ILLINOIS REAL ESTATE EXAM SCRIPT ACTUAL
QUESTIONS AND ANSWERS SURE A+
✔✔Tenancy in common - ✔✔Ownership in which two or more people on a property
together. The land itself is not physically divided. The percentage of ownership does not
need to be equal. One owner can sell his share without permission of the other owners.
If one owner dies her share goes to her heirs, not to the other owners.
✔✔Joint tenancy - ✔✔Ownership for two or more people with for unities; 1. unity of
interest (equal shares), 2. Unity of possession, 3. Unity of time (all owners take
possession at the same time...if one joint tenant sells their interest then new partner is a
tenant in common. Also, joint tenant can sell without permission of other joint tenants.
4.unity of title-all the joint tenants name are on the title.
✔✔Right of survivorship - ✔✔In joint tenancy, if one of the joint tenants dies, the other
tenants automatically take title to the deceased tenants interest in the property.
In tenancy in common, the owner can leave their share to heirs...the other owners don't
have any rights to her share of the property.
✔✔Tenancy by the entirety - ✔✔Form of coownership specifically geared towards
protecting the interests of married couples by providing a right of survivorship. Each
spouse has an undivided and equal interest in the property. Upon death of one spouse,
✔✔Trustor - ✔✔The person who owns the property and creates the trust and conveys it
to the trustee
✔✔Trustee - ✔✔The person who receives the property or who manages the trust and
administers it on behalf of the beneficiary
✔✔Beneficiary - ✔✔The person who receives the benefits of the property/trust
✔✔Syndicate - ✔✔Two or more people or companies joining for a real estate
investment, usually does multiple real estate investments or projects or a series of
individual projects over a period of time.
✔✔General partnership - ✔✔All the partners share in the management and operational
decisions over the business of the partnership. Also share in the liability.
✔✔Limited partnership - ✔✔One general partner usually manages the operations of the
business, and a number of other limited partners have no management responsibilities.
The liabilities of the limited partners is limited to their investment in the company.
,✔✔Joint ventures - ✔✔Joining of two or more people or companies to do a single
project. Usually includes an ending date, not designed to be ongoing business
relationships.
✔✔Proprietary lease - ✔✔The shares you own in a corporation that owns the real
estate... You are a shareholder with a proprietary lease to occupy your apartment.
✔✔Planned unit development (PUD) - ✔✔A large development often having mixed
uses, such as different types of residential and commercial uses, and built by a single
developer
✔✔Condominium - ✔✔As an owner, you own the unit individually or severality, but the
land under and around it as a tenant in common with others.
✔✔Timeshare - ✔✔Person has either a fractional ownership in the property or the right
to use a property for a limited period of time each year.
✔✔Encumbrance - ✔✔A right or interest in a piece of real estate the belongs to
someone other than the property owner. Becomes a restriction on the property or a
limit.
Can be a claim called a lien - financial claim against the real estate;
A limitation on the use of the property, such as an easement encroachment or
restriction.
✔✔Lien - ✔✔Financial claims against someone's property. Stays with the property,
regardless of who owns it, until the debt is paid.
✔✔Priority of liens - ✔✔Who gets paid first when property is sold against the owners
wishes to satisfy a number of debts
1. General and special assessment taxes above real estate taxes
2. Remaining liens usually paid off in the order they were recorded...first recorded, first
paid.
✔✔Voluntary lien - ✔✔When the property owner willingly take some action that enables
the placement of a lien against the property. Example - mortgage most common
voluntary lien.
✔✔Involuntary lien - ✔✔Placed on property against the owners will, if the property
owner owes money to someone such as the tax collector, and the owner doesn't pay, a
lien is placed on the property.
✔✔Collateral - ✔✔Using real estate as security for a loan ordebt when you borrow
money
, ✔✔General lien - ✔✔Attaches to a number of properties
✔✔Tax lien - ✔✔Involuntary and specific. Placed on real estate for unpaid real estate
taxes by the government.
✔✔Mortgage lien - ✔✔Voluntary and specific. Most common type of real estate lien.
First mortgage lien is only lean, any other liens are called junior liens
✔✔Mechanics lien - ✔✔The lien placed on your property for nonpayment for work you
had done on the property. Involuntary and specific.
✔✔Lis pendens - ✔✔Notice of a potential future lean, recorded in the public record to
give notice to future buyers of the real estate.
✔✔Judgment lien - ✔✔Involuntary and general, usually created as a result of court
action. If you can't pay against eight court judgment, the court may place a judgment
lien against your property.
✔✔Specific lien - ✔✔Attaches to only one property
✔✔Easement - ✔✔The right of another person or entity to you someone else's property
for his or her benefit.
✔✔Dominant tenemant or dominant estate - ✔✔The person Who possesses the
easement or property receiving the benefit of the easement. The property the benefits
from the easement or dominates over the others is dominant
✔✔Merger - ✔✔Joining of two properties involved, eliminating the easement
✔✔Servient tenemant or servient estate - ✔✔The property on which the easement was
granted. It is the property being used or serving the demands of the easement.
✔✔Appurtenant easement - ✔✔Benefits a neighboring property. A land locked property
that has to drive across the neighbors property to get to their house has appurtenant
easement. It runs with the land, meeting new owners have same rights.
