License Law

Question 0

License exemptions

Answer 0

Owner, employee of owner, attorney on behalf of client, receiver/trustee, estate executor do not need to be licensed

Question 1

License required

Answer 1

Even a single act of broker constitutes engaging in business

Question 2

Licensees bound by real estate law

Answer 2

Even if otherwise would be exempted and even if personal property sale would otherwise be exempt.

Question 3

Idaho real estate commission

Answer 3

4 members with 4 year term appointed by governor from one of each regional districts. Must have been actively licensed brokers. Charged with making and enforcing reasonable rules.

Question 4

Real estate education council

Answer 4

6 members - 4 appointed by commission us commissioner and executive director. Recommend education policy, certification guidelines and suggested content

Question 5

Types of license

Answer 5

Real estate salesperson
Associate broker
Designated broker for sole practitioner or business

Question 6

Requirements for license

Answer 6

18, high school grad, no disciplinary or legal probs, no serious misdemeanor or felonies, per license ed, pass national and state test, provide proof of e&o, have designated broker unless licensed as broker.

Question 7

Errors & Omissions

Answer 7

Must have independent or state program e&o insurance

Question 8

License Exams

Answer 8

National exam may be waived for appropriate experience.

Question 9

Actively licensed out of state broker

Answer 9

May have national portion waived, pre-license ed waived, must submit proof of license in good standing

Question 10

Business licensing

Answer 10

Business is registered with and licensed by commission. Broker has to complete business conduct and office operations course. Designated broker must be officer, general partner, member/manager. Biz license runs with designated broker license. E&o for broker and biz. No multiple biz names.

Question 11

License renewals

Answer 11

License period 2 years with birth month renewal. 1st term will run one year plus up to birth month.

Renewal must include continuing ed completion and e&o.

Failure to renew for 12 months is terminated and may not be renewed

Question 12

Notice to commission for personal info change

Answer 12

10 days to provide notice to the commission of name address or phone change

Question 13

Denial of license

Answer 13

Applicant not qualified
Any fraud or misrepresentation on application
Any cause for action in Idaho in the previous 5 years
Funds not honored by bank
Facts about applicant which are of concern

Question 14

License Fees

Answer 14

Commission establishes license fees

Question 15

Pre-license education

Answer 15

90 hours salesperson
Assoc broker or broker 4 advanced courses for 90 hours
Within 3 years of license application

Question 16

Continuing ed for renewal

Answer 16

Commission core class plus 16 hours

No duplicate or repeat credit given

Licensee keeps proof

Question 17

Certified course providers

Answer 17

Purpose to insure high quality education. Certified by commission or be degree granting institute. Certified for 2 years. Must have certified instructors. Content of courses certified individually.

Question 18

Designated broker responsibilities

Answer 18

Responsible for all actions of its licensees and associated unlicensed persons.

Supervise all activities. Review and approve all contracts. Must be available during regular biz hours - cannot have outside full time employment. If not able to supervise can be limited broker with no supervisory responsibility

Question 19

Broker price opinions

Answer 19

Broker price opinions must run through and notify designated broker.

Question 20

Broker and manager absence

Answer 20

Absence of more than 21 days requires a qualified designated broker or manager to be appointed. Commission must be notified in writing with name of appointee. Absence of more than 60 days is prohibited. New broker shall be appointed or biz shall be made inactive with all associated licenses and termination of all listings and buyer broker agreements

Question 21

Office

Answer 21

Definite location required.Broker can’t be broker for more than one biz. Brokers can share space as long as separate licenses are clearly identified and records maintained separately.No more than one biz name. No allowing use of broker licenses for activity not under full broker control

Question 22

Trust account

Answer 22

Not entrusted when transferred to escrow or third party with no broker control. Deposits made into neutral qualified account. Only money in account relating to regulated real estate transaction except for up to $300 as a minimum amount required to maintain account. Fully responsible until accounting made to all parties for funds

Question 23

Creation of trust account

Answer 23

Approved institution, identified as real estate trust account, under biz name of broker, under control of broker, commission inspection authorization, not more than $300 in account maintenance funds

Question 24

Interest bearing trust fund

Answer 24

Single transaction account.Written agreement between buyer and seller who is to receive interest

Question 25

Trust account recording keeping

Answer 25

Maintenance fund ledger with all open accounts.Ledger for each transaction including deposits to escrow. Receipt for any transfer of funds including payee and date if transfer

