Idaho Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Idaho Real Estate Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How are commissions charged to parties by real estate brokers in Idaho established?

By state regulations
Through negotiation between the broker and party
Based on market rates
By the brokerage's commission structure policy

The correct answer is: Through negotiation between the broker and party

Commissions charged by real estate brokers in Idaho are established through negotiation between the broker and the party involved in the transaction. This negotiating process means that there isn't a fixed or mandated commission rate set by the state or regulations; rather, it allows for flexibility and customization based on the specific agreement between the parties. Each transaction can have different terms regarding the commission, reflecting the unique circumstances and needs of the client and broker. Market rates may provide a guideline or a competitive benchmark, but they do not determine the commission itself. The brokerage's commission structure policy might influence a broker's typical rates, but ultimately, the agreement reached in negotiation overrides any internal guidelines or broader market averages. Thus, the relationship and discussions between the broker and the client play a crucial role in establishing the final commission terms.