Free Idaho Real Estate Practice Exam

Q1.An applicant for a broker's license discloses a prior felony conviction for mortgage fraud that occurred eight years ago. The applicant has since completed all education and examination requirements. Under general broker-licensing principles applicable in most jurisdictions, which factor is LEAST relevant when the licensing authority evaluates the application?

• A.The nature and seriousness of the crime and its direct relationship to the duties of a real estate broker.
• B.Evidence of rehabilitation, including conduct since the conviction and character references.
• C.The applicant's score on the broker licensing examination.
• D.The amount of time elapsed since the conviction and completion of any sentence.

Q2.A property has an annual net operating income of $48,000 and was purchased using a capitalization rate of 8%. Three years later, the cap rate for similar properties has decreased to 7%. What is the new estimated value of the property?

• A.$600,000
• B.$685,714
• C.$576,000
• D.$480,000

Q3.Under 42 U.S.C. § 3604(c), a licensee posts a listing that reads "Perfect for a young Christian family." What is the violation?

• A.No violation — preferences in advertising are protected commercial speech
• B.Steering only
• C.Discriminatory advertising — § 3604(c) prohibits any statement that indicates preference based on a protected class (here: religion AND familial status)
• D.Violation only if a complaint is filed by a member of the affected class

Q4.A buyer and seller are reconciling the settlement statement for a Twin Falls property that closed with an escrow balance discrepancy. The title company's escrow reconciliation shows: total buyer debits $318,400; total buyer credits $315,750; total seller debits $22,300; total seller credits $295,450. Under Idaho escrow and settlement practice, which of the following statements is TRUE about this reconciliation?

• A.The buyer must bring $2,650 to closing and the seller will net $273,150.
• B.The buyer must bring $2,650 to closing and the seller will net $295,450.
• C.The buyer receives a refund of $2,650 and the seller will net $273,150.
• D.The reconciliation is balanced; no cash adjustments are required.

Q5.An Idaho designated broker discovers that a salesperson in the brokerage has been depositing all earnest money funds into the brokerage's operating account rather than a separate trust account. Under Idaho law, which statement is correct regarding the broker's obligations and the nature of this violation?

• A.The broker has no liability as long as the operating account had sufficient funds to cover the trust deposits at all times.
• B.This constitutes commingling of trust funds under Idaho Code § 54-2053, and because the designated broker is responsible for supervising all licensees in the office, the broker may also face disciplinary action.
• C.Commingling is only a violation if a client suffers a financial loss; if no loss occurred, no disciplinary action may be taken.
• D.The salesperson alone bears all disciplinary liability; the designated broker cannot be disciplined for a subordinate's conduct.

Q6.A salesperson working in Idaho hands a prospective buyer an Idaho-approved agency disclosure brochure at their first substantial contact. The buyer asks why they are receiving this document. Which statement BEST explains the legal purpose of the brochure under Idaho law?

• A.It serves as the binding buyer representation agreement and obligates the buyer to work exclusively with that agent
• B.It is required by the Idaho Real Estate Brokerage Representation Act to inform consumers of the different types of brokerage relationships available and the duties associated with each
• C.It is a marketing document voluntarily provided by brokers to explain their services and has no legal mandate
• D.It replaces the need for a written representation agreement and constitutes implied consent to dual agency

Q7.A borrower obtains a $200,000 loan at 6% annual interest. If the monthly payment is $1,199, how much of the first payment goes toward principal?

• A.$199
• B.$1,000
• C.$1,199
• D.$6,000

Q8.A landlord refuses to rent to a family with children because the property has a swimming pool and the landlord is concerned about liability. This action would be:

• A.Legal, as it's a legitimate safety concern
• B.Legal, if disclosed in the lease agreement
• C.Illegal discrimination based on familial status
• D.Legal, if the property is owner-occupied

Q9.Under Idaho Code Title 54, Chapter 20, the Idaho Real Estate Commission is composed of how many members, and who appoints them?

• A.Five members appointed by the Governor, at least one of whom must be a public member not engaged in the real estate business
• B.Seven members appointed by the Legislature, all of whom must hold active real estate licenses
• C.Five members elected by licensed real estate brokers statewide, subject to Senate confirmation
• D.Three members appointed by the Governor and two members appointed by the Idaho Association of REALTORS®

Q10.A buyer receives the Seller's Property Condition Disclosure Form after signing the purchase and sale agreement. Under the Idaho Property Condition Disclosure Act, what right does the buyer have upon receiving the disclosure?

• A.The buyer may rescind the contract within 3 business days after receiving the disclosure form
• B.The buyer has no rescission right because the contract is already executed
• C.The buyer may rescind the contract only if material defects are listed on the disclosure form
• D.The buyer must submit any objections to the seller in writing within 5 calendar days

Q11.In Idaho, a married couple purchases a home during their marriage using wages earned by one spouse. How is this property classified under Idaho law?

• A.Separate property of the earning spouse because only one spouse earned the wages
• B.Community property owned equally by both spouses
• C.Joint tenancy with right of survivorship by default
• D.Tenancy in common with each spouse holding an undivided one-half interest

Q12.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

Q13.In Idaho, which of the following best describes the requirement for a salesperson's real estate license to be displayed?

• A.The salesperson must carry the physical license card at all times while conducting real estate activities
• B.The license must be prominently displayed in the salesperson's personal home office
• C.The license is held by and displayed at the office of the designated broker
• D.The salesperson must post the license on any public-facing social media profile

Q14.Which loan type requires the property to meet HUD Minimum Property Standards, potentially requiring seller repairs before the loan can close?

• A.FHA loans
• B.Conventional conforming loans
• C.VA loans only
• D.USDA Rural Development loans only

Q15.A salesperson at ABC Realty has a listing on a home. Another salesperson at the same brokerage, ABC Realty, has a buyer client interested in that listing. Under the Idaho Real Estate Brokerage Representation Act, what type of agency relationship most likely exists for the brokerage?

• A.Seller agency only, because the listing salesperson's agency status controls the entire firm
• B.Limited dual agency, because the brokerage represents both the seller and the buyer client in the same transaction
• C.No agency relationship, because the two salespersons must each become independent contractors to avoid a conflict
• D.Sub-agency, because the buyer's salesperson automatically becomes an agent of the seller through the listing