State Only Questions

Front 1

An agent distributes a flyer to a neighborhood in her market area announcing a free home inspection provided the homeowner calls the agent for an appointment. In this scenario, which of the following is true?
A) The agent is only obligated if the homeowner lists with the agent.
B) The agent has violated the law by making an offer of free services to homeowners in the neighborhood.
C) The agent is not permitted to refer homeowners to home inspectors, and has therefore violated the law.
D) If a homeowner calls for an appointment, the agent is obligated to provide a free inspection without further conditions.

Back 1

D) If a homeowner calls for an appointment, the agent is obligated to provide a free inspection without further conditions.

To be legal, free offers must be to prospective clients or clients, and must contain all the conditions needed to receive the benefit promoted. The offer is therefore legal provided there are no further conditions required that were not in the ad.

Front 2

Which of the following are the required identifications for a sponsored licensee's web home page?
A) The licensee's name, company name, and main office location.
B) The name of the managing broker, the firm name, and the agent's name.
C) The name of the managing broker and the firm name.
D) The firm name, franchise name, if applicable, and the main office location.

Back 2

A) The licensee's name, company name, and main office location.

The sponsored licensee’s home page must include his or her name as well as the company name and location of the principal office.

Front 3

Licensees who are attempting to purchase property
A) Must disclose whether or not they have any ownership interest in the property.
B) May not use the services of their company in procuring the property.
C) Are required to disclose their license status.
D) Are exempted from any disclosure requirements.

Back 3

C) Are required to disclose their license status.

Licensees must disclose their license status in any purchase, sale, or leasing transaction in which they are a principal.

Front 4

The Residential Real Property Disclosure Act covers
A) Only properties built after 1978.
B) The conveyance of residential properties containing 1-4 residential dwelling units; including condominiums and cooperatives.
C) The financing of residential properties containing 1-2 residential dwelling units.
D) Only the conveyance of dwelling units over 2,000 square feet.

Back 4

B) The conveyance of residential properties containing 1-4 residential dwelling units; including condominiums and cooperatives.

Licensees should advise sellers to provide the disclosure if the property is covered under the act.

Front 5

Broker Ted should advise seller Bob to provide a Residential Real Property Disclosure Form to buyers unless, Bob
A) Owned and lived in the house for less than five years.
B) Has had the house inspected and certified as "livable" by a licensed residential inspector.
C) Has never occupied or managed the property.
D) Built the dwelling and has always occupied the property.

Back 5

C) Has never occupied or managed the property

Licensees should be aware that certain sellers are not required to provide the disclosure under the act.

Front 6

According to various sections of the Administrative Code, if Broker Bob is showing property that was the site of an act that had no effect on the physical condition of the property or its environment Broker Bob
A) Is required to disclose the act.
B) Is not required to disclose the act.
C) Disclose whatever the seller advises.
D) Should complete and deliver a Residential Real Property Disclosure Form to the buyer.

Back 6

B) Is not required to disclose the act.

The IL Administrative Code instructs licensees as to when disclosure is not required.

Front 7

Agent Jim wants to send out a e-mail to all the local real estate agents to inform them about an open house he is holding. What must he do to be in compliance with the CAN-SPAM Act?
A) Jim must give the agents a way to opt out of any future e-mail messages.
B) He must be sure to include the entire mailing address of the home he is hosting.
C) Jim must be sure his name and phone number are prominently displayed in the e-mail.
D) He cannot give any indication of the listing price of the home in the e-mail.

Back 7

A) Jim must give the agents a way to opt out of any future e-mail messages.

CAN-SPAM allows mass e-mail communications under certain guidelines, one of which is the requirement to give the receiver an opt-out for future messages.

Front 8

According to the Quinlan and Tyson court decision, what can real estate licensees do?
A) Write leases for landlords.
B) Charge fees for preparation of legal documents.
C) Write contract language.
D) Fill in the blanks on contract forms.

Back 8

D) Fill in the blanks on contract forms.

Licensees can only fill in the blanks on the forms that are commonly used in their area.

Front 9

Which of the following examples would not be viewed as a ministerial act?
A) Showing an agent's personal home listing.
B) Conducting open house tours.
C) Providing the listing price of the property to a customer.
D) Discussing what loan conditions might be acceptable by the seller.

Back 9

D) Discussing what loan conditions might be acceptable by the seller.

Ministerial acts must not rise above the level of providing general information. Discussing specific terms of a sales contract rises to a level of representation.

Front 10

Agent Jim is the listing agent on a property. Agent Sam works for the same real estate company as Agent Jim. Sam brings in an offer on Jim's listing. When do Sam and Jim become dual agents?
A) There is no dual agency in this transaction if the sponsoring broker authorizes a designated agency arrangement.
B) When the buyer signs the sales contract.
C) When the seller accepts the offer.
D) When the managing broker establishes dual agency.

Back 10

A) There is no dual agency in this transaction if the sponsoring broker authorizes a designated agency arrangement.

Each of the agents can be authorized by the managing broker to act as the agent of their specific principal in the transaction.

Front 11

Agent Jane's client is also the town mayor. Which of the following pieces of information would be considered confidential?
A) The mayor's salary.
B) The maximum amount of money the mayor is willing to spend on a property.
C) The mayor's voting record.
D) The town's budget for zoning enforcement.

