Illinois State Exam Practice

Which of the following persons in Illinois can perform real estate services without a license?

Carlos, an attorney who acts as power of attorney for a homeowner

Carrie is a new licensee in Illinois. Based on this information, which of the following statements is true?

Carrie can disclose confidential client information to her sponsoring broker if she's seeking advice or assistance that will ultimately benefit the client.

Bob's clients, Dan and Julie, are looking for a mountain cabin. They tell Bob they'll pay him a $2,000 finder's fee if he finds the cabin that checks all their boxes and they close on it. Randall finds a likely candidate as a FSBO, and negotiations begin. What circumstance is required for Bob to receive the finder's fee?

Dan and Julie must pay the finder's fee to Bob's broker.

A lender was not able to recover all of the losses incurred during the foreclosure process in Illinois. What could it pursue to recoup these losses?

Deficiency judgment

Hannah represents the sellers in a transaction, and her coworker Ruth represents the buyers. Both Hannah and Ruth work under Pedro. What kind of agency is being described here?

Designated agency

Daniel was the subject of a disciplinary hearing based on a complaint filed by a previous client. After the hearing process, Daniel's license was suspended, and he was required to complete six hours of prescribed professional development coursework. What's the formal term for sanctions such as these?

Disciplinary action

According to Illinois statutes, licensees who have a personal interest to a transaction must _____.

Disclose their status as a licensee

Which of these is a quality that differentiates Illinois escrow accounts from other accounts?

Distribution of funds from escrow accounts is restricted by law.

Garth helps his neighbor sell his Illinois home by assisting with negotiations. He receives no compensation for his assistance. Based on this one transaction, Garth______.

Doesn't need a real estate license

Dan, a sponsoring broker in Illinois, has designated one of his licensees to meet with a prospective seller client. When is Dan or his licensee required to disclose the agency relationship to the prospective client?

Either before the prospective client and licensee enter into a designated agency brokerage agreement or upon entering into the agreement

Marcus died intestate (without leaving a will). His wife, Elaine, and two children, Patrick and Rhonda, are in the line of succession to inherit his estate. According to Illinois law, how will the property be distributed?

Elaine receives 50% and the children each receive 25%.

What's the chief function of Illinois real estate licensing laws?

Ensure that consumers are protected

Which of the following statements about escrow funds and escrow accounts in Illinois is true?

Escrow accounts must be maintained at a federally insured depository.

Which of the one of these statements about transaction records retention in Illinois is true?

Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office.

Which one of these statements about transaction records retention in Illinois is true?

Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office.

Licensee Marshall received an earnest money check from his buyer clients Johanna and Jack on Thursday June 21 and turned it over to his managing broker the same day. What is the deadline for Marshall's designated managing broker to deposit the earnest money check into the escrow account?

Friday, June 22

Susie is the seller's agent for a transaction in which April (another agent from her brokerage) helped her by hosting three open houses for her seller client Gianna's property. From whom will April receive her compensation?

From their sponsoring broker

As the property manager, Galena places security deposits in an interest-bearing account for her landlord, who owns 42 rental units. Galena isn't permitted to accept a lease term of under one year. Which of these statements is FALSE?

Galena must pay each tenant the interest earned on their deposit monthly.

Bryson doesn't yet have an Illinois real estate license. Which activity is he legally allowed to perform without one?

Give advice to a friend who is negotiating the purchase of a house.

Illinois licensee Eric represents a buyer who's seriously interested in a home that Eric listed for one of his seller clients. Both clients have already given their consent to dual agency representation. Before Eric can act as a dual agent in the transaction, though, what must he do?

Have both parties reaffirm their prior consent to dual agency by signing a confirmation of consent to dual agency form

Bert is a sponsored broker in Illinois who's selling his own house. Since he's acting as his own broker, which of these rules must he follow?

He can use a For Sale by Owner yard sign, but it must say "agent owned."

Broker Damion owns a duplex and wants to sell the half he's been renting. He's placing a listing advertisement to sell the vacant half of the duplex. What does he need to disclose in the ad?

He's a licensee.

Licensee Tom must maintain the confidentiality of his client's information unless otherwise provided by the law or unless _______.

He's discussing it with his sponsoring broker

Rea is a sponsored licensee in Illinois. How must she design her business cards in order to comply with rules of the Illinois license law?

