Free Illinois Real Estate Practice Exam Questions (November 2024) 40+

According to the Illinois Human Rights Act, the protected "age" class refers to the age of a person who is 40 years old or older.

“All escrow funds received by the Sponsoring/Managing Broker shall be deposited into the broker's escrow account not later than the next business day following the transaction.” Per Illinois Escrow Account Record Keeping Requirements

To become a managing Broker in Illinois you must complete 165 hours of state-approved pre-licensing.

According to Illinois Real License Advertising Law. Any advertising, including advertising on the internet, is required, at minimum, to have a sponsoring broker's name and franchise (if applicable).

Generally speaking, everyone must comply. The law applies to owners, managers, salespersons, brokers, builders, appraisers, rental agents, and more.

There are a total of fifteen members in the Real Estate Administration and Disciplinary Board. Per Illinois Real Estate License Act Sec. 25-10.

Contracts. Chicago Bar Association, et al. v. Quinlan and Tyson, Inc. was an Illinois Supreme Court case that places certain limitations on real estate licensees in drafting a contract of sale. Licensees are only authorized to fill in blanks. All insertions and deletions must be at the direction of the principals based on the negotiations.

“Any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a managing broker, broker, or residential leasing agent without being licensed under this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in an amount not to exceed $25,000 for each offense as determined by the Department.” Per Real Estate License Act of 2000 Sec. 20-10. Unlicensed practice; civil penalty.

A fiduciary relationship is one in which the agent is held in a position of special trust and confidence by the principal.

Chicago Bar Association, et al. v. Quinlan and Tyson, Inc. was an Illinois Supreme Court case that places certain limitations on real estate licensees in drafting a contract of sale. Licensees are only authorized to fill in blanks. All insertions and deletions must be at the direction of the principals based on the negotiations. In this example, agent Matt is in violation of changes brought about by the Quinlan and Tyson decision.

Illinois is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

“The Department shall maintain a Real Estate Recovery Fund from which any person aggrieved by an act, representation, transaction, or conduct of a licensee or unlicensed employee of a licensee that is in violation of this Act or the rules promulgated pursuant thereto, constitutes embezzlement of money or property, or results in money or property being unlawfully obtained from any person by false pretenses, artifice, trickery, or forgery or by reason of any fraud, misrepresentation, discrimination, or deceit by or on the part of any such licensee or the unlicensed employee of a licensee and that results in a loss of actual cash money, as opposed to losses in market value, may recover.” Per the Real Estate License Act of 2000. Recovery from Real Estate Recovery Fund.

An unlicensed employee may not show homes that are for sale. They can however do the other tasks per the Real Estate License Act of 2000. Section 1450.740 Unlicensed Assistant.

1966. Chicago Bar Association, et al. v. Quinlan and Tyson, Inc. was an Illinois Supreme Court case that places certain limitations on real estate licensees in drafting a contract of sale. Licensees are only authorized to fill in blanks. All insertions and deletions must be at the direction of the principals based on the negotiations.

Technically, the seller pays the listing broker (their sponsoring broker) who then pays the listing agent. Per Illinois license law.

An unlicensed employee may negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee. They can however do the other tasks per the Real Estate License Act of 2000. Section 1450.740 Unlicensed Assistant.

"Address of record" means the designated address recorded by the Department in the applicant's or licensee's application file or license file as maintained by the Department. Per Real Estate License Act of 2000 General Provisions.

The Real Estate License Act of 2000 is what covers license laws for real estate brokers and salespeople in Illinois.

Confidentiality is a fiduciary duty that survives beyond the end of an agency relationship. Per Illinois Agency Law

An individual licensee may act as a dual agent or a sponsoring broker may permit one or more of its sponsored licensees to act as dual agents in the same transaction only with the informed written consent of all clients. Per Illinois Compiled Statutes.

Illinois broker's licenses expire every two years on April 30th (in even years).

Credit is not. The Illinois Human Rights Act prohibits discrimination in housing based upon race, color, religion, sex, pregnancy, national origin, ancestry, age, order of protection status, marital status, sexual orientation, unfavorable military discharge, physical and mental disability, and familial status. Per Illinois Human Rights Act.

In Illinois, the minimum age to become a real estate broker is 18.

Illinois licensees who allow their licenses to expire have two years to reinstate their licenses or they’ll have to go through the licensing process again.

Phil would have to within two years. “No action for a judgment that subsequently results in a post-judgment order for collection from the Real Estate Recovery Fund shall be started later than 2 years after the date on which the aggrieved person knew, or through the use of reasonable diligence should have known, of the acts or omissions giving rise to a right of recovery from the Real Estate Recovery Fund.” Per the Real Estate License Act of 2000. Recovery from Real Estate Recovery Fund.

Employment location is not a protected class. The Illinois Human Rights Act prohibits discrimination in housing based upon race, color, religion, sex, pregnancy, national origin, ancestry, age, order of protection status, marital status, sexual orientation, unfavorable military discharge, physical and mental disability, and familial status. Per Illinois Human Rights Act.

Client. Illinois agents owe their CLIENTS fiduciary responsibilities or duties.

All records relating to a real estate transaction shall be maintained by the Sponsoring / Managing Broker for five (5) years. Per Illinois Escrow Account Record Keeping Requirements

“All members shall have been residents and citizens of this State for at least 6 years prior to the date of appointment.” Per Illinois Real Estate License Act Sec. 25-10.

Thelma may have her license suspended or revoked by the Illinois Real Estate Administration and Disciplinary Board. Drafting deeds is not a real estate broker's job. Remember, agents, are not supposed to draft documents just help fill them out.

No, it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. “The Broker shall maintain escrow money separate and apart from any personal, business, or operating accounts.“ Per Illinois Escrow Account Record Keeping Requirements

No. Under the Fair Housing Act, persons with handicaps are protected from discrimination. Individuals who have or have had AIDS are protected by the Act. Real Estate Agents or Brokers may not mention the handicap of the individual unless granted permission from the said individual.

“To qualify for a Managing Broker license in Illinois you must be at least 20 years old, have an active, valid Illinois real estate broker license, have had an active real estate license for two (2) of the past three (3) years.”

“No action for a judgment that subsequently results in a post-judgment order for collection from the Real Estate Recovery Fund shall be started later than 2 years after the date on which the aggrieved person knew, or through the use of reasonable diligence should have known, of the acts or omissions giving rise to a right of recovery from the Real Estate Recovery Fund.” Per the Real Estate License Act of 2000. Recovery from Real Estate Recovery Fund.

Per Illinois License Law. Advertising must be placed under the direct supervision of a sponsoring or managing broker, with the sponsoring broker's name featured prominently on the advertisement. A sponsored licensee cannot advertise under their own name. The name CAN be included, but the ad must be in the sponsoring broker's name.

“The aggrieved person shall 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.” Per the Real Estate License Act of 2000. Recovery from Real Estate Recovery Fund.

The purpose is to provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee who violated the license law or committed other illegal acts related to a real estate transaction. Per the Real Estate License Act of 2000. Recovery from Real Estate Recovery Fund.

Jake is guilty of practicing real estate without a license, since, Lisa paid Jake a commission. That is a violation of Illinois license law. Lisa was responsible for them both, and thus they could all be sanctioned.

Clients and Customers. Per Illinois law parties represented by licensees are called clients, and must be given disclosure of their status. Customers are not represented but must be notified of their status too.

“Designated managing broker" means 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. Per Real Estate License Act of 2000 General Provisions.