Back 11

B) The maximum amount of money the mayor is willing to spend on a property.

Front 12

At the ACME Brokerage office, a central room contains all real estate transaction files. Agents are allowed access to the files 24/7 through the use of a key card. Does this method meet the standard for maintaining confidentiality?
A) Yes, the level of security meets the standard for confidentiality.
B) No, secure areas where files are stored can only be accessible during normal office working hours.
C) No, any agent would have access to confidential information, even if they were not involved in the transaction.
D) Yes, a key card system records and documents which agents have accessed the file room.

Back 12

C) No, any agent would have access to confidential information, even if they were not involved in the transaction.

Confidential information should not be available to unauthorized personnel, even if they are agents in the same firm.

Front 13

An agent hosting an open house for one of her listings meets a consumer at the open house and offers to show him other listings in the vicinity. After viewing the other properties, the consumer tells the agent he wants to make an offer on the agent's listing. Unless the agent makes an agency disclosure, the agent risks acting as
A) The buyer's exclusive agent.
B) An undisclosed dual agent.
C) A non-agent.
D) Anon-exclusive seller's agent.

Back 13

B) An undisclosed dual agent.

Front 14

A broker employs two licensees. One licensee brings in a listing for a property for sale. The other licensee brings in a potential buyer for the property. What should the broker do to avoid becoming a dual agent in the transaction?
A) Have seller and buyer sign "no-agency" agreements.
B) Refer either the seller or the buyer to another firm.
C) Designate each licensee as sole agent of the seller or the buyer, respectively.
D) There is no way of avoiding dual agency in this situation.

Back 14

C) Designate each licensee as sole agent of the seller or the buyer, respectively.

Front 15

A designated agent is
A) a licensee named by a sponsoring broker to be the legal agent of a party in a transaction.
B) a licensee named by a sponsoring broker to act as the broker's personal assistant.
C) a licensee hired by a party in a transaction to be that party's representative.
D) any licensee specifically named in a listing or representation agreement.

Back 15

A) a licensee named by a sponsoring broker to be the legal agent of a party in a transaction.

Front 16

In Illinois, the Residential Real Property Disclosure Act requires that when a seller signs the listing agreement, he or she must attach a disclosure document completed by any of the following except the
A) Licensee.
B) Seller.
C) Seller's attorney.
D) Seller's power of attorney.

Back 16

A) Licensee.

The licensee must never complete the disclosure forms.

Front 17

Based on the Illinois Disclosure Act the licensee must disclose any material facts about the physical condition of the property OR the transaction about which the licensee has
A) Appurtenant knowledge.
B) Actual knowledge.
C) Subjacent knowledge.
D) Extra-territorial knowledge.

Back 17

B) Actual knowledge.

Under Illinois law, the licensee must disclose any material facts about the physical condition of the property OR the transaction about which the licensee has ACTUAL knowledge.

Front 18

If a licensee is not representing a consumer and is just performing ministerial acts for that consumer the licensee must give a non-agency disclosure to the consumer
A) At first initial contact.
B) At first meaningful encounter.
C) At a time intended to provide disclosure of information from a customer to a licensee, but in no event later than five days from acceptance of the offer to purchase or lease real property.
D) At a time intended to prevent disclosure of confidential information from a customer to a licensee, but in no event later than the preparation of an offer to purchase or lease real property.

Back 18

D) At a time intended to prevent disclosure of confidential information from a customer to a licensee, but in no event later than the preparation of an offer to purchase or lease real property.

Front 19

An Illinois lender has offered a mortgage rate of 22.5% to a property buyer. What law does this practice violate?
A) Truth-In-Lending
B) Interest Cap Limit
C) None
D) Progressive Rate Law

Back 19

C) None

Illinois does not have any usury laws.

Front 20

A property management agreement between a landlord and a manager
A) Must have an automatic renewal provision.
B) May not be for a period longer than two years.
C) Must be in writing and have an expiration date.
D) Is an employment contract, not a brokerage agreement.

Back 20

C) Must be in writing and have an expiration date.

Exclusive brokerage agreements (including property management agreements between a landlord and a manager) must be in writing and have an expiration date.

Front 21

Agent Mary listed seller Harry's property at $250,000 with the refrigerator included. Later an offer is accepted for $248,000. The refrigerator is not included. Which of the following is true?
A) The seller must give the refrigerator to the buyer because the contract was a mirror image of the listing.
B) The buyer can recover the refrigerator because it was included in the listing.
C) The buyer cannot recover the refrigerator because it was not included in the offer at the $248,000 purchase price.
D) The agent may have to buy the buyer a refrigerator due to his negligence in handling the transaction.

Back 21

C) The buyer cannot recover the refrigerator because it was not included in the offer at the $248,000 purchase price.

Under Illinois law if the personal property is listed on the property’s profile sheet in the MLS, but is not included in the sales contract, the seller is not obligated to leave the personal property unless the sales contract mirrors the listing (i.e., full-price offer, etc.).

Front 22

Illinois law requires that each person signing or initialing the contract
A) Be given a “true copy” within 36 hours of the time of signing.
B) Be given a copy at signing.
C) Be given a copy no later than three business days from the signing.
D) Be given a “true copy” within 24 hours of the time of signing.

