Free Idaho Real Estate Practice Exam

Q1.Under the Truth-in-Lending Act (TILA), which disclosure must lenders provide to borrowers within three business days of receiving a loan application?

• A.Closing Disclosure
• B.Good Faith Estimate
• C.Loan Estimate
• D.HUD-1 Settlement Statement

Q2.A seller accepts an offer on a property listed at $485,000. The agreed sale price is $472,500. The seller's existing mortgage payoff is $301,750, and the listing broker's commission is 5.5%. The seller also agreed to contribute $6,000 toward the buyer's closing costs, and prorated property taxes owed by the seller total $2,340. What are the seller's approximate net proceeds at closing?

• A.$136,422
• B.$142,422
• C.$136,572
• D.$144,762

Q3.Under Idaho Code Title 54, Chapter 20, if a salesperson's license expires and they wish to reinstate it, which of the following statements most accurately describes the Idaho reinstatement rules?

• A.A licensee may reinstate an expired license at any time within five years by simply paying a reinstatement fee, with no additional education required
• B.A licensee whose license has been expired for a period beyond what Idaho law allows for late renewal must reapply as a new applicant, which may include meeting current education and examination requirements
• C.Idaho law does not allow reinstatement of any expired license; the licensee must always retake the full pre-license course and examination regardless of how long the license has been expired
• D.An expired salesperson license automatically reinstates after six months without any action by the licensee

Q4.A seller's agent in Idaho learns during a showing that the buyer-customer has been pre-approved for significantly more money than the listing price. Under the Idaho Real Estate Brokerage Representation Act, what must the licensee do with this information?

• A.Disclose the buyer's pre-approval amount to the seller immediately, because the licensee represents the seller
• B.Keep the information confidential and not disclose it to the seller, because it was shared in confidence by the buyer
• C.Disclose the information to the seller only if the seller asks directly
• D.Withdraw from the transaction to avoid a conflict of interest

Q5.Which type of loan typically offers the lowest down payment requirement for qualified first-time homebuyers?

• A.VA loan
• B.Conventional loan
• C.USDA loan
• D.Jumbo loan

Q6.Under RESPA, when must a lender provide the Loan Estimate to a borrower after receiving a complete loan application?

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

Q7.Which of the following actions by a designated broker in Idaho would violate the supervision requirements under the Idaho Real Estate License Law?

• A.Reviewing all transaction files before closing to ensure compliance
• B.Allowing a salesperson to negotiate contracts and receive earnest money without any oversight or review
• C.Requiring salespersons to submit all offers to the broker before presenting them
• D.Maintaining written office policies governing licensee conduct

Q8.A buyer's broker in Idaho is representing a purchaser of a residential property built in 1975. The listing agent has not provided a Lead-Based Paint Disclosure. The buyer's broker is aware of this omission. Under the Residential Lead-Based Paint Hazard Reduction Act (EPA/HUD regulations), what is the buyer's broker's primary duty?

• A.The buyer's broker must ensure the buyer receives the required lead-based paint disclosure and EPA pamphlet and must not allow the buyer to waive the 10-day inspection period without full informed consent, and the broker is independently obligated to ensure compliance.
• B.The buyer's broker's only duty is to inform the buyer that the disclosure was not provided; responsibility for providing it rests solely with the listing agent and seller.
• C.Because the buyer's broker did not list the property, the broker has no federal obligation regarding lead-based paint disclosures and cannot be held liable for the seller's failure.
• D.The buyer's broker must immediately withdraw from the transaction until the listing agent corrects the oversight, as proceeding would constitute aiding and abetting a federal violation.

Q9.A broker operates a single office and has appointed one of her affiliated salespersons as the designated agent for a seller and a different affiliated salesperson as the designated agent for the buyer in the same transaction. The broker herself holds which agency relationship under the designated agency model?

• A.The broker becomes a dual agent, while each designated agent represents only one principal.
• B.The broker acts solely as the seller's agent because the listing agreement was executed first.
• C.The broker has no agency relationship with either party because all duties are delegated to the designated agents.
• D.The broker becomes a transaction broker with limited duties to both parties.

Q10.Under Idaho real estate license law, which of the following statements about salesperson compensation is CORRECT?

• A.A salesperson may accept a commission directly from a seller if both the seller and the salesperson's broker give written consent
• B.A salesperson may accept compensation only through their designated broker
• C.A salesperson may accept a referral fee directly from another broker if it does not exceed the amount paid to their own broker
• D.A salesperson may negotiate and accept compensation independently provided they disclose the amount to all parties

Q11.An Idaho broker is the dual agent in a transaction after both the buyer and seller have provided written informed consent. During negotiations, the seller privately tells the broker that she will accept $15,000 less than the listed price. The buyer later asks the broker: 'What is the lowest price the seller will accept?' How must the broker respond under dual agency obligations?

• A.The broker must decline to reveal the seller's confidential minimum acceptable price, explaining that as a dual agent she cannot disclose one party's confidential negotiating position to the other.
• B.Because both parties have consented to dual agency, the broker is now obligated to share all material information with both parties, including the seller's bottom line.
• C.The broker should advise the buyer to submit any price they wish and let the market determine the outcome, effectively refusing to provide any guidance.
• D.The broker may disclose the seller's minimum price to the buyer because the seller's bottom line is a material fact that must be disclosed to all parties in a dual agency relationship.

Q12.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

Q13.In Idaho, before a brokerage may act as a limited dual agent representing both the buyer and the seller in the same transaction, the brokerage must obtain:

• A.Written consent from only the seller, since the seller is paying the commission
• B.Verbal consent from both parties, confirmed in the purchase and sale agreement
• C.Written informed consent from both the buyer and the seller
• D.Approval from the Idaho Real Estate Commission prior to the transaction

Q14.Under RESPA (Real Estate Settlement Procedures Act), which of the following actions by a real estate licensee would be prohibited?

• A.Recommending a specific lender to a client based on competitive rates
• B.Providing clients with a list of preferred service providers
• C.Attending closing meetings with clients
• D.Receiving a referral fee from a mortgage broker for directing clients to their services

Q15.A landlord refuses to rent to a family with children under 18 years old. This practice violates which provision of the Fair Housing Act?

• A.Familial status discrimination
• B.Disability discrimination
• C.Age discrimination
• D.Sex discrimination