IL License

In Illinois, the real estate license law is administered by the:

IDFPR - Bureau of Real Estate Professions administers the real estate license law. The IL association of REALTORS is a trade association and the department of housing and Urban Development is a federal agency that supervises housing issues.

How are the nine members of the Real Estate Administration and Disciplinary Board selected?

By the Governor. The governor appoints the members of the Real Estate Administration and Disciplinary Board. They are not elected by the public or by real estate licensees.

What is the name given to the Illinois license laws under which brokers and salespeople practice?

Real Estate License Act of 2000. The Real Estate License Act of 2000 is the body of laws that regulates the real estate industry in Illinois.

After May 1, 2011, the new license categories are

Managing broker and broker

After April 30, 2012, as an alternative to passing the proficiency exam given by AMP, what are the requirements for converting a sales-person's license to a broker license?

30 hours of post-licensure education, as defined by administrative rule

In Illinois, sponser cards are good for

45 Days

What are the requirements for a newly licensed broker effective May 1, 2011

90 Hours of Pre-License coursework including 15 hours of situational offerings

After May 1, 2011, what must a broker do to convert to a managing broker license

Complete 45 hours of post-license education. The broker must be listed as the managing broker or as a self-sponsored broker with the Division and must take 45 hours of post-licensure education or successfully pass a one-time-only proficiency exam.

When do real estate brokers' licenses expire in Illinois?

Brokers' licenses expire on April 30 of every odd numbered year. Managing broker' licenses expire on April 30 of even-numbered years.

To renew a license in Illinois, brokers must

Have completed 12 hours of continuing education in the last 2 years and pay the current fee

Licensees who allow their licenses to expire have how long to reinstate their licenses?

Up to 2 years, then licensees must start over. Licensees are given two years in which to reactivate their license once it has expired. After that, new coursework must be completed and the state test retaken.

What procedures must be followed to obtain a license that has been expired for more than two years?

Meet the requirements for a new license, including all pre-license education and passing the exam

Three weeks before N begins his real estate pre-licnese class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer is accepted while N is taking the class and closes the day after N passes the examination

No. State law prohibits lawsuits filed to collect commissions unless filed by a licensed broker - one with a license in effect before the agreement was reached. In fact, N might be guilty of practicing real estate without a license. Sponsoring brokers dec

Which of the following conditions is NOT required to grant a nonresident broker's license in Illinois?

The broker has been active in the real estate business in her own state for one year prior to application. The applicant's home state must have the same or stricter criteria to obtain a nonresident license. The broker must supply an official sealed statem

The resident property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the resident manager

Is exempt from the licensing requirements. Included in thee exemptions from the license requirement are owners of real estate and the employees of the owners of real estate; so long as the resident manager is a W-2 wage basis (and not an independent contr

After failing the Illinois licensing exam three times, what does a candidate have to do to get three more tries?

Complete the entire education requirement again

When terminating a sponsorship, the sponsoring broker must return the signed license to the DPR within

Two business days by signature restricted mail delivery. In order to terminate sponsorship, the sponsoring broker should sign the license, indicate "terminated," and mark the date of termination. The copy must be submitted to the DPR within tow business d

A leasing agent license requires how many hours of classroom time?

15 hours

In order to practice real estate, Illinois requires new licensees to have which of the following in their possession?

45-day sponsor card, then a pocket card later.

An agent is terminated by his broker for failure to pay the office bill. While the agent is looking for a new office, he is considered to have what kind of license?

Inoperative

Performing which of the following activities requires a real estate license?

Negotiating lease terms. Only those property management activities that involve a conveyance of real estate by contract or lease require a real estate license. Activities that involve general administration, such as contracting for maintenance, paying gen

J was really good at locating temporary housing for friends. They have encouraged her to start a small home business assisting people who are looking to rent. What is the first thing she should do?

Get a real estate license. Any person or entity that operates a rental finding service must first obtain a real estate license.

Proof of continuing education is required every

Two years. Every two years, real estate licensees must complete continuing education. Individuals serving in the armed services of the United States during the renewal period and a real estate licensee who is also an Illinois licensed attorney are exempt.

Of the following, who is required to hold an Illinois real estate license?

A person who represents clients in the negotiation of a real estate contract for a flat fee. Individuals need a real estate license if they provide assistance that is in any way intended to result in the sale or lease of real estate and for which they are

All compensation earned by a licensee must be paid

Through the licensee's sponsoring broker. A bonus paid by the seller must be paid through the licensee's sponsoring broker.

Who would be eligible after completing education for an appraiser's license

A mom who will work part-time. The fact that the applicant is a mom working part-time is irrelevant. So long as she has completed her education, she may apply for an appraiser's license. Only individuals, not a partnership, corporation, or LLC, can be lic

What is usually considered proof in Illinois courts that the broker has earned a commission

The closing of a Sale. Finding a ready, willing, and able buyer is how a commission is earned, but the courts consider the closing to be the proof.

A seller needs to sell quickly because he is getting transferred. Hoping to create excitement, he agrees to a 7% commission. The listing broker's offer to the cooperating broker must be

Disclosed to the seller in writing what the compensation will be. The listing broker can pay whatever she wants to a cooperating broker, as long as the compensation policy is disclosed in writing.

The office assistant for a local real estate firm is responsible for the following activities: tracking the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office assistant is

exempt from real estate licensing requirements. The office assistant is performing administrative or clerical functions and, therefore is exempt from licensing requirements.

In Illinois, a personal assistant must be licensed to

Explain simple contract documents to prospective buyers. A personal assistant who explains a contract to a buyer must hold a real estate license. Under the direction of a licensee, unlicensed assistants can perform simple bookkeeping activities, assemble

In Illinois, a personal real estate assistant

May insert factual information into forms under the agent's supervision and approval.Personal assistants are not required to be licensed in IL. Only licensed personal assistants may host public open houses.

The broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the se

Not pay a commission to the assistant under the facts presented here. Unlicensed assistants are not permitted to perform the described services. In the situation described, both the broker and assistant are in violation of the license law.

A licensed personal assistant wishes to hold a public open house. Is this allowed In Illinois.

Yes, this is allowed if the assistant's license is held by the sponsoring broker. Unlicensed assistants may not independently hold an open house.

A sponsored licensee has decided to hire a licensed personal assistant. How is compensation paid to the licensed personal assistant?

Through the sponsoring broker

A licensee decides to hire a personal assistant who does not hold a real estate license. In this situation, which of the following is correct?

The licensee being assisted is responsible for the activities of the unlicensed personal assistant. An unlicensed assistant may be employed directly by the licensee being assisted who is then responsible for the actions of the unlicensed assistant; compen

After successfully passing the state exam, an individual is very excited about starting her real estate career as quickly as possible. Under what circumstances, if any, can she practice real estate before receiving her real estate license?

The sponsoring broker can provide a temporary sponsor card that allows her to engage in the practice of real estate for a maximum of 45 days

What is NOT required of a nonresident to obtain a broker's license?

room in the quota system for an additional out-of-state broker. A nonresident broker's license may be issued to a real estate broker licensed under the laws of his state of domicile if that applicant holds an active broker's license in his state of domici

An unlicensed personal assistant may

Provide security at an open house. An unlicensed personal assistant may perform clerical and administrative duties, manage or supervise maintenance, operations, and provide security. An unlicensed personal may not independently host open house, show prope

A broker has hired an unlicensed person as a leasing agent, What if anything, allows an unlicensed person to function as a leasing agent?

120-day leasing agent permit. a person engaging in practice as a leasing agent may first obtain a 120-day leasing agent permit to function as if the permit holder were a licensee and is subject to standards of practice and disciplinary provisions as if th

What is the minimum number of continuing education hours that leasing agents must complete to renew their licenses?

Six hours every 2 years. The course must be relevant to leasing residential real property and cover recent changes in the ACT, fair housing laws, and other laws affecting the leasing or real property.

Which of the following actions might be considered an unauthorized practice of law?

A Broker informs the buyers of his personal opinion of the condition of the seller's title to the property. The broker is required to ensure that the written purchase agreement includes all agreed upon terms, provide copies to the buyers and sellers and t

In Illinois, the court case Chicago Bar Association, et al V. Quinlan and Tyson, Inc. established the principle that brokers and salespeople who are not lawyers may

Only fill in blanks and make appropriate deletions on pre-printed form contracts customarily used in their community. The Quinlan and Tyson case helped define what an agent can and cannot do in regards to real estate contracts. Real estate licensees must

State law requires sales contracts in Illinois to be titled

Real estate sales contract (IN BOLD)

In Illinois, the age an individual may enter legally enforceable contracts (with no exceptions) and is of legal competence is

18. Some exceptions exist that may enable a 16-year -old the right to sign certain contracts (leases). The age of legal competence is also 18, which includes the writing of a will.

The articles of agreement for warranty deed

Must be drawn up by an attorney. Because the Articles of Agreement for Warranty Deed is a legal document that stipulates payments and conditions in a contract sale, an attorney must draw up the document.

What types of agency are permitted in Illinois?

Seller, buyer, disclosed dual

A listing agent holds an open house that a prospect/buyer attends. The agent then shows properties listed by other offices. Lacking a buyer agency agreement, what is the agent's status if the prospect buys the listing agent's original listing?

Dual agent. The agent already represents the seller. The agent becomes a buyer's agent (with or without formal agreement) when showing the other listings. In coming back to the first listing, the agent is now a dual agent, which must always be disclosed a

Services performed for a buyer that do NOT create an agency relationship are referred to as

Ministerial acts. Ministerial acts are services that require a license and may be performed for a buyer that do not rise to the level of active representation.

A buyer prospect working with one agent is interested in a house listed with an agent from the same company. In Illinois can the buyer agent represent the buyer when showing an in-house listing?

Yes, this is allowable because Illinois recognizes designated agency. Under designated agency, the sponsoring broker may designate one affiliated licensee to represent a buyer and another to represent the seller, without the broker becoming a dual agent.

In a dual agency situation, a broker may collect a commission from both the seller and the buyer if

Both parties give their informed, written consent to the dual compensation.

A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's sponsored licensee has decided to purchase it as an investment. If the broker's sponsored licensee wishes

Inform the owner in writing that the salesperson is a licensee before making an offer. The salesperson does not have to resign and should not use a third party. There is no need to involve the IDFPR. If the salesperson was the listing agent and also the b

A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants: rather, the licensee receives a commission from landlords. The licensee tells a landl

The licensee's disclosure violated the statutory duties owed to the tenant. The licensee owes a duty of confidentiality to the tenant who hired the licensee. Because representation is determined by who does the hiring, not who pays the fee, the disclosure

A broker has entered into a listing agreement with the seller. Another broker, who has been working with a buyer, learns of the property through the MLS. Typically the second cooperating broker would represent?

The buyer as an agent. The broker is assumed to be representing the person with whom the broker is working.

A broker decided to sweeten an MLS listing for a property by making a blanket offer of sub-agency. Is the broker's action acceptable?

No, sub-agency relationships in IL may be created only by a specific agreement between parties. Subagency cannot be created through the MLS in IL. Agency can be created by the agent's actions, by written agreement, or by the agent's conversations.

All of the following can create buyer agency in Illinois EXCEPT

Accepting Subagency. Subagents (where allowed) represent the seller while working with a buyer. Subagency cannot be created through the MLS in IL> Agency can be created by the agent's actions, by written agreement, or by the agent's conversations.

All of the following are statutory duties an agent owes a client in Illinois EXCEPT

Following all instructions of the client. The agent must exercise reasonable skill and care, perform the duties of the brokerage agreement, and keep confidential information confidential. The agent may follow only legal instructions from the client, not n

A buyer calls a licensee to see a new listing. Upon seeing it, the buyer wishes to buy it on the spot. The licensee insists that to do this she can only be a dual agent, Is this correct?

No, the buyer must be given all the agency options offered by the licensee's office first. Under these circumstances, the licensee can continue to represent the seller and work with the buyer as an unrepresented customer.

A licensee has no intention of being a dual agent. The licensee is holding an open house and her sellers want her to exclusively represent them. What is her obligation to the potential buyers looking at the house?

She must give the buyers written disclosure that she is not their agent before they tell her anything confidential. The salesperson must give written disclosure of nonagency at the first opportunity. This prevents taking unfair advantage of a customer. Th

Can buyers refuse to have an agent represent them?

Yes. A buyer can refuse agency, and an agent can still write a contract acting as a facilitator or non-transnational broker.

An agent has had a listing for a year. An agent from another office has shown it several times to a prospective buyer, the the prospect cannot make an offer until her house sells. The first agent's lisitng expires, and the second agent gets the listing. I

No, the first agent will get nothing. IL law does not allow protection periods for one-to four unit residential property if another brokerage firm relists the property.

A broker wants to list a property but is getting a lot of competition from other brokers who would also like to list it. The broker offers the seller the following inducement to sign his listing agreement: "I'll buy your property if it doesn't sell in 90

Buy the property at the agreed figure at any time during the 90 days. While the broker must be able to substantiate his offer to purchase and indicate all terms so that the seller is not surprised, he need not purchase until the 90 days is up. The broker

A broker works for weeks to put a transaction together as a dual agent. After depositing the earnest money in her escrow account, the broker learns that the buyer has been in a car wreck and cannot close. The broker hopes to be reimbursed for time, so she

No, holding earnest money hostage is illegal. The broker must refund all of the money.

Which of the following, if any, brokerage agreements must be in writing?

Any exclusive brokerage agreement. It is recommended that even nonexclusive brokerage agreements be in writing.

What is required in an exclusive listing agreement?

Defined date of termination with no condition for automatic extension.

What is required in an exclusive buyer brokerage agreement?

Anti-discrimination clause. All exclusive listing agreements and exclusive buyer brokerage agreements must be in writing and include the required anit-discrimination clause, including listing all protected classes of the IL Human Rights Act. The listing p

Listings based on a net price are:

Legal in Il but not recommended. They are discouraged because of potential conflict of interest for the broker and the risk of fraud to the seller.

The sponsoring broker is worried that some of her newer sponsored licensees may make mistakes. She added an exculpatory clause to her brokerage agreements to limit her liability, Is this a good solution?

No, exculpatory clauses are forbidden. The sponsoring broker should hold additional training classes and regularly review the activities of her sponsored licensees.

A broker did a superior job for his seller. The contract he is going to present is for $25,000 over list price. The broker is going to demand an additional 1% commission before he presents the contract to the seller. Is this appropriate?

No, it is violating the law. Under the law, any change in commission or time of payment needs to be discussed and agreed to in writing.

