Illinois Real Estate Broker Practice Test

Answer choices

1. A. The broker must timely present offers unless the client has waived that duty, so the scope and validity of the waiver should be documented and followed.
2. B. The broker must present every offer even when the statute recognizes a client waiver.
3. C. The broker may destroy below-threshold offers because no transaction record is needed.
4. D. The broker may reject offers on the seller's behalf without regard to the client's actual instruction.

Wrong-answer review

• B. The broker must present every offer even when the statute recognizes a client waiver.: Incorrect. Ignoring the statutory waiver language is incorrect.
• C. The broker may destroy below-threshold offers because no transaction record is needed.: Incorrect. A waiver does not authorize destruction of transaction records.
• D. The broker may reject offers on the seller's behalf without regard to the client's actual instruction.: Incorrect. The broker must follow the client's lawful instructions rather than invent broader authority.

Answer choices

1. A. The seller must deliver the written disclosure report to the prospective buyer before the signing of a contract.
2. B. The statutory report is required only if the buyer first orders a professional home inspection and identifies a condition requiring further seller disclosure.
3. C. The report is due only after the deed is recorded.
4. D. The report may always be withheld until final settlement.

Answer choices

1. A. A fee simple defeasible, because rent is a condition of ownership.
2. B. A life estate, because the tenant has exclusive possession.
3. C. An estate for years.
4. D. A tenancy at will, because the tenant can remain indefinitely.

Answer choices

1. A. The seller may omit every known defect unless a professional independently confirms it.
2. B. The seller must obtain a complete structural engineering report for every covered sale.
3. C. The seller must disclose material defects actually known to the seller, but the Act does not require a specific investigation or inquiry merely to complete the report.
4. D. The seller may answer 'no' whenever the defect has not yet caused a buyer complaint.

Answer choices

1. A. Each LLC member automatically owns the real estate directly in proportion to the member's capital contribution and may convey that fractional title independently.
2. B. The managing member alone owns the real estate because management authority determines title.
3. C. The members hold joint tenancy by operation of law whenever an LLC owns real estate.
4. D. The LLC—not its members—is the titled owner when the deed names the LLC as grantee.

Answer choices

1. A. State that a mortgage lender's approval proves there is no flood risk.
2. B. Provide known information and direct the buyer to current official flood data, insurance, lender, and qualified professionals as appropriate.
3. C. Advise the buyer that seller disclosure makes independent flood review unnecessary.
4. D. Tell the buyer that flood maps guarantee the exact depth of every future flood.

Answer choices

1. A. The new broker has no post-license education because pre-license hours satisfy every future renewal.
2. B. The new broker must complete only a one-hour ethics webinar before the first renewal.
3. C. The new broker generally must complete the 45-hour post-license curriculum by the applicable broker renewal deadline, subject to the statutory timing exception for licenses issued within 180 days of that deadline.
4. D. The new broker must become a managing broker before any license renewal is allowed.

Answer choices

1. A. The appraisal is invalid because any sale price automatically becomes market value.
2. B. Price is the amount paid in a transaction; market value is an opinion under defined market conditions and need not equal that price.
3. C. The buyer's cost to acquire the property always establishes its future market value.
4. D. Market value and price are legally identical whenever the transaction is arm's length.

Answer choices

1. A. Direct payment from any cooperating broker is always required.
2. B. Compensation for licensed activity generally must flow through the licensee's sponsoring broker, subject to statutory exceptions.
3. C. The buyer must personally pay each sponsored broker at closing.
4. D. Compensation may be paid only by the county recorder.

Answer choices

1. A. A tenant in common can never convey a fractional undivided interest unless every co-owner joins in and signs the same deed.
2. B. Any transfer automatically terminates all co-owners' title and forces a public sale.
3. C. A tenant in common can generally transfer that owner's undivided interest without transferring the other owners' interests.
4. D. A transfer converts the remaining owners into joint tenants with right of survivorship.