Illinois Real Estate State Portion only

Real property was conveyed for $185,000. What amount will have to be paid in county transfer tax? A) $37.00 B) $92.50 C) $185.00 D) $1,850.00

B) $92.50 (321)

How far back does a normal Illinois title search go? A) 15 years B) 40 years C) 75 years D) 125 years

B) 40 years

Which of these would be required to be surveyed and have a plat recorded under the Illinois Plat Act? A) An owner divides a 30-acre parcel into five equal lots B) An owner divides a 20-acre parcel into five equal lots C) An owner conveys a single 20-acre parcel D) An owner divides a single 20 acre parcel into two 6 acre lots and an 8-acre lot

B) An owner divides a 20-acre lot into five equal lots (167)

How often is the assessed valuation of all real estate in Illinois adjusted by county authorities? A) Quarterly B) Annually C) Biennially D) Every three years

B) Annually

An Illinois licensee's license may be suspended or revoked for which of the following actions? A) Giving earnest money to his or her sponsoring broker rather than depositing it directly B) Being declared mentally incompetent C) Hold harmless clause D) Name of the lender

B) Being declared mentally incompetent ( 275-277)

Which activity requires a real estate license? A) An MLS providing listing information to members B) A resident manager who collects rent on behalf of a building owner. C) A service that, for a fee, matches individuals who want to buy and sell properties D) An executor selling a decedent's building

C) A service that, for a fee, matches individuals who want to buy and sell properties ( 254-255)

How are members of the Illinois Real Estate Administration and Disciplinary Board selected? A) Appointed by the governor B) Appointed by the commissioner of real estate C) Elected by licensees D) Elected in statewide elections every six years

A) Appointed by the governor (253)

A married couple lives in Springfield, Illinois. The wife is the owner of their home. If the couple decides to sell their home and move to Wisconsin, who is required to sign the listing agreement? A) Both the husband and wife must sign the listing B) Because the wife is the sole owner of their home, she is the only party legally required to 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.

A) Both the husband and wife must sign the listing (144)

Under a land contract in Illinois, what type of title does the purchaser have until the "final" closing when the obligation to seller is paid in full? A) Equitable title B) Full legal title C) Land title D) No title

A) Equitable title (216)

Which of these is available to a surviving spouse in Illinois? A) Homestead B) Dower C) Curtesy D) A marital easement

A) Homestead (128)

A couple is married and both are Illinois residents. If their principal residence, with a mortgage of $50,000, is foreclosed on and sold for $165,000, how much money will be left over to satisfy any unsecured debt? A) nothing B) $85,000 C) $100,000 D) $115,000

B) $85,000

What is the relationship between the Illinois agency statutes and the common law of agency? A) Illinois agency statutes supersede the common law of agency in Illinois. B) Illinois agency statutes and the common law of agency both govern agency relationships in Illinois. C) Agency statutes are simply an administrative codification of the common law of agency. D) The Illinois agency statutes govern managing broker's relationships with clients, while the common law of agency applies to broker relationships.

A) Illinois agency status supersede the common law of agency in Illinois. (35)

An Illinois real estate licensee is the listing agent for a home. After one month of the three-month listing passes without any offers on the property, the licensee becomes concerned. At the time the listing agreement was signed, the licensee and the sellers orally agreed that if no offers were received after one month, the price of the property would be reduced by 10%. Because the sellers are out of town, the licensee crosses out the old listing price, writes in the new one, and then updates the information on the multiple listing service. Three days later, a prospective buyer comes into the listing licensee's office to make an offer on the property. Based on these facts, which of these statements is TRUE? A) Illinois licensees are prohibited by law from making any addition to, deletion from, or other alteration of a written listing agreement without the written consent of the principal. B) Although Illinois law usually prohibits altering a written listing agreement, the listing licensee acted properly in this situation because the sellers were out of town. C) Changing the listing price of a property is a matter of professional discretion, and Illinois licensees are permitted to make alterations to only that aspect of a listing agreement without the written consent of the principal. D) Although Illinois law usually prohibits altering a written listing agreement, the listing licensee acted properly in this situation because of the prior oral agreement with the sellers.

A) Illinois licensees are prohibited by law from making any addition to, deletion from, or other alteration of a written listing agreement without the written consent of the principal. ( 199-200)

Which of these is TRUE pursuant to the Illinois Human Rights Act? A) It is a civil rights violation to require, as a condition to the rental of an apartment, that the prospective tenant not have any children. B) It is legal to refuse to rent to a tenant because she has a service animal. C) It is legal to refuse to sell to a prospective purchaser because she has a service dog. D) It is legal to refuse to rent to a blind person if the landlord states safety concerns as the rationale for the refusal.