In IL, a consumer working with a real estate licensee can

Generally assume that the consumer is being represented by the real estate licensee. Licensees are considered to be representing the consumer they are working with as a designated agent for the consumer unless there is a written agreement between the spon

Upon obtaining a listing, a listing broker is obligated by IL law to:

Give the person or persons signing the listing a copy within 24 hours. Other brokers are not required to participate in marketing, but the listing broker must give the seller a legible, signed, true, and correct copy within 24 hours.

Which of the following actions is legal and NOT a violation of IL license law?

Placing a for sale sign in front of a house after asking the seller's permission and receiving written permission to do so. The broker must always have written permission before erecting a sign and must make full disclosure of all conditions of a promotio

A real estate broker made an agreement with the seller to keep any amount received over the listed price as compensation. In IL this is viewed as:

A net listing, which is legal in Illinois but not recommended. Net listings are legal but are discouraged because of potential conflict of interest for the broker and risk of fraud to the seller. It is possible that the seller may not be aware of the true

In IL, all of the following must appear in a written listing agreement EXCEPT

The complete legal description of the property being sold. Listings must have an asking price, a definite termination date, a fair housing statement, and a definable broker fee. An adequate description, such as the property address, is required but this d

A broker signs a listing agreement with a seller. The agreement contains this clause: "If the property has not been sold after three months from date of this signing, this agreement will automatically continue for additional three-month periods until the

Is Illegal in Illinois. Listings must contain a definite termination date; roll-over extensions are not permitted in IL.

All of the following agreements must be in writing EXCEPT

An open listing. All exclusive brokerage agreements, such as an exclusive buyer-agency agreement, exclusive-right-to-sell agreement, and exclusive agency listing, must be in writing. An open listing does not have to be in writing.

The listing agreement with a seller has expired and the seller lists with a different firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent

Cannot disclose to the buyer offers received on the sellers's property while it was listed with him. While the original listing agent is now free to represent the buyer and is not a dual agent, confidential information gained from his listing agreement wi

Buyer brokerage contracts in IL

Must be in writing to be enforceable. the buyer brokerage contract is an employment contract and must be in writing to be enforceable although no form is specified in the law. Buyer brokerage contracts are regulated just as listing agreements are.

If a minor enters into a contract in IL, what is the statuary period within which she may legally void the contract after reaching the age of majority?

There is no statutory period. A contract signed by a minor may be voided anytime in the future; however, it must be voided within a reasonable tie of reaching majority or it remains in force.

Who is responsible for drafting a company's listing agreement?

An attorney working with a broker. Although some sates do have state forms, in IL, a broker can use board forms that several companies use or have an attorney draft company-specific forms.

What needs to be in letters larger than those used in the rest of the listing agreement?

Earnest money and purchaser's default. If the seller will not receive the earnest money if the purchaser defaults, the earnest money and purchaser's default needs to be in larger letters.

Which of the following duties must a licensee observe even when the transaction is completed?

Confidentiality. Licensees in receipt of confidential information must take reasonable steps to safeguard that information from unauthorized disclosure. After a transaction is completed, licensees must maintain confidentiality, but they are no longer boun

A licensee represents the seller. The seller has confided certain information to the listing agent. Which of the following should NOT be disclosed to potential buyers?

The previous occupant of the property was afflicted with HIV. No cause of action shall arise against the licensee for failure to disclose that previous occupant of the property was afflicted with HIV or that a murder suicide occurred on the property. Howe

A licensee represent buyers who are looking for a home in a desirable neighborhood that does not have very many properties listed for sale. The licensee shows a reasonably priced property to two sets of buyer clients. Both are interested in making an offe

The licensee must notify the competing buyers that the licensee is preparing several offers to purchase. A licensee representing a client does not breach a duty or obligation to the clients by sowing properties to more than one party. However, a licensee

A licensee represents the seller but is working with a non-represented buyer. What duty does this licensee owe the non-represented buyer?

Honest notice of all latent material adverse facts pertaining to the physical condition of the property. Licensee must treat all consumers honestly and must not knowingly give them false information. A licensee engaged by a seller client must disclose to

After terminating a brokerage agreement, unless otherwise agreed upon in a written agreement, a licensee owes the former client

Accounting for all monies and property and to keep confidential all confidential information received during the course of the brokerage agreement.Except as noted in a written agreement between the broker and the client, after termination or completion of

A seller is required to give a buyer a real property disclosure report in all of the following transactions except:

For a sale of commercial property. Seller property disclosure forms are required in the transfer of one-to-four unit residential dwellings, even when the seller has not resided on the property or when they buyer has lived in the property.

A real property disclosure report must be delivered to the buyer no later than

At the time the buyer and seller sign a contract to purchase. The buyer needs the information contained in the real property disclosure before agreeing to terms of a contract, so the real property disclosure report must be delivered no later than the time

A broker lists a home and asks the seller to fill out a property condition disclosure. Which statement is TRUE in IL?

Seller disclosure of known property conditions is required by statute. The agent should encourage the seller to be honest and disclose known problems. If advice is requested regarding what to disclose, the seller should talk to an attorney.

Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and dies in the unit last year. As the agent for the woman

You are specifically relieved of liability for nondisclosure of either event by IL License Law. State law does not require stigmatized property disclosure (such as a highly publicized murder), and in those cases, a listing agent should follow his seller's

Six months after the buyer bought a house, its roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask abo

Can sue the broker for nondisclosure. The broker is required by law to disclose any fact that would materially affect the buyer';s decision to make an offer. The fact that the buyer did not ask is irrelevant. While the buyer cannot sue the seller under li

Of the following transactions, in which is a seller disclosure required?

Sale by a real estate licensee of a two-unit residential property. A foreclosure sale, a sale between family members, and a sale from one spouse to another in a divorce are all exempt.

A real estate broker representing the buyer knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker should disclose which facts?

both facts. IL requires the buyer's broker (or the listing broker) to disclose known, latent material defects like the cracked foundation. While the law does not obligate an agent to disclose other occurrences like the suicide. Most interpret that a buyer

In Illinois, agents are required to disclose what kind of defects to a prospective buyer, regardless of who they represent?

All defects. Agents are required to disclose all material and known latent defects to a prospective buyer, regardless of who they represent.

The seller refuses to provide a property disclosure to the buyer. in this situation, the buyer

May terminate the contract. If the seller fails or refuses to provide the disclosure document prior to the conveyance of the residential real property, the buyer has the right to terminate the contract.

The sale of which of the following properties requires a property disclosure?

Not less than one and not more than four residential dwelling units

To comply with the Residential Real Property Disclosure Act, sellers must provide the disclosure statement to the buyers

Before the buyers make an offer. The seller must deliver to the prospective buyer the written disclosure statement required by law before the signing of a written agreement by the seller and prospective buyer.

To comply with the Residential Real Property Disclosure Act, what information must the sellers disclose?

Material defects of the property of which they have actual knowledge. The seller are not obligated by the Act to make any specific investigation or inquiry in an effort to complete the disclosure statement.

Buyers signed a lead-based paint disclosure form on a house they purchased through a buyer's agent. How long must the buyer's agent keep that signed form?

For Three years. Only buyer's agents who are paid entirely by the buyer are exempt from the disclosure requirement.

A couple with a 5 year old son lives in their own home Illinois. Knowing their house contains some surfaces with lead paint, the couple had they son tested for elevated blood levels. The test showed he had no lead in his system. Does IL law require that t

No abatement is required only if the child has an elevated blood lead level. When a child is diagnosed as having an elevated level of lead in his bloodstream, the condition must be reported to the Department of Health and an inspection conducted. If the i

The Illinois Lead Poisoning Prevention Act requires that physicians screen children under the age of six in high-risk areas. Which of the following area is NOT considered high risk?

Middle-class neighborhood. According to the Act, high risk includes; slum and blighted housing; proximity to highway or heavy local traffic; proximity to a lead-using or lead-generating industry; and incidence of elevated blood levels, poverty and the num

What procdures must a manging broker follow when terminating an agent?

Sign the bottom of the agent's license and give it to the agent, then send a copy to the IDFPR and keep one copy on file.

An IL real estate sponsored licensee may lawfully collect compensation from

His sponsoring broker only

A sponsored licensee may hold a concurrent license with more than one IL broker under which of the following circumstances?

Under no circumstances

Several weeks after closing, a broker received a thank you letter and bonus check from the seller of the house. The broker chased the check because she felt it was earned. In this situation, which statement is true?

Accepting the money is a violation of IDFPR Regulations. Any bonuses that are received must go to the sponsoring broker, who may at her discretion share them with the salesperson.

All of the following would be considered compensation to an agent in IL except:

A thank-you note. Anything of value )coupons, lottery tickets, gift certificates, salary) are considered compensation.

An agent works for one real estate company, but then moves to a second company. Several transactions are pending during the move. Can the broker of the first company pay the agent directly after those closing?

Yes, commissions need not flow through the second broker. Commissions can be paid directly to the licensee provided that the work was done while the licensee was sponsored by the first broker and unless the agreed upon broker-agent contract prohibits it.

A sponsored licensee wanted to form a corporation for the sole purpose of receiving commissions from her broker. Is this allowed?

Yes, this is allowed as long as its a solely owned corporation

Sponsored licensees are allowed to do all of the following except

Manage an office. Sponsored licensees can sell cooperatives, sell time-shares, and collect rent under the supervision of a managing broker. They cannot manage an office. A managing broker's license is required to manage an office.

A sponsoring broker intends to open a branch office in a neighboring town. The sponsoring broker applies for a branch office license, giving a name that clearly identifies its relationship with is main office. The broker names a sponsored licensee with mi

No, the manager of a branch office bust be a licensed managing broker. A sponsored licensee with minial experience may not be named to such a post.

When a managing broker dies

Sponsoring broker or power of attorney may step in and manage the office temporarily for up to 60 days, providing IDFPR is notified within 15 days. This may be extended by the IDFPR for good cause and upon written request of the sponsoring broker.

Best builders and Rel Estate, INC. wish to offer a new car to anyone purchasing a home priced in excess of $1,000,000. Can they do this under IL law?

Yes, they can do this as long as the conditions are spelled out in any ad. Incentives to attract buyers and sellers are legal in IL if all the conditions are clearly spelled out in the advertisement.

Broker J asked the telephone company to list her name in the directory under the real estate heading as "J, Real Estate Broker; residential property is my specialty!" Based on this information J is also required to include

The name of her employing broker. All advertising must be in the employing broker's name, and that name must be clearly stated in any advertisement.

A real estate licensee decides to sell his own property without using a broker. When advertising the property, the licensee

Must disclose the fact that he is a real estate licensee. By law, the licensee may sell by owner. However, the contract with the sponsoring broker may prohibit this. When acting as a private citizen, the licensee need not disclose the broker's name in adv

A licensee has developed a Web site that showcased all her listings. What, if anything, must the licensee include?

The city or geographic area for each property, company name, and state of license if the property is not within jurisdiction of her license.

A licensee wishes to put up a huge billboard on the edge of town with his name and phone number on it. Must he also include his company's name?

Yes, he may put up the billboard as long as the company name is displayed. There are no print-size restrictions.

A sponsored licensee owns some rental homes that she advertises for rent when they become vacant. She must follow all of these guidelines except

Use a real estate company sign. A sponsored licensee may not use a company sign on non-listed or non-office-managed homes. If a property is agent-owned, that must be stated on any FSBO yard signs and in all newspaper ads and marketing materials.

Where should all licenseure certificates be located?

Conspicuously displayed in the broker's place of business

What is the maximum percentage, if any, of stock that can be owned by individual or groups of affiliated licensees?

49%. Brokers applying for a company license are required to identify all shareholders and their ownership interest in the firm and their individual license numbers.

Who must hold a license when the real estate company is licensed as an Illinois Corporation?

All corporation officers and all employees acting as sponsored licensees. All licenses must be active.

In an effort to increase awareness of and compliance with the IL Real Estate License Act of 2000, IL

Launched the DFPR compliance program. When selected to participate in the Compliance program, the broker provides a contact person at DFPR who conducts a review of the broker's business records, identifies any deficiencies, and assists with correcting tho

All of the following are required when a sponsoring broker wants to operate a real estate branch office EXCEPT

The compliance form indicating that the office space meets minimum code requirements. It does require a completed Consent to Examine and Audit Special Accounts form, name and license number of the manager of the branch office, and all required fees.

At what time may a sponsoring broker allow licensees to work from a branch office?

Upon receipt of the branch office license. The sponsoring broker may not open a branch office or have licensees working from a branch office until after receipt of the branch office license.

Who may practice real estate activities under an assumed business name?

Only the Sponsoring broker. The assumed business name registration must be obtained in each county in which the assumed business name is used. Sponsoring brokers and any corporation, limited partnership, general partnership, or limited liability company o

How soon must any change in managing brokers, branch or principal offices be reported to the Division?

15 days. It is the responsibility of each sponsoring broker to immediately notify the Division of any change in business information. Specifically, changes in managing brokers, branch, or principal offices must be reported to the Division wihin 15 days af

Within what time frame must a managing broker notify the division of any change of business address of the offices they manage?

24 hours. All managing brokers must notify the Division on business letterhead or any change of business address of the offices they manage within 24 hours of any change. Change of address is required for all offices and branch offices. A license returned

One of the duties of a managing broke is to supervise the activities of licensees and unlicensed assistants. What is an example of such supervision?

Implement office policies and procedures established by the sponsoring broker. Training of licensed and unlicensed persons, supervising a special account that has been delegated by the sponsoring broker, and so forth. Most sponsored licensees are independ

Every sponsoring broker must have a

Written employment agreement with each sponsored licensee. It must be dated and signed by the parties. A special account is not required if the broker will not be receiving trust funds.

Under what conditions, if any, may unlicensed individuals or unlicensed entities own and unlimited amount of real estate brokerage firm?

The unlicensed owners must file an affidavit of non-participation. Any officer of a corporation, a partner, and so forth who is engaged in brokerage activities must have a broker license.

In IL what is a major requirement for opening a real estate office?

Must have a managing broker of record. They do not have to be the owner of the business. A sign must be outside the office and must be of a size and nature that will be reasonably readable by the public. Errors and omissions insurance, while useful, is no

After all parties agreed to the contract, the licensee noticed that the sellers had not initialed one change. The licensee is very aware that the seller were in agreement, but the sellers are now on vacation. How should the licensee proceed?

Wait until the sellers return to initial the contract. Unless the licensee holds Power of Attorney for the sellers, the only thing that the licensee can do is wait until the sellers return. Rule 1450.200(b) requires that a licensee obtain the written cons

A sponsoring broker is not required to maintain a special account, i.e., an escrow account, if the sponsoring broker does not receive escrow monies entrusted to him while acting as a real estate broker, or as escrow agent, or as temporary custodian of the

One business day of contract acceptance. Other people's money must be deposited into a trust account within one business day after the final signatures of buyer and seller are obtained.

