IL: Broker Post License Risk Management and Discipline Course

Illinois broker Juanita disclosed to a potential buyer that she's both the listing agent and the property owner. Juanita makes this disclosure of personal interest because ___________.

It's required by the Real Estate License Act of 2000

Which of the following is a penalty that may be imposed for Sherman Antitrust Act violations?

Jail time of up to 10 years

The purpose of the Sherman Antitrust Act is to ______.

Keep the marketplace competitive and protect consumers

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act?

No; commercial and business loans are exempt from RESPA requirements.

The main purpose of the policies and procedures manual is to_______.

Outline the rules under which brokerage operations and real estate transactions are conducted

What is the best definition of "blockbusting"?

Persuading homeowners to sell based on the perception that minorities are moving into the neighborhood

The 1970 case against Prince George's County Board of REALTORS® found that the board was suggesting commission rates and publishing schedules of commission rates. What type of antitrust violation was this?

Price fixing

Commission disputes may occur after a property sold via an open listing when there is debate over who was the ______.

Procuring cause

When it comes to personal marketing, photos of you should be what?

Professional, almost understated

Xander has a service dog that's trained to detect the onset of psychiatric episodes. This type of dog is considered a ______ dog.

Psychiatric service

Real estate broker Aliana misstated the amount of square footage in the listing for her client's property, and now she's facing a major lawsuit. Errors and omissions insurance would help her cover all of the following costs EXCEPT which one?

Punitive fines, penalties, or damages

When working with a developer who's purchasing undeveloped land for a new subdivision, ABC Realty stipulates in the contract that in order to purchase the undeveloped land, the developer must purchase grading services from Bulldozers-R-Us. Which antitrust violation is this?

Tie-in arrangement

Sponsored broker Cindra is excited for her buyer client, Mike. They have just completed drafting an offer letter on his dream house in Godfrey, and Mike has given Cindra an earnest money deposit. What must Cindra do with Mike's earnest money?

Turn it over to her sponsoring broker.

Avoiding antitrust violations is critical. Which one of the following actions will help you avoid price fixing allegations?

Establish fees independently or as a company.

Which of the following is true of discussing the business model of competitor A with competitor B in order to determine a joint course of action against competitor A?

It's an example of group boycotting and an antitrust violation.

Martha is a broker assisting her seller client in a residential transaction. Under the Illinois Radon Awareness Act, which of these actions should she take?

Educate her client regarding seller obligations related to radon disclosure under the law.

Which of the following statements could indicate a price fixing violation?

"The MLS requires us to have at least 90-day listings."

Broker Yousef is meeting with his insurance provider to learn more about how cyber liability insurance might protect his clients and customers in the event of a cyberattack. Which of the following statements is true?

Cyber insurance can help with legal fees and notify affected customers and clients following a data breach.

Jan wants to file a sexual harassment complaint to her broker against her co-worker. Her complaint should include ______.

Dates and times of the alleged incidents

What's the term for a charge that either party has to pay at closing?

Debit

A compensation model in which a licensee pays a monthly fee to be affiliated with a firm is called a ______ model.

Desk fee

The Real Estate Settlement Procedures Act protects consumers by _______.

Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit

______ responsible for ensuring that the workplace is free from sexual harassment.

Employers are

What's the existence of lead-based paint considered to be?

Environmental hazard

A buyer is suing Janet for an inadvertent mistake she made in a real estate transaction. What insurance policy covers this type of situation?

Errors and omissions insurance

Within how many hours do Illinois sponsoring brokers have to respond to a request from the enforcement division to provide all escrow and real estate records held in the office?

24

Complaints of sexual harassment must be reported to the Illinois Department of Human Rights within _____ of the alleged action.

300 days

Which of the following photos should a licensee avoid posting on social media when advertising an open house?

A glamorous selfie

Which of the following would constitute a violation of fair housing laws?

A property owner tells an Asian family there are no apartments available to rent when there are several; the property owner doesn't like the way Asian cuisine smells when it's being cooked, so he doesn't want any Asian tenants.

Which of the following properties requires a lead disclosure?

Duplex built in 1959

When it comes to earnest money, which one of the following statements is true?

Earnest money must be placed in a trust account.

If the parties to a transaction can't agree on the disposition of the earnest money funds, the sponsoring broker should seek _______.

Counsel or conduct a mediation with the courts

Which two items will appear on a closing disclosure?

Credits and debits

Licensees must not solicit any document related to a real estate transaction if that document contains blanks that the licensee plans to fill in ______.

After the document is signed or initialed

What is a proration?

An amount apportioned according to use

Fiona has severe depression and an anxiety disorder. She has a cat that provides comfort and lessens the severity of her symptoms. This an example of ______.