A) It is a civil rights violation to require, as a condition to the rental of an apartment, that the prospective tenant not have any children. (407)

Illegal discrimination might result in which of these actions? A) Loss of license B) Unlimited civil fines by the Department C) Reduced errors and omissions insurance premiums D) None of these

A) Loss of license (274)

An Illinois resident was born on March 6, 2011. When will this person become of legal age? A) March 6, 2029 B) March 7, 2029 C) March 6, 2032 D) March 7 2032

A) March 6, 2029

Illinois law requires that a preprinted offer to purchase that is intended to become a binding contract have which of these headings? A) Real Estate Sales Contract B) Offer to Purchase C) Standard Purchase Offer and Contract D) Purchase Offer Form

A) Real Estate Sales Contract (200)

In Illinois, which of these is a required element of a valid deed? A) Specifically identified grantee B) Notarization of grantees' signature C) Hold harmless clause D) name of the lender

A) Specifically identified grantee ( 226)

In Illinois, if a landlord purposely fails to maintain an apartment building's furnace and plumbing, what option is available to a tenant whose apartment is without heat and water during the first three months of winter? A) Suit for constructive eviction B) Suit for actual eviction C) Suit for forcible detainer D) Suit for negligent default

A) Suit for constructive eviction (332)

A nonpossessory interest in real property is also called A) an encumbrance B) a leasehold estate C) a license D) a servient tenement

A) an encumbrance

Regarding mortgages, Illinois is most accurately described as A) an intermediate mortgage theory state B) a lien-theory state C) a title-theory state D) an equitable-theory state

A) an intermediate mortgage theory state (297)

Which of these statements in a deed would establish a valid 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, husband and wife, not as joint tenants or tenants in common but as tenants by the entirety" C)"To A and B, jointly, as married tenants by the entirety" D) "To A and B as tenants by the entirety in accordance with Illinois law"

B) "To A and B, husband and wife, not as joint tenants in common by as tenants by the entirety" (143-144)

A transaction is closing on May 2 in a non-leap year. Which of these is the proration of an annual charge of $560, using the statutory variation method?A) $118.78 B) $189.68 C) $190.78 D) $191.98

B) $189.68

A woman's property in Peoria has an assessed value of $175,000. The local tax rate is 3%, and no equalization factor is used. If the tax was levied in April 2011, the woman had to pay A) $2,625 on January 1, 2012 B) $2,625 on June 1, 2012 C) $2,625 on September 1, 2011 D) $5,250 on June 1, 2011

B) $2,625 on June 1, 2012

The sale price of the property is $250,000. What is the Illinois state transfer tax on this transaction? A) $125 B) $250 C) $500 D) $1,250

B) $250

A sponsoring broker received an earnest money deposit along with a sales contract from a buyer. Under Illinois law, what must the sponsoring broker do with the money? A) Open a special, separate escrow account that will contain funds for this transaction only, separate from funds received in any other transaction. B) Deposit the money in an existing special non interest-bearing escrow account in which all earnest money received in any other transaction. C) Immediately (or by the next business day) commingle the funds by depositing the earnest money in his personal interest-bearing checking or savings account. D) Hold the earnest money deposit in a secure place in his real estate brokerage office until the offer is accepted.

B) Deposit the money in an existing special non interest-bearing escrow account in which all earnest money received in any other transaction. (216)

Which of these is legal in Illinois? A) Offering finder's fees to consumers B) Giving referral fees to other licensees C) Using a lottery to convey the property D) Indicating a "standard commission" when asked

B) Giving referral fees to other licensees (274)

For which of he following acts is IDFPR required to suspend or revoke a licensee's license? A) Failing to perform as promised in a guaranteed sales plan. B) Having been found liable in a civil trial for illegal discrimination C) Commingling others' money or property with the licensee's own D) Failing to provide information requested by IDFPR within 30 days of the request as part of a complaint or audit procedure

B) Having been found liable in a civil trial for illegal discrimination

A real estate sponsoring broker commonly names individual sponsored licensees in her brokerage office as the exclusive agents of certain clients, leaving the other sponsored licensees free to represent other parties in a transaction. Which of these statements is TRUE regarding this practice? A) Because it is a common office practice, it is permitted as an exception to the general statutory prohibition against such arrangements. B) Illinois agency law specifically permits designated agency arrangements such as this. C) This is an example of designated agency, which is an illegal relationship under Illinois agency law. D) The sponsoring broker will be considered an undisclosed dual agent under these facts and will be in violation of Illinois law.