If a sponsoring broker establishes an account to hold money belonging to others, which of the following is correct?

All monies must be held in a federally insured depository. Because a sponsoring broker does not have to open a new account for each earnest money amount received, the broker must keep careful records to accurately account for all funds, and they must be h

A broker received an earnest money deposit along with a contract signed by both buyer and seller. Under IL law, the broker should

Deposit the money in an existing special non-interest-bearing escrow account in which all earnest money received from buyers may be held at the same time

Every IL real estate office that holds escrow is required to do all the following EXCEPT

employ at least one additional salesperson in addition to the broker. In IL, a real estate office is not required to employ an additional salesperson because the broker could be the only agent in the office. Brokers are, however, required to maintain escr

A sponsoring broker and two partners bought a 12-unit building that the broker will manage. When the broker collects the security deposits, the broker

put them in a non-interest bearing escrow account. He will not owe interest because there are less than 25 units.

Which of the following is NOT considered escrow monies?

Rent monies to be transmitted to the licensee's client. In addition, other monies held in a custodial account by a licensee for transmittal to licensee's client, such as a contract for deed, are also not subject to escrow rules.

How many escrow accounts, if any, is a sponsoring broker required to open?

None, if the broker will not be receiving escrow monies while acting as a real estate broker.

Under what conditions, if any may a sponsoring broker place personal funds in an escrow account?

Only an amount sufficient to avoid incurring service charges relating to the escrow account. The sponsoring broker may not deposit personal funds in an escrow account, except an amount sufficient to avoid incurring service charges relating to the escrow a

How soon after the consummation or termination of the transaction must the sponsoring broker disburse escrow monies?

Not later than the next business day following the notice of the consummation or termination. It may not be made earlier on the day the transaction is consummated or terminated and not later than the next business day.

When the sponsoring broker has delegated the responsibility of maintenance the escrow account over to another person, who is ultimately responsible for the proper administration of the escrow account?

Sponsoring broker. Although a sponsoring broker may delegate the responsibility of maintaining the escrow account over to another person, such as a managing broker, bookkeeper, Certified Public Accountant, unlicensed or licensed assistant, or sponsored li

The IDFPR may suspend or deny a license for failure to

Pay taxes, child support, or any IL guaranteed student loan. It is not empowered to monitor withholding taxes or to satisfy a disgruntled client.

In IL, all of the following would be grounds for discipline of a broker EXCEPT

Agreeing with a seller to accept a listing for more than the normal commission rate. Commission rates are always negotiable between the seller and the broker. The IDFPR may revoke a license if the licensee has been convicted of a felony, false advertising

Upon renewal of her license, a licensee writes a bad check to the IDFPR. IN this circumstance, the licensee faces

Paying a $50 fine and the amount due within 30 days or face license termination.

Taking a listing or participating in any transaction in which the property owner seeks to discriminate

Is strictly prohibited under license law. It violates the IL Real Estate License Act and can result in suspension, non-renewal , revocation of the violator's license or censure, reprimand, or fine imposed by IDFPR.

In a civil proceeding, a licensee was found guilty of discrimination and fined $75,000. He appealed and lost again. What is the status of his license?

Suspended or Revoked. After an appeal, any licensee that has been found guilty of discrimination must have his license suspended or revoked. Errors and omissions insurance does not cover fair housing violations.

An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties?

Civil penalty up to $25,000 in addition to other penalties provided by law. The IDFPR is not empowered to sent anyone to prison.

When a sponsoring broker has her license suspended for tw0 years, what effect does this have on the sponsored licensees associates with the sponsoring broker?

The sponsored licenses are inoperative until securing a 45-day sponsor card from a new sponsor. Sponsored licensees are not guilty by association, but their cards are inoperative until sponsored by a new broker.

A real estate licensee may be disciplined for

Representing more than one sponsoring broker. Licensees must maintain transaction records for five years, deposit escrow funds into a separate trust account, and gain approval before acting as a dual agent.

A licensee advertised a guaranteed sales plan but was unable to purchase the property when no buyer was found. How does the IDFPR view this issue?

The licensee is subject to at least a civil fine payable to the party in an amount up to $25,000. Any licensee who fails to perform on a guaranteed sales plan in strict accordance with its terms will be subject to all the penalties provided in this Act fo

If the Secretary immediately suspends a person's license, the Division must convene a hearing within

Thirty days after the suspension and completed without appreciable delay. The individual must be afforded an opportunity to demonstrate to the Division or Board that she can resume practice in compliance with acceptable and prevailing standards under the

Illinois licensees are required by law to have

A written agreement with their broker. While most real estate firms will expect an agent to secure errors and omissions insurance, an agent is not required by IL law to have errors and omissions insurance. He must always, however, have a written agreement

If a broker's violation of the license law results in civil damages to a consumer, what is the latest date by which the injured party may file a lawsuit that results in a collection from the Real Estate Recovery Fund?

Two years after the party became aware of the violation. The party must file for the funds with IDFPR within 30 days of receiving a judgement.

If an aggrieved person is awarded a judgement against a real estate licensee for violation of the IL License ACT, which of the following correctly states the aggrieved party's rights regarding the Real Estate Recovery Fund?

The aggrieved party has the right to a $25,000 maximum recovery from the real estate recovery fund. The maximum liability against the fund arising from the acts of any single licensee or unlicensed employee is $100,000.

The purpose of the Illinois Real Estate Recovery Fund is to

Provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee in violating the license law or other laws in a real estate transaction.

Whenever IDFPR is required to satisfy a claim against a licensee, with money from the Real Estate Recovery Fund, the

Licensee will immediately have his license revoked and must repay the full amount plus interest to the account if his license is ever to be reinstated.

Under what condition may the IDFPR deny an application for a real estate license?

Failing to answer all the questions on the application honestly and accurately. Other reasons for denial include late payments or no payments for a student loan, more than 30 days in arrears on any court ordered child support payments, and a dishonorable

Over what does the Real Estate Division of the IDFPR have regulatory jurisdiction?

Conduct of licensees who represent principals to a real estate transaction. The regulatory power applies only to the conduct of licensees who represent principals to a real estate transaction (buyers, sellers, tenants, and landlords). The Division does no

What is a legal activity that will not trigger an investigation from the Division?

A listing agent provided information about a latent defect to a non-represented buyer. A listing agent should provide information about a latent defect to a non-represented buyer; sponsoring brokers must be able to account for all monies in the special ac

At what point may a listing agent display a For Sale sign on the property?

At the time the property owner gives written consent. Displaying a For Rent of For Sale sign on any property without the written consent of an owner or her duly authorized agent or advertising by any means that any property is for sale or for rent without

A sponsored licensee placed a newspaper ad listing the office number but not the name of the sponsoring broker. Some buyers called thinking that a private owner was selling the property although it was an office listing. This is an example of

Blind Ad. Advertising only the phone number of the office, without indicating that this is an office number, is an example of a blind ad. A blind as is an example of untruthful advertising because the consumers are led to believe that they are calling a p

When a payment is made out of the Real Estate Recovery Fund to satisfy a claim against a real estate licensee, the

License is immediately revoked. When a payment is made from the Recovery Fund on behalf of a licensee, that licensee's license is immediately terminated. The persona my not apply for reinstatement of the license until all repayments to the Real Estate Rec

The license has been revoked following a hearing. The licensee refuses to return the license to the Division. What recourse does the Division have?

The division has the right to seize the license. Upon the revocation or suspension of a license, the licensee should immediately surrender his license to the Division. Per Section 20-68, Surrender of License, if the licensee fails to do so, the Division h

In order to file a claim to recover from the Real Estate Recovery Fund, the aggrieved party must demonstrate that the aggrieved party

Is not a spouse of the debtor/licensee or the personal representative of such spouse. The aggrieved person must show the aggrieved party has a judgement that cannot be enforced, hence, the claim against the Real Estate Recovery Fund.

Recovery from the Real Estate Recovery Fund is limited to damages due to

Fraudulent activities by a real estate licensee. The Division maintains the Real Estate Recovery Fund from with any person aggrieved by an act, representation, transaction, or conduct of a licensee or unlicensed employee of a licensee that is in violation

A person is found guilty of working or acting as a real estate licensee without being issued a valid existing license. For a first offense, the person is guilty of

class A misdemeanor. Any person who is found working as a real estate licensee without being issued a valid existing license is guilty of a Class A misdemeanor, and upon conviction of a second or subsequent offense, the violator is guilty of a Class 4 fel

All of the following are protected classes under the IL Human Rights act EXCEPT

Dependence on public assistance. Protected classes in IL include; race, color, religion, national origin, ancestry, age, sex, martial status, physical or mental disability, military service or unfavorable discharge from military service, familial status,

Under the IL Human Rights Act, and elderly person is defined as any person over the age of

40

To which of the following does the IL Human Rights Act apply?

Anyone engaging in real estate transactions. The IL Human Rights Act (IHRA), in effect since 1980, prohibits unlawful discrimination in the areas of employment, real estate transactions, financial credit, and access to public accommodations. The law appli

A salesperson wash engaged in activities violating the IL Human Rights Act, including blockbusting and discrimination based on race. The salespersons also failed to complete her continuing education credits and get her license renewed on time. The employi

The salesperson's actions are legally the responsibility of the employing broker, who could be penalized if she knew, or should have known, of any illegal activities. Even thought he broker claimed to be unaware of the sales person's illegal activities, s

A private owner is selling his single-family home. Which of the following is not a criterion for the seller to be exempt from the anti discrimination provisions in the IL Human Rights Act?

A real estate licensee was involved. When a real estate licensee is involved, the law must be followed; there are no exemptions. Although certain exemptions are availabe, private owners may not discriminate based on race or color.

M is looking for a roommate to share her two-bedroom, one-bathroom home. One of the persons interested in renting from her is an African American, 17-year-old male with a support animal. Under the IL Human Rights Act, can she turn him down?

Yes, she can turn him down because h is male and they would have to share a bathroom. M can restrict housing to persons of the same sex because they would have to share the same bathroom.

Under the IL Human Rights Act, a complainant may file a charge of discrimination

Within one year. Within one year of an occurrence of an alleged civil rights violation, the complainant may file a charge of discrimination with the Intake Unit of the Charge Processing Division.

What is the maximum civil penalty may be ordered against a person who violates the IL Human Rights Act for the first time?

$10,000. A person who violates the IL Human Rights Act for the first time may be ordered to pay civil penalties to the state to vindicate the public interest up to $10,000 for a first violation, up to $25,000 for two violations, or $45,000 for three or mo

Which is a protected class under the IL Human Rights Act?

Marital status. The IL Human Rights Act defines discrimination on the basis of a variety of factors of protected classes, including those of the federal fair housing act and additionally marital status, sexual orientation, ancestry and age. It does not of

All of the following may be penalties assessed against a person who is found to be in violation of the IL Human Rights Act Except

Imprisonment for no more than three years. The IL Human Rights Act does not provide for imprisonment as a penalty. However, those who violate the IHRA may be required to pay actual damages and civil penalties and submit regular compliance reports.

The Illinois law that prohibits the use within a trade or profession of any deception, fraud, false promise, misrepresentation or concealment, suppression, or omission of a material fact, with the intent that others will rely on it is the,

IL consumer fraud and deceptive practices act. The violator may have to pay the plaintiff's attorney's fee and court costs, in addition to damages. The Code of Ethics is not an act. The Sherman Antitrust Act is a Federal act.

In IL real estate commissions are

Negotiable between the broker and the client. Commissions are always negotiable between the principal and the agent and are not set by the IDFPR, local MLS, or local groups of brokers. Any price-fixing or talk of standard commissions is illegal under the

Real estate companies who offer related services have to make written disclosure when they own more than what percentage of the related company?

More than 1%. A real estate company must make written disclosure if it owns more than 1% of a related business to which it is referring a client.

Under the IL Consumer Fraud and Deceptive Practices Act, consumers have the right to cancel an agreed upon sale within three business days. However, this right to cancel does not apply to

An act pertaining to the sale or rental of real property. The right to rescind a contract does not apply to the sale or rental of real property or the sale of insurance.

The Uniform Vendor and Purchasers Risk Act state that the seller bears any loss that occurs

Before the title passes or the buyer takes possession. The seller bears the loss until title passes or the buyer takes possession, whichever comes first.

According to the IL land sales registration act, how many lots must there be for the act to apply and what would be the contract cancellation period if the buyers do NOT receive the property report?

25 or more lots with a 48-hour cancellation period. The IL Land Sales Registration Act applies if there are 25 or more lots offered as a part of a common promotional plan. A purchaser who does not receive a copy of the public property report 48 hours befo

The buyers moved into the property three days before closing. Two days later, and before closing, a fire broke out in the kitchen; the resulting damages totaled more than $15,000. Who is responsible for this loss?

Buyers. The IL Uniform Vendor and Purchasers Risk Act state that the seller bears any loss that occurs until title passes or the buyer takes possession, whichever comes first.

In a local multiple listing service (MLS), most of the listings are taken for 6 or 7 percent. However, one real estate broker advertise, "I will list your home for only 4%." The MLS can

Do Nothing. Both the IL Consumer Fraud and Deceptive Practices Act as well as the federal Sherman Antitrust Act prohibit unfair methods of competition and the activities in the real estate business. All compensation must be determined between the broker a

A week after both parties agreed to all terms in the purchase contract, the buyers had a change of heart. They decided that they did not want the property. What IL law, if any, permits them to rescind the purchase agreement?

No law permits this. Although the IL Consumer Fraud and Deceptive Practices Act permits consumers to rescind many contracts, the Act specifically does not apply to the sale or rental of real property, to the sale of insurance or to the sale of securities

Which of the following has been considered unfair or deceptive business practices in IL?

Seller provided a false termite inspection report. Buyers can hire their own home inspector and provide any documentation they choose, so long as it is truthful. Sellers must truthfully disclose any problems of which they are aware, but obviously cannot d

In IL, the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of being serviced a written demand?

5 Days. The landlord may terminate the rental agreement five days after giving proper notice.

A couple has signed a lease requiring them to waive their rights to the interest earned from the security deposit, although required by law. This provision is

Unenforceable but the lease is still valid. The provision is unenforceable, but the lease is still valid. No one can require that individuals give up their rights in a contract.

A tenant leased an apartment in a 40-unit building. What percent interest must her security deposit earn?

A Rate Tied to the Minimum passbook rate of the largest commercial bank in IL. For rental properties containing 25 or more units, the rate of interest for security deposits is tied to the minimum passbook rate of the largest commercial bank in IL.

The tenants are 2 months behind in their monthly payments on a one-year lease. In this situation the landlord may

Sue the tenant for the back rent and possession in a forcible entry and detainer suit.

In IL, which of the following leases is valid and enforceable?