Back 22

D) Be given a “true copy” within 24 hours of the time of signing.

Illinois law requires that each person signing or initialing the contract be given a “true copy” within 24 hours of the time of signing.

Front 23

Agent Tom works at the Cliffside branch office of ABC Realty. The sponsoring broker at the main office for ABC Realty maintains an escrow account for all offices of ABC Realty. Tom has been very busy writing offers and has little time to drive to the main office so he has decided to open an escrow account at the branch office. Toms action is
A) Not allowed, no sponsored licensee may maintain his or her own escrow accounts.
B) Allowed as a sponsored licensee as long as the sponsoring broker approves the opening of Tom's escrow account.
C) Allowed, with the consent of all parties to the transaction and his sponsoring broker.
D) Allowed because the escrow rules do not cover this point.

Back 23

A) Not allowed, no sponsored licensee may maintain his or her own escrow accounts.

According to Illinois law no sponsored licensee may maintain his or her own escrow accounts.

Front 24

James a property manager must maintain all security deposits in an escrow account for the duration of the lease, unless the
A) Tenant indicates to James that he/she waives the requirement.
B) James the broker has less than five property management lease contracts.
C) Lease is for less than three years.
D) Tenant waives this requirement in writing. If such a waiver is included in the lease, it must be in bold print.

Back 24

D) Tenant waives this requirement in writing. If such a waiver is included in the lease, it must be in bold print.

According to Illinois law a property manager must maintain all security deposits in an escrow account for the duration of the lease, unless the tenant waives this requirement in writing. If such a waiver is included in the lease, it must be in bold print

Front 25

Any licensee who violates any of the provisions regarding escrow accounts may be judged to have endangered the public interest and may be subject to
A) License revocation..
B) A temporary license suspension.
C) A fine of not more than $5000 per violation.
D) A fine and possible imprisonment for felonious comingling.

Back 25

B) A temporary license suspension.

According to Illinois law any licensee who violates any of the provisions regarding escrow accounts may be judged to have endangered the public interest and may be subject to a temporary license suspension.

Front 26

A managing broker places a newspaper ad on one of the property's listed by his sponsored agent. In this case, the managing broker
A) Is required to identify the listing agent's name.
B) Must include the listing agent's name and phone number.
C) May not advertise a listing obtained by his sponsored agent without permission..
D) May exclude the identity of the listing agent at his discretion.

Back 26

D) May exclude the identity of the listing agent at his discretion.

Managing brokers are not required to identify their agents on signs or other general advertising.

Front 27

The Residential Real Property Disclosure Act exempts conveyances when the
A) Property was built before 1978.
B) Seller is transferring the property without the use of a broker.
C) Dwelling units are condominiums or cooperatives.
D) Transfer is to a spouse or direct family heirs or the transfers of a new, never-occupied residential property.

Back 27

D) Transfer is to a spouse or direct family heirs or the transfers of a new, never-occupied residential property.

Licensees should know the exemptions to the Residential Real Property Disclosure Act.

Front 28

An Army veteran is dishonorably discharged from service. A landlord refuses to rent to this party based on the particulars of his discharge, which the landlord felt was unpatriotic. Under Illinois law, does this veteran have a case for discrimination?
A) No, since he was dishonorably discharged.
B) No, since one's current or prior military experience does not constitute the definition for a protected class.
C) Yes, since Illinois law bars parties from discriminating for any reason whatsoever.
D) Yes, since one's military status and discharge are protected classes.

Back 28

D) Yes, since one's military status and discharge are protected classes.

The Illinois Human Rights Act bars discrimination based on military service or how parties were discharged.

Front 29

An Irish immigrant owns a four-plex property where his son resides with his family. In renting a vacant unit, the owner informs an applicant that her application is denied because she is not Irish. Does this application have a case for a fair housing law violation?
A) No, since her national origin is not a protected class.
B) No, since this scenario falls under an exception to fair housing laws.
C) Yes, since the owner may not discriminate against parties based on ancestry or national origin.
D) Yes, since owners having family members as residents of a multi-unit dwelling are not exempted from fair housing law.

Back 29

B) No, since this scenario falls under an exception to fair housing laws.

Renting a 1-4 unit apartment if occupied by the owner or family member constitutes an exception to Illinois fair housing laws.

Front 30

A licensee may create an implied agency relationship with a consumer if the agent
A) answers the consumer's questions about listings.
B) searches for suitable properties and takes the consumer to view them.
C) gives the consumer directions to a listed property.
D) makes an appointment for the consumer to view a property.

Back 30

B) searches for suitable properties and takes the consumer to view them.

Searching for properties and taking the consumer to view them goes beyond the usual definition of ministerial acts as exemplified in the other choices. Performing non-ministerial services may lead to the presumption of an agency relationship.

Front 31

A broker who is the exclusive agent for a seller refuses to accept an offer from a buyer's agent because it is for an amount that is significantly lower than another offer the seller is already considering. Which of the following statements is TRUE?
A) The agent is right to withhold the offer because it is in the client's best interests to ignore it.
B) The agent has violated the License Act by failing to provide minimum services.
C) The agent is not obligated to accept any offers until the previous offer has expired.
D) An exclusive agreement gives the agent to power to reject offers on the client's behalf.

