Real estate quiz 11 & 12- final review

When putting together a Comparative Market Analysis (CMA) the broker should NOT take into account which of the following? A. Renovated properties. B. Sold properties. C. Pending properties. D. Active properties.

A. Renovated properties.

A landlord wants to terminate a year-to-year tenancy in Illinois. How much notice must the landlord provide the tenant? A.60 days. B.7 days. C.30 days. D.120 days.

A.60 days.

Which of the following environmental hazards poses a risk due to particles or fibers in the air? A.Asbestos. B.UFFI C.Carbon Monoxide. D.Radon

A.Asbestos.

Andy is a real estate broker showing a pre WWII home to Svetla, a prospective buyer with 4 small children. She is worried about potential health hazards in any home she buys. Which of the following is TRUE? A.Because the house was built before 1978 there is a good chance there is the presence of lead based paint. B.There is a risk that there is urea foam insulation was used in the original construction. C.Because Andy is a licensed real estate broker he can offer to inspect the home for hazards. D.Lead poisoning occurs only when lead paint chips are chewed and swallowed.

A.Because the house was built before 1978 there is a good chance there is the presence of lead based paint.

Andre has owned his home for three years. Bill and Shelley, a married couple, have owned their home for 26 months. Sarah has owned her home for 18 months. Which of these people will have the ability to take advantage of the $500,000 capital gains exemption when they sell? A.Bill and Shelley B.Sarah C.Andre D.None of the above

A.Bill and Shelley

Mold and mildew found in the home fall into which category of pollutants? A.Biological. B.Pesticides. C.Hazardous waste. D.Formaldehyde.

A.Biological.

Which of the following is NOT a typical cost or expense to a seller at closing? A.Origination fees. B.Title Insurance. C.Transfer taxes. D.Commission.

A.Origination fees.

In an Illinois real estate sale, the state transfer tax stamps are the prime responsibility of the: A.Seller B.Both parties of the transaction C.Buyer D.Broker

A.Seller

The Managing Broker is accountable for which of the following? A.The training and supervision of licensees under the Managing Broker's control. B.The payment of the agent's income taxes. C.The office hours that agents work D.The number of cold calls each agent makes each day.

A.The training and supervision of licensees under the Managing Broker's control.

A sponsored licensee may hold a concurrent license with more than one Illinois Sponsoring Broker under which of the following circumstances? A.Under no circumstances. B.With the written consent of the Sponsoring Brokers being represented. C.With the permission of her sales manager. D.With the permission of IDFPR.

A.Under no circumstances.

Environmental regulations in Illinois: A.are substantially equivalent to federal regulations. B.are more stringent to federal regulations. C.less restrictive than federal regulations. D.not subject to federal regulations.

A.are substantially equivalent to federal regulations.

In a dual agency situation, a broker may collect a commission from both the seller and the buyer if A.both parties give their informed, written consent to the dual compensation. B.both parties are represented by attorneys. C.the buyer and seller are related. D.the broker holds a state license.

A.both parties give their informed, written consent to the dual compensation.

The resident property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the resident manager A.is exempt from the licensing requirement. B.must have a broker's license. C.must have a managing broker's license. D.is violating license law.

A.is exempt from the licensing requirement.

A real estate licensee may be disciplined for A.representing more than one sponsoring broker at the same time. B.maintaining transaction records for five years. C.gaining approval before acting as a dual agent. D.depositing escrow monies in separate trust account.

A.representing more than one sponsoring broker at the same time.

All of the following are forms of co-ownership recognized under Illinois law EXCEPT A.tenancy in severalty. B.tenancy in common. C.tenancy by the entirety. D.joint tenancy with survivorship rights.

A.tenancy in severalty.

Proof of a broker's continuing education is required every A.two years. B.year C.three years. D.four years.

A.two years.

Every sponsoring broker must have a A.written employment agreement with each sponsored licensee. B.non-compete agreement with each sponsored licensee. C.power of attorney on behalf of sponsored licensees. D.special funds account.

A.written employment agreement with each sponsored licensee.

