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Illinois (Only) Real Estate Exam Practice Questions With Complete Solutions
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Illinois (Only) Real Estate Exam Practice Questions With Complete Solutions
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Illinois (Only) Real Estate Exam Practice Questions WithComplete Solutions
A broker may maintain a deposit in an interest-bearing trust
account, provided that Correct Answer the principals approve
of the action and specify recipient of the interest in writing.
A broker who places a listing in a newspaper advertisement
must clearly Correct Answer identify the sponsoring broker's
name.
A brokerage firm has ten offices and a headquarters office where
the sponsoring broker conducts her
business. According to Illinois law, this brokerage must have
how many office licenses? Correct Answer One sponsoring
brokerage license with a copy displayed in each office.
A buyer tells listing agent Doug that he and his wife can pay
cash for the listed property. Doug happily passes that
information along to the seller who subsequently accepts their
offer. It is later discovered that the buyers have very little cash
and have to do VA financing. Furious, the seller threatens to sue
Doug for misrepresentation. Is Doug liable? Correct Answer
No, since he merely passed on what the buyers had told him.
A buyer wants a certain repair made before closing and gives the
managing broker a check for the repair, dated for the day the job
is to be finished. Meanwhile, the managing broker uses funds
from the buyer's trust account deposit to pay the repairman.
When the work is complete, the managing broker promptly
deposits the check into the trust fund. In this case, the broker
,Correct Answer has misapplied trust funds in violation of state
regulations.
A designated managing broker Correct Answer must supervise
all real estate transactions and advertising.
A homeseller and homebuyer have a dispute over repairs that are
required as a result of the inspection report. The seller refuses to
cooperate, and the buyer demands his deposit money back.
The broker's proper course of action here is to Correct Answer
hold the funds in trust until the parties agree to a course of
action in writing.
A licensee is liable for failing to disclose which of the
following? Correct Answer That radon tests last month had
proven positive
A residential leasing agent license allows its holders to Correct
Answer lease residential real estate only.
A sponsoring broker has 10 offices throughout the city. How
many must have a managing broker? Correct Answer Ten,
although a designated managing broker may manage more than
one office within a firm.
A sponsoring broker has his license suspended. What happens to
the brokerage agreements of the
sponsoring broker? Correct Answer They are immediately
expired.
, A sponsoring broker in downtown Chicago has his firm name
listed in the lobby's building directory. What else must the
broker do to comply with signage regulations? Correct Answer
Nothing.
A sponsoring broker requests and obtains written approval from
his principal to receive a modest referral fee from A-1 Carpet
Cleaners for periodic carpet cleaning. In this case the broker
Correct Answer may not receive compensation from unlicensed
parties, regardless of the principal's approval.
A transaction was going smoothly until a buyer decided to back
out of the deal. Since prices were rising and the market was hot,
the seller agreed to cancel. Then the parties notified the
sponsoring broker in writing to return the deposit to the buyer.
The broker refused, claiming she must first be
paid a commission. What are the sponsoring broker's legitimate
options? Correct Answer She must disburse the funds; they
cannot be withheld
Aaron, a new licensee, has just been sponsored by ABC Realty.
Aaron's sponsoring broker is now obligated to do which of the
following? Correct Answer Submit confirmation of
sponsorship to the Division within 24 hours.
According to IL law, exclusive brokerage agreements Correct
Answer must be in writing.
According to Illinois law, a material fact that must be disclosed
to clients is Correct Answer one that affects value, is the
subject of the transaction, and is not confidential.
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