ILLINOIS REAL ESTATE PRACTICE EXAM 2026 |
300+ ACTUAL QUESTIONS & VERIFIED 100%
CORRECT ANSWERS
ILLINOIS REAL ESTATE PRACTICE EXAM
300+ Actual Questions & Verified 100% CORRECT ANSWER
1. In Illinois, how long must a real estate broker license be held before a licensee
can apply for a managing broker license?
A. 1 year
B. 3 years
C. 2 years
D. 5 years
E. 4 years
✔ CORRECT ANSWER: C. 2 years
RATIONALE: Illinois law requires that a broker must hold an active broker's
license for at least 2 years before being eligible to apply for a managing broker license.
2. Which of the following best describes "earnest money" in an Illinois real estate
transaction?
A. The commission paid to the agent
B. The final mortgage payment
C. A deposit made by the buyer to show good faith
D. The down payment on a property
E. A fee paid to the title company
✔ CORRECT ANSWER: C. A deposit made by the buyer to show good faith
RATIONALE: Earnest money is a good faith deposit made by the buyer when
submitting an offer. It shows the seller that the buyer is serious and is typically applied
toward the purchase price at closing.
,3. Under Illinois law, a real estate license is required to:
A. Sell your own property
B. Manage your own rental units
C. Sell real estate on behalf of another person for compensation
D. Negotiate a lease for your employer's building
E. Purchase real estate as an investor
✔ CORRECT ANSWER: C. Sell real estate on behalf of another person for
compensation
RATIONALE: Illinois law requires a real estate license when a person acts on
behalf of another in a real estate transaction for compensation. Selling one's own
property or managing personal assets does not require a license.
4. The Illinois Real Estate License Act is administered by:
A. The Illinois Department of Commerce
B. The Illinois Attorney General's Office
C. The Illinois Department of Financial and Professional Regulation (IDFPR)
D. The Illinois Real Estate Commission
E. The National Association of Realtors
✔ CORRECT ANSWER: C. The Illinois Department of Financial and Professional
Regulation (IDFPR)
RATIONALE: The IDFPR is the state agency responsible for administering and
enforcing the Illinois Real Estate License Act of 2000.
5. A leasehold estate that continues from period to period until proper notice is
given is called:
A. Estate for years
B. Estate at sufferance
C. Estate from period to period
,D. Estate at will
E. Tenancy in common
✔ CORRECT ANSWER: C. Estate from period to period
RATIONALE: A periodic tenancy (estate from period to period) automatically
renews at the end of each period — weekly, monthly, or yearly — until one party gives
proper notice to terminate.
6. In Illinois, which type of agency relationship is created when a broker
represents both the buyer and seller in the same transaction?
A. Single agency
B. Subagency
C. Dual agency
D. Buyer agency
E. Transactional agency
✔ CORRECT ANSWER: C. Dual agency
RATIONALE: Dual agency occurs when a broker represents both the buyer and
the seller in the same transaction. In Illinois, this must be disclosed and consented to by
both parties in writing.
7. What is the Illinois Residential Real Property Disclosure Act designed to do?
A. Protect agents from liability
B. Set minimum property values
C. Require sellers to disclose known material defects to buyers
D. Regulate zoning laws
E. Establish escrow requirements
✔ CORRECT ANSWER: C. Require sellers to disclose known material defects to
buyers
, RATIONALE: The Illinois Residential Real Property Disclosure Act requires sellers
to disclose known material defects in the property to prospective buyers before a sale is
completed.
8. A property owner who dies without a will is said to have died:
A. In probate
B. Testate
C. Intestate
D. In trust
E. In fee simple
✔ CORRECT ANSWER: C. Intestate
RATIONALE: When a person dies without a valid will, they are said to have died
intestate. In Illinois, the estate is then distributed according to the state's intestate
succession laws.
9. Which lien takes priority over all other liens on a property?
A. Mortgage lien
B. Judgment lien
C. Property tax lien
D. Mechanic's lien
E. HOA lien
✔ CORRECT ANSWER: C. Property tax lien
RATIONALE: Property tax liens are given super-priority status by law and take
precedence over all other liens, including mortgages and judgment liens, regardless of
when they were recorded.