At what point may a listing agent display a For Sale sign on the property? A.As soon as the listing agreement is signed. B.At the time the property owner gives written permission. C.After the property has been entered into the local MLS. D.After the sponsoring broker gives permission.

B. at the time the property owner gives written permission

How is personal property conveyed in a real estate transaction? A.Title insurance. B.Bill of Sale. C.Deed. D.Title policy.

B. bill of sale

Which of the following are regulated under the federal underground storage tank requirements? A. An underground wastewater tank. B. A 2,000 gallon tank used in a commercial fuel tank. C. An underground oil tank used to heat a home. D. a 1,000 gallon gas tank tank used at a private residence for personal use.

B.A 2,000 gallon tank used in a commercial fuel tank.

Which of these is NOT a test for a fixture? A.Attachment B.Assignment C.Agreement D.Intent

B.Assignment

Which of the following activities can an unlicensed assistant do on behalf of a broker? A.Host an open house. B.Deposit earnest money checks into a special just account. C.Explain a clause in a contract to the broker's client. D.Agree to a commission on behalf of a licensee.

B.Deposit earnest money checks into a special just account.

An agent is terminated by his broker for failure to pay the office bill. While the agent is looking for a new office, he is considered to have what kind of license? A.Expired B.Inoperative C.Conditional D.Inactive

B.Inoperative

Which of the following is NOT a term used for one who may acquire title to real estate? A.Grantee B.Lessee C.Devisee D.Legatee

B.Lessee

Real estate companies who offer related services have to make written disclosure when they own more than what percentage of the related company? A.More than 10%. B.More than 1%. C.More than 49.2% D.More than 50%.

B.More than 1%.

How many escrow accounts, if any, is a sponsoring broker required to open? A.One for every transaction. B.None, if the broker will not be receiving escrow monies while acting as a real estate broker. C.Only one. D.As many as desired.

B.None, if the broker will not be receiving escrow monies while acting as a real estate broker.

Of the following transactions, in which is a seller disclosure required? A.Foreclosure sale. B.Sale by a real estate licensee of a two-unit residential property. C.Conveyance of a primary residence from one fomer spouse to another under a divorce settlement agreement. D.Sale by a father to a son.

B.Sale by a real estate licensee of a two-unit residential property.

What type of agencies are permitted in Illinois? A.Seller, disclosed dual, subagency B.Seller, buyer, disclosed dual agency C.Seller, buyer, undisclosed dual agency D.Seller buyer, full fiduciary

B.Seller, buyer, disclosed dual agency

Which of the following has been considered unfair or deceptive business practices in Illinois? A.Seller did not disclose a plumbing problem of which they were unaware. B.Sellers provide a false termite inspection report. C.Buyers hired their own home inspector. D.Buyers providing pre-approval letter from a lender that indicates that they have poor credit.

B.Sellers provide a false termite inspection report.

You are a licensed broker who works as part of the Ivan Carlson Team within your office. Ivan is the main member of the team and has four other brokers besides you on his team. When you earn a commission, who pays you? A.The accountant for the Team. B.The sponsoring broker. C.The seller. D.Ivan.

B.The sponsoring broker.

All funds received by the broker on behalf of his principal must be deposited in an escrow or trust account within: A.three days of receiving the offer. B.one business day of contract acceptance. C.three days of obtaining all signatures for the contract. D.five working days of receiving the offer.

B.one business day of contract acceptance.

Under the Safe Drinking Water Act, non-community drinking water systems are under the responsibility of A.the Superfund Amendment. B.the EPA. C.the Resource Conservation and Recovery Administration. D.the Illinois Department of Public and Recovery.

B.the EPA.

Which is a protected class under the Illinois Human Rights Act? A. Poor credit history. B. Cocaine user. C. Marital status. D. Welfare recipient.

C. Marital status.

A leasing agent license requires how many hours of classroom time? A.45 B.10 C.15 D.30

C.15

Unless extended, trusts in Illinois can continue for A.40 years. B.99 years. C.20 years. D.7 years.