Her name and her sponsoring broker's business name must appear on the card, but no specific type size is required.

When there's a dual agency agreement in place, and a licensee is working with a buyer client, which of the following questions should a licensee NOT answer, assuming she had all of this information?

How much should I offer?

Jamie, your client, is buying a short sale property. After signing the contract the seller required her to pay a separate fee outside of closing. What should you advise her?

If she does this, she's committing mortgage fraud.

Mandy is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. When will the check be deposited?

Immediately upon receipt by her agent

What is it called when the owner of a property dies without a will?

Intestate

An Illinois licensee may not use advertising or marketing that ______.

Is deceptive or misleading

Kelly is working as a dual agent for Tom and Nancy Dresden, who are selling their 1982 ranch, and Merle and Judy Sheppard, who are interested in buying it. She ran into the Dresdens today when she stopped for coffee, and they had some questions for her. Which of the following questions is she allowed to answer, given her dual agent role?

Is the buyer pre-approved for a mortgage?

Thebiggestbaddestcoolestsellerinthewindycity@Trustworthyagency.com is a bad email address because __________.

It's hard for someone to remember.

Reich Real Estate has discovered that their licensee, Ivan, has been stealing money from clients by depositing their earnest money into his own account. What will likely be the consequence?

Ivan's license could be suspended without a hearing.

Ivan qualifies for and takes advantage of the Illinois Senior Citizens Assessment Freeze Homestead Exemption. Which of these is true?

Ivan's tax bill may go up even with the exemption in place if he makes property improvements.

James is affiliated with Great Lakes Agency. He sees a wonderful photo on the MLS for a listing posted by XYZ Brokerage. He takes the photo to use on his Facebook site. Which of the following statements is true?

James shouldn't use the photo, because it is considered copyrighted by XYZ Brokerage.

Where will you find official documentation about the licensing of Illinois real estate professionals?

Laws and regulations

Which of these best describes Illinois license reciprocity?

Licensees in another state that has a reciprocity agreement with Illinois may skip some or all of the Illinois pre-licensing requirements.

Which homebuyers are eligible for the USDA Rural Development Single Family Housing Guaranteed Loan Program?

Low- to moderate-income buyers in eligible rural counties in Illinois

Vivian is an Illinois licensee. She's required to renew her license in April of every odd-numbered year. She's appointed to her position by a sponsoring broker. Vivian is licensed as a ______.

Managing broker

Angie is serving as a non-agent to a tenant customer. Which of the following can she perform for the customer?

Ministerial acts

Select the statement about Illinois transfer taxes that is FALSE.

Municipalities and other entities are prohibited from charging additional transfer taxes.

Based on Illinois license law, which of these activities requires a real estate license when it's performed on someone else's behalf and for compensation?

Negotiating a real estate contract

Theo had been wooing a homeowner in his neighborhood for months, trying to get a listing agreement. When the homeowner finally decides to list the property, he does so with another broker. Is this tortious interference?

No, because no listing agreement was in place.

Are property stigmas required to be disclosed in Illinois?

No, stigmas aren't required to be disclosed in Illinois.

A hurricane destroyed Stu's brokerage, including all of his records. In addition to immediately obtaining copies of and reconstructing the missing records, what is he required to do in this case?

Notify the IDFPR enforcement division within 30 days by signature-restricted delivery.

According to Illinois license law, which of these parties is exempt from the licensing requirement when performing real estate brokerage activities?

Persons acting under a court order

Land trusts in Illinois provide which of the following benefits?

Privacy of ownership

Robert is a client working with licensee Andrea to sell his home. Which of these actions should Andrea advise Robert to take based on the requirements of the Illinois Radon Awareness Act?

Provide the buyer with required forms related to radon hazards.

Based on Illinois law, which of the following is considered a ministerial act?

Providing the opposing party with signed copies of paperwork

To which of the following must Illinois real estate licensee's advertisements and marketing adhere?

Regulations described in the Real Estate License Act of 2000

With all parties' consent, Rogelio, who holds an Illinois residential leasing agent's license, successfully negotiated a tricky commercial lease between Rock 'n Roll Brewing and Tyson Properties. This transaction got Rogelio into trouble with the state of Illinois. Why?

