TEST

WHAT ARE THE IRS RULES FOR BEING AN INDEPENDENT CONTRACTOR?

AN ACTIVE REAL ESTATE LICENSE MUST HAVE A WRITTEN AGREEMENT NOT AN EMPLOYEE FOR TAX PURPOSE + 90% OF INCOME FROM PRODUCTION NOT HOURS WORKED

how are Illinois property taxes payed?

ARREARS

WHERE IS ZONING INFO FOUND

AT A MUNICIPALITIES WEB SITE

WHAT ARE THE LICENSEE'S MINIMUM SERVICE ?

Accept, Assist, Answer ( triple A's)

WHAT IS A NET LEASE?

TENANTS PAYS ALL OR SOME OF THE OPRATING EXPENSES PLUS A BASE RENT TRIPLE NET

what is included in the APR?

THE ANNUAL INTEREST RATE AND ALL LOAN CHARGES

WHO CAN A BROKER NOT BE DUAL AGENT FOR

THEMSELFS

HOW ARE PRIVATE RESTRICTIVE CONVENIENCE ENFORCED?

THEY ARE ENFORCED VIA THE COURTS

WHAT CAN LEASING AGENT not DO

THEY ARE LIMITED TO LEASING ACTIVITIES ONLY

WHAT IS PROBATION?

THEY ENSURE EXPENSES ARE DIVIDED FAIRLY

WHAT IS THE BEST EVIDENCE OF PROPERTY OWNERSHIP IN ILLINOIS?

TITLE INSURANCE

WHAT IS THE MORTGAGEE CONCERNED WITH

PROPERTY VALUE, MAKING SURE TAXES AND INSURANCE ARE PAYED, BEING RE-PAID (getting back their money)

an arrangement where in the seller of the land knows as a vendor becomes a creditor 0of the buyer know as the vendee and the deed is not delivered to the buyer until the debt is paid is know as

installment agreement for warranty deed

when a broker represents that minorities R moving into the area to get homeowners to sell their properties this activity is

blockbusting

a mortgage broker generally offers which of the following services

bringing the borrower and the lender t0gether

how does a property become a condominium

by recording a condominium declaration

buyer John has not signed a buyer agency agreement with broker a broker a shows John houses listed in the pls John is

client of the broker

which of the following would be a violation of license law

collecting a commission 0r fee from b0th parties w/h out disclosing this to 2 parties

the real estate contract provides that the buyer can void the contract and obtain a refund of his earnest money if the buyer is unable to secure a mortgage loan this provision is known as

contingency

prepaid homeowners association dues will be rejected on the HUD-1 closing statement as a

credit to seller

in a real estate contract earnest $ is

customary

under Illinois law a person who receives info. as to the availability of brokerage services from a broker but it is not represented by that broker is a

customer

in the formula I/R=V used for appraising value for income properties as the value increasing the capitalization rate

decreases

if a property sold at a mortgage foreclosure does not bring an amount suffficient to satisfy the outstanding mortgage debt, the mortgagor may be responsible for

deficiency judgment

once an IL broker receives earnest money along with an accepted real estate contract she must

deposit it in the sponsoring broker's trust escrown account

an Illinois real estate broker is required to have a written employment contract with his/her sponsoring broker among the purpose of that contract is to

describe the broker's basis for compensation

in IL a broker must perform all of the following minimum services except

direct the client to respond to all offers in a timely manner

which of the following would be acceptable for a brokers John smith to use for team name

js real estate team (NOT SURE CAUSE THEY ALL R MISLEADING terms pg272)

which of the following causes brain damage part. in children

lead

Illinois landlords who lease residential apartments build before 1978 must comply with the law which requires warnings to tenants abt

lead paint hazards

steering is

leading prospective homeowners to or away from certain neighborhoods

a vacant lot at the corner of a busy city intersection is a suspicious place for

leaking under st0rage tanks

the golf course management gives a golfer permission to golf on the golf course the golfer has

license to enter the land

a contracts sworn statement and lien waivers are require to eliminate

mechanic lien c.

which of the following is recorded to provide a security interest for a lender

mortgage

to determine the net proceeds to the seller after payment of the brokerages commission you must

multiply the commission rate x the sale price and - (sub) that figure from the sale price

Illinois law provides that landlords

must give 5 day or 10 day notice to the tenants as a prerequisite t0 filing an eviction lawsuit

