Idaho Real Estate Salesperson Exam Study Guide

Idaho Real Estate Salesperson Exam Study Guide

Aspiring real estate salespersons in Idaho must pass the Idaho Real Estate Salesperson exam as part of the licensing process. This exam contains two sections, the General Exam and the Idaho State Exam. While the General Exam is designed to test candidates' general knowledge of the field of real estate, the Idaho State Exam focuses on state-specific laws and procedures. Candidates will have 4 hours to take the entire exam, but each section of the exam has its own separate time limit (see below). Learn about the various concepts that will be tested in each portion of the exam with this Idaho Real Estate Salesperson Exam study guide.

Idaho Real Estate Salesperson Exam Study Guide: General Exam

The General Exam of the Idaho Real Estate Salesperson test is intended to evaluate examinees' knowledge of foundational areas and concepts in the field. This portion of the exam contains 80 questions that will be scored and 5 pretest questions that will not be scored. Examinees are allowed to use a calculator that meets the requirements of the testing facility and will have 2.5 hours to finish this section. The questions on the test will be divided into 8 content areas that explore various topics in real estate, such as property value, real estate contracts, and financing.

Content Areas	% of Questions
Real Property Characteristics, Legal Descriptions, and Property Use	11% (≈ 9 questions)
Forms of Ownership, Transfer, and Recording of Title	10% (≈ 8 questions)
Property Value and Appraisal	14% (≈ 11 questions)
Real Estate Contracts and Agency	20% (≈ 16 questions)
Real Estate Practice	17% (≈ 14 questions)
Property Disclosures and Environmental Issues	10% (≈ 8 questions)
Financing and Settlement	9% (≈ 7 questions)
Real Estate Math Calculations	9% (≈ 7 questions)

Real Property Characteristics, Legal Descriptions, and Property Use

Candidates need to be able to identify real property from personal property and use the proper legal terms to describe various aspects of real property, including physical features. They need to know how to survey real property and be familiar with terms such as emblements and severance.

This content area in the General Exam will also test candidates' knowledge of land use controls. This means understanding both private and public controls, such as restrictions and the application of governmental powers. Candidates should be aware of licenses and covenants for private land use and taxation and zoning ordinances for public land use.

Forms of Ownership, Transfer, and Recording of Title

Examinees must be familiar with the various types of ownership and estates that exist. Questions may ask about freehold vs. leasehold estates. Examinees should understand fees and the bundle of rights for freehold estates and net leases and estate at sufferance for leasehold estates. Topics in rights (both surface and sub-surface) and liens may also be covered.

Examinees need to demonstrate their understanding of titles and deeds and how these documents can be recorded and transferred. They must know the different kinds of deeds and what makes a deed valid. They should be able to explain the concepts of voluntary alienation and marketable title.

Property Value and Appraisal

The General Exam will evaluate candidates' understanding of value, including the features of value and how value may differ from price. They should be able to explain the various steps involved in an appraisal and know how the process is regulated.

Specifically for determining value, candidates need to be familiar with various approaches or techniques. For example, using the cost approach, they need to know how to consider factors such as improvements and physical deterioration when determining value. Candidates also need to be able to perform a Comparative Market Analysis (CMA), use market data to compare sales, and explain the effects value has on taxes.

Real Estate Contracts and Agency

Examinees need to be aware of the different kinds of contracts used in real estate, including unilateral or implied contracts, and know what qualifies a contract as valid. They need to know how a contract is executed and terminated and understand terms including breach of contract, Statute of Frauds, and punitive damages.

Questions may ask specifically about sales contracts, including how to manage offers, contingencies, and disputes. Examinees need knowledge of installment sales contracts and option contracts. They should be able to explain how licensees relate to their clients, how a relationship with an agency is formed, and what a licensee is obligated to do for clients.

Real Estate Practice

The General Exam will test candidates' familiarity with issues of risk management and fair housing. They need to understand issues of fraud and know how antitrust laws and different types of insurance can be used to manage risk. They should know about federal regulations in the field, including fair housing laws and equal opportunity in housing. This also includes knowing what kind of advertising is prohibited.

Candidates must also know about the role of a broker and issues of unauthorized practice of law. They need to be aware of the different agreements that brokers have with buyers, sellers, and property managers. They need to know how these agreements are terminated and what fees are associated with them.