Back 31

B) The agent has violated the License Act by failing to provide minimum services.

An exclusive agreement requires the agent to provide minimum services, one of which is to accept and present all offers.

Front 32

In which of the following situations, when performing duties for compensation, must a person or corporation have a real estate license?
A) Only when the person or corporation advertises or represents herself as working to buy, sell, rent, exchange or lease real estate.
B) Only when the person or corporation opens real estate to the public, for the purpose of marketing.
C) Only when selling or leasing, or offering to sell or lease real estate at an auction.
D) All of the above situations require a person or corporation to have a real estate license.

Back 32

D) All of the above situations require a person or corporation to have a real estate license.

Front 33

The organization with primary authority to administer The Act in Illinois is…
A) The Illinois Department of Financial and Professional Registration
B) The Real Estate Advisory Council
C) Illinois Housing Authority
D) The Illinois Human Rights Act Board

Back 33

A) The Illinois Department of Financial and Professional Registration

Real Estate in Illinois is overseen by many state-level organizations. The Illinois Department of Financial and Professional Registration has primary authority to administer The Act and other licensing acts in the state.

Front 34

Which of the following is an exception to the minimum age requirement (21 years) to obtain a salesperson's license in Illinois?
A) An 18 year old with four semesters of college credit with an emphasis in real estate.
B) A 17 year old with Board approval.
C) An 18 year old with approval of the IDFPR.
D) There is no exception to the minimum age requirement in the state of Illinois.

Back 34

A) An 18 year old with four semesters of college credit with an emphasis in real estate.

As long as the person meets the other requirements, he or she can apply for the salesperson's license at 18 years with at least four semesters of college credit with an emphasis in real estate.

Front 35

Christopher owns a company that negotiates sales for buyers and sellers. His business is incorporated, but does not obtain listings or sell properties. Does Christopher need a real estate license?
A) NO license is needed, because Christopher does not list properties.
B) NO license is needed, because Christopher does not sell properties.
C) YES, Christopher needs a broker-officer's license, and his company needs a broker's license.
D) YES, Christopher needs a broker-officer's license, but his company is exempt because it does not sell or list property.

Back 35

C) YES, Christopher needs a broker-officer's license, and his company needs a broker's license.

A broker is a person, partnership, LLC or corporation that performs ANY of the services for which a real estate license is required by law

Front 36

Paul is a broker acting as a manager. What can he NOT do in this capacity?
A) Paul cannot act as a sales manager and supervisor at a branch office.
B) Paul cannot act as a property manager working under a broker.
C) Paul cannot hold all of the licenses of other brokers working under him.
D) Paul cannot sell nor list property.

Back 36

C) Paul cannot hold all of the licenses of other brokers working under him.

Only the Managing Broker can hold licenses of brokers. The facts that Paul is managing the office, and has his own broker's license, does not make him THE Broker holding all the licenses. Paul operates under this Broker's authority as well.

Front 37

Cullen received a sponsor card while waiting for his license. He chose a workplace. The sponsoring broker must sign the sponsor card, make copies for the licensee and office records, and send the original to the IDFPR. How long does the broker have to complete this process?
A) 24 hours
B) 48 hours
C) 72 hours
D) There is no time limit.

Back 37

A) 24 hours

The original sponsor's card must be sent to the IDFPR within 24 hours, so A is the only correct answer.

Front 38

Karen terminates her employment with a broker and waits a period of time before associating herself with a new sponsoring broker. What is Karen's status?
A) Inoperative
B) Suspended
C) Revoked
D) Terminated

Back 38

A) Inoperative

Karen's status remains inoperative until she is employed with a new sponsoring broker, meeting all licensing requirements.

Front 39

Which of the following are requirements for any sponsoring broker in Illinois?
A) The sponsoring broker must maintain a definite office or place of business within Illinois.
B) The sponsoring broker must display a visible and conspicuous sign identifying his place of business outside the office.
C) The sponsoring broker must display his own license certificate within his office.
D) All of the above are requirements for a sponsoring broker within Illinois.

Back 39

D) All of the above are requirements for a sponsoring broker within Illinois.

Front 40

Zoe is the person who oversees the operations at the branch office. What is her title?
A) Zoe is the head broker.
B) Zoe is the branch broker.
C) Zoe is the managing broker.
D) Zoe is the sponsoring broker.

Back 40

C) Zoe is the managing broker.

The MANAGING broker is appointed by the SPONSORING broker to oversee the operations at the branch office. The managing broker may, by law, manage more than one branch in a multi-office company.

Front 41

At what age is a person considered "elderly" under the Illinois Human Rights Act?
A) Over 62
B) Over 40
C) Over 55
D) Over 45

Back 41

B) Over 40

Front 42

Residential structures constructed prior to which year require lead-based paint disclosure?
A) 1948
B) 1958
C) 1968
D) 1978

Back 42

D) 1978

Front 43

Which of the following is an odorless, colorless, tasteless radioactive gas produced by the natural decay or radioactive substances?
A) Nitrogen
B) Radon
C) Carbon Monoxide
D) Lead

Back 43

B) Radon

Radon trapped in high concentration in buildings can often cause health problems, including cancer

Front 44

Licensee Evan is more than 30 days delinquent in his child support payments. What action can IDFPR take?
A) IDFPR can suspend Evan's license.
B) IDFPR can revoke Evan's license.
C) IDFPR can refuse renewal or issuance of a license.
D) IDFPR has the authority to do any of the above

Back 44

D) IDFPR has the authority to do any of the above

A licensee must ALWAYS pay child support payments, Illinois taxes and student loans to retain his license. If delinquent, IDFPR has authority to take any of the above actions.