A written five-year lease is enforceable. Although a lease that can be completed in less than one year may be oral and still be enforceable, the wises course of action is to get any lease in writing.

How must a landlord handle a security deposit?

In a property with five or more units, the landlord must provide an itemized list of damages within 30 days of the date the premises were vacated. Landlords who receive security deposits on residential leases of five or more units may not withhold any par

A landlord wants to terminate a year-to-year tenancy in IL. How much notice must the landlord provide to the tenant?

60 days

A landlord signs a lead-based paint disclosure indicating that she has never had her building tested for lead and has no actual knowledge of lead paint on the premises. She must also give the new tenant a

Federally mandated booklet but the law does not provide tenants with a special time frame or opportunity for testing.

During a crime wave, a tenant decides to install a burglar alarm in a rented house. Does the tenant need to inform the landlord?

Yes, the tenant needs to inform the landlord, but the tenant must also give the landlord instruction and passwords

A renter is on a month-to-month lease with rent due the first of each month. The tenant pays her rent on June 1 and then decides on June 5 to move to a new apartment. If she gives her notice on June 5, when is her lease up?

July 31. The tenant must give notice by the start of the next lease period; notice on July 1 to terminate July 31.

A 17-year old signs a lease for an apartment. What is the status of the lease?

Valid. Because shelter is a necessity, a lease signed by a minor is enforceable.

Which estate describes a previously lawful tenant who remained in possession without the landlord's consent?

Estate at Sufferance. An estate at sufferance occurs when a previously lawful tenant remains in possession of the property after her rights of possession have expired. IL recognizes willful withholding of possession, and the landlord can charge double ren

The IL supreme Court confirmed a concept that a landlord must deliver and maintain any residential leasehold free from defects that would make the dwelling unsafe or unsanitary. What is this concept?

Implied Warranty of Habitability. Constructive eviction is the tenant's remedy if a property is not habitable.

Tenants can be evicted for any of the following reasons EXCEPT

Paying rent on time. Paying rent on time is the right thing to do . Tenants can be evicted for any violation of their lease agreement including failure to pay rent, damaging the property, disturbing the neighbors, and creating dangerous conditions.

When tenants break the lease, the landlord may

File a Forcible entry and detainer complaint. Landlords are not permitted to force out the tenants by changing the locks, shutting off utilities, or moving tenant belongings to the street.

What is the general datum plane referred to by surveyors throughout IL?

US Geological Survey Datum

How many principal meridians are located in IL?

Two. The Third Principal Meridian and the Fourth Principal Meridian. The Second Principal Meridian is located in Indiana but is used to describe property in eastern IL.

A metes-and-bounds description is used in IL to describe irregular parcels of land, but it must be combined with

The rectangular survey system

The lot-and-block method of describing land in IL is required if the parcel is smaller than

Five Acres

All of the following are common proofs of ownership in IL EXCEPT

Torrens Certificate. Common proofs of ownership in IL include certificate of title, abstract of title with lawyer's opinion, and title insurance policy, but not a Torrens certificate.

In IL, the prescriptive period to acquire an easement or adverse possession is

20 Years. In IL to claim an easement or adverse possession, continuous, open, and notorious use must be established for 20 years, although in some cases the period can be shortened.

The decedent left an estate valued at $900,000, after the payment of all taxes and debts. She had no surviving husband but 3 children. The first son died shortly after his mother died, leaving 2 children of his own. The daughter has 3 children and the rem

The daughter and the remaining son each take $300,000, and the first son's children divide the remaining $300,000 equally. The property does not escheat to the state because the decedent left living heirs.

How many witnesses must sign in the presence of the person making a will to fulfill the legal minimum?

Two

A man left a will and wanted to disinherit his wife and children, leaving his estate to his elderly mother. His spouse renounced the will. How will the estate be distributed according to the IL law?

The wife will receive one-third and the mother will receive two-thirds. The deceased can disinherit his children but not his spouse. The spouse will receive one-third of the estate. The one-third that should have gone to the children can be left by will t

A husband is survived by his wife and their two daughters. The couple's home is held in joint tenancy and is worth $50,000 but the husband has also left a separate estate worth $150,000. Because the husband died suddenly without leaving a will, the wife a

Sole ownership of the home plus one-half of the separate property, or $75,000. Her daughters split the other half, or $37,500 each. As a joint tenant, the wife receives sole ownership of the home and one-half of the separate property, or $75,000. Her daug

How much of a homestead estate is an individual entitled to in his IL residence?

$15.000. Effective January 1, 2006, an individual is entitled to a $15,000 homestead exemption in IL. The maximum amount is $30,000 for multiple owners.

Which of the following legal life states could be available to a surviving husband in IL?

Homestead. Curtesy and dower are not recognized in IL.

All of the following are forms of joint owner-ship recognized under IL law EXCEPT

Tenancy in Severalty. Tenancy in severalty is ownership by one person or one corporation. Tenancy in common, joint tenancy, and tenancy by the entirety are all forms of joint ownership recognized in IL>

A husband and wife, who own their home as tenants by the entirety, obtain a divorce. At that time, the tenancy by the entirety

Extinguishes and becomes a tenancy in common

Unless stated to the contrary in a deed, ownership of land by a married couple is assumed to be by

Tenancy in common. If there is no special wording in the deed, ownership is assumed to be by tenancy in common. Any form of joint tenancy requires additional wording.

The husband owns a rental property in Illinois occupied by a tenant. The wife has no ownership interest. If the husband wants to sell the property, who must legally sign the listing agreement and later deed?

The husband only, because the husband and wife to not live in the house. Only the husband must sign the deed because the wife has no homestead rights unless she has lived in the property, while they were married.

Under certain circumstances, IL law permits a summary proceeding in which the plaintiff/condemner may obtain immediate fee simple title to real property. This is known as

Quick-take. The IL Eminent Domain Act permits quick-take proceedings; the plaintiff/condemner must deposit a sum with the county treasurer to take immediate possession. The owner will receive the money that was deposited in the state treasury at a later d

A property is owned as tenants in common with a single deed that does not mention percentage of ownership. The percentage of ownership would

Be Equal. If a single deed is used and there is a lack of a description of each tenant's share, then all tenants hold equal, undivided shares. Survivorship only exists in joint tenancy and tenancy but the entirety.

Unless extended, trusts in IL can continue for

20 Years. Land trusts continue for 20 years and can be extended for another 20 years.

To establish a marketable record title, an unbroken chain of title must be established for a period of at least

40 Years

Reentry and reverter is a future interest that may never take place. What would be the time frame in which it could happen?

Not to exceed 40 Years. The right of reentry and reverter in IL ends at 40 years. A person can still get an injunction to stop the violation but couldn't take the property back.

A seller did not want it to become public knowledge that she sold her home. She included a clause in the deed to forbid recording. Is this enforceable?

No, that portion of the deed is not enforceable, but the rest of the deed is still valid. No instrument affecting title may contain a provision that prohibits recording. The provision is void, but the deed is valid.

Under the IL Title Insurance Act of 1990, any producers of title insurance who own a part interest in a title company must do all the following EXCEPT

Recommend the other title companies so the client has a choice. As long as the producer is registered, fills out mandatory forms, and informs buyers and sellers in writing, she does not have to recommend any other company but her own.

How soon must deeds of conveyance be recorded after closing?

A reasonable time. However, to provide constructive notice, the sooner they are recorded the better.

In IL, the local official who records deeds and maintains the public records is the

Country Recorder. they also maintain the grantor/grantee lists.

Requirements for a valid deed in IL include all of the following EXCEPT

The signature of the grantee. The grantor must sign the deed and deliver it to the grantee. The grantee only has to accept it.

An additional requirement in an IL deed is

The grantee's present address. The grantee/purchaser's present address is required in IL as an element of a valid deed. Exact consideration is state in deeds only pursuant to a court order.

A deed has to be acknowledged to do all of the following EXCEPT

To be valid. A deed is still valid even if not acknowledged or notarized.

In IL, a grant bargain and sale deed is similar to a warranty deed but less complete in its warranties. What should be purchased for added protection?

Title insurance. In IL grant bargain and sale deed only covers encumbrances made by the grantor. To protect a grantee from encumbrances of previous owners grantees should obtain a title insurance policy.

A deed or contract signed on a Sunday or legal holiday is valid and enforceable. If the last day a person could sign a deed or contract falls on a Sunday or legal holiday

The person has until the next business day

In IL, the state and county transfer tax is split

One-third to the county and two-thirds to the state with 50 percent of the state's money going to affordable housing. The state's portion is then distributed 50% to the IL affordable housing trust fund, 35% to the Open Space Land Acquisition and Developme

To avoid becoming null and void, a tax deed must be recorded within

A Year. There is not a definite time frame to record other deeds but the sooner the better to give constructive notice.

The transfer tax levied by the state on the seller is based on the selling price less any assumable mortgage. How must the real property transfer tax be paid?

By Purchasing transfer tax stamps from the county recorder. Tax stamps are purchased form the county recorder or registrar of titles. The form filed is the Illinois Real Estate Transfer Declaration.

What program in IL governs the detection identification, monitoring, mitigation, and removal of buried underground storage tanks?

LUST. The program is called LUST (Leaking Underground Storage Tanks). CERCLA is the superfund that cleans up hazardous waste sites. IEPA stands for the IL Environmental Protection Agency. MTBE is an additive to gasoline that reduces ozone emissions. If a

What is the statutory usury ceiling on loans secured by real esate in Illinois?

No Ceiling. Usury indicates an exorbitant interest rate. Under IL law, there is no legal limit on the rage of interest that a lender may charge a borrower. Most IL mortgage loans, however, are under federal regulations, which do limit the interest rates.

A homeowner has a mortgage loan secured by real property. Under IL law, the homeowner may terminate the loan's escrow account when the remaining balance is equal to or less than what percentage of the original amount?

65%

Twenty years ago, a homeowner obtained a 30-year mortgage loan to purchase a home. The interest rate on the loan was 9.275 percent. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which of the following statements is TRUE

Because the homeowner's interest rate is greater than 8%, the lender may not charge a prepayment penalty under IL law

In IL, the responsibility for preparing the deed involved in the transfer of title belongs to the:

Sellers attorney.

In IL, all of the following individuals are responsible for preparation of the closing statement EXCEPT

The sponsoring broker. The sponsoring broker is never responsible for preparing the closing statement. It would violate Chicago Bar Association, et. al. v. Quinlan and Tyson, Inc.

A homeowner contracted with Super Construction Company to put a new deck on her house. The company began work on May 1 and finished on June 1 but was never paid. On July 1, the homeowner sold her house to a buyer, who received a mortgage loan from City Ba

Super construction, city bank, country bank. The mechanic has four months from completion to file the lien notice. Thus, the mechanic's lien is first, then the mortgage companies as recorded (City Bank, Country Bank)

For 3 days, a construction crew built a gazebo in a homeowner's backyard as the property owner watched. The owner had not contracted with anyone to build a gazebo and, in fact, had never given much thought to having one, but the homeowner liked what he sa

Yes, when a homeowner knows of work being done on his property and does not object or disclaim responsibility, a mechanic's lien may be created. The property owner may not knowingly benefit from the contractor's error.

Once a judgement is rendered, a creditor on a judgement must enforce it within

Seven Years. It can also be renewed for an additional seven years.

In IL, commercial real estate brokers may place a lien against property for their commission based on the

Commercial real estate broker's lien act

Special assessments are a specific lien on real property. The annual due date is generally

January 2. The first bill includes one year's interest on the entire assessment. Subsequent bills include interest only on the unpaid balance.

In IL, if an owner defaults on her mortgage loan and the property is ordered sold at a foreclosure sale, the owner may redeem the property

Prior to the sale, under the equitable right of redemption. The owner has no statutory rights after the sale.

In IL, how long is the defaulted borrower's redemption period after a foreclosure sale is complete?

There is no redemption period after the sale in IL. Unlike a tax sales, there is no redemption period after a foreclosure sale in IL.

In IL, the mortgagor/borrower remains the owner of the mortgaged property for all beneficial purposes, subject to the lien or deed of trust. IL is referred to as what type of theory state?

Intermediate Theory. IL still requires the mortgage (lender) to foreclose in order to obtain legal title.

There are different methods of foreclosure. IL is classified as a

Judicial Foreclosure state. That allows the property to be sold after a court order.

Which of the following is NOT recognized regarding mortgages in IL?

Statutory right of redemption. Once the sale takes place, the mortgagor loses any right to redeem.

If there is no redemption before the tax sale, how long must a tax sale purchaser wait before action to obtain a tax deed?

Two years from the date of the tax sale

In IL, the successful bidder at an annual tax sale receives

Certificate of purchase. The certificate will ripen into a tax deed two years later if redemption is not made. If it is 6 or fewer units in which the owner resides, then it is 2 1/2 years for redemption.

Of the following properties, which is required to pay property taxes

housing owned by a disabled veteran. Cemeteries, federal government buildings, and private schools are not taxed.

In IL, when do real estate taxes become a lien on the property?

January 1

Except in Cook County, an IL property owner can pay the current year's real estate tax in two equal installments. The second half must be paid by

September 1 of the following year

Outside of Cook County, real estate in IL is assessed at

33 1/3 % of fair market value. Cook County is a sliding scale starting at 16%.

In IL, the market value of a home is $150,000. Of this amount, $25,000 is the value given to the land and $125,000 is considered improvements. The owners have filed for their $3,500 homeowner's exemption, and it has been granted. If the total tax levy on

$3,603.75. The solution is $150,000 x 33 1/3% = $50,000 - $3,500 + $46,500 / 100 * 7.75 = $3,603.75

Homeowners exemptions in IL include all of the following EXCEPT

The demolition of a historical building. An exemption is given for the rehabilitation of a historic building but not for demolition. The Senior Citizen's Assessment Freeze Homestaed Exemption either freezes or defers taxes for someone over 65 based on sta

The county collector prepares on tax bill per property. Assessments are adjusted

Yearly by applying an equalization factor. TO ensure equal distribution of the tax burden among property owners, an equalization factor is applied to the assessed value of real property in order to bring assessment levels, on average, to the same percenta

In Lake County, the first installment of a tax bill came out on May 1. If the taxes are $4,000 a year, and the owner pays the first installment on June 3, what will his liability be?

$2,000 plus 1 1/2 % of the $2,000 penalty. When the bill comes out, an owner must pay 1/ 2 of the bill 30 days later, which is called the penalty date. If the owner does not, the penalty is 1 1/2% of the delinquent amount per month, not to be prorated.

How are IL ad valorem taxes shown on the closing statement?