An emotional support animal

Kendra and her real estate agent are preparing to close on the property she's purchasing on Thursday. Kendra will sign the paperwork with her lender to close on the loan at the same time. When does the lender need to provide Kendra with the Closing Disclosure form?

At least three business days prior to closing on the loan

Why is it a good idea to turn off location sharing information when using social media?

Because potential criminals can use it to find out when you are home and where your home is located

In Illinois, when must earnest money be deposited into an escrow account?

Before the close of business of the next banking day

Ed owns a large tract of land that he wants to develop, and he promises to give an apartment building contract to his brother-in-law. Ed asks for competing bids so it looks like he's being fair. This is an example of_____

Bid rigging

Which statement about the identities of sexual assault victims and witnesses in Illinois is TRUE?

Both victims and witnesses can request that their identities remain confidential.

Chuck arrives at a vacant home for a showing. He thinks he sees a light on inside the home and distinctly remembers turning off all of the lights when he left yesterday. He decides to be safe and take a walk around the house and discovers a basement window propped open. What should he do?

Call the authorities to check it out.

Mickey, a sponsored licensee and independent contractor, has recently entered into an independent contractor agreement with his Illinois sponsoring broker, Carmen. Carmen has assigned Dan to be Mickey's licensed assistant. Per Illinois law, who's required to sign and date Mickey's employment agreement with Carmen?

Carmen and Mickey

When the buyer and seller both have costs to pay, which form shows who pays what?

Closing disclosure

Kent is currently in residential real estate but is interested in eventually working with more complex properties that offer higher commissions. What type of real estate specialty does Kent want to pursue?

Commercial real estate

Which of the following statements about earnest money deposits in Illinois is true?

Earnest money must be placed in an escrow account the next business day after the sponsoring broker receives it.

Your client tells you to do something. It would violate fair housing laws, but it will earn you an amazing commission. What should you do?

Explain that you cannot do it, because it's a fair housing violation, and you could both get into trouble for doing what she's asked.

While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was Jeffrey legally permitted to do?

Fill in the contract blanks

In the event of property damage or injury to a brokerage's employees or customers, what kind of insurance would cover the damages?

General liability

One of the actions that landed the Consolidated Multiple Listing service of South Carolina in court was that it gave Columbia brokers the ability to exclude rivals from outside of Columbia. What type of antitrust violation does this exemplify?

Group boycotting

What can brokerages do to ensure licensees use technology properly?

Have a solid policies and procedures manual in place.

Eileen just turned her car into the driveway of a vacant home. As she gets out of the car, she has a funny feeling that something isn't right. As she approaches the door, the hairs on the back of her neck stand up. It's safest for Eileen to interpret her funny feeling as which of the following?

Her intuition alerting her to a potentially dangerous situation

Nicole's brokerage was the victim of a data breach, and confidential client information was stolen off of the internal network. Her client, Owen, later discovered that someone had used his information to open three new credit cards. What was Owen a victim of?

Identity theft

While speaking in front of a group of fellow agents, Edwin's co-worker James stood slightly behind Edwin (out of Edwin's view) and started making obscene gestures to illicit chuckles from the audience. Which of the following statements is true?

If anyone is offended by James' gesture, it's possible he committed non-verbal sexual harassment.

In Illinois residential transactions, the Residential Real Property Disclosure Report form is required according to _______.

Illinois state law

Which of the following statements is true about radon?

It's a naturally occurring gas.

What document do sponsoring brokers and sponsored licensees use to define the terms of their working relationship?

Independent contractor agreement

Marco is a responsible broker. To manage risk at his brokerage, he believes in engaging in proper planning, providing training and supervision, and purchasing ______.

Insurance

One of the most dependable tools in your self defense toolbox is something that is always with you and can detect a dangerous situation before it happens. What is it?

Intuition

Having worked in both residential and commercial real estate for years, Kerry is interested in branching out into a different area. She wants to work with clients who have money to put into property in hopes of turning a profit. Kerry wants to specialize in ______.

Investment properties

Katherine is a new broker. She recognizes the importance of carrying E&O insurance because______.

It covers her if she gets sued for inadvertently making a mistake

In response to other tenants' requests, Faith has added a criminal records policy to her tenant screening process. What should she ensure that is true about this policy?

It is non-discriminatory.

Harassment complaints should be ______.

Kept confidential

Which of the following actions concerning tenant rights should real estate licensees take?

Learn and understand tenants' legal rights.

Everything in your office is potentially at risk from thieves and other criminals. Because of this, what should you never do?

Leave clients unattended in the office.

One way to reduce the company's risk of a sexual harassment accusation is to ______.

Let employees know how to report it if it occurs

Listing agent Breanna is representing the Millers in the sale of their Illinois home. Under what circumstances may Breanna complete the seller disclosures on behalf of the Millers?

