Idaho Real Estate Practice Exam

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Prepare for the Idaho Real Estate Exam with study aids like multiple choice questions and flashcards, each with detailed hints and explanations. Get exam-ready!

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What must a firm do when the designated broker of ABC Realty Inc. quits the business?

Notify all clients immediately
Find a replacement broker within 5 days
Find a new office location
Find a new broker within 10 business days

The correct answer is: Find a new broker within 10 business days

When the designated broker of a real estate firm, such as ABC Realty Inc., quits the business, the firm is required to find a new broker within 10 business days. This requirement is in place to ensure that the firm remains compliant with regulatory standards and continues to operate legally within the real estate industry. The designated broker holds a crucial role, overseeing the firm’s real estate transactions and ensuring adherence to laws and ethical guidelines. By enforcing a timeline of 10 business days for finding a replacement, the regulations provide a structured approach for the firm to maintain continuity of operations and protect client interests during the transition. This period allows the firm to engage in the selection process carefully, ensuring that the new broker meets all licensing and competency requirements necessary to manage the firm effectively.