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.

Practice Questions

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:

A.At closing
B.Only if requested by the client
C.At first substantial contact
D.After an offer is accepted

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?

A.Loyalty and confidentiality
B.Obedience and full disclosure
C.Honest dealing and disclosure of material defects
D.Fiduciary duties identical to those owed to the buyer

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?

A.Single agency
B.Subagency
C.Designated agency
D.Transactional 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:

A.Prepare financial statements for the client
B.Keep accurate records and properly handle all funds
C.Audit the seller's property tax records
D.Report all commission income to the IRS

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:

A.An agency agreement is signed by both parties
B.The broker advertises representation services
C.An agent acts as if representing a party who reasonably believes they are represented
D.The principal authorizes the agent in writing

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?

A.The agent must keep all information about the transaction secret from other agents
B.The agent must not disclose the principal's personal or financial information that could weaken their bargaining position
C.The agent cannot share the property listing with the MLS
D.The agent must keep the buyer's identity confidential from the seller

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:

A.Disclose the defect only to the seller
B.Keep the defect confidential to protect the seller
C.Disclose the material defect to all parties
D.Wait for the buyer to order an inspection

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:

A.Two agents from different brokerages work together on a transaction
B.One agent represents both buyer and seller in the same transaction
C.A broker supervises two salespersons
D.An agent holds both a salesperson and broker license

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:

A.Keep this confidential as it is client information
B.Refuse to participate in the transaction and may need to withdraw
C.Disclose this to the seller immediately
D.Report it to the Idaho Real Estate Commission

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?

A.An agent who works under a buyer's broker
B.An agent from a cooperating brokerage who represents the seller through the listing broker
C.A licensed assistant who works under a broker
D.An agent who represents both parties in a transaction

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:

A.Keep all information about the transaction secret
B.Put the client's interests above all others, including the agent's own
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