Exam (elaborations)
ILLINOIS REAL ESTATE LICENSEE PRACTICE QUESTIONS AND ANSWERS
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ILLINOIS REAL ESTATE LICENSEE PRACTICE QUESTIONS AND ANSWERS
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Name: Score:100 Multiple choice questions
Term 1 of 100
The buyer in a real estate transaction records the documents affecting his or her title and
interest in the real estate to legally provide
actual notice.
constructive notice.
legal notice.
authorized notice.
Term 2 of 100
Which of these is exempt from licensing under the Real Estate License Act of 2000?
Individuals who open real estate to the public for marketing and selling purposes
Attorneys-in-fact acting under power of attorney
Persons who, for compensation, agree to collect rent for the use of real estate
Individuals who negotiate the exchange of property
Term 3 of 100
If a property is valued at $160,000 and the lender is willing to make a loan of 80% of the loan-
to-value ratio, what is the loan amount?
$128,000
$160,000
$180,000
$220,000
,Term 4 of 100
A buyer purchases a home under an installment sales contract. Until the buyer has completed
making payments to the seller, the buyer
is not responsible for the property's real estate taxes.
has actual title to the property.
has an equitable ownership interest in the property.
cannot occupy the property.
Term 5 of 100
According to the Illinois descent and distribution law, if an individual dies without a valid will
and leaves a spouse and a child, the deceased's real estate
goes entirely to the wife.
goes entirely to the child.
is split between the wife and child; two-thirds go to the wife and one-third to the child.
is split between the wife and child; one-half goes to the wife and one-half to the child.
Term 6 of 100
If a property is valued at $450,000 and has annual net income of $36,000, what is the
capitalization rate?
6.6%
8%
9%
12.5%
,Term 7 of 100
A legal action started by one of the parties to a contract to force the other party to carry out
the terms of the contract is called
specific performance.
injunction.
lis pendens.
contingency action.
Term 8 of 100
At the closing for the sale of a home, the lender requires the buyer to place a sum of money
into an escrow account. The purpose of this money is most likely for
title insurance fees.
loan processing fees.
discount points.
payment of future real estate taxes or property insurance.
Term 9 of 100
What BEST describes the agreement between an owner and a developer who leases the
property from the owner with the intention of constructing an office building on the property?
Ground leasehold
Sale and leaseback
Lease option
Land contract
, Term 10 of 100
The law that requires finance charges to be stated as an annual percentage rate is called
the Truth in Lending Act.
an usury law.
the Real Estate Settlement Procedures Act.
the Equal Credit Opportunity Act.
Term 11 of 100
Title to property is transferred by a deed when the deed is
delivered and accepted by the grantee.
signed by the grantor.
signed by the broker.
recorded in the public records.
Term 12 of 100
Which government agency is involved in regulating the country's money supply?
Federal Housing Administration
Federal Reserve System
Government National Mortgage Association
Federal National Mortgage Association
Term 13 of 100
The owner of a property died and left a will written entirely in the owner's handwriting. This
type of will is called a
holographic will.
nuncupative will.
living will.
formal will.
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