10. Under Illinois law, how many hours of pre-license education are required for a
broker license?
300+ ACTUAL QUESTIONS & VERIFIED 100%
CORRECT ANSWERS
ILLINOIS REAL ESTATE PRACTICE EXAM
300+ Actual Questions & Verified 100% CORRECT ANSWER
1. In Illinois, how long must a real estate broker license be held before a licensee
can apply for a managing broker license?
A. 1 year
B. 3 years
C. 2 years
D. 5 years
E. 4 years
✔ CORRECT ANSWER: C. 2 years
RATIONALE: Illinois law requires that a broker must hold an active broker's
license for at least 2 years before being eligible to apply for a managing broker license.
2. Which of the following best describes "earnest money" in an Illinois real estate
transaction?
A. The commission paid to the agent
B. The final mortgage payment
C. A deposit made by the buyer to show good faith
D. The down payment on a property
E. A fee paid to the title company
✔ CORRECT ANSWER: C. A deposit made by the buyer to show good faith
RATIONALE: Earnest money is a good faith deposit made by the buyer when
submitting an offer. It shows the seller that the buyer is serious and is typically applied
toward the purchase price at closing.
,3. Under Illinois law, a real estate license is required to:
A. Sell your own property
B. Manage your own rental units
C. Sell real estate on behalf of another person for compensation
D. Negotiate a lease for your employer's building
E. Purchase real estate as an investor
✔ CORRECT ANSWER: C. Sell real estate on behalf of another person for
compensation
RATIONALE: Illinois law requires a real estate license when a person acts on
behalf of another in a real estate transaction for compensation. Selling one's own
property or managing personal assets does not require a license.
4. The Illinois Real Estate License Act is administered by:
A. The Illinois Department of Commerce
B. The Illinois Attorney General's Office
C. The Illinois Department of Financial and Professional Regulation (IDFPR)
D. The Illinois Real Estate Commission
E. The National Association of Realtors
✔ CORRECT ANSWER: C. The Illinois Department of Financial and Professional
Regulation (IDFPR)
RATIONALE: The IDFPR is the state agency responsible for administering and
enforcing the Illinois Real Estate License Act of 2000.
5. A leasehold estate that continues from period to period until proper notice is
given is called:
A. Estate for years
B. Estate at sufferance
C. Estate from period to period
,D. Estate at will
E. Tenancy in common
✔ CORRECT ANSWER: C. Estate from period to period
RATIONALE: A periodic tenancy (estate from period to period) automatically
renews at the end of each period — weekly, monthly, or yearly — until one party gives
proper notice to terminate.
6. In Illinois, which type of agency relationship is created when a broker
represents both the buyer and seller in the same transaction?
A. Single agency
B. Subagency
C. Dual agency
D. Buyer agency
E. Transactional agency
✔ CORRECT ANSWER: C. Dual agency
RATIONALE: Dual agency occurs when a broker represents both the buyer and
the seller in the same transaction. In Illinois, this must be disclosed and consented to by
both parties in writing.
7. What is the Illinois Residential Real Property Disclosure Act designed to do?
A. Protect agents from liability
B. Set minimum property values
C. Require sellers to disclose known material defects to buyers
D. Regulate zoning laws
E. Establish escrow requirements
✔ CORRECT ANSWER: C. Require sellers to disclose known material defects to
buyers
, RATIONALE: The Illinois Residential Real Property Disclosure Act requires sellers
to disclose known material defects in the property to prospective buyers before a sale is
completed.
8. A property owner who dies without a will is said to have died:
A. In probate
B. Testate
C. Intestate
D. In trust
E. In fee simple
✔ CORRECT ANSWER: C. Intestate
RATIONALE: When a person dies without a valid will, they are said to have died
intestate. In Illinois, the estate is then distributed according to the state's intestate
succession laws.
9. Which lien takes priority over all other liens on a property?
A. Mortgage lien
B. Judgment lien
C. Property tax lien
D. Mechanic's lien
E. HOA lien
✔ CORRECT ANSWER: C. Property tax lien
RATIONALE: Property tax liens are given super-priority status by law and take
precedence over all other liens, including mortgages and judgment liens, regardless of
when they were recorded.
10. Under Illinois law, how many hours of pre-license education are required for a
broker license?
