Free Idaho Real Estate Practice Exam

Q1.An Idaho salesperson wants to advertise a listing using only their personal name and cell phone number on a yard sign without any reference to their brokerage. Under Idaho advertising rules, this practice is:

• A.Permissible, provided the Idaho Real Estate Commission license number is displayed on the sign
• B.Permissible only for properties where the salesperson is also the owner
• C.Prohibited, because all advertising must clearly identify the brokerage under which the salesperson is licensed
• D.Permissible if the seller provides written authorization to omit the brokerage name

Q2.Under Idaho Code Title 54, Chapter 20, which of the following individuals is EXEMPT from the requirement to hold a real estate license when performing real estate activities?

• A.A property manager who collects rent and negotiates leases on behalf of multiple property owners for compensation
• B.An attorney-in-fact acting under a duly executed power of attorney on behalf of a principal in a single real estate transaction
• C.A salaried employee of a real estate brokerage who shows residential properties to prospective buyers
• D.A person who regularly buys and resells distressed properties for profit on behalf of investors

Q3.Which employing broker can use R4-28-1103(G)'s narrow exception from subsection (A)'s written systems?

• A.Two offices with one licensee each.
• B.One office with a designated broker, no more than one other licensee, and no more than one unlicensed person.
• C.Any brokerage with fewer than ten people.
• D.A virtual brokerage of any size.

Q4.A seller's agent in Idaho owes which of the following duties to a prospective BUYER who is not represented by the brokerage?

• A.The duty of loyalty and the duty to promote the seller's best interests above all others
• B.Disclosure of all known adverse material facts about the property and honest dealing
• C.The same full fiduciary duties owed to the seller client
• D.No duties whatsoever, since the buyer is not a client of the brokerage

Q5.A licensed Idaho salesperson is approached directly by an unrepresented buyer who wants to purchase a property listed by the salesperson's brokerage. Before discussing any terms, what specific agency disclosure obligation does Idaho law impose on the salesperson?

• A.No disclosure is required because the salesperson already represents the seller and owes no duty to explain agency relationships to unrepresented buyers.
• B.The salesperson must provide the Idaho Real Estate Commission-approved agency disclosure form (Consent to Limited Dual Agency or Seller Representation Acknowledgment) before any substantive discussion of terms, explaining the salesperson's representation status.
• C.The salesperson must verbally disclose agency status but is not required to provide any written form until a purchase agreement is signed.
• D.The salesperson must immediately terminate the listing and refer the buyer to another brokerage before any conversation occurs.

Q6.A metes and bounds legal description that reads 'Beginning at the iron pin at the southwest corner of the property, thence North 45° East for 200 feet...' uses which type of reference system?

• A.Government Survey System with principal meridians
• B.Bearings and distances with monuments or markers
• C.Lot and block system with recorded plat maps
• D.Township and range divisions with sections

Q7.Which of the following is the primary purpose of zoning ordinances?

• A.To generate revenue for local government
• B.To determine property tax assessments
• C.To regulate and control the use of land within a municipality
• D.To establish building construction standards

Q8.Idaho Code § 54-2053 requires a designated broker to maintain a trust account. If a broker's monthly three-way reconciliation reveals that the bank balance exceeds the sum of all individual client ledger balances, this condition is most accurately described as which of the following?

• A.An overage, which may indicate the broker has commingled personal funds with client funds.
• B.A shortage, which means the broker has misappropriated client funds.
• C.A normal condition that requires no corrective action under Idaho rules.
• D.An acceptable practice permitted when the broker deposits a personal 'cushion' to cover potential bank fees.

Q9.In a designated agency arrangement, what is the primary advantage for clients compared to traditional dual agency?

• A.Lower commission rates
• B.Separate agents providing undivided loyalty
• C.Faster transaction processing
• D.Guaranteed transaction completion

Q10.A real estate agent sends postcards to homeowners in a racially mixed neighborhood implying that property values will decline as the neighborhood demographics change, encouraging owners to sell quickly. This practice is a violation of the Fair Housing Act and is specifically known as:

• A.Steering
• B.Redlining
• C.Blockbusting
• D.Churning

Q11.The maximum civil penalty for a first Fair Housing Act violation under the current HUD-adjusted schedule is approximately:

• A.$21,663
• B.$5,000
• C.$10,000
• D.$54,157

Q12.What is the key difference between an addendum and an amendment to a real estate contract?

• A.An addendum is added before closing; an amendment is added after closing
• B.An addendum is prepared by the agent; an amendment must be prepared by a licensed attorney
• C.An addendum adds new terms at or before contract execution; an amendment modifies terms of an already-executed contract
• D.An addendum is optional; an amendment is required by Arizona law for all changes

Q13.Under Idaho Code § 54-2088, when a designated broker wishes to engage in dual agency (representing both buyer and seller in the same transaction), which condition must be satisfied before the broker may proceed?

• A.The broker must obtain informed written consent from both the buyer and the seller acknowledging the dual agency relationship.
• B.The broker must verbally disclose the dual agency to both parties, but written consent is only required from the party paying the commission.
• C.The broker must withdraw representation of one party and represent only the other party to avoid the conflict.
• D.No additional consent is required if the broker disclosed the possibility of dual agency in the original brokerage agreement.

Q14.A real estate salesperson is working with a buyer who is applying for a mortgage. Under the Real Estate Settlement Procedures Act (RESPA), the lender is required to provide the buyer with a Loan Estimate within how many business days of receiving the loan application?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q15.Under Idaho Code Title 54, Chapter 20, a designated broker is audited by the Idaho Real Estate Commission and is found to have failed to maintain complete transaction records for closed real estate transactions. What is the minimum record-retention period required by Idaho law for these transaction records?

• A.One year from the date of closing.
• B.Three years from the date of closing.
• C.Five years from the date of closing.
• D.Seven years from the date of closing.