Idaho License Law and Commission Rules
Area III is the largest single block on the Idaho state exam at 30%. Its nine lettered subtopics run from advertising through trust accounts to prohibited conduct.
Advertising, business name and office
Idaho Code 54-2053 permits only actively licensed Idaho licensees to be named in advertising of Idaho property, requires all advertising of listed property and all branch advertising to contain the broker's licensed business name clearly and conspicuously, and forbids advertising that is misleading when taken as a whole. Section 54-2040 requires a definite physical main office, written notice to the Commission of any change of name, location, mailing address or telephone number, and provides that a change of name or location without notice automatically inactivates the license previously issued.
Commissions, fees and prohibited conduct
Section 54-2054 bars an unlicensed action to collect a fee, bars splitting fees with unlicensed persons, bars finder's fees, bars double contracts, bars kickbacks and unearned fees, requires prior written disclosure before a broker accepts compensation from more than one party, and requires every fee to reach a sales associate through the broker with whom the associate is licensed. Section 54-2055 requires a licensee dealing in his own property to disclose the active license in writing no later than presentation of the purchase and sale agreement and to run the transaction through his broker.
Trust accounts and the handling of money
A broker is responsible for all money entrusted to the broker or to any licensee representing the broker (54-2041) and must deposit entrusted money on or before the banking day immediately following receipt unless written instructions signed by the interested parties direct otherwise (54-2045). Trust accounts must be noninterest-bearing at an approved depository, identified as a "real estate trust account," and may hold no more than $300 of the broker's own funds for anticipated bank charges (54-2042). Each trust account is reconciled monthly against the ledgers, check register and bank statement (54-2044), and no disbursement may be made without written signed authorization or a court order (54-2046).
Documents, offers and records
Section 54-2050 sets the required elements of buyer and seller representation agreements, including conspicuous definite beginning and expiration dates, and prohibits the notice-to-cancel clause. Section 54-2051 requires every written offer to be tendered to the seller as promptly as practicable up until closing, lists the specific terms an offer must contain, and requires the associate to get any signed document to the broker's office before the end of the next business day. Section 54-2049 requires offers, representation agreements, transaction files, trust ledgers and reconciliation records to be kept three calendar years after the year the event occurred.
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State-specific details
State exam facts
- State regulator
- Idaho Real Estate Commission
- Exam vendor
- Pearson VUE
- Prelicensing education
- 180 classroom hours (90 salesperson + 90 broker)
- Passing score
- 75 scaled score (0-100 scale, not a percentage)
- Scored questions
- 130
- Time limit
- 240 minutes
Who regulates real estate brokers in Idaho?
The Idaho Real Estate Commission licenses brokers and salespersons. Idaho Code 54-2005 creates the Commission inside the Division of Occupational and Professional Licenses, with five governor-appointed members, and 54-2007 charges it with enforcing the license law and making the rules. The Commission contracts with Pearson VUE to deliver the exams.
What education and experience do I need before the Idaho broker exam?
Idaho Code 54-2022 requires 90 classroom hours of prelicense education for a salesperson and a minimum of 90 additional classroom hours for a broker or associate broker, 180 in all. Idaho Code 54-2012(2)(a) then requires two years of full-time active experience as a licensed salesperson within the five years immediately preceding application. A designated broker must also complete a Commission-approved business conduct and office operations (BCOO) course within the three years before being designated.
How is the Idaho broker exam structured?
130 scored items: an 80-item national/general portion in 150 minutes and a 50-item Idaho state portion in 90 minutes, four hours in total, plus 5-10 unidentified pretest items in each portion. The Idaho state portion for brokers is weighted 4% Commission duties, 4% licensing, 30% license law and rules, 20% agency, 10% calculations and closing costs, 12% Idaho principles and practices, and 20% brokerage management - the last of which is broker-only and does not appear on the salesperson exam at all.
What score do I need to pass, and can I retake just one portion?
Idaho reports a scaled score on a 0-100 scale, which the candidate handbook says must not be read as the percentage of questions answered correctly. The passing point is 75 for the broker examination and 70 for the salesperson examination. A candidate who passes one portion and fails the other retakes only the failed portion, provided it is passed within one year of the date of the passed portion.
Sources: https://dopl.idaho.gov/rec/, https://www.pearsonvue.com/us/en/id/realestate.html, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/091300.pdf, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/091306.pdf, https://legislature.idaho.gov/statutesrules/idstat/Title54/T54CH20/
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