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ILLINOIS LEASING AGENT LICENSE EXAM
LATEST EXAM 2024 | ALL 150 QUESTIONS
AND CORRECT ANSWERS WITH
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A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true? ------CORRECT ANSWER------- --------The buyer can withdraw their offer as long as the seller did not accept the offer and the buyer can obtain the $3,000 deposit. It is the _____ duty to explain the purchase agreement and to not mislead any parties. ------CORRECT ANSWER---------------agent's As a general rule of thumb ALL written offers must be: ------CORRECT ANSWER---------------Presented to the seller. When contracting parties have signed a contract and both parties have done all they promised to do, it is called this: ------CORRECT ANSWER----- ----------An executed contract. When real estate agents alert the members of a neighborhood that it is "changing" and that they should sell their property. This is an example of what? ------CORRECT ANSWER---------------Blockbusting
What is the final step of the real estate appraisal process in which the appraiser weighs each appraisal approach and determines which one is most relevant and should be used? ------CORRECT ANSWER--------------- Reconciliation When you borrow money to buy real estate, you give the lender a _____ against the property. ------CORRECT ANSWER---------------Mortgage Lien What form of legal land description uses a plat map? ------CORRECT ANSWER---------------Lot and Block Acceleration is a term associated with which type of document? ------ CORRECT ANSWER---------------Mortgages Which of the following consumers would most likely qualify and be able to derive the most benefit from a reverse mortgage? ------CORRECT ANSWER---------------A couple in their late 60s who need to tap their home equity to help cover their expenses but do not want to sell their house. A parcel of land that is subject to an easement is best described as: ------ CORRECT ANSWER---------------A Servient Estate The amount borrowed is called the: ------CORRECT ANSWER--------------- Principal amount.
Which of the following best describes the prepayment penalty clause? ------ CORRECT ANSWER---------------The statement that a lender can penalize a borrower if the borrower pays off the mortgage much sooner than usual. Fees that the buyer pays to close the deal are called: ------CORRECT ANSWER---------------Closing costs. The deed that offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land. ------CORRECT ANSWER--------------- General Warranty Deed In real estate, a deed is best defined as: ------CORRECT ANSWER----------- ----A written legal document by which ownership of real estate is conveyed from one party to another. A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered what? ------CORRECT ANSWER---------------Void What is the name given to the Illinois license laws under which real estate brokers practice? ------CORRECT ANSWER---------------Real Estate License Act of 2000 Practicing real estate without a license, and could result in being fined up to what? ------CORRECT ANSWER---------------$25,000 per event.
How long must real estate brokers keep records in Illinois? ------CORRECT ANSWER---------------5 Years. The ruling of Chicago Bar Association, et al. v. Quinlan and Tyson, Inc has to deal with what? ------CORRECT ANSWER---------------Placing certain limitations on real estate licensees in drafting a contract of sale. What is the minimum age to become a real estate broker in Illinois? ------ CORRECT ANSWER---------------18 Years. In terms of financing involved for a real estate purchase, which custom is practiced in Illinois? ------CORRECT ANSWER---------------Lien Theory. Cassidy is selling a home in Springfield. She found out the homeowner named Peter has AIDS. Is she required to disclose the fact Peter has aids to the public? ------CORRECT ANSWER---------------No. What year was the ruling of Chicago Bar Association, et al. v. Quinlan and Tyson, Inc? ------CORRECT ANSWER---------------1966. A real estate broker named Matt is filling in the blanks on a real estate sales contract. He writes on the contract that his client, the buyer, would like 2% of the sales price at closing to cover closing costs and assorted fees. In this instance, Matt is doing what? ------CORRECT ANSWER--------- ------Violating Chicago Bar Association, et al. v. Quinlan and Tyson, Inc.
