Idaho Real Estate Broker Exam — All Questions

A shell company offers all cash for a luxury condominium and will not identify its beneficial owners. What is the broker's most appropriate general response?

• a.Close quickly, because cash deals carry no lender risk
• b.Ignore it, since money laundering rules exclude brokers
• c.Treat the opacity as a risk flag and escalate it✓
• d.Demand a full source-of-funds audit before showing it

Opaque ownership combined with an all-cash purchase of high-value residential property is a recognized money laundering pattern, and federal reporting requirements have targeted exactly that fact pattern, so the sound instinct is to note the red flag and raise it with the closing agent, counsel, and firm policy. Speed is not a virtue when the source of funds is unknown, and a cash deal removes lender scrutiny rather than risk. Brokers are not exempt from the general prohibition on facilitating a crime. Demanding a private audit before a showing is neither the broker's role nor a workable step.

Long after a file closed, a broker discovers that a required disclosure was never delivered. The licensee who handled the transaction left the firm months ago. What is the broker's responsibility?

• a.The broker remains responsible for the closed file and must act on it✓
• b.Responsibility moved with the licensee to whichever firm now holds her license
• c.Nothing is required, because the sale closed and the funds were disbursed
• d.The firm should insert the missing form now and consider the file complete

A transaction file belongs to the brokerage, and the duty to keep it complete and to answer for what it contains survives both the closing and the licensee's departure. The firm cannot hand a compliance failure to a former agent's new broker, who supervised none of this work. Sound practice is to notify the affected party, deliver what was missed, take counsel's advice on any resulting harm, and make whatever report state law requires of the firm. Treating a closed file as beyond reach ignores that regulators examine files for the period the state prescribes. Slipping the form in now papers over the gap rather than curing it.