Illinois Real Estate Exam Prep

IL Salesperson Practice Exam

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Illinois License Requirements

To be eligible for the Illinois Real Estate Salesperson Examination, candidates must meet all of the requirements in one of the following categories:

Category A – 45-Class-Hour Qualification
To qualify for an Illinois Real Estate Salesperson’s license under Category A, applicants must:
1. Be at least 21 years old;
2. Have graduated from high school or obtained the equivalent of a high school degree;
3. Have successfully completed the 45-class-hour Real Estate Transactions course at a real estate school approved by the Office of Banks and Real Estate.

Category C – Attorney Qualification
To qualify for an Illinois Real Estate Salesperson’s license under Category C, applicants must:
1. Be at least 21 years old; and
2. Be admitted to practice law by the Illinois Supreme Court.

Category D – Reciprocity Qualification
To qualify for an Illinois Real Estate Salesperson license under Category D, applicants must:
1. Be at least 21 years old;
2. Be a resident of the reciprocal state at the time of application for examination as well as licensure.

Category E – 18-21 Year Old Qualification
To qualify for an Illinois Real Estate Salesperson’s license under Category E, applicants must:
1. Be at least 18-21 years old; and
2. Have successfully completed at least two years of college as a full-time student, including the 45-class-hour Real Estate Transactions course at a school approved by the Office of Banks and Real Estate.

For more information on state requirements click here.

Illinois Sample Practice Real Estate Exam Questions and Answers

Illinois State Section

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Question 1

A brokers license fee is

A	$100
B	$125
C	$150
D	$175

Question 1 Explanation:

The application fee for an initial broker license is $125. The renewal fee for an unexpired broker license is $75 per year. The late fee for a broker license expired for no more than 2 years is $50. The restoration fee for a broker license expired for more than 2 years but less than 5 years is the sum of all lapsed renewal and late fees.

Question 2

The license law is administered by

A	Illinois Department of Financial and Professional Regulation, Division of Real Estate
B	Illinois Commission of Real Estate
C	Illinois Department of Real Estate
D	Commission for Real Estate in Illinois

Question 2 Explanation:

The mission of the Illinois Department of Financial and Professional Regulation, Division of Real Estate, is to protect the public by ensuring professionals, involved in the business of buying and selling real property, comply with licensure qualifications and state laws governing the practice of real estate.

Question 3

How often is Continuing Education due for Illinois Broker and Managing Broker licensees due?

A	Every Year
B	Every 2 years
C	Every 3
D	Every 4 years

Question 4

How many hours of continuing education are required, every two years, for Illinois Brokers after the first renewal?

A	6
B	10
C	12
D	18

Question 4 Explanation:

All Brokers must complete 12 hours of CE unless it is a first renewal of the license. 30 hours of Post License Education is required for Brokers renewing for the first time. Brokers first licensed after April 30, 2011 shall be required to complete two 15-hour Post-Licensing courses and pass an exam prior to their first renewal of that license.

Question 5

Are all of these elements necessary for a contract to be binding: an offer, an acceptance, an intention to create a legal relationship and a consideration (usually money)?

A	Yes
B	No

Question 5 Explanation:

A contract is much more than an agreement between two people. There must be an offer and acceptance, intention to create a legally binding agreement, a price paid (not necessarily money), a legal capacity to enter a contract of your own free will, and proper understanding and consent of what is involved. Any duress, false statements, undue influence or unconscionable dealings could make a contract illegal and void.

Question 6

Which of the following isn't part of a deed?

A	Premises
B	Habendum
C	Recitals
D	novation

Question 6 Explanation:

The formal parts of a deed for the conveyance of land are: 1. The Premises, which contains all that precedes the habendum: namely, the date, the names and descriptions of the parties; 2. the recitals, 3. the consideration, 4. the receipt of the same; 5. the grant, the full description of the thing granted, and the 6. exceptions, if any. Novation is a legal term meaning the substitution of a new contract in place of an old one.

Question 7

What term means "going to the state?"

A	Taxation
B	Eminent Domain
C	police power
D	escheat

Question 7 Explanation:

Escheat is the transfer of title of property or an estate, to the state, when an individual dies without a will and legal heirs. Escheat ensures that property always has a recognized owner, which would be the state or government if no other claimants to ownership exist. Escheat is a common law doctrine.

Question 8

Which of the following is a landlord's option for a tenant not paying rent?

A	shutoff the gas
B	shut off the power
C	lock the tenant out of the apartment
D	deliver a written eviction notice

Question 8 Explanation:

A landlord must give a tenant a written eviction notice before starting an eviction case against them. There are different types of eviction notices that a landlord must give a tenant, depending on each case. They include the 5 day notice, 7 day notice, 10 day notice, 30 day notice, 60 day notice, and 90 day notice. If the building is put into foreclosure, the new landlord may have to give the tenant a 90 day notice. This depends on the circumstances.

Question 9

Who is responsible for maintaining a habitable property and for complying with local housing and building codes when a property is used as a rental?