They are accrued and will be a credit to the buyer. Ad valorem taxes are the general real estate taxes. They are owed but cannot be paid in advance. Therefore, they are accrued. The seller owes taxes through the day of closing and must give a credit to th

In Illinois, the real estate license law is administered by the:

IDFPR - Bureau of Real Estate Professions administers the real estate license law. The IL association of REALTORS is a trade association and the department of housing and Urban Development is a federal agency that supervises housing issues.

How are the nine members of the Real Estate Administration and Disciplinary Board selected?

By the Governor. The governor appoints the members of the Real Estate Administration and Disciplinary Board. They are not elected by the public or by real estate licensees.

What is the name given to the Illinois license laws under which brokers and salespeople practice?

Real Estate License Act of 2000. The Real Estate License Act of 2000 is the body of laws that regulates the real estate industry in Illinois.

After May 1, 2011, the new license categories are

Managing broker and broker

After April 30, 2012, as an alternative to passing the proficiency exam given by AMP, what are the requirements for converting a sales-person's license to a broker license?

30 hours of post-licensure education, as defined by administrative rule

In Illinois, sponser cards are good for

45 Days

What are the requirements for a newly licensed broker effective May 1, 2011

90 Hours of Pre-License coursework including 15 hours of situational offerings

After May 1, 2011, what must a broker do to convert to a managing broker license

Complete 45 hours of post-license education. The broker must be listed as the managing broker or as a self-sponsored broker with the Division and must take 45 hours of post-licensure education or successfully pass a one-time-only proficiency exam.

When do real estate brokers' licenses expire in Illinois?

Brokers' licenses expire on April 30 of every odd numbered year. Managing broker' licenses expire on April 30 of even-numbered years.

To renew a license in Illinois, brokers must

Have completed 12 hours of continuing education in the last 2 years and pay the current fee

Licensees who allow their licenses to expire have how long to reinstate their licenses?

Up to 2 years, then licensees must start over. Licensees are given two years in which to reactivate their license once it has expired. After that, new coursework must be completed and the state test retaken.

What procedures must be followed to obtain a license that has been expired for more than two years?

Meet the requirements for a new license, including all pre-license education and passing the exam

Three weeks before N begins his real estate pre-licnese class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer is accepted while N is taking the class and closes the day after N passes the examination

No. State law prohibits lawsuits filed to collect commissions unless filed by a licensed broker - one with a license in effect before the agreement was reached. In fact, N might be guilty of practicing real estate without a license. Sponsoring brokers dec

Which of the following conditions is NOT required to grant a nonresident broker's license in Illinois?

The broker has been active in the real estate business in her own state for one year prior to application. The applicant's home state must have the same or stricter criteria to obtain a nonresident license. The broker must supply an official sealed statem

The resident property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the resident manager

Is exempt from the licensing requirements. Included in thee exemptions from the license requirement are owners of real estate and the employees of the owners of real estate; so long as the resident manager is a W-2 wage basis (and not an independent contr

After failing the Illinois licensing exam three times, what does a candidate have to do to get three more tries?

Complete the entire education requirement again

When terminating a sponsorship, the sponsoring broker must return the signed license to the DPR within

Two business days by signature restricted mail delivery. In order to terminate sponsorship, the sponsoring broker should sign the license, indicate "terminated," and mark the date of termination. The copy must be submitted to the DPR within tow business d

A leasing agent license requires how many hours of classroom time?

15 hours

In order to practice real estate, Illinois requires new licensees to have which of the following in their possession?

45-day sponsor card, then a pocket card later.

An agent is terminated by his broker for failure to pay the office bill. While the agent is looking for a new office, he is considered to have what kind of license?

Inoperative

Performing which of the following activities requires a real estate license?

Negotiating lease terms. Only those property management activities that involve a conveyance of real estate by contract or lease require a real estate license. Activities that involve general administration, such as contracting for maintenance, paying gen

J was really good at locating temporary housing for friends. They have encouraged her to start a small home business assisting people who are looking to rent. What is the first thing she should do?

Get a real estate license. Any person or entity that operates a rental finding service must first obtain a real estate license.

Proof of continuing education is required every

Two years. Every two years, real estate licensees must complete continuing education. Individuals serving in the armed services of the United States during the renewal period and a real estate licensee who is also an Illinois licensed attorney are exempt.

Of the following, who is required to hold an Illinois real estate license?

A person who represents clients in the negotiation of a real estate contract for a flat fee. Individuals need a real estate license if they provide assistance that is in any way intended to result in the sale or lease of real estate and for which they are

All compensation earned by a licensee must be paid

Through the licensee's sponsoring broker. A bonus paid by the seller must be paid through the licensee's sponsoring broker.

Who would be eligible after completing education for an appraiser's license

A mom who will work part-time. The fact that the applicant is a mom working part-time is irrelevant. So long as she has completed her education, she may apply for an appraiser's license. Only individuals, not a partnership, corporation, or LLC, can be lic

What is usually considered proof in Illinois courts that the broker has earned a commission

The closing of a Sale. Finding a ready, willing, and able buyer is how a commission is earned, but the courts consider the closing to be the proof.

A seller needs to sell quickly because he is getting transferred. Hoping to create excitement, he agrees to a 7% commission. The listing broker's offer to the cooperating broker must be

Disclosed to the seller in writing what the compensation will be. The listing broker can pay whatever she wants to a cooperating broker, as long as the compensation policy is disclosed in writing.

The office assistant for a local real estate firm is responsible for the following activities: tracking the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office assistant is

exempt from real estate licensing requirements. The office assistant is performing administrative or clerical functions and, therefore is exempt from licensing requirements.

In Illinois, a personal assistant must be licensed to

Explain simple contract documents to prospective buyers. A personal assistant who explains a contract to a buyer must hold a real estate license. Under the direction of a licensee, unlicensed assistants can perform simple bookkeeping activities, assemble

In Illinois, a personal real estate assistant

May insert factual information into forms under the agent's supervision and approval.Personal assistants are not required to be licensed in IL. Only licensed personal assistants may host public open houses.

The broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the se

Not pay a commission to the assistant under the facts presented here. Unlicensed assistants are not permitted to perform the described services. In the situation described, both the broker and assistant are in violation of the license law.

A licensed personal assistant wishes to hold a public open house. Is this allowed In Illinois.

Yes, this is allowed if the assistant's license is held by the sponsoring broker. Unlicensed assistants may not independently hold an open house.

A sponsored licensee has decided to hire a licensed personal assistant. How is compensation paid to the licensed personal assistant?

Through the sponsoring broker

A licensee decides to hire a personal assistant who does not hold a real estate license. In this situation, which of the following is correct?

The licensee being assisted is responsible for the activities of the unlicensed personal assistant. An unlicensed assistant may be employed directly by the licensee being assisted who is then responsible for the actions of the unlicensed assistant; compen

After successfully passing the state exam, an individual is very excited about starting her real estate career as quickly as possible. Under what circumstances, if any, can she practice real estate before receiving her real estate license?

The sponsoring broker can provide a temporary sponsor card that allows her to engage in the practice of real estate for a maximum of 45 days

What is NOT required of a nonresident to obtain a broker's license?

room in the quota system for an additional out-of-state broker. A nonresident broker's license may be issued to a real estate broker licensed under the laws of his state of domicile if that applicant holds an active broker's license in his state of domici

An unlicensed personal assistant may

Provide security at an open house. An unlicensed personal assistant may perform clerical and administrative duties, manage or supervise maintenance, operations, and provide security. An unlicensed personal may not independently host open house, show prope

A broker has hired an unlicensed person as a leasing agent, What if anything, allows an unlicensed person to function as a leasing agent?

120-day leasing agent permit. a person engaging in practice as a leasing agent may first obtain a 120-day leasing agent permit to function as if the permit holder were a licensee and is subject to standards of practice and disciplinary provisions as if th

What is the minimum number of continuing education hours that leasing agents must complete to renew their licenses?

Six hours every 2 years. The course must be relevant to leasing residential real property and cover recent changes in the ACT, fair housing laws, and other laws affecting the leasing or real property.

Which of the following actions might be considered an unauthorized practice of law?

A Broker informs the buyers of his personal opinion of the condition of the seller's title to the property. The broker is required to ensure that the written purchase agreement includes all agreed upon terms, provide copies to the buyers and sellers and t

In Illinois, the court case Chicago Bar Association, et al V. Quinlan and Tyson, Inc. established the principle that brokers and salespeople who are not lawyers may

Only fill in blanks and make appropriate deletions on pre-printed form contracts customarily used in their community. The Quinlan and Tyson case helped define what an agent can and cannot do in regards to real estate contracts. Real estate licensees must

State law requires sales contracts in Illinois to be titled

Real estate sales contract (IN BOLD)

In Illinois, the age an individual may enter legally enforceable contracts (with no exceptions) and is of legal competence is

18. Some exceptions exist that may enable a 16-year -old the right to sign certain contracts (leases). The age of legal competence is also 18, which includes the writing of a will.

The articles of agreement for warranty deed

Must be drawn up by an attorney. Because the Articles of Agreement for Warranty Deed is a legal document that stipulates payments and conditions in a contract sale, an attorney must draw up the document.

What types of agency are permitted in Illinois?

Seller, buyer, disclosed dual

A listing agent holds an open house that a prospect/buyer attends. The agent then shows properties listed by other offices. Lacking a buyer agency agreement, what is the agent's status if the prospect buys the listing agent's original listing?

Dual agent. The agent already represents the seller. The agent becomes a buyer's agent (with or without formal agreement) when showing the other listings. In coming back to the first listing, the agent is now a dual agent, which must always be disclosed a

Services performed for a buyer that do NOT create an agency relationship are referred to as

Ministerial acts. Ministerial acts are services that require a license and may be performed for a buyer that do not rise to the level of active representation.

A buyer prospect working with one agent is interested in a house listed with an agent from the same company. In Illinois can the buyer agent represent the buyer when showing an in-house listing?

Yes, this is allowable because Illinois recognizes designated agency. Under designated agency, the sponsoring broker may designate one affiliated licensee to represent a buyer and another to represent the seller, without the broker becoming a dual agent.

In a dual agency situation, a broker may collect a commission from both the seller and the buyer if

Both parties give their informed, written consent to the dual compensation.

A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's sponsored licensee has decided to purchase it as an investment. If the broker's sponsored licensee wishes

Inform the owner in writing that the salesperson is a licensee before making an offer. The salesperson does not have to resign and should not use a third party. There is no need to involve the IDFPR. If the salesperson was the listing agent and also the b

A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants: rather, the licensee receives a commission from landlords. The licensee tells a landl

The licensee's disclosure violated the statutory duties owed to the tenant. The licensee owes a duty of confidentiality to the tenant who hired the licensee. Because representation is determined by who does the hiring, not who pays the fee, the disclosure

A broker has entered into a listing agreement with the seller. Another broker, who has been working with a buyer, learns of the property through the MLS. Typically the second cooperating broker would represent?

The buyer as an agent. The broker is assumed to be representing the person with whom the broker is working.

A broker decided to sweeten an MLS listing for a property by making a blanket offer of sub-agency. Is the broker's action acceptable?

No, sub-agency relationships in IL may be created only by a specific agreement between parties. Subagency cannot be created through the MLS in IL. Agency can be created by the agent's actions, by written agreement, or by the agent's conversations.

All of the following can create buyer agency in Illinois EXCEPT

Accepting Subagency. Subagents (where allowed) represent the seller while working with a buyer. Subagency cannot be created through the MLS in IL> Agency can be created by the agent's actions, by written agreement, or by the agent's conversations.

All of the following are statutory duties an agent owes a client in Illinois EXCEPT

Following all instructions of the client. The agent must exercise reasonable skill and care, perform the duties of the brokerage agreement, and keep confidential information confidential. The agent may follow only legal instructions from the client, not n

A buyer calls a licensee to see a new listing. Upon seeing it, the buyer wishes to buy it on the spot. The licensee insists that to do this she can only be a dual agent, Is this correct?

No, the buyer must be given all the agency options offered by the licensee's office first. Under these circumstances, the licensee can continue to represent the seller and work with the buyer as an unrepresented customer.

A licensee has no intention of being a dual agent. The licensee is holding an open house and her sellers want her to exclusively represent them. What is her obligation to the potential buyers looking at the house?

She must give the buyers written disclosure that she is not their agent before they tell her anything confidential. The salesperson must give written disclosure of nonagency at the first opportunity. This prevents taking unfair advantage of a customer. Th

Can buyers refuse to have an agent represent them?

Yes. A buyer can refuse agency, and an agent can still write a contract acting as a facilitator or non-transnational broker.

An agent has had a listing for a year. An agent from another office has shown it several times to a prospective buyer, the the prospect cannot make an offer until her house sells. The first agent's lisitng expires, and the second agent gets the listing. I

No, the first agent will get nothing. IL law does not allow protection periods for one-to four unit residential property if another brokerage firm relists the property.

A broker wants to list a property but is getting a lot of competition from other brokers who would also like to list it. The broker offers the seller the following inducement to sign his listing agreement: "I'll buy your property if it doesn't sell in 90

Buy the property at the agreed figure at any time during the 90 days. While the broker must be able to substantiate his offer to purchase and indicate all terms so that the seller is not surprised, he need not purchase until the 90 days is up. The broker

A broker works for weeks to put a transaction together as a dual agent. After depositing the earnest money in her escrow account, the broker learns that the buyer has been in a car wreck and cannot close. The broker hopes to be reimbursed for time, so she

No, holding earnest money hostage is illegal. The broker must refund all of the money.

Which of the following, if any, brokerage agreements must be in writing?

Any exclusive brokerage agreement. It is recommended that even nonexclusive brokerage agreements be in writing.

What is required in an exclusive listing agreement?

Defined date of termination with no condition for automatic extension.

What is required in an exclusive buyer brokerage agreement?

Anti-discrimination clause. All exclusive listing agreements and exclusive buyer brokerage agreements must be in writing and include the required anit-discrimination clause, including listing all protected classes of the IL Human Rights Act. The listing p

Listings based on a net price are:

Legal in Il but not recommended. They are discouraged because of potential conflict of interest for the broker and the risk of fraud to the seller.

The sponsoring broker is worried that some of her newer sponsored licensees may make mistakes. She added an exculpatory clause to her brokerage agreements to limit her liability, Is this a good solution?

No, exculpatory clauses are forbidden. The sponsoring broker should hold additional training classes and regularly review the activities of her sponsored licensees.

A broker did a superior job for his seller. The contract he is going to present is for $25,000 over list price. The broker is going to demand an additional 1% commission before he presents the contract to the seller. Is this appropriate?

No, it is violating the law. Under the law, any change in commission or time of payment needs to be discussed and agreed to in writing.

