ILLINOIS REAL ESTATE BROKER EXAM NEWEST 2024
COMPLETE EXAM AND PRACTICE QUESTIONS 300
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
What are the five categories of real property? - ANSWER: 1. Residential
2. Commercial
3. Industrial
4. Agriculture
5. Special Purpose
Labor force, construction costs, government controls, government financial policies
affect ____. - ANSWER: Supply (is affected by...)
Population, demographics, employment and wage levels affect ____. - ANSWER:
Demand (is affected by...)
What is the difference between real estate and real property? - ANSWER: Real estate
is land plus improvements; real property is real estate with rights.
Scarcity, improvements, permanence of investment, and location are _____. -
ANSWER: Economic characteristics of real estate
Immobility, indestructibility, uniqueness are _____. - ANSWER: Physical
characteristics of real estate
The costs of owning a home include... (What does PITI stand for?) - ANSWER:
Principle (mortgage), interest, taxes, insurance
A client is... - ANSWER: The principal who recieves services, advice, and counsel from
an agency. A buyer is a client/principal of the buyer's agent.
A customer is... - ANSWER: Someone who receives information from an agency. A
buyer is a customer of the selling agent.
A consumer is... - ANSWER: Someone who seeks services from an agency.
What are the six fiduciary duties? - ANSWER: 1. Care
2. Obedience
3. Loyalty
4. Disclosure
5. Accounting
6. Confidentiality
,A general agent... - ANSWER: represents the principal (ex: an agent is a general agent
to the sponsoring broker)
A special agent... - ANSWER: represents the principal in one specific transaction (ex:
sale of a property to buyer or for seller)
A universal agent... - ANSWER: is authorized to act for the principal entirely; in
Illinois, a written power of attorney is required
A designated agent... - ANSWER: is authorized by the sponsoring broker for a specific
principal (ex: an agent assigned to represent a principal in a sale to avoid dual
agency); is recognized in illinois
Price fixing is... - ANSWER: illegal agreements among companies to set prices.
Group boycotting is... - ANSWER: illegal agreements between companies to conspire
or withhold business.
Allocation of customers is... - ANSWER: illegal agreements among companies to
divide territories based price range.
Allocation of markets is... - ANSWER: illegal agreements among companies to divide
territories based on geography.
Tie-in/tying agreements are... - ANSWER: illegal agreement to sell one product only
with the promise of purchasing another (less desirable) product.
Exclusive Right-to-Sell Listing - ANSWER: One broker receives the commission
regardless of who sells the property.
Exclusive-Agency Listing - ANSWER: One broker receives the commission if they are
the procuring cause of sale (or a cooperating broker finds a buyer); the seller can sell
the property and would not pay commission.
Open Listing - ANSWER: Multiple brokers are employed and commission is paid to
the broker that finds a ready, willing, and able buyer.
Net Listing - ANSWER: The seller receives a set amount of money and the broker
receives anything additional.
Option Listing - ANSWER: The broker may purchase the property; in a guaranteed
sale agreement the broker agrees to buy the property if it fails to sell by the end of
the listing agreement. The broker must make reasonable attempts to sell the
property.
The four government powers are... (What does PETE stand for?) - ANSWER: 1. Police
power
, 2. Eminent domain
3. Taxation
4. Escheat
Condemnation is... - ANSWER: the process of taking property through eminent
domain.
Fee Simple Absolute - ANSWER: The highest interest of ownership.
Defeasible Estate Condition Subsequent - ANSWER: An owner must not perform a
determined action or activity.
Defeasible Estate by a Fee Simple Determinable - ANSWER: An owner must use the
property for a certain occurrence or event.
Pur Autre Vie Life Estate - ANSWER: For the life of someone else; this estate is not
inherited and measured by the life of someone else.
Conventional Life Estate - ANSWER: Not inherited; created for use for the duration of
the life-tenants life.
Homestead Life Estate - ANSWER: The home is protected from unsecured creditors
during the occupants lifetime. The owners can be exempt from certain judgements
and guaranteed a state determined amount in the event of a court sale. IL=$15,000
(single) or $30,00 (married).
Dower/Curtesy Life Estate - ANSWER: A life estate that a wife (dower) or husband
(curtesy) has in the real estate of their deceased spouse.
Remainder - ANSWER: Life estate ownership goes to a designated person.
Reversion - ANSWER: Life estate ownership reverts to the grantor.
Easement by prescription - ANSWER: Use of another's land for 10-21 years. IL=20
years.
Easement by necessity - ANSWER: Use of another's land for access to their own land.
Joint Tenancy is created by... (what does PITT stand for?) - ANSWER: 1. Possession
2. Interest
3. Time
4. Title
Joint Tenancy - ANSWER: Both parties have 100% interest; other parties have right of
survivorship.