C.20 years.

Of the following property types, which does NOT require owners to have to sign off on Homestead rights? A.A single family home that is a primary residence. B.A cooperative property C.A condo used for investment purposes D.A farm

C.A condo used for investment purposes

Special assessments are a specific lien on real property. The annual due date is generally A.April 15. B.June 1. C.January 2 D.September 1.

C.January 2

Which of the following does the Act NOT require of a brokerage office? A.Signage that is conspicuously displayed on the outside of the office. B.Must be a definite place of business. C.Must provide each licensee with Errors and Omissions insurance. D.All licenses must be readily available.

C.Must provide each licensee with Errors and Omissions insurance.

Which one of these people is considered a designated agent? A.Bryan who works for a broker as an office manager B.Carla who drops off contracts at the lawyers office C.Samantha who holds an open house for a seller D.Katie who picks out tile for a buyer

C.Samantha who holds an open house for a seller

To be considered an Independent Contractor in the eyes of the IRS, someone has to have all of these EXCEPT A.A written contract. B.A broker's license. C.Taxes deducted from their check D.Earned income based on sales production.

C.Taxes deducted from their check

To earn a commission, an agent must be which of the following? A.The agent must be licensed at the time of the transaction and also must have met with the continuing education requirements. B.The agent must be the procuring cause of the sale and also be a member of the multiple-listing service. C.The agent must be licensed at the time of the transaction and also must have a written compensation agreement. D.The agent must be the procuring cause of the sale and also must have met all continuing education requirements.

C.The agent must be licensed at the time of the transaction and also must have a written compensation agreement.

When working with an agent who brought the buyer to the property, a listing agent considers the other agent to be A.The seller's sub-agent. B.The implied broker. C.The cooperating broker. D.The co-listing broker.

C.The cooperating broker.

How are Illinois ad valorem taxes shown on a closing statement? A.They are accrued and will be a credit to the seller. B.They are prepaid and will be a debit to the seller. C.They are accrued and will be a credit to the buyer. D.They are prepaid and will be a debit to the buyer.

C.They are accrued and will be a credit to the buyer

An agent of a seller owes the seller all of the following, EXCEPT A.To seek a purchase offer with the best possible terms acceptable to the seller. B.Present all purchase offers to the seller in a timely manner. C.To determine the listing price and telling the seller what it is. D.Answer the seller's questions and provide information regarding any counteroffers.

C.To determine the listing price and telling the seller what it is.

The Uniform Vendor and Purchaser Risk Act states that the seller bears any loss that occurs A.until the contract is signed. B.only until the closing. C.before the title passes or the buyer takes possession. D.until the buyer's insurance is in force.

C.before the title passes or the buyer takes possession.

Sponsored licensees are allowed to all of the following EXCEPT A.sell time-shares. B.sell cooperatives. C.manage an office. D.collect rents and negotiate leases.

C.manage an office.

Broker J asked the telephone company to list her name in the directory under the real estate heading as "J, Real estate Broker; residential property is my specialty!" Based on this information, J is also required to include A.the expiration date of her license. B.her street address. C.the name of her employing broker. D.her license number.

C.the name of her employing broker.

Which of the following is the responsibility of a seller's agent to the buyer? A.Disclosure that the seller has AIDS. B.Disclosure that the seller is near bankruptcy or foreclosure. C.Disclosure of the lowest offer the seller will accept on the property. D. Disclosure of any material fact pertinent to the property

D. Disclosure of any material fact pertinent to the property

Which of the following is NOT exempt from the Residential Lead Based Paint Hazard Reduction Act? A.A studio apartment where the sleeping area is not separated from the living area. B.Residences for the disabled. C.Senior citizen housing. D.A duplex built before 1978.

D.A duplex built before 1978.

Every Brokerage office is required to have what with their independent Contractors? A.A written franchise agreement B.An Errors and Omissions Policy Agreement. C.A policy regarding commission splits between brokers D.A written employment agreement.

D.A written employment agreement.