Rogelio's license permits him to facilitate residential, not commercial, lease transactions.

Several situations are exempt from the provisions of the Illinois Land Sales Registration Act. Which situation is not exempt?

Sales subdivided into 25 or more lots

Illinois licensee Sandra has provided her client Clint with a designated agency disclosure along with their brokerage agreement. Which of the following pieces of information is included in that disclosure?

Sandra's full name and a statement that a designated agency relationship exists between the two of them

Yashika is an unlicensed assistant at an Illinois real estate brokerage. Which of the following tasks is she legally permitted to perform?

Scheduling home inspections

Which of the following scenarios describes a dual agency situation in Illinois?

Sean has been assigned to represent seller clients, the Herrondales, and buyer client, Clarissa, in the same transaction.

Sierra is a managing broker, sponsored by Highland Hills Real Estate in Chicago. Which of these statements about the advertisement is true?

She must include her name, her sponsoring broker's name, and identify herself as a managing broker.

Which one of these individuals would need an Illinois real estate license?

Someone performing real estate services for others for a fee

Which of these license designations does NOT require a separate examination?

Sponsoring broker

Which of the following scenarios describes dual agency as it's defined in Illinois?

Sponsoring broker Simon assigns Maria to act as the designated agent for both the buyer and seller in the same transaction, making Maria the dual agent.

Which of these statements about the Illinois sponsoring broker exam is true?

Sponsoring brokers don't take a separate exam.

Delbert is a licensee who lives in one half of the duplex he owns and rents out the other half. He's placing an advertisement to find a tenant. What does he need to disclose in the ad?

That he is a licensed real estate professional

A borrower has no protection from a deficiency judgment when ______________.

The auction sale price is less than the mortgage balance

Neal, the designated managing broker for At Your Service Brokerage Services, requires his licensees to work set hours and work from the brokerage firm's office. Which of the following statements is true?

The broker can make these activities a requirement if licensees are hired as employees instead of independent contractors.

Carissa is an Illinois broker. Her managing broker, Thomas, is also the firm's sponsoring broker. The staff includes one licensed residential leasing agent, Reuben. Which of these statements about license renewals is true?

The firm's license expires on October 31 of each even-numbered year.

Lakeshore Homes has received notice that its sponsoring broker license is being suspended. Which of these statements best describes the impact of this suspension?

The firm's licensees may not perform real estate brokerage services until a new sponsoring broker is in place.

Roger, an Illinois broker working for Metro Homes, lists a property for seller clients Trina and Samuel. Roger's sponsoring broker is Ted Britton and his managing broker is Sonjay Treva. Which of these statements about the relationship is true?

The listing agreement is between Trina, Samuel, and Metros Homes.

Which of the following about dual agency in Illinois is true?

The required consent and disclosure must be signed by all parties involved in the transaction.

Cassie just put an offer on a property that was being sold as a short sale. She's excited about the great deal she's getting on the property. What could cause Cassie's great deal to turn into a nightmare?

The title to the property may have hidden issues that could cost her a lot of money to clear

What may happen in a short sale transaction if a cloud on the title is discovered?

The transaction comes to a standstill until the cloud is cleared.

Which of the following people in Illinois can perform real estate services without a license?

Therese, who owns and sells her own property

Which of these about the Illinois Timeshare Lien and Security Interest Act is true?

This act permits timeshare managers to place liens against timeshare interests for unpaid assessments.

Which of these statements about the Illinois Timeshare Lien and Security Interest Act is true?

This act permits timeshare managers to place liens against timeshare interests for unpaid assessments.

Tina is acting as a listing agent for her friend, Steve. She and Steve met when they both began attending a support group for those living with HIV. Which of the following best represents an action Tina should take?

Tina cannot tell others about Steve's HIV status.

According to Illinois license law, which of the following transaction records must a sponsoring broker retain?

Transaction ledger cards

Which of the following transaction records must a sponsoring broker retain according to Illinois license law?

Transaction ledgers

Which of these statements about retaining transaction records in Illinois is true?

Transaction records maintained electronically must be backed up at least monthly.

The seller accepted Frank's offer, so Frank gave his agent Troy an earnest money check. What will happen to the check now?

Troy's designated managing broker will deposit the check into an escrow account within one business day after the contract is signed or per the contract terms.