A	Lessor
B	Seller
C	Buyer
D	Lessee

Question 10

Standing trees would be considered

A	Real property
B	Emblements
C	Chattels
D	Personal Property

Question 11

Does Illinois allow holographic wills?

A	yes
B	No, with limited exceptions

Question 11 Explanation:

A Will created in this fashion will not be recognized in Illinois, unless it meets the witness requirements of Illinois law, or was made in another state that does not require witness signatures.

Question 12

What is a holographic will?

A	a will and testament that has been entirely handwritten and signed by the testator.
B	a will that displays in 3D
C	a will that has been approved by each family member.
D	a standard boiler plate will.

Question 13

Which of the following would not put a sales person in jeopardy of losing their license in Illinois?

A	Being authorized to accept and an excessive commission
B	Convicted of a felony
C	Placing an ad claiming to be a broker when they are not.
D	Depositing his/her clients escrow money into a personal account

Question 14

Which of the following is required for an applicant to receive a Real Estate License?

A	Must be 25 or older
B	Must have a Bachelors degree
C	Must sit and pass the required exam
D	Must have lived in the state for more than a year

Question 14 Explanation:

To qualify for an Illinois real estate broker license, you must be at least 21 years old, have a high school graduate diploma or equivalent (G.E.D.), and successfully complete the required coursework and pass the state licensing exam.

Question 15

What is homestead protection?

A	The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
B	The estimated value that an asset will have at then end of it's useful life
C	Net cash remaining to investor after sale of investment property
D	Gradual subsidence of waters, leaving dry land

Question 15 Explanation:

Homestead protection laws are designed to prevent homeowners from becoming homeless as a result of economic hardship. Under certain conditions, these laws allow individuals to register a parcel of real property as a "homestead," and thus off limits to certain creditors. Illinois homestead laws allow people to claim as much as $15,000 worth of property (or $30,000, if jointly owned) as a homestead.

Question 16

How soon can a broker receive a commission check after a closing in state?

A	Once the offer sheet is signed.
B	Once the seller agrees to the price.
C	When the Buyer moves in.
D	After the transaction is completed and funded.

Question 17

In what circumstances, if any, can a broker in Illinois who is serving as a dual agent collect compensation from both the buyer and the seller?

A	None; the broker may only collect compensation from one party to a transaction
B	Only when both buyer and seller give informed consent to this arrangement
C	Only when both buyer and seller have legal representation
D	In most circumstances, except when the buyer and seller are related

Question 17 Explanation:

In Illinois, sponsored licensees must provide their clients with written disclosure as to whom the client’s designated agent is. Often this disclosure is accomplished in the brokerage agreement, but if not, then a separate written disclosure is required. Each designated agent serves as the “legal agent” for his own client, even within the same sponsoring brokerage company. In Illinois, dual agency only occurs when the same designated or legal agent is acting for both parties in the transaction. There is a very specific procedure required before a licensee can act as a disclosed dual agent in Illinois. To represent both buyer and seller, the licensee must give both clients a written disclosure form outlining what the dual agent can and cannot do for them.

Question 18

Mortgage "discount" points only apply if which of the following conditions are met?

A	The seller has agreed to pay 1% of the closing costs
B	The interest rate on the mortgage loan has been lowered by 1% for each point charged
C	The interest rate on the mortgage loan has been lowered by 2% for each point charged
D	The loan does not close and the buyer owes the lender for services rendered

Question 19

Does Illinois have dower laws?

A	Yes
B	No

Question 19 Explanation:

If both spouses are in title, their marital status must be stated and both spouses must execute the deed/mortgage as grantors/mortgagors. Waiver of their homestead rights should be explicitly stated in the instrument. If only one spouse is in title and the land is not homestead property, the titleholder’s marital status must be stated. However, only the title holding spouse need execute the deed or mortgage. The deed should contain language, such as “THIS IS NOT HOMESTEAD PROPERTY AS TO THE GRANTOR NAMED HEREIN.”

Question 20

Is Illinois a community property state?

A	Yes
B	No

Question 20 Explanation:

Illinois is an equitable distribution state, which means marital property is divided in “just proportions,” not necessarily 50/50.

Question 21

Does Illinois offer Homestead protection?

A	Yes
B	No

Question 21 Explanation:

Question 22

Which of the following form(s) of title to real property are allowed in Illinois?

A	Joint Tenancy
B	Tenancy by the Entirery
C	tenancy in common
D	trusts
E	all of the above

Question 23

Does Illinois allow reciprocity?

A	Yes
B	No

Question 23 Explanation:

Currently Illinois has reciprocity with the following states under the Real Estate License Act of 2000: Connecticut, Florida, Georgia, Indiana, Iowa, Nebraska, and Wisconsin.

Question 24

Which of the following states does not participate in reciprocity with Illinois?

A	Colorado
B	Connecticut
C	Georgia
D	New York

Question 25

In Illinois you are required to have at least a high school diploma or GED?