B) Illinois agency law specifically permits designated agency arrangements such as this ( 50-54)

Which of these are exempt from the provisions of the Real Estate License Act of 2000? A) Property owners who sell or lease property on behalf of others because they are familiar with the process B) Individual who is employed as a resident property manager C) Individual who engages in fee-based management services D) Individual involved in the business of selling equitable title to property more than twice in any 12-month period

B) Individual who is employed as a resident property manager (257)

What is the name of the act that requires that Illinois developers file statements of record with HUD before they offer unimproved lots for sale in interstate commerce via telephone? A) HUD Registration Act B) Interstate Land Sales Full Disclosure Act C) Interstate Undeveloped Land Act D) NAFA

B) Interstate Land Sales Full Disclosure Act

In Illinois, which of these in a listing agreement would result in the suspension or revocation of a licensee's license to practice real estate? A) A specified commission rate B) No specific termination date C) No broker protection clause D) A specific termination date

B) No specific termination date (106)

Regarding security deposits, what difference is there between requirements for the landlord of a three-unit apartment building and the landlord of a 30-unit apartment building? A) Both landlords must give tenants an itemized statement of alleged damages before they can withhold any part of the security deposit as compensation. B) Only the landlord of the 30-unit building is required to pay interest on security deposits. C) Only the landlord of the three-unit building is required to give tenants an itemized statement of alleged damages before any part of the security deposit may be withheld as compensation. D) Both landlords are required to pay interest on security deposits at a rate linked to minimum deposit passbook savings accounts at Illinois's largest commercial bank.

B) Only the landlord of the 30-unit building is required to pay interest on security deposits ( 330)

Which is a requirement for a deed to be recorded in Illinois? A) The name of the grantee typed or printed below the grantee's signature B) Payment of required tax stamps C) A blank page for use by the recorder D) The name, address, and age of the grantee

B) Payment of required tax stamps (242-243)

In Illinois, the amount of consideration used to determine transfer taxes must be shown on the A) Recording Form B) Real Estate Declaration of Transfer C) Blue Sheet D) Tax Code Sheet

B) Real Estate Declaration of Transfer

A landlord has a "no pets" policy in his apartment building. If a visually impaired person wants to rent an apartment from the landlord, but owns a guide dog, which of these statements is TRUE? A) If the landlord's "no pets" policy is applied uniformly, in a nondiscriminatory manner, it may be legally applied to the guide dog as well B) The Illinois Human Rights Act specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the landlord's "no pets" policy C) Under the Illinois Human Rights Act, the landlord may not discriminate against the visually impaired person on the basis of a "no pets' policy, but the landlord may require the tenant to pay an additional damage fee. D) The Illinois Human Rights Act does not address the issue of guide, hearing, or support dogs

B) The Illinois Human Rights Act specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of a "no pets" policy (408-410)

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 county's ordinance B) The city's ordinance C) The relevant township ordinance D) None of these

B) The city's ordinance

An approximately straight line (except for corrections) connecting Rockford and Cairo is the A) Second Principal Meridian B) Third Principal Meridian C) Fourth Principal Meridian D) Centralia Base Line

B) Third Principal Meridian (160)

A woman has a mortgage loan secured by real property. Under recent law, the woman may terminate the loan's escrow account when the remaining balance is equal to or less than what percentage of the original amount?A)35% B)50% C) 65% D) 75%

C) 65%

Is there any limitation on an original grantor's right of reverter in Illinois? A) Yes; both an original grantor's right of reverter and the enforceability of the underlying condition expire by law after 20 years. B) Yes; the original grantor's right of reverter continues for 40 years; although the underlying condition remains enforceable. C) Yes; both the original grantor's right of reverter and the underlying condition automatically expire after 99 years. D) no; under Illinois law, there is no limitation on an original grantor's future interest.