In a typical agency relationship between broker and client, the broker's commission is determined by A) state law. B) the local real estate board. C) mutual agreement. D) minimums based on the property type.

mutual agreement

a lessee who pays some or all of the lessor's property expenses has a

net lease

a glen ellen homeowner tellshis broker I want to clear $225,000 from the sale of my home ill hire U to sell my home on the following basis sell the home for whatever U can get over $225,000 and keep the difference as your commission this arrangement is

net listing

the owner constructed a building that is 7 stories high. several years later the municipal changed the zoning ordinance prohibiting buildings that excess six stories in height. which of the following is true regarding the existing seven story building

nonc0nforming use

licensing for which of the following is Voluntary in IL

none of the above

the essential elements of a contractor include all of the following except

notarized signatures

a real estate brokers authority to act on behalf of his client terminates

on the date the br0ker is discharged by the client

what Is the tenant in common

one who has an undivided interest in a property

zoning information regarding a parcel of land can be f0und in the

ordinances of the minicipality in which the parcel is l0cated

Vince wants to set up an LLC 0r corporation to receive his commission payments from his sponsoring br0ker to be legal the entity must either be

owned by only Vince 0r Vince + his spouse

mortgage lenders want assurance that future real estate taxes will be paid, the most common way to do this is required the borrower to

pay into an escrow impound account

the following easement terminates upon the death of the easement holder

personal easement in gross

Bill of Sale conveys

personal property

broker Juanita was accused of violating antitrust laws. she was probably accused of

price fixing commission rates

what are special assessments ?

property owner pays local projects, sidewalks, sewers, act.

the process by which expenses R handled @ the closing of a real estate transaction so that both the buyer and the seller pay their respective portions of debt is called

proration

an Illinois broker who offers a guarantee sales plan must

provide details of the plan in writing to the seller

the residential real property disclosure act

provides for a disclosure report to be completed by the seller

which of the following is not a fiduciary duty

punctuality

the right of a mortgagor to prevent a foreclosure sale after a foreclosure suit has begun by paying the debt is called

redemption

when a lender refuses to make a loan in a certain neighborhood bc of the racial composition of the people who live in that neighborhood the lender if guilty 0f

redlining

in Illinois a residential leasing agent may do all of the following except

refer buyer + seller clients to a broker licensee for a fee

A women conveys a life estate to her son- in- law and stipulates that upon his death the estate will pass to her grandson. The grandson has an:

remainder interest

the federal truth in lending act regulation

requires lender to disclose apr

your neighbors use your driveway to reach their garage on their property, the ownership, 0f the neighbors real estate includes an easement appurtenant giving them the right to use the driveway over your property your property is the

servient tenement

taxes levied on property in a designated area to pay for the cost of installing sewers R called

special assessments

what must a print advertisement contain?

sponsoring broker's name, city, state, and franchise.

a real estate transaction closes on the 151 day of the year with the prior years real estate taxes paid in the amount on $3,617.00 the current years taxes paid and contract provision for pro-rations @ 105% of the previous years tax bill. the tax proration based on a 365 day year for the year of closing is

$1,571.17 credit to the buyer

the listing broker is entitled to one half of the commission earned by her office on the sale of the property she listed the total commission is 5.5%. the property sold for $160,000 through MLS. A 3% commission was paid to the office representing the buyer.What was the amount of the listing broker's commission?

$2,ooo

percentage lease are frequently used for

(retail business and restaurants) retail stores and sales centers

WHAT DOES THE LAW SAY ABT TEAM MATES

1 CAN NOT MARKET A TEAM IN SUCH A WAY THAT THE PUBLIC THINKS THE TEAM IS A SPONSORING BROKER

when does a tax buyer take title to a property?

2.5 years after the tax sale and no redemption has occured

with the exaction of cook county what is real estate assessed amount of money value?

33 1/3% or 33.33

An acre contains

43,560 square feet

WHAT ARE NOTICE REQUIREMENTS FOR LANDLORDS?

5 DAYS NOTICE FOR LATE RENT +10 DAYS FOR ANY OTHER LEASE BREACH

a property consists of 5 acres how many 50 foot by 75 foot lots can be subdivided from the property

58 **

in Illinois the mortgager's redemption period after the foreclosure sale is completed is

7 months

how much interest is paid in the first monthly payment when the loan amount is $140,000 the interest rate is 7%and the m0nthly payment is $931.42

816.67 or 716.67

WHAT IS A CONTINGENCY

A CONDITION IN THE CONTRACT THAT MUST BE MET

WHAT IS RECORDED AS SECURITY FOR A LENDER ?