In IL, a consumer working with a real estate licensee can

Generally assume that the consumer is being represented by the real estate licensee. Licensees are considered to be representing the consumer they are working with as a designated agent for the consumer unless there is a written agreement between the spon

Upon obtaining a listing, a listing broker is obligated by IL law to:

Give the person or persons signing the listing a copy within 24 hours. Other brokers are not required to participate in marketing, but the listing broker must give the seller a legible, signed, true, and correct copy within 24 hours.

Which of the following actions is legal and NOT a violation of IL license law?

Placing a for sale sign in front of a house after asking the seller's permission and receiving written permission to do so. The broker must always have written permission before erecting a sign and must make full disclosure of all conditions of a promotio

A real estate broker made an agreement with the seller to keep any amount received over the listed price as compensation. In IL this is viewed as:

A net listing, which is legal in Illinois but not recommended. Net listings are legal but are discouraged because of potential conflict of interest for the broker and risk of fraud to the seller. It is possible that the seller may not be aware of the true

In IL, all of the following must appear in a written listing agreement EXCEPT

The complete legal description of the property being sold. Listings must have an asking price, a definite termination date, a fair housing statement, and a definable broker fee. An adequate description, such as the property address, is required but this d

A broker signs a listing agreement with a seller. The agreement contains this clause: "If the property has not been sold after three months from date of this signing, this agreement will automatically continue for additional three-month periods until the

Is Illegal in Illinois. Listings must contain a definite termination date; roll-over extensions are not permitted in IL.

All of the following agreements must be in writing EXCEPT

An open listing. All exclusive brokerage agreements, such as an exclusive buyer-agency agreement, exclusive-right-to-sell agreement, and exclusive agency listing, must be in writing. An open listing does not have to be in writing.

The listing agreement with a seller has expired and the seller lists with a different firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent

Cannot disclose to the buyer offers received on the sellers's property while it was listed with him. While the original listing agent is now free to represent the buyer and is not a dual agent, confidential information gained from his listing agreement wi

Buyer brokerage contracts in IL

Must be in writing to be enforceable. the buyer brokerage contract is an employment contract and must be in writing to be enforceable although no form is specified in the law. Buyer brokerage contracts are regulated just as listing agreements are.

If a minor enters into a contract in IL, what is the statuary period within which she may legally void the contract after reaching the age of majority?

There is no statutory period. A contract signed by a minor may be voided anytime in the future; however, it must be voided within a reasonable tie of reaching majority or it remains in force.

Who is responsible for drafting a company's listing agreement?

An attorney working with a broker. Although some sates do have state forms, in IL, a broker can use board forms that several companies use or have an attorney draft company-specific forms.

What needs to be in letters larger than those used in the rest of the listing agreement?

Earnest money and purchaser's default. If the seller will not receive the earnest money if the purchaser defaults, the earnest money and purchaser's default needs to be in larger letters.

Which of the following duties must a licensee observe even when the transaction is completed?

Confidentiality. Licensees in receipt of confidential information must take reasonable steps to safeguard that information from unauthorized disclosure. After a transaction is completed, licensees must maintain confidentiality, but they are no longer boun

A licensee represents the seller. The seller has confided certain information to the listing agent. Which of the following should NOT be disclosed to potential buyers?

The previous occupant of the property was afflicted with HIV. No cause of action shall arise against the licensee for failure to disclose that previous occupant of the property was afflicted with HIV or that a murder suicide occurred on the property. Howe

A licensee represent buyers who are looking for a home in a desirable neighborhood that does not have very many properties listed for sale. The licensee shows a reasonably priced property to two sets of buyer clients. Both are interested in making an offe

The licensee must notify the competing buyers that the licensee is preparing several offers to purchase. A licensee representing a client does not breach a duty or obligation to the clients by sowing properties to more than one party. However, a licensee

A licensee represents the seller but is working with a non-represented buyer. What duty does this licensee owe the non-represented buyer?

Honest notice of all latent material adverse facts pertaining to the physical condition of the property. Licensee must treat all consumers honestly and must not knowingly give them false information. A licensee engaged by a seller client must disclose to

After terminating a brokerage agreement, unless otherwise agreed upon in a written agreement, a licensee owes the former client

Accounting for all monies and property and to keep confidential all confidential information received during the course of the brokerage agreement.Except as noted in a written agreement between the broker and the client, after termination or completion of

A seller is required to give a buyer a real property disclosure report in all of the following transactions except:

For a sale of commercial property. Seller property disclosure forms are required in the transfer of one-to-four unit residential dwellings, even when the seller has not resided on the property or when they buyer has lived in the property.

A real property disclosure report must be delivered to the buyer no later than

At the time the buyer and seller sign a contract to purchase. The buyer needs the information contained in the real property disclosure before agreeing to terms of a contract, so the real property disclosure report must be delivered no later than the time

A broker lists a home and asks the seller to fill out a property condition disclosure. Which statement is TRUE in IL?

Seller disclosure of known property conditions is required by statute. The agent should encourage the seller to be honest and disclose known problems. If advice is requested regarding what to disclose, the seller should talk to an attorney.

Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and dies in the unit last year. As the agent for the woman

You are specifically relieved of liability for nondisclosure of either event by IL License Law. State law does not require stigmatized property disclosure (such as a highly publicized murder), and in those cases, a listing agent should follow his seller's

Six months after the buyer bought a house, its roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask abo

Can sue the broker for nondisclosure. The broker is required by law to disclose any fact that would materially affect the buyer';s decision to make an offer. The fact that the buyer did not ask is irrelevant. While the buyer cannot sue the seller under li

Of the following transactions, in which is a seller disclosure required?

Sale by a real estate licensee of a two-unit residential property. A foreclosure sale, a sale between family members, and a sale from one spouse to another in a divorce are all exempt.

A real estate broker representing the buyer knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker should disclose which facts?

both facts. IL requires the buyer's broker (or the listing broker) to disclose known, latent material defects like the cracked foundation. While the law does not obligate an agent to disclose other occurrences like the suicide. Most interpret that a buyer

In Illinois, agents are required to disclose what kind of defects to a prospective buyer, regardless of who they represent?

All defects. Agents are required to disclose all material and known latent defects to a prospective buyer, regardless of who they represent.

The seller refuses to provide a property disclosure to the buyer. in this situation, the buyer

May terminate the contract. If the seller fails or refuses to provide the disclosure document prior to the conveyance of the residential real property, the buyer has the right to terminate the contract.

The sale of which of the following properties requires a property disclosure?

Not less than one and not more than four residential dwelling units

To comply with the Residential Real Property Disclosure Act, sellers must provide the disclosure statement to the buyers

Before the buyers make an offer. The seller must deliver to the prospective buyer the written disclosure statement required by law before the signing of a written agreement by the seller and prospective buyer.

To comply with the Residential Real Property Disclosure Act, what information must the sellers disclose?

Material defects of the property of which they have actual knowledge. The seller are not obligated by the Act to make any specific investigation or inquiry in an effort to complete the disclosure statement.

Buyers signed a lead-based paint disclosure form on a house they purchased through a buyer's agent. How long must the buyer's agent keep that signed form?

For Three years. Only buyer's agents who are paid entirely by the buyer are exempt from the disclosure requirement.

A couple with a 5 year old son lives in their own home Illinois. Knowing their house contains some surfaces with lead paint, the couple had they son tested for elevated blood levels. The test showed he had no lead in his system. Does IL law require that t

No abatement is required only if the child has an elevated blood lead level. When a child is diagnosed as having an elevated level of lead in his bloodstream, the condition must be reported to the Department of Health and an inspection conducted. If the i

The Illinois Lead Poisoning Prevention Act requires that physicians screen children under the age of six in high-risk areas. Which of the following area is NOT considered high risk?

Middle-class neighborhood. According to the Act, high risk includes; slum and blighted housing; proximity to highway or heavy local traffic; proximity to a lead-using or lead-generating industry; and incidence of elevated blood levels, poverty and the num

What procdures must a manging broker follow when terminating an agent?

Sign the bottom of the agent's license and give it to the agent, then send a copy to the IDFPR and keep one copy on file.

An IL real estate sponsored licensee may lawfully collect compensation from

His sponsoring broker only

A sponsored licensee may hold a concurrent license with more than one IL broker under which of the following circumstances?

Under no circumstances

Several weeks after closing, a broker received a thank you letter and bonus check from the seller of the house. The broker chased the check because she felt it was earned. In this situation, which statement is true?

Accepting the money is a violation of IDFPR Regulations. Any bonuses that are received must go to the sponsoring broker, who may at her discretion share them with the salesperson.

All of the following would be considered compensation to an agent in IL except:

A thank-you note. Anything of value )coupons, lottery tickets, gift certificates, salary) are considered compensation.

An agent works for one real estate company, but then moves to a second company. Several transactions are pending during the move. Can the broker of the first company pay the agent directly after those closing?

Yes, commissions need not flow through the second broker. Commissions can be paid directly to the licensee provided that the work was done while the licensee was sponsored by the first broker and unless the agreed upon broker-agent contract prohibits it.

A sponsored licensee wanted to form a corporation for the sole purpose of receiving commissions from her broker. Is this allowed?

Yes, this is allowed as long as its a solely owned corporation

Sponsored licensees are allowed to do all of the following except

Manage an office. Sponsored licensees can sell cooperatives, sell time-shares, and collect rent under the supervision of a managing broker. They cannot manage an office. A managing broker's license is required to manage an office.

A sponsoring broker intends to open a branch office in a neighboring town. The sponsoring broker applies for a branch office license, giving a name that clearly identifies its relationship with is main office. The broker names a sponsored licensee with mi

No, the manager of a branch office bust be a licensed managing broker. A sponsored licensee with minial experience may not be named to such a post.

When a managing broker dies

Sponsoring broker or power of attorney may step in and manage the office temporarily for up to 60 days, providing IDFPR is notified within 15 days. This may be extended by the IDFPR for good cause and upon written request of the sponsoring broker.

Best builders and Rel Estate, INC. wish to offer a new car to anyone purchasing a home priced in excess of $1,000,000. Can they do this under IL law?

Yes, they can do this as long as the conditions are spelled out in any ad. Incentives to attract buyers and sellers are legal in IL if all the conditions are clearly spelled out in the advertisement.

Broker J asked the telephone company to list her name in the directory under the real estate heading as "J, Real Estate Broker; residential property is my specialty!" Based on this information J is also required to include

The name of her employing broker. All advertising must be in the employing broker's name, and that name must be clearly stated in any advertisement.

A real estate licensee decides to sell his own property without using a broker. When advertising the property, the licensee

Must disclose the fact that he is a real estate licensee. By law, the licensee may sell by owner. However, the contract with the sponsoring broker may prohibit this. When acting as a private citizen, the licensee need not disclose the broker's name in adv

A licensee has developed a Web site that showcased all her listings. What, if anything, must the licensee include?

The city or geographic area for each property, company name, and state of license if the property is not within jurisdiction of her license.

A licensee wishes to put up a huge billboard on the edge of town with his name and phone number on it. Must he also include his company's name?

Yes, he may put up the billboard as long as the company name is displayed. There are no print-size restrictions.

A sponsored licensee owns some rental homes that she advertises for rent when they become vacant. She must follow all of these guidelines except

Use a real estate company sign. A sponsored licensee may not use a company sign on non-listed or non-office-managed homes. If a property is agent-owned, that must be stated on any FSBO yard signs and in all newspaper ads and marketing materials.

Where should all licenseure certificates be located?

Conspicuously displayed in the broker's place of business

What is the maximum percentage, if any, of stock that can be owned by individual or groups of affiliated licensees?

49%. Brokers applying for a company license are required to identify all shareholders and their ownership interest in the firm and their individual license numbers.

Who must hold a license when the real estate company is licensed as an Illinois Corporation?

All corporation officers and all employees acting as sponsored licensees. All licenses must be active.

In an effort to increase awareness of and compliance with the IL Real Estate License Act of 2000, IL

Launched the DFPR compliance program. When selected to participate in the Compliance program, the broker provides a contact person at DFPR who conducts a review of the broker's business records, identifies any deficiencies, and assists with correcting tho

All of the following are required when a sponsoring broker wants to operate a real estate branch office EXCEPT

The compliance form indicating that the office space meets minimum code requirements. It does require a completed Consent to Examine and Audit Special Accounts form, name and license number of the manager of the branch office, and all required fees.

At what time may a sponsoring broker allow licensees to work from a branch office?

Upon receipt of the branch office license. The sponsoring broker may not open a branch office or have licensees working from a branch office until after receipt of the branch office license.

Who may practice real estate activities under an assumed business name?

Only the Sponsoring broker. The assumed business name registration must be obtained in each county in which the assumed business name is used. Sponsoring brokers and any corporation, limited partnership, general partnership, or limited liability company o

How soon must any change in managing brokers, branch or principal offices be reported to the Division?

15 days. It is the responsibility of each sponsoring broker to immediately notify the Division of any change in business information. Specifically, changes in managing brokers, branch, or principal offices must be reported to the Division wihin 15 days af

Within what time frame must a managing broker notify the division of any change of business address of the offices they manage?

24 hours. All managing brokers must notify the Division on business letterhead or any change of business address of the offices they manage within 24 hours of any change. Change of address is required for all offices and branch offices. A license returned

One of the duties of a managing broke is to supervise the activities of licensees and unlicensed assistants. What is an example of such supervision?

Implement office policies and procedures established by the sponsoring broker. Training of licensed and unlicensed persons, supervising a special account that has been delegated by the sponsoring broker, and so forth. Most sponsored licensees are independ

Every sponsoring broker must have a

Written employment agreement with each sponsored licensee. It must be dated and signed by the parties. A special account is not required if the broker will not be receiving trust funds.

Under what conditions, if any, may unlicensed individuals or unlicensed entities own and unlimited amount of real estate brokerage firm?

The unlicensed owners must file an affidavit of non-participation. Any officer of a corporation, a partner, and so forth who is engaged in brokerage activities must have a broker license.

In IL what is a major requirement for opening a real estate office?

Must have a managing broker of record. They do not have to be the owner of the business. A sign must be outside the office and must be of a size and nature that will be reasonably readable by the public. Errors and omissions insurance, while useful, is no

After all parties agreed to the contract, the licensee noticed that the sellers had not initialed one change. The licensee is very aware that the seller were in agreement, but the sellers are now on vacation. How should the licensee proceed?

Wait until the sellers return to initial the contract. Unless the licensee holds Power of Attorney for the sellers, the only thing that the licensee can do is wait until the sellers return. Rule 1450.200(b) requires that a licensee obtain the written cons

A sponsoring broker is not required to maintain a special account, i.e., an escrow account, if the sponsoring broker does not receive escrow monies entrusted to him while acting as a real estate broker, or as escrow agent, or as temporary custodian of the

One business day of contract acceptance. Other people's money must be deposited into a trust account within one business day after the final signatures of buyer and seller are obtained.

