Free Idaho State Law Practice Test — LicenseIQ

Question 1

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 2

What happens to a licensee's license when the Recovery Fund pays a claim based on that licensee's conduct?

Accepted Answer

54-2074 suspends the license automatically, without further order, as of the court order date, and reinstatement requires repayment with interest. Permanent revocation is not automatic.

Question 3

When a buyer signs an offer and gives earnest money to a licensee, what must the licensee immediately give the buyer?

Accepted Answer

54-2051 requires a licensee who receives a signed, dated offer with consideration to immediately give the buyer a copy as a receipt.

Question 4

A licensee cannot finish continuing education because of a documented health problem. What relief may be available?

Accepted Answer

54-2023 allows a single extension of no more than three months on a provisional license; no further extension is allowed, and incomplete education leads to automatic inactivation.

Question 5

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 6

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 7

How long before a trustee's sale must the notice of sale be mailed to the grantor?

Accepted Answer

45-1506 requires mailing at least 120 days before the sale. Thirty days relates to the last publication and personal service.

Question 8

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 9

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 10

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 11

What is the maximum deductible permitted on an Idaho licensee's E&O policy?

Accepted Answer

IDAPA 24.37.01.100 caps the deductible at $3,500, including investigation and defense costs.

Question 12

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 13

An Idaho license expired and was not renewed within one year after the expiration date. What is its status?

Accepted Answer

54-2018 automatically terminates an expired license not renewed within one year, and it cannot be renewed after that. A late fee applies only to renewals within that year.

Question 14

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 15

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 16

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 17

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 18

When does an Idaho individual license expire?

Accepted Answer

54-2018 and DOPL's 2026 renewal notice tie expiration to the licensee's birthday with a two-year cycle. June 30 relates to the core course year, not expiration.

Question 19

A licensee completes 20 elective hours during one license period. How many of the extra hours carry forward to the next period?

Accepted Answer

54-2023 applies hours only to the period in which they are completed; excess hours do not carry forward. The 8-hour figure is the tempting arithmetic answer.

Question 20

What is the most broker or firm money that may be kept in an Idaho real estate trust account?

Accepted Answer

54-2042 allows broker funds only to open and maintain the account and cover bank charges, never over $300. Allowing no broker money at all is wrong because a small maintenance balance is allowed.

Question 21

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 22

Who appoints members of the Idaho Real Estate Commission?

Accepted Answer

The governor appoints all members, who serve at the governor's pleasure. The executive director runs Commission operations but does not appoint commissioners.

Question 23

Which statement about FHA-insured loans is correct?

Accepted Answer

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.

Question 24

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 25

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Idaho real estate state law practice test

1. A salesperson receives an earnest money check from a buyer. The salesperson should:

2. What happens to a licensee's license when the Recovery Fund pays a claim based on that licensee's conduct?

3. When a buyer signs an offer and gives earnest money to a licensee, what must the licensee immediately give the buyer?

4. A licensee cannot finish continuing education because of a documented health problem. What relief may be available?

5. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

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

7. How long before a trustee's sale must the notice of sale be mailed to the grantor?

8. A broker received a 4.2% commission totaling $12,600. What was the sale price?

9. When an owner dies with no will and no heirs, the property passes to the state through:

10. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

11. What is the maximum deductible permitted on an Idaho licensee's E&O policy?

12. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

13. An Idaho license expired and was not renewed within one year after the expiration date. What is its status?

14. A salesperson wants to buy a FSBO home for his own investment. He must:

15. In a life estate, the person who receives the property when the life tenant dies is the:

16. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

17. In a lease, the tenant holds a estate and the landlord holds a .

18. When does an Idaho individual license expire?

19. A licensee completes 20 elective hours during one license period. How many of the extra hours carry forward to the next period?

20. What is the most broker or firm money that may be kept in an Idaho real estate trust account?

21. Under an open listing, the seller owes a commission to:

22. Who appoints members of the Idaho Real Estate Commission?

23. Which statement about FHA-insured loans is correct?

24. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

25. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Sources