Key Takeaways
- Idaho is a community property state - property acquired during marriage is generally owned equally by both spouses
- Idaho uses both warranty deeds and quitclaim deeds for property transfers
- Idaho is a title theory state where the lender holds legal title until the loan is paid
- Homestead exemption provides protection for primary residences from creditor claims
- Water rights are particularly important in Idaho due to the prior appropriation doctrine
Idaho Property Law
Idaho has specific property laws that differ from many other states. Understanding these unique aspects is essential for the state exam.
Community Property State
Idaho is one of only nine community property states in the U.S.
Community Property Rules
| Property Type | Ownership |
|---|---|
| Acquired during marriage | Community property (50/50) |
| Acquired before marriage | Separate property |
| Inheritance during marriage | Separate property |
| Gifts during marriage | Separate property |
Implications for Real Estate
| Situation | Requirement |
|---|---|
| Selling community property | Both spouses must sign |
| Listing community property | Both spouses should sign listing |
| Purchasing property | Consider how title will be held |
| Death of spouse | Surviving spouse owns half outright |
Key Point: When listing or selling a married person's property, always verify whether it's community or separate property and get both spouses' signatures when required.
Separate Property
Property remains separate if:
- Owned before marriage
- Received as a gift (to one spouse only)
- Inherited by one spouse
- Kept separate and not commingled
Types of Deeds in Idaho
Warranty Deed
A warranty deed provides the highest level of protection:
| Covenant | Meaning |
|---|---|
| Seisin | Grantor owns the property |
| Right to convey | Grantor has authority to sell |
| Against encumbrances | No undisclosed liens/encumbrances |
| Quiet enjoyment | Buyer won't be disturbed by claims |
| Warranty | Grantor will defend against claims |
| Further assurances | Grantor will take steps to perfect title |
Special Warranty Deed
Provides limited warranties:
- Only warrants against claims arising during grantor's ownership
- Does not warrant against claims from before grantor's ownership
Quitclaim Deed
Provides no warranties whatsoever:
| Feature | Description |
|---|---|
| Transfers | Whatever interest grantor has (if any) |
| No warranties | No promises about title quality |
| Common uses | Family transfers, clearing title defects |
Title Theory State
Idaho is a title theory state for mortgages:
| Feature | Idaho (Title Theory) |
|---|---|
| Legal title | Held by lender during loan |
| Equitable title | Held by borrower |
| Upon payoff | Lender reconveys title to borrower |
| Document used | Deed of trust (not mortgage) |
Deed of Trust
Idaho uses deeds of trust with three parties:
| Party | Role |
|---|---|
| Trustor | Borrower |
| Beneficiary | Lender |
| Trustee | Neutral third party holding title |
Non-Judicial Foreclosure
Idaho allows non-judicial foreclosure through the trustee:
| Feature | Details |
|---|---|
| Court involvement | Not required |
| Timeline | Typically 120-150 days |
| Right of redemption | Limited after sale |
| Process | Trustee conducts sale |
Idaho Homestead Exemption
Idaho provides a homestead exemption protecting primary residences:
| Feature | Amount/Details |
|---|---|
| Exemption amount | Up to $175,000 |
| What's protected | Primary residence |
| From what | Creditor claims (with exceptions) |
| Exceptions | Property taxes, mortgages, mechanics' liens |
Note: The homestead exemption does NOT protect against foreclosure on the mortgage or unpaid property taxes.
Water Rights in Idaho
Water rights are particularly important in Idaho due to the prior appropriation doctrine:
Prior Appropriation ("First in Time, First in Right")
| Principle | Meaning |
|---|---|
| Priority | First to use water has senior rights |
| Beneficial use | Must use water beneficially |
| Use it or lose it | Rights can be forfeited if not used |
| Can be sold | Water rights can be transferred separately |
Types of Water Rights
| Type | Description |
|---|---|
| Surface water | Rivers, streams, lakes |
| Groundwater | Wells, underground sources |
| Riparian (limited) | Idaho modified traditional riparian doctrine |
Exam Tip: When selling Idaho property, always investigate water rights. They can significantly affect property value, especially for agricultural land.
Recording and Priority
Idaho follows a race-notice recording system:
| Principle | Meaning |
|---|---|
| Recording | Protects against subsequent purchasers |
| Notice | Must record to give constructive notice |
| Priority | First to record (without notice of prior claims) wins |
Idaho is what type of property state?
When selling community property in Idaho, who must sign the documents?
What is the Idaho homestead exemption amount?
What doctrine governs water rights in Idaho?
Idaho is what type of state for mortgage security instruments?