Illinois real licensees required to include? ------CORRECT ANSWER--------- ------The name of their brokerage and franchise (if applicable). Under agency law in Illinois disclosed dual agency is? ------CORRECT ANSWER---------------Legal with the consent of all parties. How many days must an aggrieved person give written notice to the Department within 30 days of the entry of any judgment that may result in collection from the Real Estate Recovery Fund? ------CORRECT ANSWER- --------------30 Days Per section 15-75 of the Illinois Real Estate License Act, there are minimum services required when there is an exclusive brokerage agreement in place. Which of the following of these examples is NOT required? ------CORRECT ANSWER---------------Concealing adverse facts pertaining to the physical condition of the property at the client seller's request that is known by the licensee but not by the prospective buyer. Is Illinois a Community Property state? ------CORRECT ANSWER------------- --No. All escrow funds received by the Sponsoring/Managing Broker shall be deposited into the broker's escrow account when? ------CORRECT ANSWER---------------No later than the next business day. Who appoints the members of the Illinois Real Estate Administration and Disciplinary Board? ------CORRECT ANSWER---------------The Govenor.
To become a managing broker in Illinois a licensee must have had an active real estate license for at least: ------CORRECT ANSWER--------------- Two of the past 3 Years. Which Illinois fund was established for research and education at state institutions of higher education or other organizations for research and for education to further the advancement of education in the real estate industry? ------CORRECT ANSWER---------------Real Estate Research and Education Fund A managing broker who has supervisory responsibilities for licensees in one or, in the case of a multi-office company, more than one office and who has been appointed as such by the sponsoring broker registered with the Department is called what? ------CORRECT ANSWER--------------- Designated Managing Broker There are many protected classes according to Illinois Fair Housing law and the Illinois Human Rights Act. Which of the following is not a protected class? ------CORRECT ANSWER---------------Credit A broker named Thomas works for Linda, owner of L&L Realty. Thomas decides to spend some of his own money to take out an extra ad for a property he really wants to sell. Which of the following statements about his ad and this situation is true? ------CORRECT ANSWER---------------The ad must be under the sponsoring broker's name but can include Thomas's name.
-------Thelma may have her license suspended or revoked by the Illinois Real Estate Administration and Disciplinary Board. How many hours of continuing education are required for real estate license renewal in Illinois? ------CORRECT ANSWER---------------12 Hours. The Illinois Human Rights Act covers all the following except which circumstance? ------CORRECT ANSWER---------------Allison who works at Burger King full time. How long are terms for members of the Illinois Real Estate Administration and Disciplinary Board? ------CORRECT ANSWER---------------4 Years. Who must comply with Illinois Fair Housing law? ------CORRECT ANSWER---------------Owners, managers, salespersons, brokers, builders, appraisers, rental agents, and more In Illinois, when do all real estate brokers' licenses expire? ------CORRECT ANSWER---------------April 30th (in even years). Within how long must a licensee notify the Department of a change of residence address? ------CORRECT ANSWER---------------24 Hours. Illinois licensees who allow their licenses to expire have how long to reinstate their licenses? ------CORRECT ANSWER---------------Up to 2 years.
Which of the following statements does NOT correctly describe a fiduciary? ------CORRECT ANSWER---------------A fiduciary is a neutral third party. A bilateral contract is one in which ------CORRECT ANSWER---------------the promise of one party is given in exchange for the promise of the other party. Under the terms in a mortgage, the lender must be paid in full if the property is sold to another person. This is known as the? ------CORRECT ANSWER---------------Alienation Clause Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)? ------CORRECT ANSWER---------------SARA What is a one-of-a-kind contract that is solely between the seller and the buyer. In this arrangement, the seller gives the buyer the option to purchase property at a given price for a set period? ------CORRECT ANSWER---------------An option contract. What is the difference between a lease option contract and lease purchase contract? ------CORRECT ANSWER---------------The difference between a lease option and a lease purchase agreement is that the lease option only obligates the seller to sell.
What is the difference between void and voidable contracts? Choose the best answer. ------CORRECT ANSWER---------------Void contracts are not contracts, while voidable contracts have the necessary elements to be enforceable, but can be rejected by one party. Which of the following would NOT be covered under a builder's new home warranty? ------CORRECT ANSWER---------------Structural damage caused by flooding. What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death? ------CORRECT ANSWER- --------------Codicil What is the total quantity that buyers are willing to buy at a given time at certain prices? ------CORRECT ANSWER---------------Demand A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of ------CORRECT ANSWER--------------- Anticipation A claim that has the appearance of having valid title, but in reality, the person either does not hold actual title, or there is a significant defect in the written documents supporting title, that makes it invalid. This an example of which legal concept: ------CORRECT ANSWER---------------Color of the Title.
