Idaho Real Estate Practice Exam

What must a licensee disclose when applying for a real estate license?

1. Any felony conviction

2. Previous partnership agreements

3. All past real estate transactions

4. Income tax returns for the last two years

The correct answer is: Any felony conviction

When applying for a real estate license, it is essential for a licensee to disclose any felony conviction. This requirement is in place to ensure that the applicant meets the moral and ethical standards expected in the real estate profession. The real estate industry holds individuals to high standards of integrity and trustworthiness, and having a felony conviction can significantly impact an individual's ability to serve in such a capacity. Notably, the reason other options do not align with the disclosure requirements is that previous partnership agreements and all past real estate transactions are typically not mandated disclosures during the licensing process. Similarly, while income tax returns may be relevant for certain professional evaluations, they are generally not required in the context of obtaining a real estate license. The focus on felony convictions serves to protect the public and maintain a level of professionalism within the real estate industry.