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Idaho Real Estate Book Study Questions And Correct
Answers 100% Verified
What are the activities required to have a real estate license? - ANSWER a) offer to list, buy, sell, or negotiate for others
b) negotiate the purchase, sale, option, or exchange of real estate
c) takes part in the process of procuring prospects or closing of any transactions
d) negotiate any real estate interest, option, or business opportunity for others
Exceptions - ANSWER a) transfer of an interest in real property or business opportunity for one's own account or use.
b) Acquisition or disposal of real property or business opportunity interests within the scope of one's employment
c) acting under a power of attorney for a single transaction in a parcel of real property or a business opportunity.
d) any person selling by reason of a default in the payment of a deed of trust
e) acting as an administrator, executor or personal rep of an estate
f) actin in property management
The Idaho Real Estate Commission generally meets: - ANSWER 6-8 times a year
Course make up work is allowed only for: - ANSWER Any pre-license courses
Pre-license courses must be completed within how many years prior to license application? - ANSWER three
Change of personal info must be submitted to IREC no later than - ANSWER 10 days
An independent E&O insurance policy ust have an A.M. best rating of at least - ANSWER B+
Brokers must make a passing grad of what (not salesperson) - ANSWER 75%
Who must have a license to practice real estate? - ANSWER anyone who is expecting compensation while acting for another; offers to list
When does a real estate license expire? - ANSWER The last day of the licensee's birth month (the following year after the year obtained) ex: 7/30/
To be effective, tail coverage for E&O insurance must be purchased within how many days from cancellation? - ANSWER 90
Salesperson or Associate Broker affiliation - ANSWER Can't work without the supervision of a designated broker. Reps the broker
Designated Broker - ANSWER licensed broker who is designated by brokerage company to supervise the activities of an licensees associated with the brokerage. Also unlicensed personnel
Limited Broker - ANSWER An individual broker qualified to do business in Idaho but may not associate brokers or salespersons licensed with that broker
Reciprocity - ANSWER because Idaho does not have reciprocity agreements with any other state, individuals licensed in another state shall meet the min requirements set forth by Idaho. However, the applicant shall not be required to furnish proof of the educational requirements but will be required to provide a certified license history from other states
The three types of legal descriptions that can be used to meet Idaho requirements -
the initial Point Of Beginning will be a corner of a section or township that connects the metes and bounds to the government rectangular survey.
in order to have a 'closed' legal description, the actual point of beginning will begin and end at the same point.
Recorded Plat - ANSWER used for developments that consist of multiple lots. Idaho Code describes a subdivision as a tract of land divided into 5 or more lots, parcels, or sites for the purpose of sale or building development, whether immediate or future.
Within the plat will be reference to the government rectangular description, metes and bounds description, and finally the lot and block identification.
Flood Insurance - ANSWER required on federal loans
Survey Monuments - ANSWER must be at least 1/2" in diameter and 2 feet long. Must be permanently marked with the license number of the surveyor placing the monument.
Any person willfully defacing, injuring, etc., any signal, monument or other object set as a permanent boundary survey marker, benchmark, or point set in control surveys by agencies of the US, he shall forfeit a sum not to exceed $1500 for each offense and shall be liable for damages sustained by the affected parties.
What township borders Canada? - ANSWER Township 65 North
Real Estate is defined as: - ANSWER land plus added permanent additions such as structures
Real Property - ANSWER covers a greater area to include the rights, interests, and benefits (aka the bundle of rights) associated with the ownership of land and real estate
AKA being everything from the center of the earth to the heavens above, attached or unattached to the land together with the interests, benefits and right to own, occupy, or use.
Sale of water Rights - ANSWER all contracts and deeds for the sale of water rights must be done by the Department of Water Resources.
IDWR will determine how many water rights, units or shares of water may be sold and how many acres may be irrigated. Prior Appropriation first in time, first in right is the only system used in Idaho.
Homestead Protection - ANSWER Idaho does have homestead protection. The home or property is protected by law from unsecured creditors during the occupants lifetime. Owner can only have one homestead at a time. $100,000 net value.