B) Yes; the original grantor's right of reverter continues for 40 years; although the underlying condition remains enforceable. (124)

An Illinois real estate licensee may lawfully collect compensation from A) either a buyer or a seller B) a sponsoring broker only C) any party to the transaction or the party's representative D) a licensed real estate broker only

B) a sponsoring broker only

In Illinois, if an owner defaults on a mortgage loan and the property is ordered sold at a foreclosure sale, the owner may redeem the property A) before the sale, under the statutory right of redemption B) before the sale, under the equitable right of redemption C) after the sale, under the statutory right of redemption D) after the sale, under the statutory right of reinstatement

B) before the sale, under the equitable right of redemption

A broker represents the seller in a transaction. When prospective buyers ask to look at the property, the broker must, A) tell them that they must first enter into a buyer representation agreement with another licensee. B) clearly disclose in writing that the broker represents the seller's interests. C) inform them that if a transaction results, a dual agency may be the best course of action. D) show them the property without making any disclosures about the broker's relationship with the seller because the best time to close is at contract signing.

B) clearly disclose in writing that the broker represents the seller's interests. (96)

In Illinois, real estate licensees may A) complete a bill of sale after a sales contract has been signed B) fill in blanks on preprinted form contracts customarily used in their community C) suggest additional language to be added to a preprinted sales contract by a buyer or a seller. D) explain the legal significance of specific preprinted contract clauses to a buyer or a seller

B) fill in blanks on preprinted form contracts customarily used in their community

A judgement issued by an Illinois court is a A) general, involuntary legal lien on all of a debtor's real property and an equitable, specific lien on the debtor's personal property. B) general, involuntary, equitable lien on both real and personal property owned by a debtor. C) specific lien on the debtor's real and personal property, effective for a nonrenewable period of five years. D) 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 a debtor (183)

The individual appointed to the position of real estate coordinator A) may not have held a real estate license in the past. B) has their license put into inactive status for the duration of the appointment. C) must hold an active real estate license D) must sign a statement that she will not pursue real estate activities that require a license during the appointment

B) has their license put into inactive status for the duration of the appointment ( 253)

A common item appearing in an Illinois listing agreement is A) a statement that the property must be shown only to certain prospective buyers of race, color, religion, national origin, sex handicap, or familial status B) the time duration of the listing C) the complete legal description of the property being sold D) the proposed net sales price of the property.

B) the time duration of the listing (99)

A sponsoring broker signs a listing agreement with a seller. The agreement contains the following clause: "If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, which of these statements is TRUE? A) The agreement is legal under Illinois law because it contains a reference to a specific time limit. B) This agreement is illegal in Illinois C) Illinois law will automatically apply a statutory six-month listing period to this open listing. D) This agreement is legal under Illinois law because the time periods are for less than six months each

B) this agreement is illegal in Illinois (106)

An ownership arrangement in which the purchaser receives a fee simple ownership in real property for longer that three years but the right to actually use the property for a specific period of less than one year (on a recurring basis) is a A) time-share use B) time-share estate C) public offering statement D) membership camp

B) time-share estate (151)

A man owned property in Peoria before his marriage. The wife has no ownership interest in the property. The owner and his wife live in Chicago, and a tenant occupies the house in Peoria. If the owner wants to sell the property, who is required by law to sign the listing agreement? A) Both the owner and his wife because they are a married couple B) The owner only because he and his wife do not live in the house C) The owner and the tenant as tenant in possession D) The owner, is wife, and the tenant

B)The owner only because he and his wife do not live in the house (144)

The required amount of continuing education for an Illinois broker is A) 6 hours per year B) 12 hours every year C) 12 hours per renewal period D) waived by examination

C) 12 hours per renewal period (80)

How long must a claimant hold adverse, exclusive, continuous, and uninterrupted use of a property under claim of right in Illinois in order to obtain a prescriptive easement in Illinois? A) 10 years B) 17 years C) 20 years D) 30 years

C) 20 years (132)

In Illinois, how much written notice is a landlord required to give a tenant to pay overdue rent before terminating the lease, when the tenant is in default only for failing to pay rent on time? A) 0 days B) 3 days C) 5 days D) 10 days

C) 5 days

Several years ago a unit in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. What are the disclosure responsibilities to prospective purchasers of this unit?A) Agents must disclose both the murder and the AIDS-related death. B) Agents are specifically required to disclose the AIDS death and may (at seller discretion) disclose the murder. C) Agents are specifically prohibited by federal law from disclosing AIDS. D) Agents must not disclose the murder but should disclose the AIDS-related death.

C) Agents are specifically prohibited by federal law from disclosing AIDS. (270)

Three people decide to form a partnership to buy and sell real estate. One partner plans to specialize in residential real estate. The second, in commercial real estate, and the third does not plant list, sell or rent, but to supervise the office decor and plan holiday parties. Under these facts, which of the general partners needs to be licensed for the partnership to qualify for a broker's license in Illinois? A) None; under Illinois law, a partnership is an independent entity that may obtain a managing broker's license regardless of the status of any individual partner. B) Either of the two who are listing and selling, depending on whether the partnership's emphasis will be residential or commercial properties, must be licensed. C) All general partners in a general partnership must hold a broker or managing broker license. D) All three partners must be licensed real estate managing brokers.

