what.
A state standard of practice. ARSD chapter 20:74:06 sets the standards of practice, component by component. The report must describe the components inspected and say which were "found to be in need of immediate major repair".
Conflict-of-interest rules. The Commission can refuse or revoke a credential if you accept pay from more than one party without everyone's written consent, take commissions from other parties dealing with your client, or share results without the client's approval (SDCL 36-21C-13). It can fine up to $2,500 for any violation of the chapter or its rules (SDCL 36-21C-11), and unlicensed practice is a Class 1 misdemeanor (SDCL 36-21C-3).
Who is exempt. Code officials, licensed architects, engineers, electricians and plumbers, real estate licensees, appraisers, insurance adjusters and licensed manufactured home dealers acting within their own scope do not need the credential (SDCL 36-21C-7).
Local chapter. ASHI's chapter directory lists the ASHI Heartland chapter for South Dakota and North Dakota.
Neighbors. North Dakota registers inspectors on an exam and E&O insurance with no course hours, Nebraska registers them on liability insurance alone, and Kansas has no law at all. For Minnesota and the rest, see home inspector license requirements.
Frequently asked questions
Sources and verification
- South Dakota Real Estate Commission, How to become a registered or licensed home inspector
- South Dakota Real Estate Commission, Home inspection study guide
- South Dakota Real Estate Commission, Approved pre-licensing education providers
- South Dakota Real Estate Commission, Fee schedule and Home inspection renewal information
- South Dakota Legislature, SDCL chapter 36-21C, Home Inspectors
- South Dakota Legislature, ARSD 20:74:02:04, 20:74:02:06, 20:74:02:08, 20:74:02:09, 20:74:04:07, 20:74:04:08 and 20:74:06:03
- U.S. Bureau of Labor Statistics, OEWS May 2025, state data
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Construction and Building Inspectors
- EBPHI, Frequently asked questions and South Dakota regulations page
- ASHI, Chapter listing
- Insureon, Home inspector insurance cost (updated May 27, 2026)
Keep reading
- How to become a home inspector
- Home inspector license requirements by state
- How to become a home inspector in North Dakota
- How to become a home inspector in Nebraska
- How to pass the National Home Inspector Exam
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