HOmestead exemption is automatic in Idaho providing: - ANSWER a) the property must be occupied as the principal residence
b) property must be occupied for a continuous period of at least 6 months
c) If the property is land and is not occupied, a declaration of homestead must be filed
Also if the owner already resides on a parcel of property that has a claim of homestead but wants to move to another piece of property which they also own, the must file a declaration of abandonment on the property they reside and also file a declaration of homestead for the new location.
Right to use Easements - Easement by necessity - ANSWER is a right granted by law where there is no access to a person's land. ex: public road to landlocked property
Right to use Easements - Easement by Prescription - ANSWER is acquired by using land of another without permission for a prescribed period of time which in Idaho is 20 years before the commencement of the action.
If proper notice is given by certified letter, what length of time does a landlord have to cure the problem? - ANSWER 3 days
If a landlord intends to raise the rent on a month-to-month rental, how many days notice must be given? - ANSWER At least 15 days
How many days notice to terminate a mtm lease is required? - ANSWER Not less than one month
Following a tenant's surrender of premises, security deposit refunds must be made within: - ANSWER 30 days
Lot rent for a manufactured home is required to be: - ANSWER in writing
How much notice to tenant is required to increase utilities in a mobile home park? - ANSWER 90 days
How much advance notice must a landlord of a mobile home park give to the tenant to not renew a lot lease prior to expiration? - ANSWER 180 days
Fee Simple estate - ANSWER highest form of ownership.
Fee simple - defeasible estate - ANSWER is contingent upon the happening or non-happening of something. Phrases that can be included by the grantor in the transfer include 'while', 'provided that', 'so long as' and 'during the period'.
Limitations - ANSWER three types 1) determinable 2) condition subsequent 3) condition precedent
Condition determinable - ANSWER Mr. Harris donates a parcel of land to a a school district 'so long as' it is used for elementary education.
Condition subsequent - ANSWER Mr. Harris would have the right to re-enter and take the property back when it no longer is used for education.
Condition Precedent - ANSWER Transfer of ownership would not occur until a condition is performed. Using the same example above, the transfer wouldn't occur until the school is built and is actually in operation
Life Estate - ANSWER conveys an estate for the duration of someone's life that can be tied to the life of the life tenant or to a third party. Upon death, the life estate will convey to the named remainderman.
Sole Ownership - ANSWER aka severalty and is the simplest form of ownership since it only involves one owner or entity.
As a reminder, it should be noted that other types of business ownership involve single entities. ex:
-Partnerships
-Corporations
-LLC
-REIT
-Land Trusts
-Joint Ventures
LLC - ANSWER a popular type of business ownership. Some highlights surrounding a LLC in Idaho is that the company must reserve a name which the Secretary of State shall reserve for 4 months.
Can consist of one or more persons by signing and delivering to the Secretary of State a Certificate of Organization for filing
Two or More Owners - Tenants in Common - ANSWER the ownership interests will be
When is the annual report by a LLC company to be filed? - ANSWER Before the end of month company was organized
If an LLC is dissolved, an application for reinstatement may be possible if filed within what period of being dissolved? - ANSWER 10 years
Prior to permanently removing a manufactured home off of real property, intent to remove must be given to: - ANSWER County Assessor
Zoning - ANSWER while a comprehensive plan set the framework for future development, zoning is the 'legal' tool a municipality uses to regulate land use. Items such as height and size of buildings, size of lots, setbacks, parking, landscaping and density can be regulated to meet the needs and goals of the community.
Zoning amendment - ANSWER All requests for a zoning change must be forwarded to adjacent property owners and a public hearing held so the property owners and the public can have their say.
Zoning Variance - ANSWER giving the owner permission to deviate from the existing zoning requirement for a parcel of property. Perhaps the owner needs a setback variance to accommodate a specific design for a structure.
Interstate Land Sales Full Disclosure Act - ANSWER As a method to protect consumers from fraud and abuse in the sale or lease of land, Congress enacted the Interstate Land Sales Full disclosure Act patterned after the Securities Law of 1933.