COMPLETE EXAM AND PRACTICE QUESTIONS 300
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
What are the five categories of real property? - ANSWER: 1. Residential
2. Commercial
3. Industrial
4. Agriculture
5. Special Purpose
Labor force, construction costs, government controls, government financial policies
affect ____. - ANSWER: Supply (is affected by...)
Population, demographics, employment and wage levels affect ____. - ANSWER:
Demand (is affected by...)
What is the difference between real estate and real property? - ANSWER: Real estate
is land plus improvements; real property is real estate with rights.
Scarcity, improvements, permanence of investment, and location are _____. -
ANSWER: Economic characteristics of real estate
Immobility, indestructibility, uniqueness are _____. - ANSWER: Physical
characteristics of real estate
The costs of owning a home include... (What does PITI stand for?) - ANSWER:
Principle (mortgage), interest, taxes, insurance
A client is... - ANSWER: The principal who recieves services, advice, and counsel from
an agency. A buyer is a client/principal of the buyer's agent.
A customer is... - ANSWER: Someone who receives information from an agency. A
buyer is a customer of the selling agent.
A consumer is... - ANSWER: Someone who seeks services from an agency.
What are the six fiduciary duties? - ANSWER: 1. Care
2. Obedience
3. Loyalty
4. Disclosure
5. Accounting
6. Confidentiality
,A general agent... - ANSWER: represents the principal (ex: an agent is a general agent
to the sponsoring broker)
A special agent... - ANSWER: represents the principal in one specific transaction (ex:
sale of a property to buyer or for seller)
A universal agent... - ANSWER: is authorized to act for the principal entirely; in
Illinois, a written power of attorney is required
A designated agent... - ANSWER: is authorized by the sponsoring broker for a specific
principal (ex: an agent assigned to represent a principal in a sale to avoid dual
agency); is recognized in illinois
Price fixing is... - ANSWER: illegal agreements among companies to set prices.
Group boycotting is... - ANSWER: illegal agreements between companies to conspire
or withhold business.
Allocation of customers is... - ANSWER: illegal agreements among companies to
divide territories based price range.
Allocation of markets is... - ANSWER: illegal agreements among companies to divide
territories based on geography.
Tie-in/tying agreements are... - ANSWER: illegal agreement to sell one product only
with the promise of purchasing another (less desirable) product.
Exclusive Right-to-Sell Listing - ANSWER: One broker receives the commission
regardless of who sells the property.
Exclusive-Agency Listing - ANSWER: One broker receives the commission if they are
the procuring cause of sale (or a cooperating broker finds a buyer); the seller can sell
the property and would not pay commission.
Open Listing - ANSWER: Multiple brokers are employed and commission is paid to
the broker that finds a ready, willing, and able buyer.
Net Listing - ANSWER: The seller receives a set amount of money and the broker
receives anything additional.
Option Listing - ANSWER: The broker may purchase the property; in a guaranteed
sale agreement the broker agrees to buy the property if it fails to sell by the end of
the listing agreement. The broker must make reasonable attempts to sell the
property.
The four government powers are... (What does PETE stand for?) - ANSWER: 1. Police
power
, 2. Eminent domain
3. Taxation
4. Escheat
Condemnation is... - ANSWER: the process of taking property through eminent
domain.
Fee Simple Absolute - ANSWER: The highest interest of ownership.
Defeasible Estate Condition Subsequent - ANSWER: An owner must not perform a
determined action or activity.
Defeasible Estate by a Fee Simple Determinable - ANSWER: An owner must use the
property for a certain occurrence or event.
Pur Autre Vie Life Estate - ANSWER: For the life of someone else; this estate is not
inherited and measured by the life of someone else.
Conventional Life Estate - ANSWER: Not inherited; created for use for the duration of
the life-tenants life.
Homestead Life Estate - ANSWER: The home is protected from unsecured creditors
during the occupants lifetime. The owners can be exempt from certain judgements
and guaranteed a state determined amount in the event of a court sale. IL=$15,000
(single) or $30,00 (married).
Dower/Curtesy Life Estate - ANSWER: A life estate that a wife (dower) or husband
(curtesy) has in the real estate of their deceased spouse.
Remainder - ANSWER: Life estate ownership goes to a designated person.
Reversion - ANSWER: Life estate ownership reverts to the grantor.
Easement by prescription - ANSWER: Use of another's land for 10-21 years. IL=20
years.
Easement by necessity - ANSWER: Use of another's land for access to their own land.
Joint Tenancy is created by... (what does PITT stand for?) - ANSWER: 1. Possession
2. Interest
3. Time
4. Title
Joint Tenancy - ANSWER: Both parties have 100% interest; other parties have right of
survivorship.