A	True
B	False

Question 25 Explanation:

Question 26

An Illinois real estate broker, representing a member of the public in a real estate transaction, must comply with:

A	Federal Common Law Of Compensation
B	Concept Of Market Value As Codified In Illinois Law
C	Concept Of Caveat Emptor As Codified In Illinois Law
D	Illinois Statute Called The Real Estate License Act Of 2000

Question 26 Explanation:

The practice of real estate in Illinois is governed by the REAL Estate License Act of 2000 (also known as "The Act") and the rules established by the Illinois Department of Financial and Professional Regulation (IDFPR). The Act was amended in 2010.

Question 27

Which is TRUE under the Illinois agency law?

A	The law codifies the common-law concept of caveat emptor by eliminating any assumption of a buyer’s right to representation or disclosure.
B	Sponsoring brokers may designate which agent represents which party
C	Sellers are not legally obligated to make any disclosures regarding the known physical condition of the property.
D	Dual agency is illegal

Question 27 Explanation:

Designated Agency: An arrangement where one or more agents from a real estate brokerage company are appointed as the legal/designated agent. The client will be presumed to be represented by the real estate agent the client is working with unless there is a written agreement otherwise. Other associates in the brokerage firm may be designated agents for other buyers or sellers and may be the legal agent of the opposite party in a transaction Even though the brokerage agreement will be with the real estate brokerage company, the client will have a designated agent(s) to act on his/her behalf.

Question 28

Which statement is TRUE regarding designated agency in Illinois?

A	Designated agency is always illegal
B	Designated agency is the same as creating an implied agency
C	License law requires that the seller and the buyer be represented by different companies
D	License law requires the licensee to disclose that a designated agency relationship exist

Question 28 Explanation:

Sec. 15-10. Relationships between licensees and consumers. Licensees shall be considered to be representing the consumer they are working with as a designated agent for the consumer unless: (1) there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship; or (2) the licensee is performing only ministerial acts on behalf of the consumer. Sec. 15-35. Agency relationship disclosure. (a) A licensee shall advise a consumer in writing of the following no later than beginning to work as a designated agent on behalf of the consumer: (1) That a designated agency relationship exists, unless there is written agreement between the sponsoring broker and the consumer providing for a different brokerage relationship. (2) The name or names of his or her designated agent or agents. The written disclosure can be included in a brokerage agreement or be a separate document, a copy of which is retained by the sponsoring broker for the licensee.

Question 29

In Illinois can an agent legally act as a dual agent in any transaction to which the agent is the party?

A	Yes
B	No

Question 29 Explanation:

Illinois Administrative Rules Section 1450.820: Dual Agency Prohibition: A licensee shall not serve as a dual agent in any transaction when the licensee, or an entity in which the licensee has or will have any ownership interest, is a party to the transaction.

Question 30

In Illinois, which form is required for sellers to fill out on one to four unit residential properties when revealing any material defects?

A	The Illinois Association of REALTORS Residential Real Property Disclosure Report
B	The Illinois Association of REALTORS Disclosure and Consent To Dual Agency
C	The Illinois Association of REALTORS Disclosure Of Buyer's Designated Agent
D	All Of The Above

Question 31

In Illinois, following the signing of a sales contract or lease, any funds entrusted to a licensee must be deposited into a special escrow account by when?

A	Same Day
B	Next Business Day
C	Within 7 Days Of Receiving The Funds
D	Within 2 Weeks Of Receiving The Funds

Question 31 Explanation:

All escrow funds received by the Sponsoring/Managing Broker shall be deposited into the broker's escrow account not later than the next business day following the transaction. A transaction exists once an agreement has been reached and an accepted real estate contract signed or lease agreed to by the parties. If the funds are received on a day prior to a bank holiday or day on which the bank is closed, the funds must be deposited no later than the next business day upon which the bank is open.

Question 32

Illinois licensees are required by law to deliver official copies of all executed sales contracts to the people who signed them within 24 hours.

A	True
B	False

Question 32 Explanation:

Illinois Administrative Code A Section 1450.775: Written Agreements:…(c) a true copy of the original or corrected contract or other document relating to a real estate transaction shall be delivered or mailed within 24 hours after the time of signing or initialing the original or correction to the person signing or initialing the contract or other document.

Question 33

In Illinois, which act prohibits the use, within a trade or profession, of any deception, fraud, false promise, misrepresentation or concealment, suppression, or omission of any material fact with the intent that others rely on it?

A	Fraud Enforcement and Recovery Act of 2009
B	Megan's Law
C	Illinois Consumer Fraud and Deceptive Practices Act
D	Consumer Protection Act

Question 33 Explanation:

If a licensee is found guilty and in violation of this act they may be required to pay the plaintiffs attorney fees, and court costs in addition to damages

Question 34

In Illinois, which act requires that all exclusive brokerage agreements be in writing?