The Act requires land developers to register subdivisions of 100 or more non-exempt lots with HUD and to provide each purchaser with a full disclosure document about the subdivision known as a property report.
Subdivision - ANSWER Idaho statute defines a subdivision to be a parcel of land divided into 5 or more lots for the purpose of sale or building development. However, Idaho
code excludes partitions of agricultural land for agricultural purposes.
Cities and Counties may adopt their own definition of subdivision in lieu for the state definition.
Certification of Plat - ANSWER The owner of the land shall make a certificate with the correct legal description together with a a dedication of all public streets and rights-of-way on the plat.
Building Codes - ANSWER The Idaho building code act has adopted the international building code and the international fire code as the basis for all construction.
"The purpose of building codes is to ensure the health, safety and construction standards are adhered to with uniformity."
Navigable Waters - ANSWER In idaho, the definition of a navigable stream is any stream in its natural state during normal high water flow, will float cut timber having a 6" diameter or greater
Escheat - ANSWER the reversion of a person's property to the state when a person dies without a will (intestate) and has no heirs. All moneys and effects will accrue and be transferred to the public school permanent endowment fund based on the constitution of the state of idaho
however this seldom occurs since the laws are tailored to divest one's property to anyone who was even remotely related to the decedent.
Underground Storage Tanks - ANSWER regulated by the US Environmental Protection Agency and must meet certain requirements.
Exemptions from regulation as underground storage tanks are: - ANSWER -Farm or residential tanks of 1,100 gallons or less storing motor fuel for non-commercial purposes
Contractors doing major surface repairs to homes built prior to 1978 must be - ANSWER certified
Who is responsible to implement the wast management program in Idaho? - ANSWER Department of Environmental Quality
Approximately what percentage of Idaho homes have high levels of radon? - ANSWER 33%
The definition of the ordinary high water mark is defined as: - ANSWER Sufficient periods water covers and depresses the soil to deprive soil of its vegetation.
What period of time must a person holding and possessing a property, hold the property to claim adverse possession? - ANSWER 20 years
Certain documents must be in writing to be enforceable to satisfy - ANSWER statute of frauds
'Grant, bargain, and sell' transfers what type of ownership protection? - ANSWER Implied ownership without warranty
'convey, release, remiss, and forever quit claim' transfers what type of ownership protection? - ANSWER Contains no covenants or warranties
How is recorded instrument identified by priority of recording? - ANSWER day, hour, and minute recorded
Along with state sales tax, what is the transfer tax in ID? - ANSWER none
When does the delivery of a deed take effect? - ANSWER At the time the grantee accepts delivery
Which governmental department regulates the title insurance business? - ANSWER Department of Insurance
A title free of objectionable defects and encumbrances is said to be: - ANSWER marketable
The Uniform Commercial Codes primarily address which type of transactions? - ANSWER Business Opportunities
What type of title insurance policy gives the MOST protection to a borrower? - ANSWER Owners extended policy
When is the dollar amount of the Circuit Breaker reviewed? - ANSWER once a year
At what age may one qualify for the circuit breaker program? - ANSWER 65 or older
Occupancy Tax applies to what? - ANSWER New homes not previously occupied by anyone
Newly constructed homes may receive how many tax statements in the year occupied? - ANSWER 2, one for land one for dwelling value
ntax STATEMENTS are sent no later than - ANSWER 4th monday in November
When is the first installment of property taxes due? - ANSWER no later than December 20
who has the highest priority in which mechanic's liens will be processed - ANSWER laborers
How many classroom hours are required to become a licensed residential appraiser? - ANSWER 100
Where can info be obtained to become a real estate appraiser? - ANSWER Bureau of Occupational Licensing
What type of comparable properties are generally used as the basis of a CMa? - ANSWER Recently sold
Based on ANSI Z765-2003 what is the minimum ceiling height excluding beams? - ANSWER 7 '
Based on ANSI Z765-2003, square footage is not calculated within an area that is less than: - ANSWER 5'