Property Disclosures and Environmental Issues

Examinees will need to demonstrate their knowledge of disclosures, including liabilities associated with disclosures. They must know what they are obligated to disclose and how to go about disclosing various hazards, including asbestos and brownfields. They should be aware of what is in the Clean Air and Water Acts and be able to explain the role of the Environmental Protection Agency (EPA). This includes knowing how the EPA protects wetlands and being familiar with specific regulations of the organization, including the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Financing and Settlement

Topics in financing for real estate will be covered in this content area, including the responsibilities of lenders. Candidates need to understand the different forms of financing, including various types of loans available, and know how to read mortgage clauses. They should be able to explain title theory and FHA requirements for lenders. They need to know how buyers qualify for financing and be able to explain mortgage insurance premium (MIP).

Candidates will have to answer questions about how financing is regulated. They must be aware of the different regulating bodies and know about specific pieces of legislation, such as the Equal Credit Opportunity Act (ECOA). They should know about mortgage fraud issues and be able to explain the entire closing process for sales.

Real Estate Math Calculations

The last content area of the General Exam will explore topics in the mathematical techniques used in real estate. Examinees must be able to calculate the acreage of properties, capitalization rate, and Net Operating Income (NOI). They should know how to determine a listing price and understand how their commission works.

Questions in this content area will also ask examinees about calculations used in property management, settlement, and loans. They need to know how to calculate rent, prorated items and credits at closing, and the interest and fees on loans. They must also understand the appreciation and depreciation of investments.

Idaho Real Estate Salesperson Exam Study Guide: Idaho State Exam

The Idaho State Exam is designed to test candidates' knowledge and understanding of state-specific policies and procedures in real estate. They will have to answer 40 scored questions and 5 to 10 pretest questions that will not count towards the score. Candidates have 1.5 hours to finish this portion of the exam and are allowed to use a calculator. Questions in this exam are distributed across 6 content areas that explore topics such as licensing requirements, license law, and Idaho practices.

Content Areas	% of Questions
Duties and Powers of the Real Estate Commission	5% (≈ 2 questions)
Licensing Requirements	10% (≈ 4 questions)
License Law and Rules of the Idaho Real Estate Commission	40% (≈ 16 questions)
Brokerage Representation (Agency Law)	25% (≈ 10 questions)
Calculations and Closing Costs	5% (≈ 2 questions)
Idaho Principles and Practices	15% (≈ 6 questions)

Duties and Powers of the Real Estate Commission

Examinees should be prepared to answer questions about the Real Estate Commission in Idaho, including what the commission's role and powers are. They will need to know how the commission handles investigations and the process of hearings and any requested appeals. They must know how the commission conducts audits and how it applies any necessary sanctions. For instance, they need to understand how license suspension works and be aware of fines that may be applied.

Licensing Requirements

Candidates need to understand what qualifies someone for a real estate license, including what education is required for the field. They should know what activities are allowed under the license and be able to explain how to go about renewing a license. Questions may also ask about the process of changing the status of a license.

License Law and Rules of the Idaho Real Estate Commission

The Idaho State Exam will focus on testing examinees' knowledge of the regulations and laws required for real estate in the state. They must be familiar with the actions that are prohibited with their position and know how to advertise themselves and/or their business. They should understand how to work with a broker and be aware of how they earn commission.

Examinees will also have to demonstrate their understanding of the laws and rules involved in selling properties. They need to know how to handle the money that is used in transactions and be able to manage the various documents involved in a sale. For example, they need to know the documents and steps involved in making an offer or counteroffer and the final acceptance of an offer. They need to know how to maintain accurate records and be aware of general office practices in the field.

Brokerage Representation (Agency Law)

Questions will also evaluate candidates' understanding of agency law. They need to know the different kinds of agency contracts and be familiar with the various aspects of these contracts. They should know how an agency is terminated and what the agency's obligations are to parties while the relationship is active. They must be able to explain the limits of confidentiality and know how to properly disclose any agency relationships.

Calculations and Closing Costs

Examinees will have to demonstrate their knowledge and ability to perform various mathematical calculations associated with real estate. Specifically, questions will ask about the processes and math involved in calculating closing costs.

Idaho Principles and Practices

The final content area on the Idaho State Exam for salespersons will examine topics in real estate policies specific to the state. Candidates must understand the financial aspects of real estate, including the process of financing properties and how mortgages work. Questions may ask about trust deeds or contracts for deeds.

Candidates will need to know about the different forms of ownership and how foreclosure can occur. They should be able to explain what community property is and specific issues with mobile or manufactured homes. They need to know the methods used to determine valuation for real estate. This includes knowing about factors such as property taxes and homeowner's exemption.

Finally, this content area will test candidates' knowledge of land use and water rights in the state. They must understand how the state regulates land use with subdivisions or by using zoning. They also need to be aware of recording methods used in the state.