REC Practice Exam 2023/2024 Practice Questions and
Answers Complete
Which of the following liens do not need to be recorded to be valid?
Real Estate Tax Lien
When a prospective buyer makes a written purchase offer that the seller accepts,
then the
Buyer receives equitable title to the property; "equitable title" means that the prospective
buyer has obtained the right to acquire ownerships of a property currently owned and
occupied by another
If Sarah receives 35% of a total commission from her broker than what is Sarah's
broker's share if the property sold for $23,000 and the commission was on a 6%
basis?
$897; $23,000 x .06 = $1,380 x .35 = $483 (Sarah's share), $1,380 - $483 = $897
(broker's share) OR $23,000 x .06 = $1,380 x .65 (1 - .35 = .65 for broker's share) =
$897
The essential elements of a contract include all of the following EXCEPT
notarized signatures
when the grantor does not wish to convey certain property rights, he or she
may note the exceptions in the deed of conveyance
a property seller signs a listing agreement with a licensee. What is this an
example of?
expressed agency
the _______ is the culmination of the real estate transaction.
title closing; at the closing, the buyer completes his or her financing arrangements
(referred to as closing the loan), the seller transfers the title, and both the buyer and
seller pay the necessary taxes, fees, and other charges
H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest
money with Broker L. However, V is unable to clear the title to the property, and H
demands the return of his earnest money as provided in the purchase contract.
Broker L should
return the entire amount to H; H is entitled to have all his earnest money returned since
it was the seller, not he, who defaulted on the contract
The Civil Rights Act of 1866 prohibits discrimination in housing based on which
of the following reasons?
race
Licensee Evan is more than 30 days delinquent in his child support payments.
What action can IDFPR take?
IDFPR has the authority to do any of the above; a licensee must ALWAYS pay child
support payments, Illinois taxes, and student loan to retain his license. If delinquent,
IDFPR has authority to take any of the above actions. Those being: refuse renewal or
issue of a license, suspend Evan's license, or revoke Evan's license.
A bill of sale is used to transfer the ownership of what?
personal property
, a real estate licensee has a buyer agency agreement. What is the seller in this
situation?
a customer; buyer = client so seller = customer
the amount of earnest money deposit is determined by
an agreement between the parties; earnest money is a demonstration of sincerity on the
part of the purchaser and the amount is determined by the agreement of the parties
A portion of Wendell's building was inadvertently built on Ginny's land. This is
called an
encroachment
Carl, the owner of an apartment complex, lives in a one unit of a triplex and
routinely refused to rent either of the other two units to a female. Can he do this?
Yes. He may do this if he does not use a broker or discriminate in advertising
A person who has complete control over a parcel of real estate is said to own a
fee simple estate
The finance charges recorded on the Truth in Lending statements would include
all of the following EXCEPT
Recording fees and title insurance premiums
Owner Grace's property has been foreclosed. After the property sold for $340,000,
she still owed $60,000 to the lender. The lander may be able to get a personal
judgement against Grace for the $60,000. This is called a
deficiency judgement; a deficiency judgement enables the lender to attack and
foreclose a judgement lien on other real or personal property the borrower owns
Acts 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
ministerial acts
Jim, Manny, and Harry are joint tenants owning a parcel of land. Harry conveys
his interest to his long-time friend Wendell. After the conveyance, Jim and Manny
Remain joint tenants owning a two-thirds interest
Homeowner Tanya acquired the ownership of land that was deposited by a river
running through her property by
accretion; accretion = the addition to a parcel of land by sand or soil deposits due to the
action of a river or other body of water over time
a partition suit is used for which of the following?
to force a division of property without all the owners' consents; partition suits are
typically pursued when a co-owner of a property wants to sell his or her share and the
other owners are opposed
Sam and Nancy bought a store building and took title as joint tenants. Nancy died
testate. Sam now owns the store
in severalty
the rights of the owners of property located along the banks of a river are called
riparian rights
a special warranty deed differs from a general warranty deed in that the grantor's
covenant in the special warranty deed
Answers Complete
Which of the following liens do not need to be recorded to be valid?