What part of a home is included in calculating square footage? - ANSWER Stairways
The use of the ANSI standard for various governmental agencies for measuring square footage is: - ANSWER Accepted
A broker price opinion can be rendered by: - ANSWER Associate broker and/or designated broker
What appraisal form is acceptable to Fannie and Freddy Mac? - ANSWER Uniform Residential Appraisal Report
At a foreclosure sale of a mortgage the highest bidder receives - ANSWER certificate of sale
A 22 acre parcel secured with a mortgage ended in foreclosure. What is the redemption
period? - ANSWER 1 year
A 14 acre parcel secured with a deed of trust went into foreclosure. How long does the owner have to redeem? - ANSWER None, foreclosure with a deed of trust is final upon sale
After a notice of sale has been recorded how long does the owner have to bring the delinquency current? - ANSWER 115 days
What type of deed does the successful bidder receive upon foreclosure of a deed of trust? - ANSWER Trustees deed
Within how many days is the borrower required to receive 'Your Home Loan Toolkit' booklet? - ANSWER within 3 days of loan application
A real estate agent provided a buyer $5,000 to help with a down payment as a private loan to be forgiven upon closing of a pending transaction. This may be viewed as: - ANSWER a DOUBLE CONTRACT
Once a lender receives a complete loan application, how long does the lender have to provide a Loan Estimate? - ANSWER 3 business days
How many days does the lender have to correct a violation found in a settlement statement? - ANSWER 30 days
Settlement charges between the Loan Estimate and the Closing Disclosure cannot change by more than? - ANSWER 10%
The FHA loan program is: - ANSWER Insured
What residential financing program requires the borrower to be the owner/occupant? -
When does consideration received by a sales associate have to be delivered to the broker or broker's office? - ANSWER Immediately
Trust account checks must be imprinted with the words: - ANSWER Real estate trust account
Unless otherwise stated, wen must earnest money be deposited - ANSWER next banking day
Who may distribute disputed earnest money without written approval of the parties to the transaction? - ANSWER Broker who has custody of the earnest money
In a cooperative sale, which broker is the responsible broker? - ANSWER Broker who has funds entrusted to him
Who is responsible for the accuracy of a closing statement? - ANSWER Responsible broker
What is done with rejected offers? - ANSWER Marked and dated 'rejected'
Sales associates can only accept fees, compensation, or commission from whom? - ANSWER The broker with whom licensed
Who has/have the final say to invoke disciplinary action from a complaint? - ANSWER Commission Members
If a judgment surrounding a real estate related transaction has been brought against a real estate agent, how long does the agent have to notify the IREC? - ANSWER 20 days
Conveyance - ANSWER a conveyance of an estate in real property may be made by an instrument in writing, subscribed by the party disposing of the property
3 types of granting clause - "coveys, grants, and warrants" - ANSWER provides the most protection to the buyer and warrants against encumbrances by prior owners
3 types of granting clause - "Grant, bargain, and sell" - ANSWER Only implies ownership transfers the implied ownership without warranty
3 types of granting clause - "Convey, release, remiss, and forever quit claim" - ANSWER Least protection of all deeds to the grantee. There are no covenants or warranties of any kind. The grantor is merely quitting any claim to the property
Involuntary Transfer - ANSWER 1)Eminent domain 2) Bankruptcy 3)Forfeitures
Forfeiture - ANSWER Violation of the uniform controlled substances act resulting in a person found guilty of, or enter a plea of guilty, shall forfeit any of the person's property used or intended to be used to facilitate the violation. (Michael Vic dog fighting)
Bankruptcy - ANSWER results from debts exceeding assets with little or no ability to recover.
chapter 7 - results in total liquidation or 'wipe out'. All assets and non-exempt properties are turned over to a trustee who converts them into cash to pay the debtor's creditors
chapter 11 - used primarily for business bankruptcies and restructuring. this gives business the opportunity to reorganize themselves. It is far more complex and expensive than chapter 7.
chapter 12 - designed for the family farmer and is less complicated and expensive than chapter 11
chapter 13 -smaller version of chapter 11. the debtor still retains the property and may be allowed one to keep additional property that would otherwise not be exempt. Chapter