Front 45

Following the filing of a complaint, a subcommittee reviews it to determine its merit. Next, a hearing is scheduled. At that time, IDFPR may decide to do which of the following?
A) IDFPR may decide to decrease the licensee's practice.
B) IDFPR may decide to suspend or revoke the license.
C) IDFPR may decide to take actions listed in both A and B.
D) IDFPR would NOT take either action listed in A nor B.

Back 45

C) IDFPR may decide to take actions listed in both A and B.

A written, verified complaint constitutes grounds for disciplinary action

Front 46

What happens to an offending broker's license once payment has been made by the IDFPR?
A) The offending person's license is automatically suspended.
B) The offending person's license is suspended, but only with the approval of the IDFPR.
C) The offending person's license is automatically terminated.
D) The offending person's license is terminated, but only with the approval of the IDFPR.

Back 46

C) The offending person's license is automatically terminated.

Once a payment is made by the IDFPR, the license of the offending broker is automatically terminated, and he may NOT try to restore the status of his license until he has repaid IN FULL all the money to the fund, plus interest.

Front 47

How many members of the Board must have been a salesperson or broker for a minimum of 10 years prior to service?
A) 4
B) 5
C) 6
D) 7

Back 47

C) 6

Six of the nine members must have been a salesperson or broker for a minimum of 10 years. The remaining 3 members must NOT be licensed OR connected with the real estate profession (neither they nor their spouses may hold licenses). Their duty is to represent the interests of the consumer.

Front 48

Aaron is a nonresident salesperson wishing to qualify to practice real estate in Illinois. Which of the following rules apply to him?
A) Aaron must have completed a course and passed a test on Illinois-specific real estate brokerage laws.
B) Aaron's home state must have entered into a reciprocal licensing agreement with the IDFPR.
C) Issuing such a license is at the discretion of the IDFPR.
D) All of the above rules apply to Aaron.

Back 48

D) All of the above rules apply to Aaron.

Front 49

Which of the following statement(s) is true regarding compensation?
A) The sponsoring broker is the only one allowed to compensate the licensee.
B) Compensation must be disclosed to clients.
C) Compensation must always go from the seller or the buyer through the sponsoring broker to the broker.
D) All of the above are true regarding compensation.

Back 49

D) All of the above are true regarding compensation.

Front 50

The name of a case wherein it was determined that a real estate licensee can only fill in the blanks in a form provided by legal counsel is ______.
A) Smith vs. Johnson
B) Chicago Bar Accounting vs. Quinlan & Tyson, Inc.
C) Hulse vs. Kreiger
D) Link vs. Jones

Back 50

B) Chicago Bar Accounting vs. Quinlan & Tyson, Inc.

Since 1966, when the Illinois Supreme Court made its decision in the case of Chicago Bar Association, et al. v. Quinlan and Tyson, Inc., there have been certain limitations placed on licensees drafting sales contracts.

Front 51

When is a licensee required to disclose third party sources of compensation to client?
A) The licensee is not required to disclose third party compensation.
B) Disclose is required if based on brokerage office policy.
C) Disclosure is required if monies come from out of state sources.
D) All third party compensation must be disclosed.

Back 51

D) All third party compensation must be disclosed.

A licensee must disclose to a client all sources of compensation associated with the transaction received by the licensee from a third party.

Front 52

In Illinois, the Residential Real Property Disclosure Act requires that when a seller signs the listing agreement, he or she must attach a disclosure document completed by any of the following except the
A) Licensee.
B) Seller.
C) Seller's attorney.
D) Seller's power of attorney.

Back 52

A) Licensee.

Front 53

Seller Joe Needy lists his home for $400,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $380,000 and the seller accepts. In this situation:
A) The broker was unethical, but because no one was hurt it is not improper.
B) The broker violated the agency relationship.
C) The broker's action was proper in obtaining a quick offer.
D) Any broker is authorized to encourage bidders.

Back 53

B) The broker violated the agency relationship.

The broker gave away confidential information which is a violation of the agency relationship.

Front 54

Licensee Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?"
A) There is a crack in the basement wall.
B) The air conditioner does not work.
C) The owner of the property is HIV positive.
D) The casement windows have broken seals

Back 54

C) The owner of the property is HIV positive.

Front 55

Which of the following types of agency is not allowed in Illinois?
A) Dual agency
B) Buyer's agency
C) Designated agency
D) Undisclosed dual agency

Back 55

D) Undisclosed dual agency

Front 56

Licensee Judy takes a weekly ad out in the South Side Journal. Judy does not place ads in any of the other neighborhood newspapers. What might be said about Judy's advertisement practices?
A) Judy is targeting her market area.
B) A city-wide ad would be more cost-effective.
C) Ads in only one local paper may appear to be discriminatory.
D) Judy is marketing to potential buyers who fit the profile of those already established homeowners and not practicing discrimination.

