Idaho Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. An Idaho listing agreement expires without a sale. Unless otherwise agreed in writing, what does the brokerage still owe the former seller-client?

   • AEvery client duty, which continues in full until the property finally sells to someone
   • BOnly the duty to present any written offers that arrive after the listing has expired
   • CAn accounting for money and property received, and continued confidentiality of client informationcorrect
   • DNo duty of any kind, because every obligation ends on the expiration date of the listing

   Why: Idaho Code 54-2092 says that after representation ends, a brokerage owes no further duty except accounting for all money and property received during the representation and keeping confidential client information confidential, unless otherwise agreed in writing.

   Agency

2. 2. An Idaho broker keeps $185 of the brokerage's own money in the real estate trust account to cover bank service charges. What is the most additional broker money that may be deposited into that account?

   • A$65
   • B$115correct
   • C$185
   • D$300

   Why: Idaho Code 54-2042(7) lets a broker deposit broker or firm funds only to open and maintain the trust account and pay bank charges, and the balance of those funds may never exceed $300. $300 minus $185 already on deposit leaves $115. Adding $300 more would breach the cap.

   Real estate math (calculations)

3. 3. In 2026, a new Idaho applicant hears about the DOPL fee holiday for the Real Estate Commission. Which statement about the fee holiday is correct?

   • AIt waives the initial license fee for every new salesperson licensed during 2026, but renewal fees still apply
   • BIt waives both initial and renewal fees for all license types until the Legislature votes to end it
   • CIt waives the Pearson VUE exam fee for first-time candidates but does not change any Commission fee
   • DIt waives renewal fees for broker, branch office, company and salesperson licenses from January 1, 2026, but not initial license feescorrect

   Why: DOPL announced that from January 1, 2026 it waives renewal fees for Real Estate Commission broker, branch office, company and salesperson licenses. Its FAQ says only renewals are waived, not the fee for an initial license, and DOPL will give notice before reinstating renewal fees.

   Practice of real estate

4. 4. An Idaho sales associate obtains a transaction document signed by a buyer. What deadline applies to sending a true legible copy to the designated broker or office?

   • AOnly during the annual audit
   • BBefore the end of the next business daycorrect
   • CWithin 30 days of recording
   • DOnly when the transaction closes

   Why: Idaho Code 54-2051(3) requires a sales associate to provide signed transaction documents to the designated broker or office before the end of the next business day.

   Contracts

5. 5. An Idaho broker will receive compensation from both sides. What disclosure is required first?

   • AFull written disclosure of that intent to all partiescorrect
   • BNo disclosure if both checks are deposited on the same day
   • COnly an oral note to the higher-paying side
   • DOnly a private note to the broker's accountant

   Why: Idaho Code 54-2054(7) requires advance full written disclosure to all transaction parties before charging or accepting compensation from multiple parties.

   Practice of real estate

6. 6. How long must an Idaho broker keep trust account ledger records and transaction files, including rejected offers?

   • A3 calendar years after the year in which the transaction closed or the event occurredcorrect
   • B1 calendar year after the year in which the transaction closed or was terminated
   • C2 calendar years after the date on which the final closing statement was signed
   • D5 calendar years after the date on which the last trust account deposit was made

   Why: Idaho Code 54-2049 requires the broker to keep offers (accepted, countered or rejected), representation agreements, transaction files, trust account ledgers and reconciliation records for 3 calendar years after the year in which the event occurred, the transaction closed, all funds were disbursed or the agreement expired. Five years is a common rule in other states.

   Practice of real estate

7. 7. An Idaho ad uses individually true details arranged to create a misleading overall impression. What standard applies?

   • AOnly completed sales advertisements are regulated
   • BThe overall information must not be misleadingcorrect
   • CEvery technically true sentence makes the whole ad lawful
   • DOnly the font size can be regulated

   Why: Idaho Code 54-2053(4) prohibits misleading advertising, judged by its overall probability of deceiving the intended audience.

   Practice of real estate

8. 8. An Idaho offer fails immediately and earnest consideration is returned before deposit. What accounting record is still necessary?

   • AOnly the agent's personal expense report
   • BNo record because the bank never received it
   • COnly a new advertising flyer
   • DA ledger record of the received considerationcorrect

   Why: Idaho Code 54-2045(3) requires a ledger even when received consideration is returned before deposit.

   Practice of real estate

9. 9. An Idaho homeowner completes the statutory seller property disclosure form before listing. Which statement about the form is correct?

   • AIdaho Code 55-2501 et seq. requires it, but it is not a warranty by the seller or the seller's agent and is not a substitute for inspectionscorrect
   • BIt is a warranty by the seller and the listing agent that every system listed will work for 1 year after closing
   • CIt is a substitute for a professional inspection, so the buyer does not need to order one of their own
   • DIt is optional, because Idaho follows strict caveat emptor for all sales of residential real property

   Why: The disclosure form in Idaho Code 55-2508 says that 55-2501 et seq. requires sellers of residential real property to complete a property condition disclosure form. The form itself states it is not a warranty of any kind by the seller or any agent representing the seller and is not a substitute for any inspections.

   Property disclosures

10. 10. An Idaho broker keeps all trust records on one unbacked-up computer. What required control is missing?

    • AOnly an online sales forecast
    • BAn adequate backup system in use at all timescorrect
    • COnly a second business-card design
    • DOnly a printed list of competitors

    Why: Idaho Code 54-2044 requires an adequate generally accepted backup system for electronic trust records at all times.

    Practice of real estate