A	Real Estate Common Law Act
B	Real Estate Disclosure Act
C	Illinois Uniform Deceptive Trade Practices Act
D	The Real Estate License Act of 2000

Question 34 Explanation:

(815 Illinois Compiled Statutes 505/2) (Ch. 121 1/2, par. 262) Sec. 2. Unfair methods of competition and unfair or deceptive acts or practices, including but not limited to the use or employment of any deception fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission of such material fact, or the use or employment of any practice described in Section 2 of the "Uniform Deceptive Trade Practices Act", approved August 5, 1965, in the conduct of any trade or commerce are hereby declared unlawful whether any person has in fact been misled, deceived or damaged thereby.

Question 35

In Illinois, is a definite termination date required in a brokerage agreement?

A	Yes
B	No

Question 35 Explanation:

Written buyer brokerage agreements, whether exclusive or non-exclusive, shall contain the following: 1) agreed basis or amount of compensation and time of payment; 2) name of the sponsoring broker and the buyer; 3) signatures of the sponsoring broker and the buyer or an authorized signatory on behalf of the buyer; 4) duties of the buyer's broker; and 5) one of the following, clearly set forth: A) the duration of the buyer brokerage agreement; or B) the client's right to terminate the agreement annually by giving no more than 30 days prior written notice.

Question 36

In Illinois, is a written power of attorney required to create a universal agency?

A	False
B	True

Question 36 Explanation:

The universal agent’s authority to act on behalf of the principal is virtually unlimited.

Question 37

Is "Designated Agency" recognized in Illinois?

A	No
B	Yes

Question 37 Explanation:

A sponsoring broker entering into a brokerage agreement may specifically designate those licensees employed by or affiliated with the sponsoring broker to act as legal agents of that client to the exclusion of all other licensees employed by or affiliated with the sponsoring broker.

Question 38

In Illinois is it common for the listing sponsoring to share the listing commission with the buyer's sponsoring broker?

A	Yes
B	No

Question 38 Explanation:

The buyer’s agent may receive a fee from the buyer or share in the seller-paid commission to the listing sponsoring broker or both, depending on the terms of the agency agreement.

Question 39

An Illinois real estate licensee who is engaged as an independent contractor

A	is considered an employee by the IRS for tax purposes.
B	must have a written contract with the sponsoring broker
C	must be covered by workers’ compensation.
D	may work as an independent contractor for two or more sponsoring brokers.

Question 39 Explanation:

Section 1450.735 Employment Agreements: a) Every sponsoring broker shall have a written employment agreement with every sponsored licensee. Sole proprietors shall not be required to have an employment agreement with themselves, but shall have a written employment agreement with every sponsored licensee.

Question 40

In Illinois, how can it be confirmed that the listing broker has earned commission?

A	By the closing of sale.
B	From the deposit of the buyer's earnest money into escrow.
C	Submission to the seller of a signed offer from a ready, willing, and able buyer.
D	Signing of an exclusive listing contract.

Question 40 Explanation:

The closing of a sale usually dictates the broker has earned his commission, as the commission is usually given at the closing. Under no circumstance does the awarding of a commission at closing prohibit any further action being brought as to the procuring cause of the sale.

Question 41

Under Illinois law, an unlicensed assistant may

A	negotiate commissions
B	engage in prospecting.
C	sit at a property that is not open to the public.
D	host a broker open house.

Question 41 Explanation:

Section 1450.740 of the administrative rules specifies the permitted activities in which an unlicensed real estate assistant may engage in. Sitting at a property that is not open to the public falls under that rule

Question 42

In accordance to the Illinois license law, can a sponsored real estate licensee accept commission from another broker?

A	Yes
B	No

Question 42 Explanation:

A sponsored licensee can only earn commission from another broker if it was previously earned while working for that other broker.

Question 43

It is legal to offer sub-agency through an MLS in Illinois.

A	False
B	True

Question 43 Explanation:

Under Illinois law, a licensee working with a buyer is not considered to be a subagent of the seller.

Question 44

If a married couple is living in a listed property and only one owns the property, must both spouses still sign the listing agreement?

A	Yes
B	No

Question 44 Explanation:

Anyone who has an ownership interest in the property must be identified and must sign the listing to validate it. For the purposes of this question, it is assumed that the property is being willed to the surviving spouse and therefore has an interest as an heir and assign. Always consult a real estate attorney if you are unsure as to signing status.

Question 45

To comply with Illinois law, what heading must be used with a pre-printed offer to purchase that is expected to become a binding contract?

A	Real Estate Sales Contract
B	Offer to Purchase
C	Standard Purchase Offer and Contract
D	Purchase Offer Form

Question 45 Explanation:

ADD EXPLANATION In Illinois a licensee should not use any form titled "Offer to Purchase" if the form is intended to become a binding real estate contract. It requires sales contracts to indicate "Real Estate Sales Contract" at top in bold type.

Question 46

If the owner of a vacant land refuses to sell their property to a large manufacturing company that wants to relocate to Chicago, what can the city do?

