Free State of Idaho Broker Examination — State Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the State of Idaho Broker Examination — State Portion practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1The Idaho Real Estate Commission wants to adopt a reasonable rule needed to administer the license law. Which statement is correct?

   1. A. The Commission has express power to make and enforce such a rule.
   2. B. Only the legislature may adopt any implementing rule.
   3. C. A county recorder must first approve the rule.
   4. D. Pearson VUE must approve the rule.

   Answer: A

   Explanation: Idaho Code §54-2007 expressly vests the Commission with power to make and enforce reasonable rules necessary to administer and enforce Chapter 20. The controlling text grants “the power and authority to make and enforce any and all reasonable rules.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2007

2. 2An unlicensed person expects compensation for negotiating an Idaho real estate sale for another. Which rule applies?

   1. A. The person must hold the Idaho license required for brokerage activity unless a statutory exception applies.
   2. B. No license is needed if payment occurs after closing.
   3. C. A business license from any Idaho city is sufficient.
   4. D. Only a license is required when residential property has four or more units.

   Answer: A

   Explanation: Idaho Code §54-2002 requires licensure for a person engaging in defined broker or salesperson activity for another for compensation or its expectation, subject to stated exceptions. It says: “No person shall engage in the business or act in the capacity of real estate broker or real estate salesperson in this state without an active Idaho real estate license therefor.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2002

3. 3An Idaho broker prepares an advertisement for listed Idaho property. Who may be named as a licensee in it?

   1. A. Only a person actively licensed in Idaho.
   2. B. Any person licensed in another state.
   3. C. Any unlicensed assistant if labeled as staff.
   4. D. Any former licensee whose renewal is pending.

   Answer: A

   Explanation: Idaho Code §54-2053(1) permits only licensees actively licensed in Idaho to be named by an Idaho broker in advertising Idaho real property. It begins: “Only licensees who are actively licensed in Idaho may be named.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2053(1)

4. 4What creates an Idaho brokerage agency relationship with a buyer or seller?

   1. A. Payment of compensation alone.
   2. B. A licensee's internal file note.
   3. C. A separate signed written representation agreement.
   4. D. Delivery of the agency brochure alone.

   Answer: C

   Explanation: Idaho Code §§54-2084 and 54-2085(6) require a separate signed written agreement; the brochure or confirmation does not create representation. “A separate, signed, written agreement is required for that purpose.”

   Reference: Idaho Law Rules (2025) — Idaho Code §§54-2084, 54-2085(6)

5. 5An eligible Idaho primary residence has a $200,000 combined home-and-one-acre value. Ignoring other exemptions, what homeowner's exemption applies?

   1. A. $125,000
   2. B. $200,000
   3. C. $100,000
   4. D. $50,000

   Answer: C

   Explanation: Idaho exempts 50% of eligible value up to $125,000; 50% of $200,000 is $100,000. The official guidance says the exemption will “exempt 50% of the value of your home and up to one acre of land.”

   Reference: Homeowner’s Exemption | Idaho State Tax Commission — Homeowner’s Exemption — exemption formula

6. 6An eligible Idaho home and one acre are worth $400,000. Which amount limits the homeowner's exemption before taxable value is computed?

   1. A. $400,000
   2. B. $125,000
   3. C. $50,000
   4. D. $200,000

   Answer: B

   Explanation: Idaho's homeowner exemption is limited to 50% of qualifying value with a maximum exemption of $125,000. The page states “maximum: $125,000” after describing the 50% exemption.

   Reference: Homeowner’s Exemption | Idaho State Tax Commission — Homeowner’s Exemption — maximum

7. 7A designated broker argues that conduct by an associated unlicensed person outside the main office cannot be the broker's responsibility. What is the Idaho rule?

   1. A. Responsibility exists only inside the licensed main office.
   2. B. Responsibility exists only for licensed salespersons.
   3. C. Responsibility shifts automatically to the nearest branch manager.
   4. D. The broker is responsible for conduct within the course and scope of employment or agency regardless of location.

   Answer: D

   Explanation: Idaho Code §54-2038 makes the designated broker responsible for associated licensees and unlicensed persons acting within their employment or agency, regardless of location. The designated broker “is responsible for the actions of its licensees and associated unlicensed persons.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2038

8. 8During an audit, an Idaho designated broker keeps trust records outside Idaho. What may the Commission require?

   1. A. Production only after a district-court judgment.
   2. B. Production only at the out-of-state storage site.
   3. C. No production because the records are outside Idaho.
   4. D. Prompt production at the broker's cost and in the location or manner requested.

   Answer: D

   Explanation: Idaho Code §54-2058(2) permits audits and requires out-of-state transaction or trust records to be made promptly available at the licensee's cost as requested. It authorizes “periodic inspections, surveys and audits of the transaction records and real estate trust accounts.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2058(2)

9. 9What experience ordinarily satisfies Idaho's additional experience requirement for a broker or associate-broker applicant?

   1. A. One year as an unlicensed property manager within the preceding ten years.
   2. B. Three years as a mortgage loan originator at any time.
   3. C. Five years owning investment property in Idaho.
   4. D. Two years of full-time active work as a licensed real estate salesperson within the preceding five years.

   Answer: D

   Explanation: Idaho Code §54-2012(2)(a) requires evidence of two years of full-time active licensed-salesperson experience within the five years before application. It requires evidence of being “actively engaged, on a full-time basis, for two (2) years as a licensed real estate salesperson within five (5) years.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2012(2)(a)

10. 10What must advertising of listed Idaho property clearly and conspicuously contain?

    1. A. The Commission's telephone number.
    2. B. The seller's legal name.
    3. C. The property's assessed value.
    4. D. The broker's licensed business name.

    Answer: D

    Explanation: Idaho Code §54-2053(2) requires all advertising of listed property to clearly and conspicuously contain the broker's licensed business name. The ad “shall clearly and conspicuously contain the broker’s licensed business name.”

    Reference: Idaho Law Rules (2025) — Idaho Code §54-2053(2)