C) All general partners in a general partnership must hold a broker or managing broker license (146-147)

Which of these is a requirement for obtaining an Illinois broker's license? A) Having successfully completed 45 hours of approved real estate courses B) Being at least 17 years of age C) Being of good moral character D) Having been actively engaged as a licensed broker for at least 5 years

C) Being of good moral character (258)

In Illinois, how must the real property transfer tax be paid? A) By personal check, made out to the Illinois Department of Revenue B) By certified check, made out to the Illinois Housing Development Authority C) By 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

C) By purchasing transfer tax stamps from the county recorder or appropriate local authority (231)

Which of these is essential to the validity of a deed in Illinois? A) A seal (or the word seal) B) Acknowledgement C) Granting clause D) Recording

C) Granting clause

Sam, an active licensee, spends his days at Acme Real Estate solely answering the phone and processing closing documents. A) Sam is exempt from continuing education requirements. B) Processing closing documents is a licensed activity. C) He must have a written employment agreement with the sponsoring broker. D) Though licensed for the last two years, since Sam doesn't transact business, he will not be able to obtain a managing broker's license.

C) He must have a written employment agreement with the sponsoring broker. (268)

In Illinois, which agency is responsible for licensing leasing agents? A) Division of Real Estate B) Department of Financial Institutions C) Illinois Department of Financial and Professional Regulation D) Department of Insurance Registration

C) Illinois Department of Financial and Professional Regulation (251-252)

What principle of landlord-tenet relations was established by the Illinois Supreme Court on 1972? A) Interest payments required on all security deposits B) Landlord damages for a tenant's failure to vacate the premises C) Implied warranty of habitability in residential tenancies. D) Landlord may forcibly remove a tenant without court action under the doctrine of "self-help,"

C) Implied warranty of habitability in residential tenancies.

The general datum plane referred to by surveyors throughout Illinois is the A) Chicago City Datum B) New York Harbor Datum C) North American Vertical Datum D) Centralia Datum

C) North American Vertical Datum (168)

A person who successfully completed her Illinois real estate education requirement on November 1, 2020, may take the state license exam no later than A) October 31, 2023 B) December 31, 2023 C) October 31, 2022 D) November 1, 2024

C) October 31, 2022 (258)

In Illinois, which property is totally exempt from paying general real estate taxes? A)Retirement housing for the elderly B) Properties financed with FHA funds C) Private schools D) Housing owned by a disabled veteran

C) Private schools

Chicago Bar Association, et al v. Quinlan and Tyson, Inc., established what principle in Illinois real estate law? A) Real Estate sponsoring brokers must establish a special escrow account for earnest money deposits. B) The seller must bear any losses that occur before title to property passes or before the buyer takes possession. C) Real Estate licensees may only fill in blanks and make appropriate deletions on preprinted standard form contracts. D) Once a contract is signed, a real estate licensee may or may not make any additions, deletions, or insertions without the written consent of the parties.

C) Real Estate licensees may only fill in blanks and make appropriate deletions on preprinted standard form contracts. (199)

A person dies without leaving a will. If the deceased owns real property in Illinois and has no heirs, what will happen to her real property? A) The deceased's real property will be taken by the county in which it is located under the power of eminent domain. B) Ownership of the deceased's real property will go to the state of Illinois through escheat. C) The deceased's property will escheat to the county in which it is located. D) The deceased's property will escheat to the county in which she last resided before her death.

C) The deceased's property will escheat to the county in which it is located. (122)

Many of the residents of the landlord's apartment building are elderly, and some are in poor health. To ensure that they are not being disturbed, the landlord politely declines to rent units to families individuals who have young children. However, the landlord provides such persons with a printed list of nearby apartment buildings that welcome children. Based on these facts, which of these statements is TRUE? A) By providing a printed list of alternative comparable housing, the landlord is in full compliance with the Illinois Human Rights Act. B)Because the landlord's primary intent is to protect existing tenants' quality of life, and not to discriminate against prospective tenants who have young children, the Illinois Human Rights Act does not apply to this situation .C) The landlord's policy violates the Illinois Human Rights Act D) While the landlord's policy, as stated violates the Illinois Human Rights Act, he could add a "no children" provision to leases offered to new tenants and avoid violating the act.