Back 56

C) Ads in only one local paper may appear to be discriminatory.

Be sure to use a wide variety of newspapers, so that you don’t give an impression of racial steering.

Front 57

What are the three licensee designations in Illinois?
A) Salesperson, Agent, Licensee
B) Agent, Subagent, Broker
C) Broker, Managing Broker, Leasing Agent
D) Agent, Representative, Lessor

Back 57

C) Broker, Managing Broker, Leasing Agent

Front 58

Beginning after the 2013 renewal, individuals renewing or obtaining a managing broker’s license must complete how many CE credit hours?
A) 4
B) 6
C) 9
D) 12

Back 58

D) 12

Beginning after the 2013 renewal, individuals renewing or obtaining a managing broker’s license must complete the 12-hour broker management continuing education course each renewal period.

Front 59

Which statement about the Junk Fax Prevention Act is TRUE?
A) Licensees must check the national registry before sending a fax.
B) Licensees can only send faxes to existing clients.
C) This act applies only to managing brokers, not their employees.
D) Licensees are exempt from this act when sending open house notices.

Back 59

B) Licensees can only send faxes to existing clients.

The Junk Fax Prevention Act of 2005 only allows unsolicited faxes to be sent to individuals and businesses having an established business relationship (EBR).

Front 60

What is commonly referred to as “the Act” in Illinois real estate is actually:
A) The Real Estate License Act of 1983
B) The Real Estate License Act of 2000, as amended 12/31/2009
C) The IDFPR Act of 2000
D) The Real Estate Council Act of 1998

Back 60

B) The Real Estate License Act of 2000, as amended 12/31/2009

Front 61

A written or oral agreement between a sponsoring broker and a consumer for licensed activities to be provided to a consumer in return for compensation or the right to receive compensation from another is called a:
A) Listing agreement
B) License by reciprocity agreement
C) Dual agency agreement
D) Brokerage agreement

Back 61

D) Brokerage agreement

A brokerage agreement, which can be oral or written, ensures that the broker can perform licensed activities for compensation.

Front 62

Acts that a licensee may perform for a consumer, which are informative or clerical in nature and do not rise to the level of active representation on behalf of a consumer are known as:
A) Supervision
B) Ministerial acts
C) Acts of non-licensure
D) Fiduciary acts

Back 62

B) Ministerial acts

Ministerial Acts are acts performed by a licensed agent for a customer that are informative or clerical in nature

Front 63

Brokers should provide fiduciary services
A) To Cooperating Brokers.
B) To the Broker.
C) Only to Customers.
D) Only to Clients.

Back 63

D) Only to Clients.

Fiduciary duties are designed to place the client’s needs above the desires of the managing brokers and their affiliated licensees.

Front 64

Which of the following classes are not protected by federal law?
A) Military status
B) Sex
C) Color
D) Handicap

Back 64

A) Military status

The list of protected classes of the Federal Fair Housing Act are: race, sex, religion, color, national origin, familial status, and handicap.

Front 65

Which of the following is NOT a part of confidential information?
A) Client's business holdings.
B) Minimum a seller will accept for a property.
C) Reason a property is listed on the market.
D) Physical condition of the property.

Back 65

D) Physical condition of the property.

Confidential information is not considered to include material information about the physical condition of the property.

Front 66

The relationship between the licensee and a principal, during which the licensee is authorized to represent the principal in certain transactions, is known as:
A) Dual agency
B) Agency
C) Time-share agreement
D) Principality

Back 66

B) Agency

Agency – A relationship established between a principal and a real estate agent.

Front 67

Seller Joe has told his agent Sam that if he sells his house within three weeks, he will give Sam a $500 bonus. What are the acceptable means by which Sam can be paid the bonus?
A) The bonus can be given to Sam directly.
B) The bonus is to be put into an escrow account, then given to Sam.
C) The bonus is to be given to Sam's broker and then passed on to Sam
D) Neither Sam nor the brokerage is allowed a bonus.

Back 67

C) The bonus is to be given to Sam's broker and then passed on to Sam

Compensation must always go from the sellers or buyers THROUGH the sponsoring broker to the brokers. Sellers or buyers may not ever pay the licensees directly.

Front 68

In which of the following cases might confidential information be disclosed?
A) If required by the law.
B) Upon closing a brokerage.
C) Under NO circumstance.
D) Two years after the closing.

Back 68

A) If required by the law.

The rule of confidentiality could conceivably be waived if one of the following is true: the client permits the disclosure of the information by word or conduct; the law requires the disclosure; or the information becomes public through a source other than the licensee.

Front 69

Which is a TRUE statement about the Americans with Disabilities Act?
A) The act applies to AIDS victims.
B) The act applies to all structures built in the last 50 years.
C) An apartment manager might be required to widen all doorways to 60 inches .
D) Shopping centers are exempt if built after March 13, 1991.

Back 69

A) The act applies to AIDS victims.

The Americans with Disabilities Act applies to any person has a physical or mental disability or handicap (including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex and mental retardation) that substantially limits one or more major life activities, has a record of such a disability or is regarded as having such a disability

Front 70

Which of the following statements are correct?
A) A written document is needed to create agency.
B) A power of attorney is required to establish a special agent.
C) Compensation creates agency.
D) Compensation does not create agency.