Real Estate Tax Lien
When a prospective buyer makes a written purchase offer that the seller accepts,
then the
Buyer receives equitable title to the property; "equitable title" means that the prospective
buyer has obtained the right to acquire ownerships of a property currently owned and
occupied by another
If Sarah receives 35% of a total commission from her broker than what is Sarah's
broker's share if the property sold for $23,000 and the commission was on a 6%
basis?
$897; $23,000 x .06 = $1,380 x .35 = $483 (Sarah's share), $1,380 - $483 = $897
(broker's share) OR $23,000 x .06 = $1,380 x .65 (1 - .35 = .65 for broker's share) =
$897
The essential elements of a contract include all of the following EXCEPT
notarized signatures
when the grantor does not wish to convey certain property rights, he or she
may note the exceptions in the deed of conveyance
a property seller signs a listing agreement with a licensee. What is this an
example of?
expressed agency
the _______ is the culmination of the real estate transaction.
title closing; at the closing, the buyer completes his or her financing arrangements
(referred to as closing the loan), the seller transfers the title, and both the buyer and
seller pay the necessary taxes, fees, and other charges
H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest
money with Broker L. However, V is unable to clear the title to the property, and H
demands the return of his earnest money as provided in the purchase contract.
Broker L should
return the entire amount to H; H is entitled to have all his earnest money returned since
it was the seller, not he, who defaulted on the contract
The Civil Rights Act of 1866 prohibits discrimination in housing based on which
of the following reasons?
race
Licensee Evan is more than 30 days delinquent in his child support payments.
What action can IDFPR take?
IDFPR has the authority to do any of the above; a licensee must ALWAYS pay child
support payments, Illinois taxes, and student loan to retain his license. If delinquent,
IDFPR has authority to take any of the above actions. Those being: refuse renewal or
issue of a license, suspend Evan's license, or revoke Evan's license.
A bill of sale is used to transfer the ownership of what?
personal property
, a real estate licensee has a buyer agency agreement. What is the seller in this
situation?
a customer; buyer = client so seller = customer
the amount of earnest money deposit is determined by
an agreement between the parties; earnest money is a demonstration of sincerity on the
part of the purchaser and the amount is determined by the agreement of the parties
A portion of Wendell's building was inadvertently built on Ginny's land. This is
called an
encroachment
Carl, the owner of an apartment complex, lives in a one unit of a triplex and
routinely refused to rent either of the other two units to a female. Can he do this?
Yes. He may do this if he does not use a broker or discriminate in advertising
A person who has complete control over a parcel of real estate is said to own a
fee simple estate
The finance charges recorded on the Truth in Lending statements would include
all of the following EXCEPT
Recording fees and title insurance premiums
Owner Grace's property has been foreclosed. After the property sold for $340,000,
she still owed $60,000 to the lender. The lander may be able to get a personal
judgement against Grace for the $60,000. This is called a
deficiency judgement; a deficiency judgement enables the lender to attack and
foreclose a judgement lien on other real or personal property the borrower owns
Acts 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
ministerial acts
Jim, Manny, and Harry are joint tenants owning a parcel of land. Harry conveys
his interest to his long-time friend Wendell. After the conveyance, Jim and Manny
Remain joint tenants owning a two-thirds interest
Homeowner Tanya acquired the ownership of land that was deposited by a river
running through her property by
accretion; accretion = the addition to a parcel of land by sand or soil deposits due to the
action of a river or other body of water over time
a partition suit is used for which of the following?
to force a division of property without all the owners' consents; partition suits are
typically pursued when a co-owner of a property wants to sell his or her share and the
other owners are opposed
Sam and Nancy bought a store building and took title as joint tenants. Nancy died
testate. Sam now owns the store
in severalty
the rights of the owners of property located along the banks of a river are called
riparian rights
a special warranty deed differs from a general warranty deed in that the grantor's
covenant in the special warranty deed
