Idaho Real Estate Practice Exam

What authority does the IREC have regarding a salesperson's license?

1. They may issue temporary licenses during investigations

2. They can revoke the license for depositing earnest money incorrectly

3. They can grant additional training periods for new licensees

4. They must automatically reinstate any suspended license

The correct answer is: They can revoke the license for depositing earnest money incorrectly

The authority of the Idaho Real Estate Commission (IREC) includes the ability to protect the public by ensuring that real estate licensees adhere to the laws and regulations governing real estate practices. One significant aspect of this authority is the ability to revoke a salesperson's license for misconduct, which includes improper handling of earnest money. When a salesperson deposits earnest money incorrectly—such as failing to follow the proper procedures established by state law and IREC regulations—which can lead to financial harm to consumers and disrupt the integrity of real estate transactions, the IREC has the authority to revoke the license. This action reflects the commission's commitment to maintaining professional standards and accountability within the real estate industry. The other options do not accurately reflect the scope of IREC's authority. While temporary licenses may be issued under certain circumstances, it is typically not during investigations. Granting additional training periods for new licensees does not fall under the primary functions of the IREC as it focuses more on regulation than education. Lastly, the automatic reinstatement of a suspended license is not a standard practice; reinstatement usually requires satisfying specific conditions that the commission establishes.