Question 26

Individual trust fund ledger and checking account records

Answer 26

Sequential numbering. Names of both transaction parties. Property location Date of each deposit or payment. Payee or payor. Amount check number and nature of deposit or dispersement. Final disposition of funds

Question 27

Trust account deposits

Answer 27

Receipt of deposits into trust account showing time of deposit, requires deposit by the next banking day unless the parties direct otherwise. Uncashed checks have to have written instructions about depositing with transaction docs. If never deposited, still needs ledger with receipts. Money received by salesperson must be immediately delivered to broker

Question 28

Trust account dispersements

Answer 28

Written authorization required. No dispersements in advance of closing or the condition authorizing dispersement. Receipt if money dispersed to escrow. No dispersement for commission without authorization. Forfeited earnest money provision must be in purchase agreement

Question 29

Disputed earnest money

Answer 29

Notify each party in writing of demand of other party Keep all parties informed of actions including retention of funds by broker until dispute resolved Broker may disperse based on Psa but may incur civil liability Broker may hold funds until court resolves

Question 30

Responsible broker duties and record keeping

Answer 30

Responsible broker is liable for record keeping, transaction, funds and closing. Broker who holds or transfers funds is responsible broker. If broker is sole broker in transaction, automatically responsible broker

Question 31

Responsible broker duties

Answer 31

Ensure correctness and delivery of detailed closing statements including proof of delivery Maintain file with signed closing statements, broker representation for represented parties, all offers accepted, countered or rejected marked and dated.

Question 32

Record retention schedules

Answer 32

3 calendar years from closing or cancellation: Originals of all accepted, rejected or countered offers Listing or buyer brokerage or dual representation forms Transaction file records Trust account ledgers and reconciliations

Question 33

Seller Brokerage representation agreements

Answer 33

Conspicuous and definite beginning and end dates Sufficient identification of the property being sold Price and terms Fees or commissions Signed and dated by owner or owners representative

Question 34

Buyer brokerage agreement requirements

Answer 34

Conspicuous and definite beginning and end dates All financial obligations of buyer including fees and commissions Manner in which fees are paid Signature and date

Question 35

Prohibited from brokerage agreements

Answer 35

No automatic renewal No requirement for notification of non renewal unless completely non-exclusive

Question 36

Brokerage agreement delivery

Answer 36

Copies delivered at signing Electronic copies if agreed to in writing are acceptable

Question 37

Offers to purchase - delivery

Answer 37

Deliver to seller written offer as promptly as practical. Give copy of offer to buyer as receipt Upon execution provide copies to both buyer and seller

Question 38

Offers to purchase - required elements

Answer 38

All terms and conditions of the transaction Form and amount of earnest money Name of responsible broker Representation confirmation and dual consent if applicable Forfeit earnest money provision A legal description of the property All appropriate signatures and initials on changes

Question 39

Electronically generated agreements

Answer 39

Parties must agree in writing to electronic transmission of documents and signatures

Question 40

Advertising

Answer 40

Only actively licensed brokers can be named in any type of Idaho advertising All advertising has to include biz name No misleading advertising - defined as possible to deceive person who is target

Question 41

Commissions and fees - prohibited conduct

Answer 41

Only actively licensed broker can bring court action re: commissions No splitting fees with unlicensed person - license does not have to be Idaho No finders fees to unlicensed parties No interference with another broker's relationship No double contracts - secret contract concealing terms from lender or otherwise committing fraud No undisclosed kickbacks or rebates, or fees paid by multiple parties No after the fact referrals or reduction of fees because of broker participation All fees must be paid through broker

Question 42

Licensees own property

Answer 42

Transactions must be conducted through broker No later than presentation of purchase agreement, broker to disclose licensed status

Question 43

Changing broker affiliation - notices

Answer 43

No later than 3 business days after termination broker or salesperson provide written notice New association requires written application to commission Termination for cause requires notice to Commission within 10 business days of circumstances of termination

Question 44

Affiliation changes - records and contracts

Answer 44

Upon termination of relationship a salesperson shall turn over all contacts and info to broker. May not entice business to leave. Upon termination of broker designation, broker to notify commission of location of all records and trust accounts. Have to maintain records for 3 years. Broker that leaves company has to main files unless requested to turn over to new designated broker for company

Question 45

Death of incapacity of designated broker

Answer 45

Entity must replace designated broker with duly licensed substitute or cease to be licensed. The commission may allow a personal rep to take over a sole proprietorship and wrap up transactions, accounting and commissions.