C) The landlord's policy violates the Illinois Human Rights Act (406)

In regards to advertising, which of the following is TRUE in Illinois? A) The name of the sponsoring broker need not appear. B) The licensee's license number must appear in all advertisements. C) The name of the sponsoring broker must be in the same or larger font size than that of the licensee. D) As part of the name, team names may include the word associates.

C) The name of the sponsoring broker bust be in the same or larger font than that of the licensee. (272)

What is the penalty if a person is convicted of practicing real estate without first obtaining a real estate license? A) Fine of up to $5,000 and/or up to six months imprisonment B) Fine up to $10,000 but no prison C) Up to $25,000 for each offense D) Minimum of six months but no more than one year imprisonment

C) Up to $25,000 for each offense

For three days, a man watched from his kitchen window as a small construction crew built an attractive gazebo in his backyard. The man had not contracted with anyone to build a gazebo and in fact had never given much thought to having one. But the man like what he saw. When the contractor presented the man with a bill for the work, the man refused to pay, pointing out that he'd never signed a contract to have the work done. Can the contractor impose a mechanic's lien on the mans property under Illinois law?A) No; in Illinois, a mechanic's lien attaches on the date the contract is signed or the work is ordered, and neither event occurred here. B) No; the man cannot be forced to pay for the contractor's mistake. C) Yes; if a landowner knows of work being done on the property and does not object or disclaim responsibility, a mechanic's lien may be created. D) Yes; the man should have mailed a notice of non responsibility to the contractor's main place of business.

C) Yes; if a landowner knows of work being onion the property and does not object or disclaim responsibility, a mechanic's lien may be created (182)

When a broker is representing her client, she is MOST likely acting as A) a universal agent B) an ostensible agent C) a special agent D) a dual agent

C) a special agent

A tenant agrees to rent an apartment for nine months under a verbal agreement with the landlord. If the tenant defaults, the landlord may A) not bring court action because of parol evidence rule. B) not bring court action because of the statute of frauds. C) bring a court action because one-year leases need not be in writing to be enforced. D) bring a court action because the statute of limitations does not apply to verbal leases.

C) bring a court action because one-year leases need not be in writing to be enforced.

The purpose of the Real Estate Recovery Fund is to A) permit licensees to reestablish their businesses after a natural or financial disaster B) reward consumers for identifying licensees who are engaged in violations of the real estate license law or other wrongful acts C) compensate individuals who suffer losses due to the wrongful acts of a licensee D) may for the court costs and legal fees required to defend licensees against accusations of wrongdoing

C) compensate individuals who suffer losses due to the wrongful acts of a licensee ( 281)

Which lien has priority in a foreclosure sale? A) first lien recorded B) Mechanics or material men who file timely notice after commencing work on the property C) deliquent property taxes D) mortgagee or original lender

C) delinquent property taxes (175)

IDFPR may NOT A) Conduct license examinations B) issue and renew licenses C) impose jail time on persons who violate license law D) collect fees from applicants and licenses

C) impose jail time on persons who violate license law ( 275-277)

In 1971, a developer conveyed a motel and restaurant to an investor "on condition that no liquor is ever served on the property." The conveyance provided that if liquor were served on this property, ownership would revert to the developer. In 2014, the investor sold the motel and restaurant to his son. Based on these facts which statement is TRUE? A) The sale of the motel and restaurant in 2014 extinguished the developer's right of reverter B) Both the developer's right of reverter and the condition expired by operation of Illinois statute in 2000; the investor is free to sell the motel and restaurant without condition C)While the condition continues forever, the developer's right of reverter expires after 40 years. D) Both the condition and the developer's right of reverter automatically expired in 2005.

C) while the condition continues forever, the developer's right of reverter expires after 40 years. (126)

A woman pays $1,250 per month for her apartment. If she refers three new tenants to the building's owner during the year, how much is she entitled to receive under the Real Estate License Act of 2000 if the landlord's normal referral fee is $500 per new tenant? A) Nothing, unless she is a licensed real estate broker, managing broker, or rental-finding agent B) $1,000 C) $1,250 D) $1,500

D) $1,500 Explanation can not be more then $5,000 or equivalent to 2 months rent in in course of 12 months

How much of an estate of homestead is an individual entitled to in Illinois? A) $3,250 B) $5,000 C) $10,000 D) $15,000

D) $15,000

How many members are on the Illinois Real Estate Administration and Disciplinary Board? A) 6 members B) 8 members C) 9 members D) 15 members