A MORTGAGE

a seller refuses to pay a commission to their brokerage even though there was a valid listing agreement + the brokerage procured a buyer for the property what can the brokerage do

sue the seller for the c0mmissi0n

a licensed broker in IL may receive compensation from

t sponsoring broker

a broker is conducting an open house where the seller has given written consent to dual agency buyer Brenda comes through and tells she would like to make an offer the broker asks Brenda is she is exclusively working with any brokers. Brenda responds that she is working exclusively with another broker what should be the brokers next step

tell Brenda that she needs to write any offers with her exclusive agent

a property owner signed a 90 day listing agreement with a broker the owner was killed in an accident before the listing expired now the listing is

terminated automatically upon the death 0f the princippal

buyer Dave places an offer on seller jan's property. jan makes a counter offer to Dave. this will affect Dave original offer as follows

terminates it

all print advertising must contain all of the following except

the address of the sponsoring broker (must contain: the name of the sponsoring brokerage, the name of the sponsoring brokerage must be the size or larger than the brokers name, and the name of the sponsoring brokerages franchise affiliation (if any).

what advantage is there to a land of trust

the beneficiary is unknown

a broker may maintain an office in a retail sales establishment as long as

the brokers office is set apart as a separate and distinct area from the retail sale area

a buyer took delivery of the deed to his new house but forgot to record deed.. under these circumstances

the buyers interest is not fully protected against 3rd parties

which of the following is T abt condominium ownership

the common elements cannot B s0ld separately

it is necessary to calculate a $ amount for depreciation when using which of the following

the cost approach to value

in the appraisal of a large apartment complex the most weight would be given to which of the following approaches to value

the income approach

Real Estate Settlement Procedures Act (RESPA) requires

the lender to disclose closing costs prior to the cl0sing cost

If the amount realized at a sheriff's sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to

the mortgagor

a property mangers primary obligation is to

the owner

an Illinois land trust provides the following benefit to the owner of the beneficial interest in the trust property

the owner of the beneficial interest is not identified in the public records

a property becomes a condominium if

the owner of the land executes and records a declaration of condominium

a promissory note is

the primary evidence 0f a debt

the mortgagee is concerned that the mortgage is recorded proptly after the mortgage funds R disbursed the mortgagees concern relates to

the priority of mortgage liens in the recorded office

in Illinois a property escheats to the county when

the property owner dies intestate and whit any heirs surviving him

what is the difference between joint tenants and tenants in common

the right of survivorship

what is the right of redemption?

the right to reclaim a property once a lender is made whole after notice and before the foreclosure sale

and individual rents an apartment for 1year the landlord sells the building during the 1 year lease term what effect does the sale have on the lease

the sale does not affect the lease

in Illinois a broker can be liable for failing to disclose. all of the following except the fact that

the seller has AIDS

review of the following documents would reveal existing encroachments

the survey

A and B are joint tenants B sells his interest to C what is the relationship of A and C

they R tenants in comm0n

regarding private restrictive covenants running with the land

they are enforced by private civil action

Kate is advertising her listing 456 oak on twitter within the ad she doesn't not have her sponsoring brokers info

this is legal as long as she supplies a direct link within the ad where the info can be f0und

an Illinois criminal court judge required the defendant to post bond. the defendant had no cash owned IL REAL ESTATE. the judge required the defendant to bring evidence of real estate ownership to court. the defendant should bring

title insurance policy

the best way for an IL BROKER to avoid liability for misrepresenting when acting as an agent for a seller in the sale or real estate is to

to disclose all material adverse facts about the physical condition of the property that are actually kn0wn by the br0ker..

how long can a licensee act on behalf of their client?

until the client discharges them

to effectively use the sales comparison approach to value an appraiser should

use only comparable sales that are likely to please the client ??

while an agent's showing a house to a potential buyer the agent said I don't think there's a better view in the city was this statement by the agent permissible

yes, described as puffing

seller sam had an accepted offer on his home. the buyer did a home inspection and canceled the contract the buyer's agent informed the listing broker of latent defects found the broker should disclose the latent defects to the seller and

disclose the defect to any prospective buyers

PERSONAL PROPERTY IS CONVEYED HOW?

