Free Idaho Real Estate Salesperson Practice Exam 2025

The Idaho Department of Water Resources manages groundwater rights and recharge operations, including issuing permits and enforcing water usage policies across the state.

Before increasing rent on a month-to-month rental, Idaho landlords must give tenants at least 30 days’ written notice. Shorter notice periods are not legally valid.

To terminate a year-to-year residential lease, Idaho landlords must provide at least 90 days’ advance written notice. This offers tenants sufficient time to relocate or renegotiate terms.

The RE-21 Purchase and Sale Agreement allows buyers to designate which brokerage will hold the earnest money. This selection must be disclosed clearly in writing and followed precisely by all parties.

The Idaho Real Estate Recovery Fund is capped at $20,000 per licensee per calendar year. This limit applies regardless of the number of claims or claimants.

Idaho Fair Housing laws do not protect based on credit history. While other statuses like race and disability are protected, financial background is not covered under these laws.

Upon disbursement from the Recovery Fund, a licensee’s license is automatically suspended until the full amount is repaid with interest. This protects the integrity of the fund.

When a broker-agent relationship ends, both parties must notify the Commission within 10 business days. This ensures accurate license status and supervision records.

Proof of E&O insurance must be submitted to the Commission within 30 days of the policy start or renewal. Failure to do so may result in license suspension or penalties.

Insurance providers offering Errors and Omissions (E&O) coverage in Idaho must be rated B+ or higher by A.M. Best, indicating financial stability and reliability.

The Idaho Department of Water Resources oversees groundwater recharge programs. This includes permitting, monitoring, and management of aquifer recharge to sustain water availability.

All advertisements by salespersons must prominently display the broker’s licensed business name. This ensures transparency and allows the public to identify the responsible party for the listing or promotion.

Idaho real estate licenses expire on the last day of the licensee’s birth month, regardless of when they were issued. Licensees should track this annual cycle to avoid lapses.

If the Commission disburses funds from the Recovery Fund due to a licensee’s misconduct, the license is automatically suspended. To reinstate it, the licensee must repay the full amount with interest and receive Commission approval.

Credit status is not a protected class under Idaho Fair Housing regulations. Protected categories include race, color, religion, sex, national origin, disability, and familial status—but not financial standing or creditworthiness.

Every license renewal cycle in Idaho requires completion of two Commission Core courses, in addition to other elective CE credits. These courses cover legal updates and policy changes critical to maintaining license competence.

Practicing law without authorization in Idaho can result in up to one year of jail time, along with potential fines. This includes drafting legal documents or offering legal advice without a license.

Referral commissions must always be handled through the licensed broker. A salesperson or associate may not deposit such funds independently. This maintains the broker’s control over compensation and accountability.

Escrow money must be delivered to the broker immediately upon receipt by the sales associate—without delay. This ensures proper trust fund handling and compliance with Idaho trust account regulations.

Idaho is a title theory state, meaning the lender retains legal title to the property until the loan is fully repaid. The borrower has equitable interest during repayment, and title transfers upon loan satisfaction. This affects foreclosure rights and lender remedies.

Fair housing laws in Idaho apply broadly to anyone involved in housing-related services, including landlords, real estate licensees, property managers, lenders, and HOAs. The law prohibits discrimination in renting, selling, advertising, or providing financing based on protected classes. These protections ensure equal access to housing opportunities across all roles in the transaction.

Idaho’s Fair Housing laws apply to all real estate professionals and prohibit discrimination based on race, color, religion, sex, disability, familial status, or national origin. These protections extend to renters, buyers, and individuals seeking financing or brokerage services.

Mixing a client’s trust funds with a licensee’s personal or business funds is strictly prohibited in Idaho. This is known as commingling and is a serious violation of trust account regulations. It can lead to license suspension or revocation.

Acting as a real estate broker or agent without a license in Idaho can result in a civil penalty of up to $10,000 per violation. Additional sanctions may include court injunctions or criminal charges depending on the severity and frequency of violations.

Licensees must report a criminal conviction to the Idaho Real Estate Commission within 20 days of the final judgment. This applies regardless of whether the conviction is a misdemeanor or felony and allows IREC to assess whether disciplinary action is warranted.

Idaho does not maintain formal reciprocity agreements with other states. However, licensees from other states may qualify for a reduced education or examination requirement if they meet certain criteria and apply for a waiver through IREC review.

The Idaho Real Estate Commission is composed of five members: four must be licensed real estate brokers with at least five years of experience, and one must be a public (non-licensee) member. This ensures both industry expertise and consumer representation.

Idaho’s homestead exemption protects up to $175,000 in equity from most unsecured creditors. This protection applies to a primary residence and is automatic, meaning no separate filing is required. It does not apply to tax liens or mortgages.

In Idaho, only licensed real estate brokers are permitted to receive compensation for listing, selling, or leasing real estate. Salespersons must be affiliated with a broker to earn commissions. Paying or receiving fees without licensure violates state law.

Earnest money must be deposited into the broker’s trust account within three banking days after acceptance of the purchase offer—not upon receipt. Timing begins from the point of mutual agreement, ensuring proper handling of client funds and compliance with trust account rules.

All real estate advertising online must clearly and prominently display the licensed business name of the responsible broker. This applies across all platforms—websites, social media, or third-party listing services—to ensure accountability and prevent misleading ads.

Double contracts—where two different purchase agreements are created to deceive a lender—are considered a form of mortgage fraud. This practice is illegal and can result in license suspension, fines, or criminal charges. There is no scenario under Idaho law where this is permitted.

Licensees must notify the Idaho Real Estate Commission within 20 days of any conviction, legal incompetency ruling, or disciplinary action by another licensing agency. Timely reporting maintains transparency and allows the Commission to assess license status.

In assigned limited dual agency, one brokerage represents both buyer and seller through separate agents. However, even within the same brokerage, confidential information (such as motivation, price limits, or timing) must be strictly protected and not shared between agents.

Sellers of residential property in Idaho are legally obligated to complete the Property Condition Disclosure form (RE-25) in full. Any blank sections may constitute noncompliance. Agents must not fill out or alter this form on behalf of the seller, even if asked.

Only licensed individuals may receive compensation for real estate services. Brokers cannot share commissions with unlicensed persons, including auctioneers, unless the auctioneer also holds a valid Idaho real estate license. Violating this can lead to disciplinary action.

Navigable waterways in Idaho are owned by the state and held in trust for the benefit of the public. This means no private ownership of the waterbed or the water itself, though adjacent landowners may have limited usage rights. Public access must remain protected.

The Idaho Real Estate Commission (IREC) serves to protect the public by regulating the practice of real estate. Its primary responsibilities include licensing, education enforcement, and investigating complaints. This ensures professional standards and ethical conduct among licensees.

Unlicensed assistants in Idaho may not perform tasks that require judgment, discretion, or client-specific communication. Activities such as discussing property features, negotiating offers, or explaining contracts are strictly prohibited. Acceptable tasks are administrative in nature, like scheduling showings or delivering documents.

Idaho law requires at least 30 days’ written notice by either party to terminate a month-to-month tenancy. The notice must be given before the start of the next rental period to be effective. For example, if rent is due on the 1st, notice must be served by the last day of the previous month. This rule ensures both parties have clear expectations and time to adjust housing plans.