Licensees may never complete seller disclosures on behalf of their clients.

What information does the Loan Estimate provide to buyers under required disclosures law?

Loan payment schedule

What's a recommended way to protect yourself from committing unauthorized practice of law when drafting a document?

Make the terms of all contracts subject to review by attorneys for both parties.

Coraline works in a brokerage that recently established a sexual harassment policy, but so far it hasn't been enforced by the broker, who likes to keep things fun. This type of atmosphere ______.

Makes it harder for Coraline to report inappropriate incidents, because she doesn't want to cause trouble

Which of these dogs best qualifies as a service animal under Titles II and III of the Americans with Disabilities Act?

Monica is specially trained to open and close doors for her owner, who uses a wheelchair.

Reggie has thoroughly reviewed the sales contract with his clients, the Arnolds, and has confirmed that they understand all of the terms and provisions. What should Reggie do next?

Recommend that the Arnolds review the sales contract with an attorney before signing it.

A Department of Justice deputy district attorney general said that the National Association of REALTORS®' action of obstructing Internet-based brokers who offered alternative services and lower costs to consumers had this result, making it an antitrust violation.

Reduced competition

When sexual harassment occurs, employees should ______.

Report it immediately

Marcus is looking to expand his scope of expertise into the area of land sales and development. To do so, Marcus needs to develop his understanding of _______.

Residential planning

Brokerage management can use a policies and procedures manual as a tool to effectively manage _______.

Risk

Which of the following is a reason all licensees should have errors and omissions insurance?

Risk is an inherent part of real estate activities.

Who would benefit from cyber liability insurance?

Sam, Gabriel, and Ginger

Chicago real estate licensee Sarah is helping her clients complete their forms to purchase a house. Sarah's using the pre-printed contract that was drawn up by an attorney her broker told her to use. She's crossing out certain information and filling the blank lines with factual information as necessary to convey her clients' purchase offer. Which of the following is true of this situation?

Sarah is working within the scope of her expertise and has not committed unauthorized practice of law.

Which authority may, at any time, inspect an Illinois brokerage firm's escrow account record keeping?

The Illinois Department of Financial Professional Regulation (IDFPR)

Renee is on the autism spectrum. Her service dog has been trained to alert her to her repetitive movements and calm her when she becomes agitated. What specific type of service dog is he?

Sensory signal or social signal dog

The principal difference between an assistance animal and a service animal is that a(n) ______.

Service animal is a dog that's individually trained to do work related to a disability

Which of these statements regarding service animals is true?

Service animals are specially trained to perform specific tasks for people with disabilities.

Because of the increasing number of homeowners in the area who can't afford to make, or have defaulted on, their mortgage payments, the brokerage firm that Campbell works for has decided to have a segment of its business focus on ______. Having expressed an interest in this area, Campbell's broker has encouraged him to obtain a certification in this specialty.

Short sales and foreclosures

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What lender-provided document outlines loan rates and fees so he can make comparisons?

The Loan Estimate permits Kenneth to comparison shop.

Lloyd is interested in reviewing what types of agency agreements are allowed at the brokerage where he works. Where can he find that information?

The PPM

Which party determines the amount of earnest money the buyer should offer?

The buyer

Which of the following would NOT be covered by general commercial liability insurance?

The firm's backup drive became corrupted and the data had to be recovered.

When considering your personal marketing, what should one of your primary concerns be?

The overall intention of your marketing

Under RESPA, a rebate of a licensee's commission may be offered to a transaction party, provided which of the following is true?

The rebate is not required for referral of business.

Privacy tools are available on most social networking sites. How can they be used to protect your personal safety?

They can allow you to control what pictures and information other people see.

For an act to count as sexual harassment, it must be ______.

Unwelcome

You can protect your business from a technology breach by ______.

Updating software regularly

Illinois licensee Randy is helping his buyer client Amie write a real estate contract for a property in Peoria. Which of the following is Randy NOT allowed to do?

Use a form that's designated as an offer to purchase.

Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?

Using approved fill-in-the-blank forms

When is a licensee's compensation usually considered earned?

When the client has entered into a purchase contract

When can a managing or sponsoring broker disburse escrow funds?

When the terms of the contract have been fulfilled

Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is this okay?

Yes, licensees can use standard forms provided by the brokerage or approved by an attorney.

The "who, where, when" safety tip refers to telling someone who you are with, where you will be, and when you will be there. Why should you make sure clients you're meeting know you have shared this information?

You're less likely to be attacked when clients know you would be missed and that you've shared their identifying information with others.

In order to be able to act on your intuition, it is important to have an "escape plan." What does that mean?

You've identified a way to remove yourself from the situation.