ILLINOIS REAL ESTATE BROKER EXAM NEWEST 2024
EXAM AND PRACTICE QUESTIONS 400 QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) GRADED A+
LATEST UPDATE
A broker, acting as a buyer's agent, is helping a married couple find a home that meets their needs. The wife's mother is
going to live with them. They want to take title in such a way that if anything happens to either one of them, the remaining
spouse would have a % interest in the property and the mother a 1% interest. The broker should advise them to: -
(correct answer) Consult with an attorney
Which of the following factors would tend to increase the price of residential real estate in a given area? - (correct
answer) A large manufacturing plant opening in the city
Which of the following is considered a tax benefit of owning investment property? - (correct answer) Sheltering other
income
Which of the following improvements would have the most positive effect on the value of a property? - (correct answer)
Installing a second bathroom in a four bedroom house
A broker was hired by a property manager to lease and manage properties. Each lease was different based on negotiations
of the parties. Which of the following is true in these circumstances? - (correct answer) Legal counsel should be sought
to write or review the lease
A buyer gives a broker a deposit with an offer to purchase. The deposit is known as - (correct answer) Earnest money
A property has suffered a loss in value due to lack of maintenance and upkeep. This would classify as - (correct answer)
physical depreciation
The most important element for a property manager to consider in selecting rental rates would be - (correct answer)
the rental rates for similar units in the area
Which of the following is considered the most important factor affecting value? - (correct answer) Location
Which of the following is a requirement of an independent contractor relationship between a broker and a licensee. -
(correct answer) The licensee must enter into a written agreement with the broker
Truth in lending laws apply to which of the following loans? - (correct answer) A loan to a first-time home buyer
To qualify as tax-deferred exchange, the property must be - (correct answer) held for productive use in trade or
business
A buyer wants a guarantee that there are no unknown encumbrances against the property he is buying. The buyer should
require - (correct answer) Title Insurance
, John Jones has owned and operated a gas station for 15 years. The city has decided to rezone the area from commercial to
residential use. Which of the following is true regarding this situation? - (correct answer) John has non conforming use
and can continue to operate the gas station
Regarding ownership of one's home, which of the following would be income tax deductible? - (correct answer) Points
paid to obtain the loan
A comparative market analysis is based on the principle that - (correct answer) the anticipated selling price may be
estimated by recent sales of similar properties
A broker is listing a rural property. The property was owned by a deceased woman who has 6 children. 2 of the children put
up the house for sale. Before completing the listing agreement, the broker should: - (correct answer) Check the
ownership of record
Which of the following would most directly affect the supply of real estate int he market place? - (correct answer)
Labor force
Which of the following is considered a primary lender in the mortgage market? - (correct answer) Commercial Banks
A property owner who has riparian rights owns property that borders - (correct answer) A river or stream
A broker has a listing he has shown to two different couples. At 10:00am one of the couples decide to make an offer below
the asking price on the property with a 24 hour time limit. The broker prepares the offer for them, dates and times it, and
contacts the seller who sets up a meeting with the broker for 7pm. That afternoon, the other couple contacts the broker
and wants to make a full price offer on the property. What should the broker do? - (correct answer) Present BOTH
offers to the sellers and tell them to not make up their mind until he has seen both of them.
