Free Idaho Real Estate Practice Exam

Q1.Under Idaho Code § 54-2062, a licensed Idaho salesperson who receives a referral fee from a title company for referring a buyer to that company has committed a violation. Which federal law, in conjunction with Idaho Code § 54-2034, makes this conduct doubly prohibited?

• A.The Truth in Lending Act (TILA), which prohibits undisclosed compensation in mortgage transactions
• B.The Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks and unearned fees in federally related mortgage transactions
• C.The Dodd-Frank Wall Street Reform Act, which regulates compensation to real estate professionals in all residential transactions
• D.The Fair Housing Act, which prohibits discriminatory steering through financial incentives

Q2.A buyer is purchasing a home for $300,000. The lender requires private mortgage insurance (PMI) because the buyer's down payment is less than 20%. If the buyer puts down 10%, what is the loan-to-value (LTV) ratio?

• A.80%
• B.90%
• C.10%
• D.70%

Q3.Under RESPA's Regulation X, a lender establishes an escrow account at closing for property taxes and homeowner's insurance. Annual property taxes are $4,800 and annual insurance premiums are $1,560. The lender collects the maximum allowable initial escrow deposit (cushion). What is the maximum initial escrow deposit the lender may collect at closing under RESPA's escrow cushion rule?

• A.$1,060
• B.$530
• C.$795
• D.$1,590

Q4.A real estate salesperson represents a seller who instructs the salesperson: 'Do not show my home to anyone with Section 8 vouchers.' The salesperson is located in a state that does not have a state law protecting source of income as a protected class. Under federal law, which of the following BEST describes the salesperson's legal obligations?

• A.The salesperson should refuse to follow the instruction because, while source of income is not a protected class under the federal FHA, complying with the instruction could still constitute illegal discrimination if Section 8 recipients are disproportionately members of a federally protected class such as race or national origin.
• B.The salesperson must comply with the seller's instruction because source of income is not a protected class under the federal Fair Housing Act.
• C.The salesperson must immediately terminate the listing agreement because any instruction not to show property to a class of buyers is illegal under federal law.
• D.The salesperson may comply as long as the refusal is documented in writing and disclosed to potential buyers upon request.

Q5.A real estate agent shows only certain neighborhoods to Hispanic clients while showing different areas to white clients. This practice is known as:

• A.Blockbusting
• B.Steering
• C.Redlining
• D.Panic selling

Q6.Under Idaho Code Title 54, Chapter 20, a salesperson places an advertisement for a listed property on a social media platform. Which element is REQUIRED by Idaho law for the advertisement to be compliant?

• A.The salesperson's personal cell phone number
• B.The salesperson's individual license number
• C.The name of the brokerage under which the salesperson is licensed
• D.The full legal name of the property seller

Q7.Which of the following would make a real estate contract voidable?

• A.The contract involves an illegal purpose
• B.One party was a minor when the contract was signed
• C.The contract lacks consideration
• D.The property description is completely missing

Q8.The primary difference between quid pro quo harassment and hostile environment harassment in a housing context is:

• A.Quid pro quo conditions housing on submission to sexual demands; hostile environment creates an abusive living condition through pervasive conduct
• B.Quid pro quo involves a monetary demand; hostile environment involves physical contact only
• C.Hostile environment claims require a criminal conviction; quid pro quo does not
• D.Only quid pro quo harassment is covered by the Fair Housing Act — hostile environment is not

Q9.Under the Idaho Seller Property Disclosure Act (Idaho Code §§ 55-2501 through 55-2518), which of the following transactions is EXEMPT from the seller's obligation to provide a written property condition disclosure?

• A.A sale of a single-family home by an individual seller who has lived in the property for two years.
• B.A sale of a newly constructed home being sold by the builder/developer for the first time.
• C.A transfer of residential real property by a trustee pursuant to a court order in a bankruptcy proceeding.
• D.A sale of a duplex where the seller occupies one unit and rents the other.

Q10.A property sells for $250,000. The buyer pays a 20% down payment. What is the loan amount the buyer will need to finance?

• A.$200,000
• B.$50,000
• C.$225,000
• D.$180,000

Q11.What commission obligation does a seller have if they sell directly to a buyer under an Exclusive Agency listing?

• A.The full listing commission, because the seller is bound to the agreement
• B.A reduced commission — typically 50% of the agreed rate
• C.An administrative fee only, not the full commission
• D.No commission — under an Exclusive Agency listing, the seller may sell directly without paying the listing broker

Q12.A lender charges a borrower a fee to a third-party pest inspection company that it owns but does not disclose this affiliated business relationship. This arrangement most likely violates which federal law?

• A.Truth in Lending Act (TILA)
• B.Real Estate Settlement Procedures Act (RESPA)
• C.Equal Credit Opportunity Act (ECOA)
• D.Fair Housing Act (FHA)

Q13.Shortly before closing, a buyer receives an email appearing to be from the title company with new wire transfer instructions. What is the broker's best practice to prevent wire fraud?

• A.Forward the email to the buyer with no additional guidance
• B.Proceed with the transfer because the email displays the title company's official logo
• C.Instruct the buyer to call the title company at a previously verified phone number — not any number listed in the suspicious email — to confirm the instructions
• D.Ask the listing agent to verify the email before the buyer acts on it

Q14.A licensed broker is opening a new branch office and plans to hire several salespersons to work there. Under general licensing principles applicable in most jurisdictions, which of the following statements BEST describes the broker's supervisory obligation with respect to those affiliated salespersons?

• A.The broker is responsible for the acts of affiliated salespersons performed within the scope of their real estate activities and must implement reasonable office policies and supervision to ensure compliance with applicable law.
• B.The broker's liability for affiliated salespersons is limited solely to transactions in which the broker personally participated, because each salesperson holds an independent license.
• C.A salesperson's independent contractor status completely insulates the broker from liability for the salesperson's licensed activities.
• D.Supervisory responsibility transfers entirely to the branch manager, relieving the principal broker of any legal obligation for salesperson conduct at the branch office.

Q15.When a tenant requests a reasonable accommodation but the disability is not obvious, what can the housing provider legally request?

• A.Reliable third-party verification that the tenant has a disability and that the requested accommodation is necessary — without requiring diagnosis or medical history
• B.The specific diagnosis from the tenant's physician
• C.The tenant's full medical records
• D.Nothing — the provider must accept the request at face value