A	The City cannot do anything
B	Attain the title via escheat
C	Attain the vacant property through a court ordered condemnation
D	Using the process of quick-take to obtain the land

Question 46 Explanation:

Quick take is the formal process of the exercise of eminent domain in which the government takes possession before the adjudication of compensation

Question 47

Max and Jill are married and current residents of Illinois. They decided to sell their co-owned property to pay off outstanding balances on their credit card. What is the most amount of money the creditors will receive if the property sells for $300,000?

A	$300,000
B	$270,000
C	Nothing
D	$225,000

Question 47 Explanation:

A homeowner in Illinois is entitled to a homestead exemption up to $15,000, while a married couple is entitled to $30,000. The property, in this example, is totally unencumbered by debt.

Question 48

Identify the statement in a deed that would establish a true tenancy by the entirety in Illinois.

A	“To A and B, a lawfully married couple, as tenants by the entirety”
B	“To A and B as tenants by the entirety in accordance with Illinois law”
C	“To A and B, husband and wife, not as joint tenants or tenants in common but as tenants by the entirety”
D	“To A and B jointly, as married tenants by the entirety”

Question 49

Which of these choices needs to be reviewed and have a plat recorded under the Illinois Plat Act?

A	An owner divides a single 30-acre parcel into three 8-acre lots and an 6-acre lot
B	An owner divides a 40-acre parcel into six equal lots.
C	An owner divides a 20-acre parcel into five equal lots.
D	An owner conveys a single 10-acre parcel

Question 49 Explanation:

Under the Plat Act (765 ILCS 205), when an owner divides a parcel of land into two or more parts, any of which is less than five acres, the parts must be surveyed

Question 50

The general datum plane referred to by surveyors throughout Illinois is the Centralia Datum.

A	True
B	False

Question 50 Explanation:

The general datum plane referred to by surveyors throughout Illinois is the, United States Geological Survey Datum.

Question 51

Judgment issued by an Illinois court that settles and defines the rights and obligations of the parties to a lawsuit

A	general, involuntary, equitable lien on both real and personal property, effective for renewable five-year periods
B	general, involuntary, equitable lien on both real and personal property owned by the debtor
C	general, involuntary legal lien on all of a debtor’s real property and an equitable, specific lien on the debtor’s personal property.
D	specific lien on the debtor’s real and personal property, effective for a nonrenewable period of five years.

Question 51 Explanation:

A judgment is not the same as a mortgage because no specific parcel of real estate was given as security at the time the debt was created. A lien usually covers only property located within the county in which the judgment is issued

Question 52

How long are Judgments liens effective in Illinois before having to renew it?

A	Seven Years
B	Ten Years
C	Five Years
D	Two Years

Question 52 Explanation:

The creditor can file a Petition to Revive, and serve it on the debtor, and get another 7 years. The creditor must file the Petition to Revive within 20 years of the entry of the judgment. That's why the longest a judgment can be enforced is 27 years.

Question 53

This item frequently shows up in an Illinois listing agreement.

A	The time duration of the listing
B	The entire description of the property that is up for sale
C	The buyers proposed offer to a property
D	All of the above

Question 53 Explanation:

How long your property will be on the market with the broker of your choice is commonly seen in the listing agreement

Question 54

The agency that has authority for licensing leasing agents is

A	Illinois Real Estate Commission
B	Illinois Department of Professional Regulation
C	Illinois Department of Financial and Professional Regulation
D	Illinois Association Of Realtors

Question 54 Explanation:

The practice of real estate in Illinois is governed by the Real Estate License Act of 2000 (the Act) (225 ILCS 454), as amended in 2010, and rules established by the Illinois Department of Financial and Professional Regulation

Question 55

In Illinois, a person selling their property must disclose property conditions.

A	True
B	False

Question 55 Explanation:

When a sponsoring broker takes a listing and asks the seller to complete a disclosure of property conditions the seller must do so as it is required by Illinois statute

Question 56

To establish an easement by prescription in Illinois, the use must be adverse, exclusive, under claim of right, and continuous and uninterrupted for a period of how long?

A	13 years
B	35 years
C	5 years
D	20 years

Question 57

Under Mortgage Law which theory gives the mortgagee legal title from the mortgagor and retains equitable title?

A	Title Theory
B	Lien Theory
C	Intermediate Mortgage Theory
D	Equity Theory

Question 57 Explanation:

Legal title is returned to the mortgagor when the debit is fully paid. The property is really owned by the lender until the debt is paid. Illinois is known as a lien theory state where the property acts as security for the underlying loan. The document that places the lien on the property is called a mortgage.

Question 58

In Illinois, the type of title that a purchaser has, up to the closing, when the obligation to the seller is fully paid is

A	Property Title
B	Equitable Title
C	legal Title
D	Land Title

Question 59

The Illinois Real Estate Administration and Disciplinary Board members are selected by who?

A	state wide poll conducted every 5 years
B	The Senator
C	Commissioner of real estate
D	The Governor

Question 60

What is there to gain by carrying out an injunction on a licensee who continues to violate the Real Estate License Act of 2000?