BILL OF SALE

the real estate brokers responsibility to keep the principle informed of all of the facts that could affect a transaction is the duty of

disclosure

WHAT IS THE ACRONYM FOR THE ELEMENTS OF VALID CONTRACT?

CLOAC

WHAT IS THE SALES APPROACH TO VALUE?

COMPARING THE SUBJECT PROPERTY WITH RECENTLY SOLD COM-PARABLES

PREPAID PRORATIONS ARE A CREDIT TO WHOM AND A DEBIT TO WHOM?

CREDIT TO THE SELLER AND DEBIT TO THE BUYER

KEEPING THE CLIENT INFORMATION IS THE DUTY OF?

DISCLOSURE

WHAT IS REDLINING

DISCRIMINATION REGARDING LOANS AND INSURANCE

Samantha hired her next door neighbor Darren a licensed real estate broker to sell her house Samantha's backyard would severely flood after every significant rainfall Darren found a buyer and the home was sold. no one told the buyer abt the flooding problem . the buyer field suit based on failure to disclose the flooding problem Darren may be found liable for failure to disclose the flooding bc

Darren probably knew that Samantha pr0perty had a flooding problem

WHAT IS PUFFING AND IS IT LEGAL IN ILLINOIS?

EXAGGERATION AND NO

WHAT IS STEERING?

FAIR HOUSING VIOLATIONS WHERE A BROKER SHOWS A CLIENTS HOM IN NEIGHBORHOODS BASED ON PROTECTED CLASSES

WHAT DOES THE CASE Chicago Bar Association et al v. Quinlan and Tyson inc SAY A BROKER CAN DO ?

FILL IN THE BLANKS AND DELETE PROVISIONS THAT DO NOT APPLY TO THE TRANSACTION

the Illinois real estate license act is administered by

IDFPR- IL department of financial and professional regulati0n

WHAT IS THE ACCELERATION CLAUSE ?

IF A BUYER DEFAULTS THE LENDER CAN ACCELERATE THE MATURITY

WHAT REQUIRED REAL ESTATE SALES CONTRACTS BE IN WRITING TO BE ENFORCEABLE

ILLINOIS STATUTE FRAUDS

WHERE AND WHEN IS EARNEST MONEY DEPOSITED?

IN A BROKERS NON INTEREST BEARING ESCROW ACCOUNT WITHIN 1 BIZ DAY OF THE CONTRACT ACCEPTANCE

HOW DO LANDERS HOLD MONEY FOR PROPERTY TAX?

IN AN ESCROW ACCOUNT

WHAT IS APPRAISAL?

ITS AN OPINION OF VALUE

Joe pin rented a commercial space for a bowling alley, when he took possession under the lease he installed the lanes the ball return the pin setters and the electronic score boards when his lease ends

J0e can rem0ve the trade fixtures bef0re his lease ends

which of the following in N0T required to have a real estate license

Jane an empl0yee of AT&T who represents AT&T in the leasing...

DOES A SALE AFFECT A LEASE

NO

IS A BROKER EVER EXEMPT FROM FAIR HOUSING LAWS?

NO

WHAT DOES A COUNTER OFFER DO THE ORIGINAL OFFER?

MAKES THE ORIGINAL NON-EXISTENT

IS EARNEST MONEY MANDATORY ?

NO

MUST A LICENSEE DISCLOSE A STIGMA?

NO

what does a lien waver eliminate

eliminates a contractor or subtractor from recording a mechanic lien

A method of sealing off disintegrating asbestos is called

encapsulati0n

a typical mortgage payment is composed of the following

PITI (principal, interest, taxes, and insurance)

residential mortgage loans in excess of 80% LTV (. ) usually must have

PMI (private m0rtgage Insurance)

WHAT ARE ANTI-TRUST VIOLATIONS THAT CAN OCCUR IN REAL ESTATE ?

PRICE FIXING, GROUP BOYCOTTING, MARKET ALLOCATION TIE IN AGREEMENTS

WHAT LISTING OFFERS THE BROKER THE LEAST PROTECTION

OPEN LISTING

WHAT ARE THE PURPOSE OF A LICENSEE'S AGREEMENT WITH THEIR SPONSORING BROKER?

OUTLINES COMPENSATION AND DUTIES

WHAT IS BILATERAL CONTRACT ?

PROMISE FOR A PROMISE

WHAT IS PITI?

Principle, Interest, Tax, INSURANCE

WHAT LOANS IN EXCESS OF 80% REQUIRE

Private Mortgage Insurance (PMI)

the right of the owner of the property l0cated along the banks of a river are called

RIParian

what is the name of rights for those living along a river?

