2024 illinois state law 100% VERIFIED SOLUTION

Mr. Smith sells his Illinois home for $151,050. He will be required to pay how much in Illinois transfer taxes? A » $ 227.25 B » $ 226.58 C » $ 454.50 D » $ 453.16 - ANSWER A Illinois transfer tax is $.75 per $500 of sales price, or portion thereof and is paid by the seller. $.50 goes to the state and $.25 is retained by the county where the property is located. $151,050 divided by $500 = 302.10. In this case, the .10 indicates we have a portion of the next $500 of sales price in addition to the 302 number. As the tax is $.75 per $500 of price, 303 times $.75 = $227.25 for transfer taxes. Sandy wishes to start a new real estate company, although she has never had a real estate license of any type. Which of the following statements is true? A » She can receive her managing broker's license and start a company immediately B » She must be licensed for at least two years before she can manage an office C » She cannot own a real estate company without being licensed D » She can get licensed, start a company, but not hire any agents for two years - ANSWER B To manage a real estate office, a managing broker must have had a real estate license two of the last three years. In Illinois, in a typical multiple listing service arrangement, the agent who shows a property without any pre-arrangements regarding agency relationships is presumed to be the agent of the: A » buyer B » seller C » listing broker D » buyer and the seller - ANSWER A Illinois Law dictates that you are assumed to be the designated agent of the party you are working with, unless you somehow alter that assumption in advance. *MLS is a blanket offer of buyer agency*. Dual agency would not be allowed without prior consent of both buyer and seller. According to the Uniform Vendor and Risk Act, during the period between the signing of a purchase contract and the date of the closing or possession by the buyer, the risk of any loss to the property is born by the: A » buyer B » agent C » seller D » buyer and seller equally - ANSWER C The seller bears the risk until closing. At closing, the risk shifts to the new owner. An Illinois homeowner dies without a will and without any traceable heirs. The real property in the estate will: A » pass to the state by eminent domain B » escheat to the state C » pass to the county by eminent domain D » escheat to the county - ANSWER D Real property escheats to the county where it is located. Personal property escheats to the state. In Illinois, a real estate agent: A » may accept cash gifts directly from a very satisfied client B » will usually have income taxes withheld from their commission check C » must have a written contract with their broker D » may accept commission from any licensed broker - ANSWER C Illinois salespeople must have a written contract with their employing broker. They cannot accept compensation from anyone else, including a client. Generally, they will work as independent contractors; therefore there are generally no taxes withheld from their commission checks. The Illinois Human Rights Act prohibits discrimination against the federally-protected classes, plus which of the following? A » Marital status, age, military status, ancestry, sexual orientation and order of protection B » Race, age, sex, color, religion, national origin and handicap C » AIDS, age, marital status and race D » Marital status, AIDS, unfavorable discharge from military service and age - ANSWER A The easiest way to remember this is by using the acronym MAMA-SO. Military status would include current status, or any discharge status other than dishonorable. Someone who has taken out an order of protection became a protected class in Illinois on 1/1/2010. An out of state real estate broker wishes to apply for an Illinois license. Which of the following statements is true in regard to license reciprocity? A » Reciprocity is granted to licensees in states with similar licensing requirements B » Reciprocity is granted only to licensees in states whose borders touch Illinois C » Reciprocity is not granted by the state of Illinois D » Reciprocity is granted to licensees in any state, as long as they are licensed in their home state - ANSWER A Illinois has reciprocity with several states, not necessarily neighbors, which have similar standards and have entered into an agreement to reciprocate. Generally, agents will be required to study and pass the Illinois portion of the state exam. Which of the following is true regarding the Residential Real Property Disclosure Act? A » It covers all residential properties with no exemptions B » It does not allow for rescission under any circumstances C » It is a warranty against future defects D » The form should be completed by the seller and not the agent - ANSWER D The form should be completed by the seller and never by the agent. Which of the following are principal meridians located in Illinois? A » 2nd, 3rd, and 4th B » 2nd and 3rd only C » 3rd and 4th only D » lst, 2nd, and 3rd - ANSWER C The 3rd and 4th are located in Illinois, while the 2nd, 3rd, and 4th describe property in Illinois. The 2nd principal meridian is located in western Indiana. Anwar, an Illinois resident, dies intestate leaving his wife, two sons, and two daughters. Which of the following describes how the property will be distributed? A » Anwar's wife will receive all of the property B » Anwar's wife and children will split the estate equally, each receiving 1/5th C » Anwar's wife will receive half, and his four children will share the remaining half D » Anwar's property will escheat to the state of Illinois, as he had no valid will - ANSWER C