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