Back 70

D) Compensation does not create agency.

Agency must be arranged before compensation and is not formed by compensation.

Front 71

Which of the following methods are not acceptable forms of commission?
A) Listing price minus the mortgage balance and a percentage of marketing costs.
B) Flat fee
C) Hourly rate
D) Percentage of the transaction amount

Back 71

A) Listing price minus the mortgage balance and a percentage of marketing costs.

Listing price minus a percentage of marketing costs is an illegal form of compensation.

Front 72

Which of these classes are protected by the Fair Housing Laws of Illinois?
A) Middle Income Renters
B) Criminal Record Holders
C) Military Status
D) Employment Status

Back 72

C) Military Status

Military status is protected by the Fair Housing Laws of Illinois but not by Federal Fair Housing Laws.

Front 73

Seller Jim tells his listing licensee that regardless of the offer, he will not sell to any Asian families. How does this impact the listing agent?
A) The licensee is still required to take the listing.
B) The licensee could be held liable if he or she knowing goes along with the request.
C) The licensee must note the request on MLS listing only.
D) The licensee must inform all agents regarding the request.

Back 73

B) The licensee could be held liable if he or she knowing goes along with the request.

The licensee is committing a civil rights violation by listing the property KNOWING there is intent to unlawfully discriminate by the owner

Front 74

What is the purpose of the license laws?
A) To protect mortgage lenders
B) To protect the broker
C) To protect the licensee
D) To protect the public

Back 74

D) To protect the public

The license laws are intended to regulate the industry in Illinois for the intention of protecting the public.

Front 75

Annie is a licensee. Which of the following entities can she receive referrals from?
A) Local banks
B) National home inspection companies
C) Attorneys
D) None of the above

Back 75

D) None of the above

Illinois real estate law states that licensees may NOT pay referral fees to unlicensed people who are not principals to the transactions.

Front 76

What is the type of agency created , when a licensee holds a stake in the transaction?
A) Agency of limited liability.
B) Agency coupled with an interest.
C) Freehold agency.
D) Agency of contract.

Back 76

B) Agency coupled with an interest.

An agency coupled with an interest is an agency relationship in which the agent has an interest in the property that is being sold.

Front 77

Which of the following is NOT defined as a seller according to the Property Disclosure Act?
A) Beneficiary of a trust
B) Contract purchaser or lessee of a ground lease
C) Owner
D) Any person who has never occupied the property

Back 77

D) Any person who has never occupied the property

The Property Disclosure Act defines a seller as “every person or entity who is an owner, beneficiary of a trust, contract purchaser or lessee of a ground lease, who has an interest (legal or equitable) in residential real property.”

Front 78

What is a good policy regarding a seller who refuses to accept an offer from a potential buyer that is in a specific protected class?
A) Do not advertise and hold open houses on this property.
B) Do not allow the brokerage's licensees to show the property.
C) Document the discrimination
D) Terminate the listing.

Back 78

D) Terminate the listing.

The listing should be terminated if the seller refuses to consider an offer because the prospective buyer is a member of a protected class.

Front 79

One regulation-based reason for becoming knowledgeable about house styles is that an agent must
A) be able to identify good houses.
B) be accurate in advertising listings.
C) develop a specialty in certain types.
D) know what home construction costs.

Back 79

B) be accurate in advertising listings.

It is necessary to be accurate and honest in advertisements regarding styles and types of housing

Front 80

When should a seller agency disclosure take place?
A) At the time of the first substantive dialogue
B) Upon first face to face meeting
C) Before writing up an offer
D) After the offer is written but before closing

Back 80

A) At the time of the first substantive dialogue

Under the Act, when a licensee meets another licensee or a customer regarding a property that is a potential for negotiations, they must tell that person whom they are representing. This should happen early on in the first substantial discussion concerning any real estate.

Front 81

All of the following is considered confidential information EXCEPT:
A) The sellers are selling because they are getting a divorce.
B) The buyer will pay more than what’s being offered.
C) The seller will take less than the current offer.
D) The buyer has four children.

Back 81

D) The buyer has four children.

Front 82

A property seller signs a listing agreement with a licensee. What is this an example of?
A) General agency
B) Universal agency
C) No agency
D) Expressed agency

Back 82

D) Expressed agency

Expressed agency is the most common way of creating an agency relationship. It is a written agreement in which the parties involved formally express the intention to form an agency relationship and they outline the terms and conditions of that agreement.

Front 83

Which statement is FALSE?
A) Seller Pete is not liable for any error, inaccuracy, or omission of any information delivered in the property condition report if he did not have actual knowledge of the problem.
B) Seller Amanda is not liable for any error, inaccuracy, or omission of any information delivered in the property condition report if she thought the problem had already been corrected.
C) The Property Disclosure Act obligates the seller to make a specific investigation or inquiry in an effort to complete the disclosure statement.
D) Seller Greg will be liable for any undisclosed material defects of which he had actual knowledge.

Back 83

C) The Property Disclosure Act obligates the seller to make a specific investigation or inquiry in an effort to complete the disclosure statement.

The Act does not obligate the seller to make any specific investigation or inquiry in an effort to complete the disclosure statement.