D) 15 members

Which of these conducts is cause for discipline under the Real Estate License Act of 2000? A) Using misleading or untruthful advertising B) Violating the Illinois Human Rights Act C) Encouraging homeowners to sell when minorities move into the neighborhood D) All of these

D) All of these

Which of these properties are exempt from paying real estate taxes? A) Apartment complexes B) Industrial parks C) Shopping D) Educational institutions

D) Educational institutions (181)

A large manufacturing company agrees to relocate to an economically depressed neighborhood of Chicago if the city can provide suitable property. The property needed is a large vacant lot owned by an investment partnership that refuses to sell. If the City of Chicago wants to relieve unemployment in the neighborhood and improve commercial conditions in the city by bringing in the manufacturer, what can the city legally do? A) Nothing; private real property is exempt from the power of eminent domain B) Obtain title to the property by escheat through the provisions of Article I, Section 15, of the Illinois Constitution C) Immediately obtain title through tacking D) Exercise the right of eminent domain through a condemnation proceeding

D) Exercise the right of eminent domain through a condemnation proceeding (122)

What is the advantage of seeking an injunction against a licensee who is violating the Real Estate License Act of 2000? A) The statute of limitations no longer applies B) When the injunction is granted, it doubles the penalty for violations of the Act C) It increases the offense to a felony D) It stops the violations from continuing

D) It stops the violations from continuing ( 281)

Under Illinois law, which disclosure must be included in an exclusive listing agreement? A) Anticipated seller closing costs B) Tax identification number C) Seller's net return D) Minimum services language

D) Minimum services language

A sponsoring broker decides to "sweeten" an MLS listing for a property by making a blanket offer of subagency. Is the sponsoring broker's action acceptable? A) Yes because Illinois law permits the creation of subagency relationships only through multiple listing services. B) Yes because a subagency relationship may be created by either a blanket offer in an MLS or through a specific agreement between parties. C) No because subagency is illegal under Article 15 of the Real Estate License Act of 2000. D) No because subagency relationships may not be offered through an MLS in Illinois.

D) No because subagency relationships may not be offered through an MLS in Illinois. (268-269)

Under Illinois law, what is the statutory usury ceiling on loans secured by real estate? A) 10% B) 15% C) 22% D) No limit

D) No limit

Three weeks before a man begins his Illinois real estate prelicense class, he offers to help his neighbor sell her house. The neighbor agrees to pay him a 5% commission. An offer is accepted while the man is taking the class and closes the day before the man passes the examination and receive his real estate license. The neighbor refuses to pay the man the agreed commission. Can the man sue to recover payment? A) Yes; because the man was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding. B) No; in Illinois a real estate licensee must be sponsored by a broker who has a permanent office in affiliate licenses are displayed in order to collect a commission from a seller. C) Yes; while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, Illinois law permits enforcement of an oral commission contract under these facts. D) No; Illinois law prohibits lawsuits to collect commissions unless the injured party is a real estate licensee, and the license was in effect before the agreement was reached.

D) No; Illinois law prohibits lawsuits to collect commissions unless the injured party is a real estate licensee, and the license was in effect before the agreement was reached. (282)

Under Illinois law, what is the statutory ceiling on the prepayment penalty a lender may charge on loans secured by real estate that bear more than 8% annual interest? A) 1% B) 3% C) 8% D) None

D) None

From what source do Illinois local units of government receive their powers of eminent domain? A) A grant of authority signed by the governor B) Article 5 of the U.S. Constitution C) The Illinois Statehood Charter of 1818 and the Code of Administrative Procedure. D) The Illinois Constitution and Code of Civil Procedure

D) The Illinois Constitution and Code of Civil Procedure (117)

Which of these statements is TRUE of an Illinois county having fewer than 60,000 residents? A) The recorder of deeds must be elected B) Deeds are recorded by the elected recorder of deeds in the nearest county having a population over 60,000 C) The city clerk of the largest population center acts as recorder of deeds. D) The county clerk also serves as recorder of deeds

D) The county clerk also serves as recorder of deeds (242)

If a minor enters into a contract in Illinois, what is the statutory period within which the minor may legally void the contract after reaching the age of majority? A) The statutory period is 6 months B) The statutory period is 1 year C) After the minor reaches the age of majority, the contract is binding D) There is no statutory period

D) The is no statutory period (194)

A real estate licensee is aware that certain areas of the city are particularly unfriendly to members of certain minority groups. For these groups' own protection, the licensee shows members of such groups homes for sale only in "friendly" neighborhoods into which members of their minority group have moved in the past. Based on these facts, which of these statements is TRUE? A) The Real Estate Licensee Act of 2000 does not prohibit the licensee's actions because the licensee is being protective rather than discriminatory. B) The critical element in this type of activity is profit motive; if the licensee's actions are not driven by increased profits, the licensee will not be subject to discipline under the Real Estate License Act of 2000. C) While the licensee's actions are clearly prohibited by Illinois statute, the Real Estate License Act of 2000 does not address blockbusting or steering D) The licensee's actions are expressly prohibited by the Real Estate License Act of 2000.