RIParian

WHAT IS THE RESIDENTIAL REAL PROPERTY DISCLOSURE ACT ?

SELLER DISCLOSURES ALL KNOWN MATERIAL AND LATENT DEFECTS

WHO SIGNS THE DEED WHEN CONVEYING PROPERTY ?

SELLER/GRANTOR

WHO MUST DISCLOSE IS THEY ARE AWARE OF LEAD-BASED PAINT?

SELLER/LANDOARD

WHAT IS AN INSTALLMENT AGREEMENT ?

SELLER/OWNER FINANCING WHERE THE SELLER ACTS AS THE BANK

WHAT DOES THE SELLER CUSTOMARILY PAY FOR?

SURVEY ATTORNEY, TITTLE INSURANCE, COMMISSION, PROPERTY TAXES, MORTGAGE PAY OFF

the primary intent of zoning ordinances is to. 555

ensure the health, safety, and welfare of the community.

The purpose of an appraisal is to

estimate the value of a property

the type of listing agreement that provides for the payment of a commission to the broker even if the owner himself makes the sale with0ut the aid of the broker is called

exclusive right to sell listing

the price on which both buyer and seller agree when both parties know use for which the property is best suited neither party being under any undue pressure during a reasonable length of time is known as the

fair market value

equity equals

fair market value - the owners mortgage l0an balance

in Chicago bar association et al v quintal and Tyson inc the il Supreme Court held that real estate licensees could

fill in the blanks of sales contracts generally used in the areas

A real estate loan payable in periodic installments that are sufficient to pay the principal in full during the term of the loan is called

fully amortized loan

LEAD IS DANGEROUS FOR KIDS?

YES

who signs the deed of conveyance in a RS transaction

grantor only

deed restrictions are a means by which

grantors control the future use of the property

a real estate broker who is an independence contractor can receive

gross commissions 0n transactions

one of the advantages of pat and jan owning property as joint tenant rater than as tenants is common is

if 1 joint tenant dies probate is avoided and the survivor becomes the s0le owner

the designated managing broker of idreambig realtors agrees to accept only clients north of main st in their town + the designated managing broker of lotsofsales realtors agrees to accept only clients south main st in that town this is

illegal allocation of customers markets

the assessed value of real estate for tax purpose is

in IL generally 1/3 the fair market value except in c00k county

in Illinois real estate taxes are payable

in the year after the year in which tax r assessed

butch is selling by owner the one house he owns and occupies. he receives a full price offer from Sharon the women down the street, butch refuses to sell the house to Sharon bc some years ago he had experience a bitter divorce and now refuses to sell his house to a woman butch is

in violation of the provision of the federal fair housing act for discriminati0n on the basis of sex

which of the following would be considered to be a dual agency

a broker acting for both the buyer and the seller in the same transaction

in which of the following circumstances would it be permissible for broker Agatha to be a dual agent

a property that her next d00r neighb0r 0wns

the federal fair housing act provides for certain exemptions a real estate broker is exempt when selling her own home provided she

a real estate br0ker is NeVer exempt

in the rectangular survey system

a township contains 36 sections

the clause in a mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default is the

acceleration clause

sam discovered that his neighbor inadvertently installed a fence 3 ft over Sam's west property line. sam is concerned that he may lose ownership rights to the property enclosed by the fence due to

adverse possession

if a property owner fails to pay real estate taxes and the taxes are sold and a tax deed issued the tax buyer takes title

after the owners redemption peri0d lapses

the IL statue of frauds requires

all contracts for the sale of real estate to be in writing in 0rder to be enforceable in court

which of the following is true of listing agreements in IL

all exclusive listings agreements must B IN writing

in order to determine whether or not a real estate broker is working as an independent contractor or employee the IRS l00ks @

all of the above

in Illinois the payment for which of the following is customarily the seller's responsibility

all of the above (owners title insurance p, state,county transfer tx, accrued general RET)

the annual percentage rate (apr) includes

all the above (interest, discount points, and loan application fee)

a lot is surrounded by other privately owned lots and has no street access. the owner of the land locked parcel may be able to obtain

an easement by necessity

which type of listing contract offers the least protection to the listing broker

an open listing

in Illinois all of the following would be grounds for disiplineof a broker except

being convicted of a felony *

which of the following contracts requires a promise from all parties

bilateral contract