Free Idaho Property Practice Test — LicenseIQ

Question 1

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 2

An active licensee buys a lot from an unrepresented seller. When must the licensee disclose in writing that she holds an active Idaho license?

Accepted Answer

54-2055 requires written disclosure of license status no later than presentation of the purchase and sale agreement.

Question 3

In an Idaho deed of trust, who holds title with the power of sale?

Accepted Answer

45-1502 describes the trustee as the person to whom title is conveyed, limited to the power of sale and the duty to reconvey. The beneficiary is the lender.

Question 4

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 5

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 6

When is the first half of Idaho property taxes due?

Accepted Answer

63-903 sets December 20 for full payment or the first half; the second half is due June 20.

Question 7

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 8

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 9

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?

Accepted Answer

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.

Question 10

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 11

The 'bundle of rights' in real property includes all of the following EXCEPT:

Accepted Answer

The bundle includes possession, control, enjoyment, exclusion and disposition - never a guaranteed profit.

Question 12

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 13

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 14

What is the Idaho homeowner's property tax exemption?

Accepted Answer

63-602G sets the exemption at the lesser of 50% or $125,000. $175,000 is the creditor homestead exemption.

Question 15

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 16

A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

Accepted Answer

$200,000 / 100 = 2,000 units; 2,000 x $2.50 = $5,000.

Question 17

An unlicensed individual is convicted of acting as a real estate salesperson without a license. What is the maximum criminal fine?

Accepted Answer

54-2065 makes it a misdemeanor punishable by up to $5,000, up to one year in county jail, or both, for a natural person. The $10,000 maximum applies to an LLC or corporation.

Question 18

After reviewing the signed purchase agreement, a broker reasonably decides the buyer is entitled to disputed earnest money and refunds it. Which statement is accurate?

Accepted Answer

54-2047 says a discretionary disbursement based on a reasonable review is not a license violation but may expose the broker to civil liability. It does not create total immunity.

Question 19

A timeshare that lets the owner use the property during a specific, set week each year is a:

Accepted Answer

Fixed-week timeshares assign the same week every year; floating weeks allow different weeks subject to availability.

Question 20

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 21

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 22

What must a claimant have before seeking payment from the Idaho Real Estate Recovery Fund?

Accepted Answer

54-2071 requires a final judgment grounded in fraud, misrepresentation, or deceit in a licensed transaction, with collection efforts exhausted. A Commission disciplinary finding alone does not open the fund.

Question 23

A married couple's home is community property but titled only in the husband's name. Who must sign the deed to sell it?

Accepted Answer

32-912 provides that neither spouse may sell, convey, or encumber community real estate unless the other joins.

Question 24

Which person needs an Idaho real estate license?

Accepted Answer

Negotiating a sale for another for compensation is brokerage under 54-2004. Owners, executors, and foreclosing trustees fall within 54-2003 exceptions.

Question 25

Owner Ann sells to Bo, who does not record. Ann then sells the same parcel to Cy, who pays value, knows nothing of Bo's deed, and records first. Who prevails under Idaho's recording statute?

Accepted Answer

55-812 makes an unrecorded conveyance void against a later good-faith purchaser for value who records first. Bo's earlier deed loses.

Idaho real estate property practice test

1. In general, a 'stigmatized' property refers to one:

2. An active licensee buys a lot from an unrepresented seller. When must the licensee disclose in writing that she holds an active Idaho license?

3. In an Idaho deed of trust, who holds title with the power of sale?

4. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

5. In a mortgage, the borrower who pledges the property as security is the:

6. When is the first half of Idaho property taxes due?

7. Which action may a life tenant take WITHOUT the remainderman's consent?

8. An owner of lakefront property holds:

9. 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?

10. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

11. The 'bundle of rights' in real property includes all of the following EXCEPT:

12. A buyer of a unit in a cooperative receives:

13. An owner's title insurance policy protects against:

14. What is the Idaho homeowner's property tax exemption?

15. Under a land contract (contract for deed), during the payment period the buyer holds:

16. A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

17. An unlicensed individual is convicted of acting as a real estate salesperson without a license. What is the maximum criminal fine?

18. After reviewing the signed purchase agreement, a broker reasonably decides the buyer is entitled to disputed earnest money and refunds it. Which statement is accurate?

19. A timeshare that lets the owner use the property during a specific, set week each year is a:

20. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

21. A property manager owes fiduciary duties primarily to the:

22. What must a claimant have before seeking payment from the Idaho Real Estate Recovery Fund?

23. A married couple's home is community property but titled only in the husband's name. Who must sign the deed to sell it?

24. Which person needs an Idaho real estate license?

25. Owner Ann sells to Bo, who does not record. Ann then sells the same parcel to Cy, who pays value, knows nothing of Bo's deed, and records first. Who prevails under Idaho's recording statute?

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