D) The licensee's actions are expressly prohibited by the Real Estate License Act of 2000. (275-276)

A broker lists the seller's home. Under the terms of the agreement, when the property sells, the seller will receive a guaranteed $75,000. Any amount left over after the seller's $75,000 will constitute the broker's compensation. Based on these facts, which of these statements is TRUE in Illinois? A) This type of arrangement, called a guaranteed sales agreement, is illegal in Illinois, and the broker will be disciplined for entering into it. B) This type of arrangement, called a net listing, is illegal in Illinois, and the broker will be disciplined for entering into it. C) This is an example of a guaranteed sales agreement, which is permissible in Illinois if the broker provides the seller with the necessary disclosures. D) This is an example of a net listing, which is discouraged (but not illegal) in Illinois.

D) This is an example of a net listing, which is discouraged (but not illegal) in Illinois. (90)

A buyer wants to have a clause included in the sales contract under which the seller offers assurances that no one has died in the home. Which of these statements is TRUE in Illinois? A) The licensee may include the clause because such standard disclosures are in general usage B) Only the buyer or a licensed attorney may prepare the clause for inclusion in the sales contract. C) In Illinois, licensees are permitted to add additional clauses to blank for contracts, such as the clause described here, that do not directly involve the conveyance of title to real property. D) Under Illinois law, a clause such as the one described here is not permitted and any contract containing such a clause will be void.

D) Under Illinois law, a clause such as the one described here is not permitted and any contract containing such a clause will be void. (47)

While the identity of the beneficiary of a land trust is not usually disclosed without the beneficiary's written permission, under what conditions may the trustee be compelled to do so? A) When the information is demanded by the Illinois Department of Revenue B) During the discovery process of a lawsuit or criminal action not involving the property C) When a private request is filed in the public records office D) When applying to a state agency for a license or permit affecting the property

D) When applying to a state agency for a license or permit affecting the property (146)

An owner paid the first installment of her Illinois general real estate tax on July 1. The amount due was $2,380. If the county assessor issued the owner's bill 30 days before the penalty date of June 1, does the owner owe any penalty? A)No; the penalty date for the payment of all Illinois general real estate taxes is September 1. B) Yes; the owner will have to pay $35.70 as a penalty in addition to the real estate tax owed. C) No; the assessor is required by statute to issue tax bills 60 days before any penalty date. D) Yes; the owner will have to pay $71.40 as a penalty in addition to the real estate tax owed

D) Yes; the owner will have to pay $71.40 as a penalty in addition to the real estate tax owed (180-181)

The Illinois Human Rights Act specifically exempts A) gender-biased discrimination in housing intended for multivendor occupancy. B) religious organizations giving preference in housing to nonmembers .C) a five-unit apartment building with a resident property manager living in one of the units. D) a three-unit apartment building with the owner living in one of the units.

D) a three-unit apartment building with the owner living in one of the units. (407)

In Illinois, when a sponsoring broker is taking a listing and asks the seller to complete a disclosure of property conditions, A) the disclosures are optional, and the seller may avoid liability by refusing to make any disclosures about the condition of the property B) the standard disclosures cover a narrow range of structural conditions only C) the sponsoring broker should give the seller advice regarding which property conditions to disclose and which to ignore D) seller disclosure of known property conditions is required by Illinois statute

D) seller disclosure of known property conditions is required by the Illinois statute (39-40)

Real property in Illinois are described by their geographic relation to A) the Fifth Principal meridian B) a government check C) correction line F D) the second, third, and fourth principal meridians

D) the second, third, and fourth principal meridians

In Illinois, if the buyer of a property is a licensed broker, A) the buyer does not need to disclose this fact B) this must be disclosed after closing C) the buyer must only disclose if asked D) this must be disclosed in writing to the parties to the transaction

D) this must be disclosed in writing to the parties to the transaction