A	It prevents the violation from continuing
B	The crime would be considered a felony rather than a misdemeanor
C	The penalty is doubled for violating the Real Estate Act of 2000
D	The statute of limitations no longer apply

Question 60 Explanation:

A violation of the Real Estate License Act of 2000 is specifically declared to be harmful to the public welfare and a public nuisance. The attorney general of Illinois, a county state’s attorney, IDFPR, and even private citizens may seek an injunction to stop or prevent a violation.

Question 61

Which of the following actions can get a licensee's license revoked or suspended in Illinois?

A	Displaying a For Sale sign on a property with the owner’s consent
B	Disclosing agency
C	Being declared mentally incompetent
D	Giving earnest money to his or her sponsoring broker rather than depositing it directly

Question 62

In order to be considered valid, a deed must be signed by all grantors on the deed.

A	False
B	True

Question 62 Explanation:

Some states also need a witness to the grantor's signature

Question 63

Chicago Bar Association, et al. v. Quinlan and Tyson, Inc., established what principle in Illinois real estate law?

A	Real estate licensees may only fill in blanks and make appropriate deletions on preprinted standard form contracts.
B	That sponsoring brokers must have a escrow account dedicated for earnest money deposits
C	Once a contract is signed, a real estate licensee may not make any additions, deletions, or insertions without the written consent of the parties.
D	The seller must bear any losses that occur before title to property passes or before the buyer takes possession.

Question 63 Explanation:

All insertions and deletions must be at the direction of the principals, based on the negotiations. Advising a buyer or a seller of the legal significance of any part of the contract or writing any change to the form language constitutes the unauthorized practice of law.

Question 64

According to Illinois law, what is the statutory usury ceiling on loans secured by real estate?

A	5%
B	No Limit
C	25%
D	50%

Question 64 Explanation:

there is no legal limit specifically imposed by Illinois on the rate of interest that a lender may charge a borrower when the loan is secured by real estate.

Question 65

What is the Illinois state transfer tax of a property sold for $400,000?

A	$400
B	$1,500
C	$250
D	$500

Question 65 Explanation:

Transfer tax ($0.50 per $500 of consideration, or fraction thereof): $400,000 ÷ $500 = $800; $800× $0.50 = $400 transfer tax owed by seller

Question 66

Can IDFPR impose jail time on those who violate license law?

A	Yes
B	No

Question 67

In the state of Illinois, the real property transfer tax must be paid by_________

A	certified check, made out to the Illinois Housing Development Authority
B	personal check, made out to the Illinois Department of Revenue
C	purchasing transfer tax stamps from the county recorder or appropriate local authority
D	In monthly payments to the lender during the first five years of ownership

Question 67 Explanation:

transfer tax must be paid before the recording of the deed (or before transferring the beneficial interest in a land trust). This is done by purchasing tax stamps from the county recorder or the city offices if there are local stamps required. These stamps are literally affixed to the deed

Question 68

In Illinois, are private schools exempt from paying general taxes?

A	Yes
B	No

Question 69

In a county where the population is less than 60,000, who serves as the recorder of deeds in Illinois?

A	City Clerk
B	County Clertk
C	County Treasurers
D	Collectors

Question 69 Explanation:

Public records are just that: open to the public. This means that anyone interested in a particular property can review the records to learn about the documents, claims, and other issues that affect its ownership.

Question 70

In Illinois, what is the requirement for a deed?

A	A blank page for use by the recorder
B	The name of the grantee typed or printed below the grantee’s signature
C	Payment of required tax stamps
D	The name, address, and age of the grantee

Question 71

By law, tax deeds must be recorded within__________after the redemption period expires

A	One year
B	Two years
C	Three years
D	Four years

Question 72

A tax deed that is not recorded or filed within one year becomes null and void.

A	False
B	True

Question 72 Explanation:

No instrument affecting title to real property may include any provision prohibiting recording. Any such prohibiting provision is void as a matter of law.

Question 73

Legislation in the United States, passed in 1968, that requires some sellers of land across state lines to register with HUD and provide potential buyers with reports on the state of the property.

A	Interstate Undeveloped Land Act
B	HUD Registration Act
C	Interstate Land Sales Full Disclosure Act
D	NAFA

Question 73 Explanation:

The act required land developers to register subdivisions of 100 or more nonexempt lots with HUD and to provide each purchaser with a disclosure document called a property report.

Question 74

In the state of Illinois, when an owner defaults on their mortgage loan and the property is ordered sold at a foreclosure sale or auction, they can obtain the property.

A	after the sale, under the statutory right of redemption.
B	before the sale, under the statutory right of redemption.
C	after the sale, under the statutory right of reinstatement.
D	before the sale, under the equitable right of redemption.