The person who hires or appoints an agent is called the: ------CORRECT ANSWER---------------Principal. What best describes an agency relationship where an agent has legal authority to act on behalf of the principal? ------CORRECT ANSWER--------- ------Univeral Agency Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans? ------CORRECT ANSWER--------------- Warehousing The Civil Rights Act of 1866 prohibits discrimination in real estate based on: ------CORRECT ANSWER---------------Race Johnny is purchasing a house and does not want to purchase all of the furniture that is being left behind. He signs the contract on Tuesday, and on Thursday changes his mind about the furniture. He calls his agent, and they add the furniture to the contract. What is this an example of? ------ CORRECT ANSWER---------------An addendum. Which answer includes 3 actual types of business structures? Choose the best answer. ------CORRECT ANSWER---------------Corporation, Sole Proprietorship, Limited Liability Company
The Bundle of Rights include: ------CORRECT ANSWER--------------- Possession, control, exclusion, enjoyment, disposition. Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. Which basic principle of appraising should Leo use? ------CORRECT ANSWER---------------Contribution Restrictive covenants, are also known as ------CORRECT ANSWER---------- -----CCR's Conditions, covenants and restrictions. Which of the following is NOT a main element of a valid real estate contract? ------CORRECT ANSWER---------------The contract must have monetary consideration. Mortgage points, also known as discount points, are ------CORRECT ANSWER---------------Fees paid directly to the lender at closing in exchange for a reduced interest rate. If a minor signs a contract to buy real estate, the resulting contract is legally what? ------CORRECT ANSWER---------------Voidable. Earnest money should be deposited into a trust account: ------CORRECT ANSWER---------------In a timely manner, according to State Law.
What is the proper procedure for changing a contract that already has become binding? ------CORRECT ANSWER---------------Sign a separate amendment. What is the test done to locate where to place a septic system? ------ CORRECT ANSWER---------------A percolation test. What type of ownership model is used for vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, for the same property? ------CORRECT ANSWER--------------- Timeshare. Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement? ------CORRECT ANSWER---------------Ordering something online and checking a box that says terms and conditions. Which of the following is not a type of depreciation used in the cost approach? ------CORRECT ANSWER---------------Intangible Deterioration. Which of the following enforces all federal environmental rules and regulations? ------CORRECT ANSWER---------------EPA A property owner acquired the ownership of land that was deposited by a river running through his property by what? ------CORRECT ANSWER------- --------Accretion.
Which of the following best describes the term "emblements?" ------ CORRECT ANSWER---------------Annual crops produced by cultivation legally belonging to the tenant. Why is an oral lease for two years not generally enforceable in law? ------ CORRECT ANSWER---------------Statute of Frauds. Brokerages and real estate agents across America connect using a ------ CORRECT ANSWER---------------multiple listing service (MLS) At the very minimum advertising property or services by real estate professionals, should include what? ------CORRECT ANSWER--------------- The brokerage firms name. A lender's refusal to lend money to potential homeowners attempting to purchase property located in predominantly minority neighborhoods is ------ CORRECT ANSWER---------------Redlining To whom does an agent always owe their fiduciary responsibility? ------ CORRECT ANSWER---------------The principal. A tenant rented an apartment, signing a 16-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of type of lease does the tenant have? ------CORRECT ANSWER--------------- Tenancy at will.
A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities? ------CORRECT ANSWER---------------No, since she is unaware of the plumbing issue, she is not liable for failure to disclose material defects. The statute of frauds, applies to ------CORRECT ANSWER---------------all real estate sales agreements. What is the best definition listed for the term: "conventional loan?" ------ CORRECT ANSWER---------------A type of loan that is not insured or guaranteed by the government, but backed by private lenders. Which of the following would NOT apply to the income approach in the valuation process? ------CORRECT ANSWER---------------Depreciation In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in - ----- CORRECT ANSWER---------------estimating depreciation, estimating changes in the cost of construction, and estimating changes in prices of building materials. In order for a month-to-month tenancy to be legally valid which of the following MUST the contract include? ------CORRECT ANSWER--------------- All of the following.