During an escrow money dispute in which no civil action has been filed, sponsoring brokers in Illinois retain the funds ______.

Until they receive written release and disbursement directions, signed by both parties or their agents

As an Illinois managing broker, Derek knows better than to answer some questions from his buyer clients when there's a dual agency relationship in place. He's representing Tina, a buyer, and Joe Sanchez, the seller, in a dual agency relationship. Today, he's meeting with Tina. Which of the following questions is Derek NOT allowed to answer, given the dual agency relationship?

Will the seller include the washer and dryer?

Illinois licensee Chet has one buyer client who might be interested in one of his seller client's properties. When does Chet need to ensure the initial dual agency disclosure obtaining informed consent is made to each of his respective clients?

With their respective brokerage agreements

A branch of Elite Realty in Illinois is changing managing brokers. When must the Division of Real Estate be notified?

Within 15 days

When must licensees in Illinois notify the Division of Real Estate of a change to their office location?

Within 24 hours

When must licensees in Illinois notify the Division of Real Estate of a name change?

Within 24 hours

Analise received earnest money from her clients after executing a contract between all parties. When must her designated managing broker deposit the earnest money?

Within one business day after the contract is signed or per the contract terms

Annette recently moved out of the apartment she'd been in for two years. She was careful to leave everything in good repair and clean when she left, but the landlord retained most of her security deposit anyway. He also refused to respond to her demands to return it. Does Kennedy have any options left?

Yes. She can file suit in small claims court.

You're the sponsoring broker for Denise, a licensed broker who has an unlicensed assistant named Timothy. Denise has a lot on her plate and has giving Timothy tasks like showing properties and negotiating counter-offers. If Timothy were to perform an illegal activity or an action he wasn't supposed to do, who would be legally responsible for his actions?

You and Denise

Moe just finished his pre-licensing education and is ready to take his Illinois broker's licensing exam. He tells you he's excited because now the only training he has to take is the 12-hour CE requirement each renewal period. What do you say to Moe?

"Moe, remember that you have a 45-hour post-licensing course to complete during your first renewal period."

Nithya is 17 years old and a junior in high school. She wants to become an Illinois real estate broker as soon as possible. What would you tell her?

"Obtain a high school diploma or GED, you may be able to get your license at 18."

Carlene sold her Illinois house to Todd for $492,500. She lives in a city that charges a $.10 transfer tax. How much transfer tax will be owed on this transaction?

$837.25

What is the minimum age required to become a licensed broker in Illinois?

18

Jed is a property manager who wants to fill a vacant apartment. He needs to avoid discrimination based on which set of protected classes?

A combination of federally, state, and locally protected classes

When it comes to dual agency in Illinois, who acts as the dual agent?

A designated agent acts as the dual agent.

Which of the following is a violation of the Illinois Real Estate License Act?

A licensee attempts to convince a party to break a sales contract in order to create a new one.

Karstan is engaged as a property manager for 3-D Housing, the owner of a residential apartment complex with 43 units. What is the minimum standard for the type of license Karstan must hold?

A residential leasing agent license

In Illinois, who appoints a designated managing broker?

A sponsoring broker

For which of these transactions is the seller required to make property disclosures under the Residential Real Property Disclosure Act?

A two-story home the seller currently owns and occupies

In Illinois, which of the following is something a dual agent isn't allowed to do?

Advise the buyer on an offer amount.

Property manager Tom prides himself on having the most happening apartment building in town. There's always a party underway, and he's always invited. When he receives an application from a 60-year-old former librarian, he quickly tosses it aside. Tom is likely engaging in discrimination against a member of which protected class?

Age

Carlisle is an unlicensed assistant for Barbara, a broker at Full House Realty. Mario is the sponsoring broker. Who's legally responsible for Carlisle's activities?

Barbara and Mario, as broker and sponsoring broker

Kevin is an Illinois sponsoring broker. RaeAnn is one of Kevin's sponsored licensees. RaeAnn is representing the Bothwell's as a listing agent. TJ, also one of Kevin's sponsored licensees, is representing James, who's buying the Bothwell's house. Under Illinois licensing law, who is a designated agent?

Both RaeAnn and TJ

Which of these statements about the Illinois real estate licensing exam is true?

Both broker and managing broker candidates will see multiple-choice questions on the licensing exam.