Answer: D. The Code of Ethics was first adopted in 1913 by the National Association of Real Estate Exchanges (now NAR). 1908 is when that association was founded; 1968 is the Fair Housing Act.
2. Which statement about FHA-insured loans is correct?
Answer & explanation
Answer: C. FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.
3. Which event terminates a listing agreement by operation (force) of law?
Answer & explanation
Answer: B. Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.
4. After representation ends, which duties does the brokerage still owe the former client, absent a written agreement for more?
Answer & explanation
Answer: A. 54-2092 leaves only accounting and confidentiality. Presenting offers and disclosing adverse facts end with the representation.
5. An owner bought a home for $250,000 and sold it for $310,000. What was the percentage increase in value?
Answer & explanation
Answer: D. Increase = $60,000; $60,000 / $250,000 (the ORIGINAL value) = 0.24 = 24%. Dividing by the sale price gives 19.4% (wrong base).
6. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?
Answer & explanation
Answer: C. 1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.
7. A seller client tells his agent the furnace is two years old, and the agent repeats this to buyers. The furnace is really 15 years old, and the agent had no reason to doubt the seller. Under Idaho law:
Answer & explanation
Answer: D. 54-2093 abolishes vicarious liability and lets licensees rely on client statements absent actual or constructive knowledge. The seller, who made the false statement, is not shielded.
8. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
9. Which transfer is exempt from the Idaho Property Condition Disclosure Act?
Answer & explanation
Answer: A. 55-2505 exempts transfers by fiduciaries administering estates and transfers from a decedent's estate. Leases with options and rental properties are covered transfers under 55-2504.
10. How long must an Idaho broker keep transaction files and trust account records?
Answer & explanation
Answer: C. 54-2049 sets three calendar years after the latest of the listed events.
11. An owner-occupied home is assessed at $460,000 and the combined levy rate is 1.1% of taxable value. What is the annual property tax?
Answer & explanation
Answer: C. 50% of $460,000 = $230,000, above the cap, so the exemption is $125,000. Taxable value = $335,000; $335,000 x 0.011 = $3,685. $2,530 wrongly uses the 50% exemption with no cap.
12. An owner-occupied home has an assessed market value of $210,000. What is its homeowner's exemption?
Answer & explanation
Answer: D. 50% of $210,000 = $105,000, which is less than $125,000, so the exemption is $105,000. Choosing $125,000 skips the lesser-of comparison.
13. Which test is MOST important in determining whether an item is a fixture?
Answer & explanation
Answer: D. Intention, as shown by the method of attachment, adaptation and any agreement (the M.A.R.I.A. factors), is the controlling test. A written agreement in the sales contract that spells out what stays avoids disputes. Cost and size are irrelevant.
14. What is the minimum age for an Idaho real estate salesperson license?
Answer & explanation
Answer: A. 54-2012 requires the applicant to be at least 18. Twenty-one is a common distractor from other licensing contexts.
15. Who appoints members of the Idaho Real Estate Commission?
Answer & explanation
Answer: D. The governor appoints all members, who serve at the governor's pleasure. The executive director runs Commission operations but does not appoint commissioners.
16. An applicant must have passed the required exam portions within what period before the license application?
Answer & explanation
Answer: D. 54-2014 requires passing within the 12 months immediately before the application. Three years is the education window.
17. A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:
Answer & explanation
Answer: C. HUD complaints must be filed within one year; a federal civil suit may be filed within two years.
18. A contract signed by a 17-year-old buyer is generally:
Answer & explanation
Answer: B. Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.
19. Under the statute of frauds, a real estate sales contract must be:
Answer & explanation
Answer: C. The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.
20. On an adjustable-rate mortgage, the interest rate after the initial period is determined by:
Answer & explanation
Answer: D. ARM rate = index + margin, subject to periodic and lifetime caps. In a 5/1 ARM the rate is fixed 5 years, then adjusts every year.
21. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?
Answer & explanation
Answer: D. Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.
22. Under TRID, the borrower must receive the Closing Disclosure at least how long before loan closing?
Answer & explanation
Answer: C. The Loan Estimate is due within 3 business days after application, and the Closing Disclosure at least 3 business days before closing.
23. The four unities required to create a joint tenancy are:
Answer & explanation
Answer: A. PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.
24. A loan whose payments are not large enough to pay it off by the end of the term, leaving a large final payment, is a:
Answer & explanation
Answer: C. Partially amortized loans require a balloon payment at maturity. Negative amortization means the balance actually increases because payments don't cover interest.
25. An audit finds a trust account irregularity that the broker cannot resolve. What may the Commission order?
Answer & explanation
Answer: D. 54-2058 allows the Commission to order a complete CPA audit at the broker's expense when a deficiency or irregularity cannot be resolved. The Recovery Fund pays only on court judgments for fraud.
Sources
Source verification pending. Confirm current requirements with your state regulator.