What is required in an exclusive buyer brokerage agreement? A.Identification of the property. B.Marketing activities. C.Listing price. D.Anti-discrimination clause

D.Anti-discrimination clause

Which of the following, if any, brokerage agreements must be in writing? A.Brokerage agreements do not have to be in writing. B.Nonexclusive brokerage agreements. C.Nonexclusive buyer agency agreement. D.Any exclusive brokerage agreements.

D.Any exclusive brokerage agreements.

What method of property value uses location, square footage and curb appeal to help determine listing price? A.Income approach. B.Value approach. C.Cost approach. D.Comparison approach

D.Comparison approach

The following are all examples of listing agreements between sellers and sponsoring brokers EXCEPT A.Exclusive Agency B.Open Listing C.Exclusive Right To Sell D.Exclusive Agency to List and Sell

D.Exclusive Agency to List and Sell

In Illinois, what is a major requirement for opening a real estate office? A.Must have a sign that is at least 48 inches by 60 inches. B.Must have a special accounts in federal depository. C.Must carry errors and omissions insurance. D.Must have a managing broker of record.

D.Must have a managing broker of record.

In the listing agreement the seller, Mr. Boyd, did not agree to your being a dual agent for his property. What can you as a broker do for a person who comes to an open house? A.Nothing. B.Offer to represent them anyway. C.Suggest a price that the seller would accept. D.Show them around and fill out an offer to purchase at their direction.

D.Show them around and fill out an offer to purchase at their direction.

Which of the following is NOT necessary in a listing contract? A.The signature of theManaging Broker and/or Agent. B.The beginning and ending dates of the agreement. C.The signature of the all parties on the deed. D.The signature of the buyer.

D.The signature of the buyer.

A sponsored licensee has decided to hire a licensed personal assistant. How is compensation paid to this individual? A.Based on a percentage of the sales price and a minimum rate for clerical activities. B.Directly from the hiring licensee. C.By either the sponsoring broker or the licensee who hires, as determined by the employment agreement. D.Through the sponsoring broker.

D.Through the sponsoring broker.

A seller needs to sell quickly because he is getting transferred. Hoping to create excitement, he agrees to a 7% commission. The listing broker's offer of compensation to a cooperating broker must be A.automatically 50%. B.3.5% C.negotiated with the buyer's agent. D.disclosed to the seller in writing in the listing agreement.

D.disclosed to the seller in writing in the listing agreement.

The lot-and-block method of describing land in Illinois is required if the parcel is smaller than A.a section. B.the whole subdivision. C.one township. D.five acres.

D.five acres.

All of the following are statutory duties an agent owes a client in Illinois EXCEPT A.exercising reasonable skill and care. B.performing the duties of the brokerage agreement. C.keeping confidential information confidential. D.following all instructions of the client.

D.following all instructions of the client.

Services performed for a buyer that do NOT create an agency relationship are referred to as A.routine brokerage. B.transactional acts. C.vicarious subagency. D.ministerial acts.

D.ministerial acts.

All of the following statements are false regarding a real estate broker's acting as the agent of the seller EXCEPT the broker A.can disclose the seller's personal information to a buyer if it helps secure an offer on the property. B.can lower the sale price of the property without the seller's approval. C.can accept a a commission from the buyer without the seller's approval. D.must follow the legal instructions of the seller.

D.must follow the legal instructions of the seller.

An exclusive right to sell listing is BEST described as a A.property management contract. B.broker-principal contract. C.buy-sell contract. D.personal services contract.

D.personal services contract.

Unless stated to the contrary in a deed, ownership of land by a married couple is assumed to be by A.tenancy by the entirety. B.severalty. C.joint tenancy. D.tenancy in common

D.tenancy in common

Radon poses the greatest potential health risks to humans when it is: A.emitted by malfunctioning or inadequately ventilated appliances. B.contained in insulation materials used in residential properties during the 1970's. C.found in high concentrations in unimproved vacant land. D.trapped and concentrated in inadequately ventilated areas.

D.trapped and concentrated in inadequately ventilated areas.