Question 74 Explanation:

If, after default but before the foreclosure sale, the borrower pays the lender the amount in default, plus costs, the debt will be reinstated and regular payments may be resumed

Question 75

In Illinois, real estate licensees may

A	process a bill of sale after a sales contract has been signed by the required partie(s)
B	fill in blanks on preprinted form contracts customarily used in their community.
C	Provide additional language that can be added to a preprinted sales contract by a buyer or seller
D	explain the legal significance of specific preprinted contract clauses to a buyer or a seller.

Question 75 Explanation:

Generally, licensees are permitted to fill in the blanks on certain approved preprinted documents, such as sales contracts, as directed by the client. No separate fee may be charged for completing the forms.

Question 76

An Illinois real estate licensee may lawfully collect compensation from

A	A sponsoring broker only.
B	Both the buyer and seller
C	Any licensed real estate broker
D	any party to the transaction or the party’s representative.

Question 76 Explanation:

Fees, commissions, or other compensation cannot be paid to unlicensed persons for services that legally require a real estate license. “Other compensation” includes certain items of personal property, such as a new television, or other premiums, such as vacations, given to nonlicensed persons to perhaps acquire names of “leads.

Question 77

Referring to mortgages, Illinois is most commonly described as

A	a lien-theory state.
B	an equitable-theory state.
C	an intermediate mortgage theory state.
D	a title-theory state.

Question 77 Explanation:

The foreclosure process depends on state law and the terms of the mortgage. The intermediate theory applies the lien theory until there is a default on the mortgage whereupon the title theory applies. The mortgagor and the mortgagee generally have the right to transfer their interest in the mortgage.

Question 78

Which of the following is illegal in Illinois?

A	Awarding referral fees to other licensees
B	Offering a finder's fee to consumers
C	Using a lottery to convey the property
D	Indicating a “standard commission” when asked

Question 79

How many members are on the Illinois Real Estate Administration and Disciplinary Board?

A	8
B	5
C	9
D	10

Question 79 Explanation:

The Board is composed of nine members appointed by the governor, all of whom must have been residents and citizens of Illinois for at least six years before their appointment date. Six of the nine must have been active real estate managing brokers, brokers, or salespeople for at least 10 years before the appointment. The remaining three must be unlicensed, unconnected with the real estate profession, and represent consumer interests.

Question 80

How much of a notice must be given to a tenant in Illinois from a landlord for overdue rent before terminating the lease?

A	30 days
B	0 days
C	14 days
D	5 days

Question 80 Explanation:

The landlord may elect to serve the tenant with five days’ written notice, demanding payment of the delinquent rent within five days after the notice is received. If the tenant fails to pay the rent, the landlord may terminate the lease automatically and sue for possession without further notice

Question 81

In Illinois, if a home rule county has an ordinance that conflicts with that of a home rule city, whose ordinance will prevail?

A	The dispute is constitutional in nature and may be resolved only by the Illinois Supreme Court.
B	The relevant township ordinance
C	The county’s ordinance
D	The city’s ordinance

Question 82

According to Illinois law, the statutory ceiling on a a prepayment penalty a lender can charge on loans secured by real estate that has a greater than 9% annual interest is

A	2%
B	9%
C	There is none
D	5%

Question 82 Explanation:

Technically, there is no legal limit specifically imposed by Illinois on the rate of interest that a lender may charge a borrower when the loan is secured by real estate., There is, however, exemption from these state laws. Residential first mortgage loans made by federally chartered institutions, or loans made by lenders insured or guaranteed by federal agencies, are exempt from state interest regulations, and consequently are subject to federal limits.

Question 83

A landlord must deliver and maintain throughout the duration of the lease any residential leasehold free from defects that would render the use of the dwelling “unsafe or unsanitary” and unfit for human occupancy. Nothing may be present on the premises that could seriously endanger the life, health, or safety of the tenant. This principle is known as_____________

A	Implied warranty of habitability
B	holdover tenancy
C	reversionary right
D	None of the above

Question 83 Explanation:

warranty implied by law in all residential leases that the premises are fit and habitable for human habitation and that the premises will remain fit and habitable throughout the duration of the lease

Question 84

In what year did the Illinois Supreme Court first confirm the concept of an "Implied Warranty of Habitability?"

A	1975
B	1980
C	1972
D	1965

Question 85

In Illinois, if a landlord refuses to provide heat or water to the apartment, what can a tenant do?

A	Suit for forcible detainer
B	Sue for negligent default
C	Sue for wrongful eviction
D	Sue for constructive eviction

Question 85 Explanation:

To maintain an action for damages, the tenant must show that: the uninhabitable conditions (substantial interference's) were a result of the landlord's actions (not the actions of some third party) and that the tenant vacated the premises in a reasonable time.

Question 86

Greg pays $1,000 per month for his apartment in Chicago. If he decides to refer 3 new tenants to his building in the same year, how much is Greg entitled to receive as a referral fee?

A	$1,000
B	Nothing
C	$500
D	$750

Question 86 Explanation:

The Real Estate License Act of 2000 allows landlords to pay a referral fee to tenants. Greg can receive a compensation upwards of $1,500 or the equivalent of one month's rent, whichever is less.