If a sponsoring broker establishes an account to hold money belonging to others, which of the following is correct?

All monies must be held in a federally insured depository. Because a sponsoring broker does not have to open a new account for each earnest money amount received, the broker must keep careful records to accurately account for all funds, and they must be h

A broker received an earnest money deposit along with a contract signed by both buyer and seller. Under IL law, the broker should

Deposit the money in an existing special non-interest-bearing escrow account in which all earnest money received from buyers may be held at the same time

Every IL real estate office that holds escrow is required to do all the following EXCEPT

employ at least one additional salesperson in addition to the broker. In IL, a real estate office is not required to employ an additional salesperson because the broker could be the only agent in the office. Brokers are, however, required to maintain escr

A sponsoring broker and two partners bought a 12-unit building that the broker will manage. When the broker collects the security deposits, the broker

put them in a non-interest bearing escrow account. He will not owe interest because there are less than 25 units.

Which of the following is NOT considered escrow monies?

Rent monies to be transmitted to the licensee's client. In addition, other monies held in a custodial account by a licensee for transmittal to licensee's client, such as a contract for deed, are also not subject to escrow rules.

How many escrow accounts, if any, is a sponsoring broker required to open?

None, if the broker will not be receiving escrow monies while acting as a real estate broker.

Under what conditions, if any may a sponsoring broker place personal funds in an escrow account?

Only an amount sufficient to avoid incurring service charges relating to the escrow account. The sponsoring broker may not deposit personal funds in an escrow account, except an amount sufficient to avoid incurring service charges relating to the escrow a

How soon after the consummation or termination of the transaction must the sponsoring broker disburse escrow monies?

Not later than the next business day following the notice of the consummation or termination. It may not be made earlier on the day the transaction is consummated or terminated and not later than the next business day.

When the sponsoring broker has delegated the responsibility of maintenance the escrow account over to another person, who is ultimately responsible for the proper administration of the escrow account?

Sponsoring broker. Although a sponsoring broker may delegate the responsibility of maintaining the escrow account over to another person, such as a managing broker, bookkeeper, Certified Public Accountant, unlicensed or licensed assistant, or sponsored li

The IDFPR may suspend or deny a license for failure to

Pay taxes, child support, or any IL guaranteed student loan. It is not empowered to monitor withholding taxes or to satisfy a disgruntled client.

In IL, all of the following would be grounds for discipline of a broker EXCEPT

Agreeing with a seller to accept a listing for more than the normal commission rate. Commission rates are always negotiable between the seller and the broker. The IDFPR may revoke a license if the licensee has been convicted of a felony, false advertising

Upon renewal of her license, a licensee writes a bad check to the IDFPR. IN this circumstance, the licensee faces

Paying a $50 fine and the amount due within 30 days or face license termination.

Taking a listing or participating in any transaction in which the property owner seeks to discriminate

Is strictly prohibited under license law. It violates the IL Real Estate License Act and can result in suspension, non-renewal , revocation of the violator's license or censure, reprimand, or fine imposed by IDFPR.

In a civil proceeding, a licensee was found guilty of discrimination and fined $75,000. He appealed and lost again. What is the status of his license?

Suspended or Revoked. After an appeal, any licensee that has been found guilty of discrimination must have his license suspended or revoked. Errors and omissions insurance does not cover fair housing violations.

An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties?

Civil penalty up to $25,000 in addition to other penalties provided by law. The IDFPR is not empowered to sent anyone to prison.

When a sponsoring broker has her license suspended for tw0 years, what effect does this have on the sponsored licensees associates with the sponsoring broker?

The sponsored licenses are inoperative until securing a 45-day sponsor card from a new sponsor. Sponsored licensees are not guilty by association, but their cards are inoperative until sponsored by a new broker.

A real estate licensee may be disciplined for

Representing more than one sponsoring broker. Licensees must maintain transaction records for five years, deposit escrow funds into a separate trust account, and gain approval before acting as a dual agent.

A licensee advertised a guaranteed sales plan but was unable to purchase the property when no buyer was found. How does the IDFPR view this issue?

The licensee is subject to at least a civil fine payable to the party in an amount up to $25,000. Any licensee who fails to perform on a guaranteed sales plan in strict accordance with its terms will be subject to all the penalties provided in this Act fo

If the Secretary immediately suspends a person's license, the Division must convene a hearing within

Thirty days after the suspension and completed without appreciable delay. The individual must be afforded an opportunity to demonstrate to the Division or Board that she can resume practice in compliance with acceptable and prevailing standards under the

Illinois licensees are required by law to have

A written agreement with their broker. While most real estate firms will expect an agent to secure errors and omissions insurance, an agent is not required by IL law to have errors and omissions insurance. He must always, however, have a written agreement

If a broker's violation of the license law results in civil damages to a consumer, what is the latest date by which the injured party may file a lawsuit that results in a collection from the Real Estate Recovery Fund?

Two years after the party became aware of the violation. The party must file for the funds with IDFPR within 30 days of receiving a judgement.

If an aggrieved person is awarded a judgement against a real estate licensee for violation of the IL License ACT, which of the following correctly states the aggrieved party's rights regarding the Real Estate Recovery Fund?

The aggrieved party has the right to a $25,000 maximum recovery from the real estate recovery fund. The maximum liability against the fund arising from the acts of any single licensee or unlicensed employee is $100,000.

The purpose of the Illinois Real Estate Recovery Fund is to

Provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee in violating the license law or other laws in a real estate transaction.

Whenever IDFPR is required to satisfy a claim against a licensee, with money from the Real Estate Recovery Fund, the

Licensee will immediately have his license revoked and must repay the full amount plus interest to the account if his license is ever to be reinstated.

Under what condition may the IDFPR deny an application for a real estate license?

Failing to answer all the questions on the application honestly and accurately. Other reasons for denial include late payments or no payments for a student loan, more than 30 days in arrears on any court ordered child support payments, and a dishonorable

Over what does the Real Estate Division of the IDFPR have regulatory jurisdiction?

Conduct of licensees who represent principals to a real estate transaction. The regulatory power applies only to the conduct of licensees who represent principals to a real estate transaction (buyers, sellers, tenants, and landlords). The Division does no

What is a legal activity that will not trigger an investigation from the Division?

A listing agent provided information about a latent defect to a non-represented buyer. A listing agent should provide information about a latent defect to a non-represented buyer; sponsoring brokers must be able to account for all monies in the special ac

At what point may a listing agent display a For Sale sign on the property?

At the time the property owner gives written consent. Displaying a For Rent of For Sale sign on any property without the written consent of an owner or her duly authorized agent or advertising by any means that any property is for sale or for rent without

A sponsored licensee placed a newspaper ad listing the office number but not the name of the sponsoring broker. Some buyers called thinking that a private owner was selling the property although it was an office listing. This is an example of

Blind Ad. Advertising only the phone number of the office, without indicating that this is an office number, is an example of a blind ad. A blind as is an example of untruthful advertising because the consumers are led to believe that they are calling a p

When a payment is made out of the Real Estate Recovery Fund to satisfy a claim against a real estate licensee, the

License is immediately revoked. When a payment is made from the Recovery Fund on behalf of a licensee, that licensee's license is immediately terminated. The persona my not apply for reinstatement of the license until all repayments to the Real Estate Rec

The license has been revoked following a hearing. The licensee refuses to return the license to the Division. What recourse does the Division have?

The division has the right to seize the license. Upon the revocation or suspension of a license, the licensee should immediately surrender his license to the Division. Per Section 20-68, Surrender of License, if the licensee fails to do so, the Division h

In order to file a claim to recover from the Real Estate Recovery Fund, the aggrieved party must demonstrate that the aggrieved party

Is not a spouse of the debtor/licensee or the personal representative of such spouse. The aggrieved person must show the aggrieved party has a judgement that cannot be enforced, hence, the claim against the Real Estate Recovery Fund.

Recovery from the Real Estate Recovery Fund is limited to damages due to

Fraudulent activities by a real estate licensee. The Division maintains the Real Estate Recovery Fund from with any person aggrieved by an act, representation, transaction, or conduct of a licensee or unlicensed employee of a licensee that is in violation

A person is found guilty of working or acting as a real estate licensee without being issued a valid existing license. For a first offense, the person is guilty of

class A misdemeanor. Any person who is found working as a real estate licensee without being issued a valid existing license is guilty of a Class A misdemeanor, and upon conviction of a second or subsequent offense, the violator is guilty of a Class 4 fel

All of the following are protected classes under the IL Human Rights act EXCEPT

Dependence on public assistance. Protected classes in IL include; race, color, religion, national origin, ancestry, age, sex, martial status, physical or mental disability, military service or unfavorable discharge from military service, familial status,

Under the IL Human Rights Act, and elderly person is defined as any person over the age of

40

To which of the following does the IL Human Rights Act apply?

Anyone engaging in real estate transactions. The IL Human Rights Act (IHRA), in effect since 1980, prohibits unlawful discrimination in the areas of employment, real estate transactions, financial credit, and access to public accommodations. The law appli

A salesperson wash engaged in activities violating the IL Human Rights Act, including blockbusting and discrimination based on race. The salespersons also failed to complete her continuing education credits and get her license renewed on time. The employi

The salesperson's actions are legally the responsibility of the employing broker, who could be penalized if she knew, or should have known, of any illegal activities. Even thought he broker claimed to be unaware of the sales person's illegal activities, s

A private owner is selling his single-family home. Which of the following is not a criterion for the seller to be exempt from the anti discrimination provisions in the IL Human Rights Act?

A real estate licensee was involved. When a real estate licensee is involved, the law must be followed; there are no exemptions. Although certain exemptions are availabe, private owners may not discriminate based on race or color.

M is looking for a roommate to share her two-bedroom, one-bathroom home. One of the persons interested in renting from her is an African American, 17-year-old male with a support animal. Under the IL Human Rights Act, can she turn him down?

Yes, she can turn him down because h is male and they would have to share a bathroom. M can restrict housing to persons of the same sex because they would have to share the same bathroom.

Under the IL Human Rights Act, a complainant may file a charge of discrimination

Within one year. Within one year of an occurrence of an alleged civil rights violation, the complainant may file a charge of discrimination with the Intake Unit of the Charge Processing Division.

What is the maximum civil penalty may be ordered against a person who violates the IL Human Rights Act for the first time?

$10,000. A person who violates the IL Human Rights Act for the first time may be ordered to pay civil penalties to the state to vindicate the public interest up to $10,000 for a first violation, up to $25,000 for two violations, or $45,000 for three or mo

Which is a protected class under the IL Human Rights Act?

Marital status. The IL Human Rights Act defines discrimination on the basis of a variety of factors of protected classes, including those of the federal fair housing act and additionally marital status, sexual orientation, ancestry and age. It does not of

All of the following may be penalties assessed against a person who is found to be in violation of the IL Human Rights Act Except

Imprisonment for no more than three years. The IL Human Rights Act does not provide for imprisonment as a penalty. However, those who violate the IHRA may be required to pay actual damages and civil penalties and submit regular compliance reports.

The Illinois law that prohibits the use within a trade or profession of any deception, fraud, false promise, misrepresentation or concealment, suppression, or omission of a material fact, with the intent that others will rely on it is the,

IL consumer fraud and deceptive practices act. The violator may have to pay the plaintiff's attorney's fee and court costs, in addition to damages. The Code of Ethics is not an act. The Sherman Antitrust Act is a Federal act.

In IL real estate commissions are

Negotiable between the broker and the client. Commissions are always negotiable between the principal and the agent and are not set by the IDFPR, local MLS, or local groups of brokers. Any price-fixing or talk of standard commissions is illegal under the

Real estate companies who offer related services have to make written disclosure when they own more than what percentage of the related company?

More than 1%. A real estate company must make written disclosure if it owns more than 1% of a related business to which it is referring a client.

Under the IL Consumer Fraud and Deceptive Practices Act, consumers have the right to cancel an agreed upon sale within three business days. However, this right to cancel does not apply to

An act pertaining to the sale or rental of real property. The right to rescind a contract does not apply to the sale or rental of real property or the sale of insurance.

The Uniform Vendor and Purchasers Risk Act state that the seller bears any loss that occurs

Before the title passes or the buyer takes possession. The seller bears the loss until title passes or the buyer takes possession, whichever comes first.

According to the IL land sales registration act, how many lots must there be for the act to apply and what would be the contract cancellation period if the buyers do NOT receive the property report?

25 or more lots with a 48-hour cancellation period. The IL Land Sales Registration Act applies if there are 25 or more lots offered as a part of a common promotional plan. A purchaser who does not receive a copy of the public property report 48 hours befo

The buyers moved into the property three days before closing. Two days later, and before closing, a fire broke out in the kitchen; the resulting damages totaled more than $15,000. Who is responsible for this loss?

Buyers. The IL Uniform Vendor and Purchasers Risk Act state that the seller bears any loss that occurs until title passes or the buyer takes possession, whichever comes first.

In a local multiple listing service (MLS), most of the listings are taken for 6 or 7 percent. However, one real estate broker advertise, "I will list your home for only 4%." The MLS can

Do Nothing. Both the IL Consumer Fraud and Deceptive Practices Act as well as the federal Sherman Antitrust Act prohibit unfair methods of competition and the activities in the real estate business. All compensation must be determined between the broker a

A week after both parties agreed to all terms in the purchase contract, the buyers had a change of heart. They decided that they did not want the property. What IL law, if any, permits them to rescind the purchase agreement?

No law permits this. Although the IL Consumer Fraud and Deceptive Practices Act permits consumers to rescind many contracts, the Act specifically does not apply to the sale or rental of real property, to the sale of insurance or to the sale of securities

Which of the following has been considered unfair or deceptive business practices in IL?

Seller provided a false termite inspection report. Buyers can hire their own home inspector and provide any documentation they choose, so long as it is truthful. Sellers must truthfully disclose any problems of which they are aware, but obviously cannot d

In IL, the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of being serviced a written demand?

5 Days. The landlord may terminate the rental agreement five days after giving proper notice.

A couple has signed a lease requiring them to waive their rights to the interest earned from the security deposit, although required by law. This provision is

Unenforceable but the lease is still valid. The provision is unenforceable, but the lease is still valid. No one can require that individuals give up their rights in a contract.

A tenant leased an apartment in a 40-unit building. What percent interest must her security deposit earn?

A Rate Tied to the Minimum passbook rate of the largest commercial bank in IL. For rental properties containing 25 or more units, the rate of interest for security deposits is tied to the minimum passbook rate of the largest commercial bank in IL.

The tenants are 2 months behind in their monthly payments on a one-year lease. In this situation the landlord may

Sue the tenant for the back rent and possession in a forcible entry and detainer suit.

In IL, which of the following leases is valid and enforceable?

