Free Idaho Brokerage Management Prelicense Course Final Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Idaho Brokerage Management Prelicense Course Final Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Who may prepare and render a formal broker price opinion under Idaho Code §54-2038(3)?

   1. A. Only an actively licensed broker or associate broker.
   2. B. Any actively licensed salesperson.
   3. C. Any unlicensed appraiser assistant.
   4. D. Only a title insurance producer.

   Answer: A

   Explanation: Idaho limits formal BPO preparation to an actively licensed broker or associate broker: “Only an actively licensed broker or associate broker may prepare and render a broker price opinion.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2038(3)

2. 2Before an Idaho associate broker renders a broker price opinion, whom must the associate broker notify?

   1. A. The county assessor.
   2. B. The buyer's lender.
   3. C. The Idaho Secretary of State.
   4. D. The designated broker.

   Answer: D

   Explanation: The associate broker must notify the designated broker before rendering the BPO. The statute says an associate broker “shall notify the designated broker.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2038(3)

3. 3For §54-2038's ban on using an improperly licensed person, when is a license or license change considered effective?

   1. A. When the broker adds the person to payroll.
   2. B. When the person passes a school final exam.
   3. C. When made effective by the Commission.
   4. D. When the person mails the application.

   Answer: C

   Explanation: The statute defines properly licensed as “a license or a change in license that has been made effective by the commission.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2038(4)

4. 4What continuing staffing requirement applies to every Idaho real estate brokerage company?

   1. A. It must appoint a county recorder as compliance officer.
   2. B. It must have a legally qualified designated broker at all times.
   3. C. It must employ at least two salespersons.
   4. D. It must retain a full-time attorney.

   Answer: B

   Explanation: Idaho requires: “Each real estate brokerage company must have a legally qualified individual acting as designated broker at all times.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2039(1)

5. 5An Idaho legal business entity holds a brokerage license. On what individual status does the entity license remain effective?

   1. A. Its designated broker's license remaining active and in effect.
   2. B. Any shareholder's salesperson license remaining active.
   3. C. Its bookkeeper maintaining a notary commission.
   4. D. A branch manager holding an inactive license.

   Answer: A

   Explanation: The statute says an entity license “is effective only as long as the individual designated broker’s license is in active status and in effect.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2039(2)

6. 6An Idaho designated broker changes the brokerage telephone number. What is required?

   1. A. A new brokerage entity license.
   2. B. Written consent from every client.
   3. C. A notice recorded with every county.
   4. D. Written notice to the Commission.

   Answer: D

   Explanation: The statute says: “The broker shall also notify the commission in writing of any change in the business telephone number.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2040(1)

7. 7May an Idaho broker display a license certificate bearing the brokerage's former business name?

   1. A. Yes, until the Commission acknowledges the new business-name notice.
   2. B. Yes, but only at the brokerage's licensed main office.
   3. C. No; a certificate with the former name may not be displayed.
   4. D. Yes, if the broker also makes the current license record available online.

   Answer: C

   Explanation: The broker “shall not display or otherwise make available to the public any license certificate bearing a former business name or former location.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2040(1)

8. 8Under what name may an Idaho broker conduct the brokerage business?

   1. A. The designated broker's nickname.
   2. B. Only the name in which the license is issued.
   3. C. Any name registered as a domain.
   4. D. Any team name selected by associates.

   Answer: B

   Explanation: Idaho law says: “A broker shall not conduct business under any name other than the one in which the license is issued.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2040(4)

9. 9A broker lets another person use the broker's license to run a business the broker does not actively manage or control. How does Idaho treat this?

   1. A. As prohibited lending of the broker's license.
   2. B. As a valid branch-office delegation.
   3. C. As permissible if no compensation is paid.
   4. D. As permissible with client disclosure.

   Answer: A

   Explanation: Idaho says: “A broker shall not lend or permit the use of the broker’s license.”

   Reference: Idaho Law Rules (2025) — Idaho Code §54-2040(5)

10. 10The parties direct in writing that earnest money be transferred to a title company, after which the brokerage has no control. Is the money still 'entrusted' to the broker under §54-2041(1)?

    1. A. Yes, until the deed records.
    2. B. Yes, until the buyer occupies.
    3. C. No, but only if the amount is below $300.
    4. D. No, once transferred under those conditions.

    Answer: D

    Explanation: The exclusion applies when parties “have instructed the broker or its licensees, in writing, to transfer such moneys or property to a third party.”

    Reference: Idaho Law Rules (2025) — Idaho Code §54-2041(1)