Question 87

A five-unit apartment building with a resident property manager living in one of the units is exempted from The Illinois Human Rights Act.

A	True
B	False

Question 87 Explanation:

a three-unit apartment building with the owner living in one of the units is exempted from the Illinois Human Rights Act

Question 88

Is Illinois dominated by non-single-agency firms?

A	Yes
B	No

Question 88 Explanation:

These firms work with both buyers and sellers, including buyers and sellers in the same transaction.

Question 89

Illinois agency statutes supersede the common law of agency in Illinois.

A	True
B	False

Question 89 Explanation:

Agency relationships in Illinois are governed under statutory law

Question 90

An unlicensed real estate assistant in Illinois may

A	prepare and distribute flyers and promotional materials.
B	negotiate a sale
C	prepare legal documents that will be used for a closing
D	explain contract documents to potential buyers

Question 90 Explanation:

The Real Estate License Act of 2000 requires that licensed personal assistants must have an employment agreement with the sponsoring broker of the firm in which they are working, even though they are, in practice, working for an affiliate licensee. The sponsoring broker must pay licensed personal assistants.

Question 91

John is in the process of buying a house that he likes in Chicago. In the sales contract, he wants a clause included which states the seller offers assurance that no one has died in the home. Which of these statements in TRUE in Illinois?

A	Under Illinois law, a clause such as the one described here is not permitted and any contract containing such a clause will be void.
B	In Illinois, licensees are permitted to add additional clauses to blank form contracts, such as the clause described here, that do not directly involve the conveyance of title to real property.
C	Only the buyer or a licensed attorney may prepare the clause for inclusion in the sales contract.
D	The licensee may include the clause because such standard disclosures are in general usage.

Question 92

A broker puts a property up for sale. The agreement between the seller and the broker is that the seller will receive $100,000. Any amount left over after the seller's $100,000 will go to the broker. Based on these facts, which of these statements is TRUE in Illinois?

A	This is an example of a guaranteed sales agreement, which is permissible in Illinois if the broker provides the seller with the necessary disclosures.
B	This type of arrangement, called a guaranteed sales agreement, is illegal in Illinois, and the broker will be disciplined for entering into it.
C	This type of arrangement, called a net listing, is illegal in Illinois, and the broker will be disciplined for entering into it.
D	This is an example of a net listing, which is discouraged (but not illegal) in Illinois.

Question 92 Explanation:

Because a net listing can create a clear conflict of interest between the broker’s fiduciary responsibility to the seller and the broker’s profit motive, net listings are illegal in many states and are discouraged in others.

Question 93

In Illinois, if a licensee fails to provide a specific termination date on a listing agreement, can that result in a suspension or revocation of that licensee's license?

A	Yes
B	No

Question 93 Explanation:

A definite termination date must be included in a brokerage agreement. Automatic extension clauses are illegal under Illinois law

Question 94

According to the law in Illinois, which disclosure must be included in a listing contract?

A	Tax identification number
B	Disposition of earnest money in the event of a purchaser default
C	Anticipated seller closing costs
D	Seller’s net return

Question 94 Explanation:

An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money.

Question 95

David and Marie are a married couple living in the city of Chicago, Illinois. Marie owns their home. If the couple decides to sell their property and move to California, who is required to sign the listing agreement?

A	Because the wife is the sole owner of their home, she is the only party legally required to sign the listing
B	Both the husband and the wife must sign the listing.
C	Because the husband and the wife are married, the signature of either spouse is legally sufficient.
D	The husband is required to sign the listing only if the wife plans to use the capital gains exclusion.

Question 95 Explanation:

If a married couple is living in the listed property, both spouses must sign the listing agreement, even if only one owns the property, in order to release homestead rights. If the property is in the possession of a tenant, that should be disclosed and instructions given on how the property is to be shown to a prospective buyer

Question 96

Illinois local units of government receive their powers of eminent domain from what source?

A	The Illinois Constitution and Code of Civil Procedure
B	The Illinois Statehood Charter of 1818 and the Code of Administrative Procedure
C	Article 5 of the U.S. Constitution
D	A grant of authority signed by the governor

Question 96 Explanation:

Local units of government and quasi-governmental bodies are given the power of eminent domain by the Illinois Constitution and by the Illinois Code of Civil Procedure

Question 97

Which of these is available to a surviving husband in Illinois?

A	A marital easement
B	Curtesy
C	Dower
D	Homestead

Question 97 Explanation:

marital property states, including Illinois, have abolished the common-law concepts of dower and curtesy in favor of the Uniform Probate Code. This gives the surviving spouse the right to take an elective share on the death of the other spouse.

Question 98

How much of an estate of homestead is an individual entitled to in Illinois?

A	$4,500
B	$5,000
C	$15,000
D	$7,250

Question 98 Explanation:

Every homeowner in Illinois is entitled to a homestead exemption up to a value of $15,000 for a single person and $30,000 for a married couple

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