A written five-year lease is enforceable. Although a lease that can be completed in less than one year may be oral and still be enforceable, the wises course of action is to get any lease in writing.

How must a landlord handle a security deposit?

In a property with five or more units, the landlord must provide an itemized list of damages within 30 days of the date the premises were vacated. Landlords who receive security deposits on residential leases of five or more units may not withhold any par

A landlord wants to terminate a year-to-year tenancy in IL. How much notice must the landlord provide to the tenant?

60 days

A landlord signs a lead-based paint disclosure indicating that she has never had her building tested for lead and has no actual knowledge of lead paint on the premises. She must also give the new tenant a

Federally mandated booklet but the law does not provide tenants with a special time frame or opportunity for testing.

During a crime wave, a tenant decides to install a burglar alarm in a rented house. Does the tenant need to inform the landlord?

Yes, the tenant needs to inform the landlord, but the tenant must also give the landlord instruction and passwords

A renter is on a month-to-month lease with rent due the first of each month. The tenant pays her rent on June 1 and then decides on June 5 to move to a new apartment. If she gives her notice on June 5, when is her lease up?

July 31. The tenant must give notice by the start of the next lease period; notice on July 1 to terminate July 31.

A 17-year old signs a lease for an apartment. What is the status of the lease?

Valid. Because shelter is a necessity, a lease signed by a minor is enforceable.

Which estate describes a previously lawful tenant who remained in possession without the landlord's consent?

Estate at Sufferance. An estate at sufferance occurs when a previously lawful tenant remains in possession of the property after her rights of possession have expired. IL recognizes willful withholding of possession, and the landlord can charge double ren

The IL supreme Court confirmed a concept that a landlord must deliver and maintain any residential leasehold free from defects that would make the dwelling unsafe or unsanitary. What is this concept?

Implied Warranty of Habitability. Constructive eviction is the tenant's remedy if a property is not habitable.

Tenants can be evicted for any of the following reasons EXCEPT

Paying rent on time. Paying rent on time is the right thing to do . Tenants can be evicted for any violation of their lease agreement including failure to pay rent, damaging the property, disturbing the neighbors, and creating dangerous conditions.

When tenants break the lease, the landlord may

File a Forcible entry and detainer complaint. Landlords are not permitted to force out the tenants by changing the locks, shutting off utilities, or moving tenant belongings to the street.

What is the general datum plane referred to by surveyors throughout IL?

US Geological Survey Datum

How many principal meridians are located in IL?

Two. The Third Principal Meridian and the Fourth Principal Meridian. The Second Principal Meridian is located in Indiana but is used to describe property in eastern IL.

A metes-and-bounds description is used in IL to describe irregular parcels of land, but it must be combined with

The rectangular survey system

The lot-and-block method of describing land in IL is required if the parcel is smaller than

Five Acres

All of the following are common proofs of ownership in IL EXCEPT

Torrens Certificate. Common proofs of ownership in IL include certificate of title, abstract of title with lawyer's opinion, and title insurance policy, but not a Torrens certificate.

In IL, the prescriptive period to acquire an easement or adverse possession is

20 Years. In IL to claim an easement or adverse possession, continuous, open, and notorious use must be established for 20 years, although in some cases the period can be shortened.

The decedent left an estate valued at $900,000, after the payment of all taxes and debts. She had no surviving husband but 3 children. The first son died shortly after his mother died, leaving 2 children of his own. The daughter has 3 children and the rem

The daughter and the remaining son each take $300,000, and the first son's children divide the remaining $300,000 equally. The property does not escheat to the state because the decedent left living heirs.

How many witnesses must sign in the presence of the person making a will to fulfill the legal minimum?

Two

A man left a will and wanted to disinherit his wife and children, leaving his estate to his elderly mother. His spouse renounced the will. How will the estate be distributed according to the IL law?

The wife will receive one-third and the mother will receive two-thirds. The deceased can disinherit his children but not his spouse. The spouse will receive one-third of the estate. The one-third that should have gone to the children can be left by will t

A husband is survived by his wife and their two daughters. The couple's home is held in joint tenancy and is worth $50,000 but the husband has also left a separate estate worth $150,000. Because the husband died suddenly without leaving a will, the wife a

Sole ownership of the home plus one-half of the separate property, or $75,000. Her daughters split the other half, or $37,500 each. As a joint tenant, the wife receives sole ownership of the home and one-half of the separate property, or $75,000. Her daug

How much of a homestead estate is an individual entitled to in his IL residence?

$15.000. Effective January 1, 2006, an individual is entitled to a $15,000 homestead exemption in IL. The maximum amount is $30,000 for multiple owners.

Which of the following legal life states could be available to a surviving husband in IL?

Homestead. Curtesy and dower are not recognized in IL.

All of the following are forms of joint owner-ship recognized under IL law EXCEPT

Tenancy in Severalty. Tenancy in severalty is ownership by one person or one corporation. Tenancy in common, joint tenancy, and tenancy by the entirety are all forms of joint ownership recognized in IL>

A husband and wife, who own their home as tenants by the entirety, obtain a divorce. At that time, the tenancy by the entirety

Extinguishes and becomes a tenancy in common

Unless stated to the contrary in a deed, ownership of land by a married couple is assumed to be by

Tenancy in common. If there is no special wording in the deed, ownership is assumed to be by tenancy in common. Any form of joint tenancy requires additional wording.

The husband owns a rental property in Illinois occupied by a tenant. The wife has no ownership interest. If the husband wants to sell the property, who must legally sign the listing agreement and later deed?

The husband only, because the husband and wife to not live in the house. Only the husband must sign the deed because the wife has no homestead rights unless she has lived in the property, while they were married.

Under certain circumstances, IL law permits a summary proceeding in which the plaintiff/condemner may obtain immediate fee simple title to real property. This is known as

Quick-take. The IL Eminent Domain Act permits quick-take proceedings; the plaintiff/condemner must deposit a sum with the county treasurer to take immediate possession. The owner will receive the money that was deposited in the state treasury at a later d

A property is owned as tenants in common with a single deed that does not mention percentage of ownership. The percentage of ownership would

Be Equal. If a single deed is used and there is a lack of a description of each tenant's share, then all tenants hold equal, undivided shares. Survivorship only exists in joint tenancy and tenancy but the entirety.

Unless extended, trusts in IL can continue for

20 Years. Land trusts continue for 20 years and can be extended for another 20 years.

To establish a marketable record title, an unbroken chain of title must be established for a period of at least

40 Years

Reentry and reverter is a future interest that may never take place. What would be the time frame in which it could happen?

Not to exceed 40 Years. The right of reentry and reverter in IL ends at 40 years. A person can still get an injunction to stop the violation but couldn't take the property back.

A seller did not want it to become public knowledge that she sold her home. She included a clause in the deed to forbid recording. Is this enforceable?

No, that portion of the deed is not enforceable, but the rest of the deed is still valid. No instrument affecting title may contain a provision that prohibits recording. The provision is void, but the deed is valid.

Under the IL Title Insurance Act of 1990, any producers of title insurance who own a part interest in a title company must do all the following EXCEPT

Recommend the other title companies so the client has a choice. As long as the producer is registered, fills out mandatory forms, and informs buyers and sellers in writing, she does not have to recommend any other company but her own.

How soon must deeds of conveyance be recorded after closing?

A reasonable time. However, to provide constructive notice, the sooner they are recorded the better.

In IL, the local official who records deeds and maintains the public records is the

Country Recorder. they also maintain the grantor/grantee lists.

Requirements for a valid deed in IL include all of the following EXCEPT

The signature of the grantee. The grantor must sign the deed and deliver it to the grantee. The grantee only has to accept it.

An additional requirement in an IL deed is

The grantee's present address. The grantee/purchaser's present address is required in IL as an element of a valid deed. Exact consideration is state in deeds only pursuant to a court order.

A deed has to be acknowledged to do all of the following EXCEPT

To be valid. A deed is still valid even if not acknowledged or notarized.

In IL, a grant bargain and sale deed is similar to a warranty deed but less complete in its warranties. What should be purchased for added protection?

Title insurance. In IL grant bargain and sale deed only covers encumbrances made by the grantor. To protect a grantee from encumbrances of previous owners grantees should obtain a title insurance policy.

A deed or contract signed on a Sunday or legal holiday is valid and enforceable. If the last day a person could sign a deed or contract falls on a Sunday or legal holiday

The person has until the next business day

In IL, the state and county transfer tax is split

One-third to the county and two-thirds to the state with 50 percent of the state's money going to affordable housing. The state's portion is then distributed 50% to the IL affordable housing trust fund, 35% to the Open Space Land Acquisition and Developme

To avoid becoming null and void, a tax deed must be recorded within

A Year. There is not a definite time frame to record other deeds but the sooner the better to give constructive notice.

The transfer tax levied by the state on the seller is based on the selling price less any assumable mortgage. How must the real property transfer tax be paid?

By Purchasing transfer tax stamps from the county recorder. Tax stamps are purchased form the county recorder or registrar of titles. The form filed is the Illinois Real Estate Transfer Declaration.

What program in IL governs the detection identification, monitoring, mitigation, and removal of buried underground storage tanks?

LUST. The program is called LUST (Leaking Underground Storage Tanks). CERCLA is the superfund that cleans up hazardous waste sites. IEPA stands for the IL Environmental Protection Agency. MTBE is an additive to gasoline that reduces ozone emissions. If a

What is the statutory usury ceiling on loans secured by real esate in Illinois?

No Ceiling. Usury indicates an exorbitant interest rate. Under IL law, there is no legal limit on the rage of interest that a lender may charge a borrower. Most IL mortgage loans, however, are under federal regulations, which do limit the interest rates.

A homeowner has a mortgage loan secured by real property. Under IL law, the homeowner may terminate the loan's escrow account when the remaining balance is equal to or less than what percentage of the original amount?

65%

Twenty years ago, a homeowner obtained a 30-year mortgage loan to purchase a home. The interest rate on the loan was 9.275 percent. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which of the following statements is TRUE

Because the homeowner's interest rate is greater than 8%, the lender may not charge a prepayment penalty under IL law

In IL, the responsibility for preparing the deed involved in the transfer of title belongs to the:

Sellers attorney.

In IL, all of the following individuals are responsible for preparation of the closing statement EXCEPT

The sponsoring broker. The sponsoring broker is never responsible for preparing the closing statement. It would violate Chicago Bar Association, et. al. v. Quinlan and Tyson, Inc.

A homeowner contracted with Super Construction Company to put a new deck on her house. The company began work on May 1 and finished on June 1 but was never paid. On July 1, the homeowner sold her house to a buyer, who received a mortgage loan from City Ba

Super construction, city bank, country bank. The mechanic has four months from completion to file the lien notice. Thus, the mechanic's lien is first, then the mortgage companies as recorded (City Bank, Country Bank)

For 3 days, a construction crew built a gazebo in a homeowner's backyard as the property owner watched. The owner had not contracted with anyone to build a gazebo and, in fact, had never given much thought to having one, but the homeowner liked what he sa

Yes, when a homeowner knows of work being done on his property and does not object or disclaim responsibility, a mechanic's lien may be created. The property owner may not knowingly benefit from the contractor's error.

Once a judgement is rendered, a creditor on a judgement must enforce it within

Seven Years. It can also be renewed for an additional seven years.

In IL, commercial real estate brokers may place a lien against property for their commission based on the

Commercial real estate broker's lien act

Special assessments are a specific lien on real property. The annual due date is generally

January 2. The first bill includes one year's interest on the entire assessment. Subsequent bills include interest only on the unpaid balance.

In IL, if an owner defaults on her mortgage loan and the property is ordered sold at a foreclosure sale, the owner may redeem the property

Prior to the sale, under the equitable right of redemption. The owner has no statutory rights after the sale.

In IL, how long is the defaulted borrower's redemption period after a foreclosure sale is complete?

There is no redemption period after the sale in IL. Unlike a tax sales, there is no redemption period after a foreclosure sale in IL.

In IL, the mortgagor/borrower remains the owner of the mortgaged property for all beneficial purposes, subject to the lien or deed of trust. IL is referred to as what type of theory state?

Intermediate Theory. IL still requires the mortgage (lender) to foreclose in order to obtain legal title.

There are different methods of foreclosure. IL is classified as a

Judicial Foreclosure state. That allows the property to be sold after a court order.

Which of the following is NOT recognized regarding mortgages in IL?

Statutory right of redemption. Once the sale takes place, the mortgagor loses any right to redeem.

If there is no redemption before the tax sale, how long must a tax sale purchaser wait before action to obtain a tax deed?

Two years from the date of the tax sale

In IL, the successful bidder at an annual tax sale receives

Certificate of purchase. The certificate will ripen into a tax deed two years later if redemption is not made. If it is 6 or fewer units in which the owner resides, then it is 2 1/2 years for redemption.

Of the following properties, which is required to pay property taxes

housing owned by a disabled veteran. Cemeteries, federal government buildings, and private schools are not taxed.

In IL, when do real estate taxes become a lien on the property?

January 1

Except in Cook County, an IL property owner can pay the current year's real estate tax in two equal installments. The second half must be paid by

September 1 of the following year

Outside of Cook County, real estate in IL is assessed at

33 1/3 % of fair market value. Cook County is a sliding scale starting at 16%.

In IL, the market value of a home is $150,000. Of this amount, $25,000 is the value given to the land and $125,000 is considered improvements. The owners have filed for their $3,500 homeowner's exemption, and it has been granted. If the total tax levy on

$3,603.75. The solution is $150,000 x 33 1/3% = $50,000 - $3,500 + $46,500 / 100 * 7.75 = $3,603.75

Homeowners exemptions in IL include all of the following EXCEPT

The demolition of a historical building. An exemption is given for the rehabilitation of a historic building but not for demolition. The Senior Citizen's Assessment Freeze Homestaed Exemption either freezes or defers taxes for someone over 65 based on sta

The county collector prepares on tax bill per property. Assessments are adjusted

Yearly by applying an equalization factor. TO ensure equal distribution of the tax burden among property owners, an equalization factor is applied to the assessed value of real property in order to bring assessment levels, on average, to the same percenta

In Lake County, the first installment of a tax bill came out on May 1. If the taxes are $4,000 a year, and the owner pays the first installment on June 3, what will his liability be?

$2,000 plus 1 1/2 % of the $2,000 penalty. When the bill comes out, an owner must pay 1/ 2 of the bill 30 days later, which is called the penalty date. If the owner does not, the penalty is 1 1/2% of the delinquent amount per month, not to be prorated.

How are IL ad valorem taxes shown on the closing statement?

They are accrued and will be a credit to the buyer. Ad valorem taxes are the general real estate taxes. They are owed but cannot be paid in advance. Therefore, they are accrued. The seller owes taxes through the day of closing and must give a credit to th