✔✔3 appurtant easements - ✔✔1. Surface - driveway
2. Underground - waterline
3. Overhead - electrical lines
✔✔Easement in gross - ✔✔Benefits another person rather than property. For example,
the gas company needs an easement in gross to install connecting gas lines across
your property. Also utility easements, sewer etc
QUESTIONS AND ANSWERS SURE A+
✔✔Tenancy in common - ✔✔Ownership in which two or more people on a property
together. The land itself is not physically divided. The percentage of ownership does not
need to be equal. One owner can sell his share without permission of the other owners.
If one owner dies her share goes to her heirs, not to the other owners.
✔✔Joint tenancy - ✔✔Ownership for two or more people with for unities; 1. unity of
interest (equal shares), 2. Unity of possession, 3. Unity of time (all owners take
possession at the same time...if one joint tenant sells their interest then new partner is a
tenant in common. Also, joint tenant can sell without permission of other joint tenants.
4.unity of title-all the joint tenants name are on the title.
✔✔Right of survivorship - ✔✔In joint tenancy, if one of the joint tenants dies, the other
tenants automatically take title to the deceased tenants interest in the property.
In tenancy in common, the owner can leave their share to heirs...the other owners don't
have any rights to her share of the property.
✔✔Tenancy by the entirety - ✔✔Form of coownership specifically geared towards
protecting the interests of married couples by providing a right of survivorship. Each
spouse has an undivided and equal interest in the property. Upon death of one spouse,
✔✔Trustor - ✔✔The person who owns the property and creates the trust and conveys it
to the trustee
✔✔Trustee - ✔✔The person who receives the property or who manages the trust and
administers it on behalf of the beneficiary
✔✔Beneficiary - ✔✔The person who receives the benefits of the property/trust
✔✔Syndicate - ✔✔Two or more people or companies joining for a real estate
investment, usually does multiple real estate investments or projects or a series of
individual projects over a period of time.
✔✔General partnership - ✔✔All the partners share in the management and operational
decisions over the business of the partnership. Also share in the liability.
✔✔Limited partnership - ✔✔One general partner usually manages the operations of the
business, and a number of other limited partners have no management responsibilities.
The liabilities of the limited partners is limited to their investment in the company.
,✔✔Joint ventures - ✔✔Joining of two or more people or companies to do a single
project. Usually includes an ending date, not designed to be ongoing business
relationships.
✔✔Proprietary lease - ✔✔The shares you own in a corporation that owns the real
estate... You are a shareholder with a proprietary lease to occupy your apartment.
✔✔Planned unit development (PUD) - ✔✔A large development often having mixed
uses, such as different types of residential and commercial uses, and built by a single
developer
✔✔Condominium - ✔✔As an owner, you own the unit individually or severality, but the
land under and around it as a tenant in common with others.
✔✔Timeshare - ✔✔Person has either a fractional ownership in the property or the right
to use a property for a limited period of time each year.
✔✔Encumbrance - ✔✔A right or interest in a piece of real estate the belongs to
someone other than the property owner. Becomes a restriction on the property or a
limit.
Can be a claim called a lien - financial claim against the real estate;
A limitation on the use of the property, such as an easement encroachment or
restriction.
✔✔Lien - ✔✔Financial claims against someone's property. Stays with the property,
regardless of who owns it, until the debt is paid.
✔✔Priority of liens - ✔✔Who gets paid first when property is sold against the owners
wishes to satisfy a number of debts
1. General and special assessment taxes above real estate taxes
2. Remaining liens usually paid off in the order they were recorded...first recorded, first
paid.
✔✔Voluntary lien - ✔✔When the property owner willingly take some action that enables
the placement of a lien against the property. Example - mortgage most common
voluntary lien.
✔✔Involuntary lien - ✔✔Placed on property against the owners will, if the property
owner owes money to someone such as the tax collector, and the owner doesn't pay, a
lien is placed on the property.
✔✔Collateral - ✔✔Using real estate as security for a loan ordebt when you borrow
money
, ✔✔General lien - ✔✔Attaches to a number of properties
✔✔Tax lien - ✔✔Involuntary and specific. Placed on real estate for unpaid real estate
taxes by the government.
✔✔Mortgage lien - ✔✔Voluntary and specific. Most common type of real estate lien.
First mortgage lien is only lean, any other liens are called junior liens
✔✔Mechanics lien - ✔✔The lien placed on your property for nonpayment for work you
had done on the property. Involuntary and specific.
✔✔Lis pendens - ✔✔Notice of a potential future lean, recorded in the public record to
give notice to future buyers of the real estate.
✔✔Judgment lien - ✔✔Involuntary and general, usually created as a result of court
action. If you can't pay against eight court judgment, the court may place a judgment
lien against your property.
✔✔Specific lien - ✔✔Attaches to only one property
✔✔Easement - ✔✔The right of another person or entity to you someone else's property
for his or her benefit.
✔✔Dominant tenemant or dominant estate - ✔✔The person Who possesses the
easement or property receiving the benefit of the easement. The property the benefits
from the easement or dominates over the others is dominant
✔✔Merger - ✔✔Joining of two properties involved, eliminating the easement
✔✔Servient tenemant or servient estate - ✔✔The property on which the easement was
granted. It is the property being used or serving the demands of the easement.
✔✔Appurtenant easement - ✔✔Benefits a neighboring property. A land locked property
that has to drive across the neighbors property to get to their house has appurtenant
easement. It runs with the land, meeting new owners have same rights.
✔✔3 appurtant easements - ✔✔1. Surface - driveway
2. Underground - waterline
3. Overhead - electrical lines
✔✔Easement in gross - ✔✔Benefits another person rather than property. For example,
the gas company needs an easement in gross to install connecting gas lines across
your property. Also utility easements, sewer etc