A property manager is responsible for all maintenance of a property. Replacing the furnace filters on a regular basis is
what type of maintenance? - (correct answer) Preventative
A man leased a small building and installed metal shelves to exhibit his products. Near the time for his lease to expire, he
decided to move to a larger building and wanted to take the metal shelving with him. Which of the following is true regarding
this situation? - (correct answer) The shelves are trade fixtures and therefore can be removed as long as it is done
before the expiration of the lease
A deed restriction in a subdivision had created a community playground that used a few square feet from the rear of every
owner's lot. An owner has begun making plans to convert the rear half of his lot to a garden. The plans would require the
removal of park equipment. A neighbor objects to these plans. The neighbor should - (correct answer) Apply for a court
injunction against the owner's plans
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of - (correct answer)
demanding immediate payment of the entire loan balance
A properly drawn property management agreement must contain which of the following? - (correct answer) the scope
of the property managers authority
EXAM AND PRACTICE QUESTIONS 400 QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) GRADED A+
LATEST UPDATE
A broker, acting as a buyer's agent, is helping a married couple find a home that meets their needs. The wife's mother is
going to live with them. They want to take title in such a way that if anything happens to either one of them, the remaining
spouse would have a % interest in the property and the mother a 1% interest. The broker should advise them to: -
(correct answer) Consult with an attorney
Which of the following factors would tend to increase the price of residential real estate in a given area? - (correct
answer) A large manufacturing plant opening in the city
Which of the following is considered a tax benefit of owning investment property? - (correct answer) Sheltering other
income
Which of the following improvements would have the most positive effect on the value of a property? - (correct answer)
Installing a second bathroom in a four bedroom house
A broker was hired by a property manager to lease and manage properties. Each lease was different based on negotiations
of the parties. Which of the following is true in these circumstances? - (correct answer) Legal counsel should be sought
to write or review the lease
A buyer gives a broker a deposit with an offer to purchase. The deposit is known as - (correct answer) Earnest money
A property has suffered a loss in value due to lack of maintenance and upkeep. This would classify as - (correct answer)
physical depreciation
The most important element for a property manager to consider in selecting rental rates would be - (correct answer)
the rental rates for similar units in the area
Which of the following is considered the most important factor affecting value? - (correct answer) Location
Which of the following is a requirement of an independent contractor relationship between a broker and a licensee. -
(correct answer) The licensee must enter into a written agreement with the broker
Truth in lending laws apply to which of the following loans? - (correct answer) A loan to a first-time home buyer
To qualify as tax-deferred exchange, the property must be - (correct answer) held for productive use in trade or
business
A buyer wants a guarantee that there are no unknown encumbrances against the property he is buying. The buyer should
require - (correct answer) Title Insurance
, John Jones has owned and operated a gas station for 15 years. The city has decided to rezone the area from commercial to
residential use. Which of the following is true regarding this situation? - (correct answer) John has non conforming use
and can continue to operate the gas station
Regarding ownership of one's home, which of the following would be income tax deductible? - (correct answer) Points
paid to obtain the loan
A comparative market analysis is based on the principle that - (correct answer) the anticipated selling price may be
estimated by recent sales of similar properties
A broker is listing a rural property. The property was owned by a deceased woman who has 6 children. 2 of the children put
up the house for sale. Before completing the listing agreement, the broker should: - (correct answer) Check the
ownership of record
Which of the following would most directly affect the supply of real estate int he market place? - (correct answer)
Labor force
Which of the following is considered a primary lender in the mortgage market? - (correct answer) Commercial Banks
A property owner who has riparian rights owns property that borders - (correct answer) A river or stream
A broker has a listing he has shown to two different couples. At 10:00am one of the couples decide to make an offer below
the asking price on the property with a 24 hour time limit. The broker prepares the offer for them, dates and times it, and
contacts the seller who sets up a meeting with the broker for 7pm. That afternoon, the other couple contacts the broker
and wants to make a full price offer on the property. What should the broker do? - (correct answer) Present BOTH
offers to the sellers and tell them to not make up their mind until he has seen both of them.
A property manager is responsible for all maintenance of a property. Replacing the furnace filters on a regular basis is
what type of maintenance? - (correct answer) Preventative
A man leased a small building and installed metal shelves to exhibit his products. Near the time for his lease to expire, he
decided to move to a larger building and wanted to take the metal shelving with him. Which of the following is true regarding
this situation? - (correct answer) The shelves are trade fixtures and therefore can be removed as long as it is done
before the expiration of the lease
A deed restriction in a subdivision had created a community playground that used a few square feet from the rear of every
owner's lot. An owner has begun making plans to convert the rear half of his lot to a garden. The plans would require the
removal of park equipment. A neighbor objects to these plans. The neighbor should - (correct answer) Apply for a court
injunction against the owner's plans
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of - (correct answer)
demanding immediate payment of the entire loan balance
A properly drawn property management agreement must contain which of the following? - (correct answer) the scope
of the property managers authority
