Illinois State Law Exam Test Questions And
Answers Verified 100% Correct
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
In Illinois, anyone dying without a will (intestate) will have their estate divided by rules of
"intestate succession." In this situation, those guidelines call for the wife to get half and
the children to split the other half.
Sonja sells her home for $250,600. What is the total amount of Illinois transfer tax due?
A » $ 187.95
B » $ 188.25
C » $ 375.90
D » $ 376.50 - ANSWER D
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. $250,600 divided by $500 = 501.20. In this case, the .20 indicates we have a
portion of the next $500 of sales price in addition to the 501 number. As the tax is $.75
per $500 of price, 502 times $.75 = $376.50.
Which of the following activities could cause an Illinois licensee to be disciplined?
A » Failure to pay county property taxes
B » Failure to pay federal income taxes
C » Failure to pay state income taxes
D » Failure to pay alimony - ANSWER C
Failure to pay state taxes, along with failure to pay court-ordered child support or repay
,student loans, can result in license suspension or revocation.
Illinois licensees, performing ministerial acts, MUST disclose which kind of defects to
potential buyers?
A » All defects
B » None, unless representing the buyer
C » Latent defects
D » Patent defects - ANSWER C
All agents, regardless of representation, must disclose latent, or hidden, defects to
potential buyers in Illinois. There is no requirement to point out patent, or obvious,
defects that a buyer can see on their own.
The largest monetary penalty for a license law violation in Illinois is:
A » $ 5,000
B » $ 10,000
C » $ 25,000
D » $ 50,000 - ANSWER C
$25,000 is the largest fine that can be imposed by DFPR per transaction.
Agent A has two buyer-clients interested in the same property. Today they both leave
messages that they wish to write offers. Agent A must:
A » write the offers and not reveal anything to either buyer
B » tell only one buyer and give the other buyer a chance to seek another agent
C » tell each buyer the situation and then write both offers
D » disclose and get consent from each buyer to proceed - ANSWER D
The law now requires disclosure and consent for an agent to represent more than one
buyer in a transaction. This "contemporaneous buyer" rule requires written disclosure
and allows for a buyer to request a different agent.
Buyer A is investigating the purchase of a lot on which to build a home. The lot is 200'
wide and 500' deep. Zoning regulations stipulate that the lot must be at least 2 acres to
be able to build on it. Would a home be allowed to be built on this lot?
A » Yes, because the lot is approximately 5.2 acres
B » Yes, because the lot is approximately 2.3 acres
C » No, because the lot is approximately 1.7 acres
D » No, because the lot is approximately .8 acres - ANSWER B
200' x 500' = 100,000 square feet for the lot. 100,000 square feet divided by 43,560
(which is the square feet per acre) = 2.3 acres for the lot size. As this lot is over 2 acres,
a home could be built on the lot.
, Illinois leasing agent licenses may be obtained with how many classroom hours and
must be completed within how many days of beginning leasing agent activity?
A » 12 hours within 45 days
B » 30 hours within 45 days
C » 45 hours within 120 days
D » 15 hours within 120 days - ANSWER D
The class is 15 hours and a candidate must successfully complete the course and pass
the state exam within 120 days of actually starting work.
The Illinois Residential Real Property Disclosure Report should be completed by the:
A » seller
B » seller's agent
C » seller and the agent together
D » seller's attorney - ANSWER A
It is the seller's responsibility to complete. The agent should NOT complete any part of
the form, including the address and date.
Buyer B makes an offer to purchase Seller A's home. The offer is accepted, but A has
not provided B with a Real Property Disclosure Report. After demanding the Report, B is
provided with one six days later. B can:
A » rescind the transaction, as the report wasn't received before the offer was accepted
B » rescind the transaction within three business days if the report shows a material
defect
C » not rescind if the report is received before closing
D » not rescind if the seller agrees to fix all defects - ANSWER B
If there are no defects reported, the buyer may not rescind.
Betty is preparing to sell her home and notices a small leak in a pipe under the kitchen
sink. She hires a licensed plumber who fixes the problem and tells her it shouldn't
happen again. Under the Illinois Real Property Disclosure Act, is Betty required to
disclose the leak?
A » Yes, since she knows she has had a problem in the past
B » Yes, but she may also disclose that it has been repaired
C » No, she has no obligation to disclose, as she believes it has been professionally
repaired
D » No, she should not disclose, as it could hurt the sale of her home - ANSWER C
A seller may rely on the opinion of a professional to complete the disclosure form.
