Idaho Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Idaho real estate exam, and it's also one of the most misunderstood. The Idaho Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Idaho law. As a community property state, Idaho also tests how agency relationships are affected when spouses are both parties to a transaction. Study these questions carefully — candidates who rely on national agency frameworks and don't account for ID-specific rules are among the most common failures on the state portion.
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Idaho Agency — Practice Questions & Answers
127 questions on Agency from the Idaho real estate question bank. First 10 are free — sign up to unlock all 127.
Q1. Idaho requires a written agency disclosure to be provided to all parties to a real estate transaction:
Explanation
Idaho law requires licensees to provide an agency disclosure at the first substantial contact with a consumer. This ensures buyers and sellers understand the agent's role and representation in the transaction.
Q2. A buyer's agent in Idaho owes which of the following duties to the seller?
Explanation
Even though a buyer's agent represents the buyer, they still owe the seller honest dealing and disclosure of material facts. They do NOT owe the seller loyalty, confidentiality, or full fiduciary duties — those are owed exclusively to the buyer.
Q3. In Idaho, which agency relationship is created when both the buyer and seller are represented by agents from the same brokerage?
Explanation
Designated agency occurs when the same brokerage represents both buyer and seller, but designates different individual agents to represent each party. This reduces conflicts of interest compared to dual agency where one agent represents both.
Q4. The fiduciary duty of 'accounting' requires an agent to:
Explanation
The fiduciary duty of accounting requires the agent to keep accurate records of all funds and property received during the transaction and to properly handle and account for all client monies.
Q5. Implied agency can be created when:
Explanation
Implied agency arises from the conduct of the parties rather than a formal agreement. If an agent acts as if representing a consumer, and that consumer reasonably believes they are being represented, an implied agency relationship may exist.
Q6. Which of the following BEST describes the duty of confidentiality in an agency relationship?
Explanation
The duty of confidentiality requires the agent not to disclose information that could harm the client's negotiating position, such as the client's motivation to sell quickly, financial limitations, or maximum price they would accept.
Q7. In Idaho, a seller's agent who discovers a hidden structural defect while showing the property is required to:
Explanation
In Idaho, even a seller's agent has a duty to disclose known material defects to all parties in the transaction. The duty to disclose material facts overrides the duty of confidentiality to the seller.
Q8. Dual agency occurs when:
Explanation
Dual agency exists when a single agent represents both the buyer and seller in the same transaction. This creates a conflict of interest and requires informed written consent from both parties in Idaho.
Q9. A buyer's agent discovers that their client is planning to use the property to operate an illegal business. The agent should:
Explanation
An agent cannot assist a client in illegal activity. If the agent discovers a client intends illegal use, the agent should refuse to continue and may need to withdraw from the representation.
Q10. Which of the following BEST describes a subagent?
Explanation
A subagent is an agent from a cooperating brokerage who assists in selling a property while representing the seller through the listing broker's agency relationship. Subagency has largely been replaced by buyer agency in modern practice.
Q11. The fiduciary duty of loyalty requires an agent to:
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