Question 46

Authority to investigate and discipline

Answer 46

Commission has general authority to investigate actions or licensed or unlicensed real estate activity in the state. Commission is authorized to audit transaction records and trust accounts. Out of state brokers must provide documents to state as requested.

Question 47

Disciplinary actions

Answer 47

Commission may suspend, revoke, issue formal reprimand and impose a civil penalty not to exceed $5000 (plus can assess costs and attorney fees) Executive director may issue informal letter of reprimand without civil penalty or cost assessment Commission may pursue collection of fees via court

Question 48

Grounds for disciplinary action

Answer 48

``` Fraudulent misrepresentation Misrepresentation or making false promises Failing to account for entrusted funds Failing to keep adequate records Acting under an assumed name Fraud in securing license Proposing or use of double contract Seeking or receiving kickback Violation of license law Dishonest or dishonorable dealings Gross negligence or reckless actions ```

Question 49

Disciple - Court actions

Answer 49

Agent subject to discipline if convicted of felony or misdemeanor involving fraud, misrepresentation, or otherwise indicating lack of trustworthiness Been declared legally incompetent Within 20 days of court order, judgment or conviction, licensee shall submit legal info on actions to commission

Question 50

Discipline - admin actions to report to commission

Answer 50

Licensee to report disbarment or other license action for fraud, misrepresentation, or other administrative action within 20 days of such action, submitting legal document to commission

Question 51

Discipline - general info

Answer 51

All actions and rights of review and appeal governed by Idaho code. Commission may refer to county prosecuting attorneys

Question 52

Penalty for unlicensed activity

Answer 52

Misdemeanor Fine up to $5000 ($10k if a company not individual) on conviction Imprisonment up to 1 year Additional civil penalty of $5k for person or $10k for company

Question 53

Discipline - remedies

Answer 53

Injunction against actions | Cease and desist

Question 54

Discipline - witnesses, subpoenas

Answer 54

Commission can administer lathes, subpeona, take testimony | Witnesses paid mileage and civil court fees

Question 55

Real estate recovery fund

Answer 55

$20k recovery fund for satisfying claims against licensees. Amounts over $20k moved to general fund for approval by legislature for commission business $20 deposit for each license app and renewal into fund

Question 56

Recovery from fund

Answer 56

Court judgment against licensee for fraud misrepresentation or deceit against a licensee in any one year is payable in a max amt of10k. Only no personal assets available to satisfy judgment. State may defend against judgment. Court enters order requiring payment. Licensees automatically suspended. Interest paid if payments out of fund deferred.

Question 57

Termination of sales associate for cause

Answer 57

Written statement of facts to commission if termination for violation of disciplinary provisions

Question 58

Records open to public

Answer 58

Records kept in office of the commissioner open to public inspection

Question 59

The Idaho real estate brokerage representation act

Answer 59

``` Agency relationships Agency disclosure Agency duties to customer and clients Limited dual agency Compensation Office policy Duration Duties after termination ```

Question 60

Creation of agency relationships

Answer 60

Not represented unless agency relationship is in writing as a separate agreement.Brokerage relationships - nonagency, agency, limited dual agency, limited dual agency with assigned agents

Question 61

Disclosure brochure and representation

Answer 61

Provide agency brochure at first substantial contact.Disclosure brochure lists types of agency and prominent notice that without written agreement no agency exists.Agency agreement must be executed no later than preparation or presentation of Psa . Statutory representation language

Question 62

Confirmation of Agency Relationship

Answer 62

PSA, addendum or other document drafted in connection with regulated real estate transaction have to have statutory Confirmation of Representation.

Question 63

Duties to Customer (non-represented)

Answer 63

To assist with transaction. To perform acts with honesty, good faith, reasonable skill and care. Properly account for money. Disclose all adverse material facts actually known or which should reasonably be know by agent.

Question 64

Customer compensation agreements

Answer 64

If customer has compensation agreement with broker, have to be present for timely receipt and presentation of offers. May charge fee for each separate service provided customer

Question 65

Customer duties NOT owed

Answer 65

No duties owed can be waived. No duty owed to independently investigate any representation made by parties in the transaction reasonably believed by broker to be accurate.