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

This would be considered in-house and NOT dual agency. Dual agency is different. Dual agency is when one licensee acts as both the seller and buyer's agent. Since Mary and Jenny are acting as agents separately this would be just an in-house deal and be perfectly legal.

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.

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.

A broker is never permitted to conceal information about latent defects. The other three choices are all minimum services as part of an exclusive brokerage agreement per sections 15-75 of the Illinois Real Estate License Act.

“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.

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.

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.

Illinois Real Estate Professionals are required to complete 12 continuing education hours every 2 years.

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.

“An applicant or licensee shall inform the Department of any change of address, email address, telephone number, or office location within 24 hours after any such change. A licensee shall notify the Department of any such change either through the Department's website or by other means prescribed by the Department.” Per the Real Estate License Act of 2000. Licensee contact information.

“Money deposited in the Real Estate Research and Education Fund may be used for research and for 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.” Per the Real Estate License Act of 2000. Real Estate Research and Education Fund.

“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.”

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.

“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.

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

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

“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.

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

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

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

Regarding real estate license reciprocity, Illinois has reciprocity agreements with some states: Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Nebraska, Wisconsin

The Governor is in charge of handling the appointment of members. Per Illinois Real Estate License Act Sec. 25-10.

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.

"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.

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.

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

In Illinois, the minimum age to obtain a managing broker's license is 20.

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

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.

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

“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

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

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.

“The members' terms shall be for 4 years and until a successor is appointed. No member shall be reappointed to the Board for a term that would cause the member's cumulative service to the Board to exceed 10 years.” Per Illinois Real Estate License Act Sec. 25-10.

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

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.

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.

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.

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