Front 84

Advertising a property that is subject to an exclusive listing agreement with a sponsoring broker other than the licensee's own without the permission of and identifying that listing broker is an example of:
A) Fair Housing violation
B) A Sherman Antitrust violation
C) Deceptive and misleading advertising
D) An Illinois Human Rights Act violation

Back 84

C) Deceptive and misleading advertising

Advertising a property that is subject to an exclusive listing agreement with a sponsoring broker other than the licensee's own without the permission of and identifying that listing broker is deceptive and misleading advertising.

Front 85

Licensee Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?"
A) There is a crack in the basement wall.
B) The air conditioner does not work.
C) The owner of the property is HIV positive.
D) The casement windows have broken seals.

Back 85

C) The owner of the property is HIV positive.

The licensee is not required or expected to know health details of the owner

Front 86

Broker Dan is representing Mandy as a buyer's agent. He wants to show Mandy one of his listed properties. Which statement is true?
A) There is no reason why Dan should not show Mandy the property.
B) Dan must disclose to the seller that he is also representing the buyer.
C) Dan needs to get the informed, written consent of both Mandy and the seller to act as a dual agent.
D) Dan must notify the Department of State that he wants to represent both parties in the transaction.

Back 86

C) Dan needs to get the informed, written consent of both Mandy and the seller to act as a dual agent

Both parties must agree in writing to the dual agency relationship.

Front 87

When does the first substantive contact take place?
A) A buyer contacts a broker through the Internet.
B) A seller calls a broker to schedule a listing appointment.
C) A potential buyer shows up at an open house.
D) A potential buyer or seller begins to discuss his or her needs

Back 87

D) A potential buyer or seller begins to discuss his or her needs

First substantive contact occurs as soon as there is a transfer of information from a buyer or seller to a licensee that is significant and material to a prospective transaction.

Front 88

Broker Jim signs a listing agreement with seller, Grace and a buyer agency agreement with buyer, Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?
A) Subagency
B) Dual agency
C) Exclusive agency
D) Single agency

Back 88

B) Dual agency

Disclosed dual agency exists when a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction.

Front 89

Using or altering existing listing information or keywords that are copied from one Internet site and posted or displayed for the benefit of the general public in front of a firewall at another site, without written or electronic authorization and disclosure of ownership is known as:
A) Scraping
B) Copywriting
C) Spam
D) Virus

Back 89

A) Scraping

Front 90

What MUST be printed on or included with the Property Disclosure Report?
A) A copy of the actual Disclosure Act
B) A copy of the inspection report
C) An affidavit signed by the managing broker who has the listing
D) The seller's contact information including phone number and email address

Back 90

A) A copy of the actual Disclosure Act

Based on Illinois law, a copy of the actual Disclosure Act, (excluding Section 35) must be printed on or be included with the Residential Real Property Disclosure Report form.

Front 91

Is it permissible, as a buyer representative, to dispense advice to your purchaser client?
A) No. A buyer representative should only dispense assistance, not advice.
B) Yes. A buyer representative should be able to dispense advice on all areas, including inspections, technical issues, etc.
C) Yes. A buyer representative should advise the client on matters of which he/she has knowledge. It is important to advise the client to obtain expert advice on areas in which the licensee is not an expert.
D) No. A buyer representative should remain neutral and simply aid in the transaction.

Back 91

C) Yes. A buyer representative should advise the client on matters of which he/she has knowledge. It is important to advise the client to obtain expert advice on areas in which the licensee is not an expert.

There is no conflict of interest by advising on matters the buyer representative has knowledge.

Front 92

Which of the following can a dual agent disclose?
A) That either party will agree to financing terms other than those offered
B) The motivating factors for any person buying, selling or leasing the property
C) Material or latent defects
D) The terms of any prior offers or counter offers made by any party

Back 92

C) Material or latent defects

Dual agents may disclose characteristics of the property without violating confidentiality.

Front 93

The situation that allows the broker to appoint more than one agent for the client within the same firm, is called:
A) Designated agency
B) Dual agent
C) Sponsoring licensee
D) Sponsoring broker

Back 93

A) Designated agency

Designated agency is a contractual relationship between a sponsoring broker and a client in which one or more licensees associated with or employed by the broker are designated as agent of the client.

Front 94

According to various sections of the Administrative Code, if Broker Bob is showing property that was the site of an act that had no effect on the physical condition of the property or its environment Broker Bob
A) Is required to disclose the act.
B) Is not required to disclose the act.
C) Disclose whatever the seller advises.
D) Should complete and deliver a Residential Real Property Disclosure Form to the buyer.

Back 94

B) Is not required to disclose the act.

Front 95

What is the standard for agency representation in Illinois?
A) Basic agency
B) Disclosed agency
C) Contractual agency
D) Designated agency

Back 95

D) Designated agency

Designated agency is not only permitted in Illinois, but it is STANDARD in this state.

Front 96

What is the best course of action in dealing with questions regarding the level of crime in a neighborhood?
A) Respond in vague terms.
B) Dismiss any questions.
C) Refer your client to public records.
D) Explain that no information exist in this area.

Back 96

C) Refer your client to public records.

A competent agent should refer a buyer client to the public record when asked about crime rates.