Agent Rashad owns all his property in an Illinois land trust. When purchasing unlisted
property, he must:
Answers Verified 100% Correct
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
In Illinois, anyone dying without a will (intestate) will have their estate divided by rules of
"intestate succession." In this situation, those guidelines call for the wife to get half and
the children to split the other half.
Sonja sells her home for $250,600. What is the total amount of Illinois transfer tax due?
A » $ 187.95
B » $ 188.25
C » $ 375.90
D » $ 376.50 - ANSWER D
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. $250,600 divided by $500 = 501.20. In this case, the .20 indicates we have a
portion of the next $500 of sales price in addition to the 501 number. As the tax is $.75
per $500 of price, 502 times $.75 = $376.50.
Which of the following activities could cause an Illinois licensee to be disciplined?
A » Failure to pay county property taxes
B » Failure to pay federal income taxes
C » Failure to pay state income taxes
D » Failure to pay alimony - ANSWER C
Failure to pay state taxes, along with failure to pay court-ordered child support or repay
,student loans, can result in license suspension or revocation.
Illinois licensees, performing ministerial acts, MUST disclose which kind of defects to
potential buyers?
A » All defects
B » None, unless representing the buyer
C » Latent defects
D » Patent defects - ANSWER C
All agents, regardless of representation, must disclose latent, or hidden, defects to
potential buyers in Illinois. There is no requirement to point out patent, or obvious,
defects that a buyer can see on their own.
The largest monetary penalty for a license law violation in Illinois is:
A » $ 5,000
B » $ 10,000
C » $ 25,000
D » $ 50,000 - ANSWER C
$25,000 is the largest fine that can be imposed by DFPR per transaction.
Agent A has two buyer-clients interested in the same property. Today they both leave
messages that they wish to write offers. Agent A must:
A » write the offers and not reveal anything to either buyer
B » tell only one buyer and give the other buyer a chance to seek another agent
C » tell each buyer the situation and then write both offers
D » disclose and get consent from each buyer to proceed - ANSWER D
The law now requires disclosure and consent for an agent to represent more than one
buyer in a transaction. This "contemporaneous buyer" rule requires written disclosure
and allows for a buyer to request a different agent.
Buyer A is investigating the purchase of a lot on which to build a home. The lot is 200'
wide and 500' deep. Zoning regulations stipulate that the lot must be at least 2 acres to
be able to build on it. Would a home be allowed to be built on this lot?
A » Yes, because the lot is approximately 5.2 acres
B » Yes, because the lot is approximately 2.3 acres
C » No, because the lot is approximately 1.7 acres
D » No, because the lot is approximately .8 acres - ANSWER B
200' x 500' = 100,000 square feet for the lot. 100,000 square feet divided by 43,560
(which is the square feet per acre) = 2.3 acres for the lot size. As this lot is over 2 acres,
a home could be built on the lot.
, Illinois leasing agent licenses may be obtained with how many classroom hours and
must be completed within how many days of beginning leasing agent activity?
A » 12 hours within 45 days
B » 30 hours within 45 days
C » 45 hours within 120 days
D » 15 hours within 120 days - ANSWER D
The class is 15 hours and a candidate must successfully complete the course and pass
the state exam within 120 days of actually starting work.
The Illinois Residential Real Property Disclosure Report should be completed by the:
A » seller
B » seller's agent
C » seller and the agent together
D » seller's attorney - ANSWER A
It is the seller's responsibility to complete. The agent should NOT complete any part of
the form, including the address and date.
Buyer B makes an offer to purchase Seller A's home. The offer is accepted, but A has
not provided B with a Real Property Disclosure Report. After demanding the Report, B is
provided with one six days later. B can:
A » rescind the transaction, as the report wasn't received before the offer was accepted
B » rescind the transaction within three business days if the report shows a material
defect
C » not rescind if the report is received before closing
D » not rescind if the seller agrees to fix all defects - ANSWER B
If there are no defects reported, the buyer may not rescind.
Betty is preparing to sell her home and notices a small leak in a pipe under the kitchen
sink. She hires a licensed plumber who fixes the problem and tells her it shouldn't
happen again. Under the Illinois Real Property Disclosure Act, is Betty required to
disclose the leak?
A » Yes, since she knows she has had a problem in the past
B » Yes, but she may also disclose that it has been repaired
C » No, she has no obligation to disclose, as she believes it has been professionally
repaired
D » No, she should not disclose, as it could hurt the sale of her home - ANSWER C
A seller may rely on the opinion of a professional to complete the disclosure form.
Agent Rashad owns all his property in an Illinois land trust. When purchasing unlisted
property, he must:
