IL Brokers Exam Practice Flashcards

IL Brokers Exam Practice Flashcards In what circumstance do you have the authority to host an open house for another company's listing for compensation?A) Both brokerage firms consulted their attorneys and insurers and entered into a written agreementB) The listing agent authorized you to cooperate with her brokerage firmC) The listing brokerage has authorization from the seller.D) Under no circumstances do you have the authority to host an open house for another company's listing for compensation

• Both brokerage firms consulted their attorneys and

insurers and entered into a written agreementIn Illinois, the only permissible way to host an open house for another company's listing for compensation is if both brokerage owners consulted their attorneys and insurers and entered into a written agreement.During an escrow money dispute in which no civil action has been filed, sponsoring brokers in Illinois retain the funds ______.A) And use them to pay the agents' commissionsB) In an interest-bearing accountC) Until they are directed by the courts to release themD) Until they receive written release and disbursement directions, signed by both parties or their agents

• Until they receive written release and disbursement

directions, signed by both parties or their agentsSponsoring brokers retain the funds until they receive written release and disbursement directions, which must be signed by both parties or their agents. Funds are disbursed accordingly no later than the next business day.Illinois licensee Sandra has provided her client Clint with a designated agency disclosure along with their brokerage agreement. Which of the following pieces of information is included in that disclosure?A) Sandra's full name and a statement that a designated agency relationship exists between the two of themB) Sandra's full name and license numberC) Sandra's full name and the brokerage's policies on compensation and working with cooperating brokersD) Sandra's sponsoring broker's full name, and the brokerage's policies on compensation and working with cooperating brokers

• Sandra's full name and a statement that a designated

agency relationship exists between the two of themIllinois designated agency disclosures must contain a statement that a designated agency relationship exists between the agent and the client, and the name of the designated agent.Which of these accurately describes the Illinois Veteran's with Disabilities Exemption for Specially-Adapted Housing?A) Qualified veterans may deduct up to $100,000 of property taxes on their state income tax return.B) Up to $100,000 of the assessed property value for veterans with disabilities may be exempt.C) Up to $2,500 in property taxes may be exempt for qualifying veterans.D) Veterans are exempt from paying additional property taxes if adaptations to the property to accommodate a disability increase the property value.

• Qualified veterans may deduct up to $100,000 of

property taxes on their state income tax return.This exemption allows qualifying veterans to deduct up to $100,000 of their property's assessed valuation under certain circumstances.Your buyer client wants to make an offer on a house that meets all of his needs, but the list price is a bit outside of his budget. When discussing the offer with the seller's agent, you ask about the seller's goals. This is a good

example of _____.A) Creating options for mutual gainB) Focusing on interests, not positionsC) Insisting on using objective criteriaD) Separating the people from the problem

• Focusing on interests, not positionsThis example

illustrates the principle of focusing on interests, not positions. By learning more about the seller's goals, you may understand how to structure an offer that satisfies the

seller's interests even if it's not a full-price offer.Contract clause that, if the property doesn't appraise at or above the sales price, the buyer is allowed to terminateEx.If the appraised value is close to the sales price, often the parties can reach agreement. If not, and a(n) ________ is in place, the buyer can use the fact that the property didn't appraise to terminate and receive a refund of earnest money deposited.appraisal contingency Kirsten has several clients who've used Monica, a local mortgage broker, for their mortgage loans. Monica recently had an opportunity to return the favor, and she referred a buyer client to Kirsten. Through her broker, Kirsten sent Monica a $200 gift card as a referral fee. Which of these statements best represents this transaction?A) Because Monica holds a mortgage broker's license, Kirsten can pay her a referral fee.B) Because she paid the referral fee through her broker, Kirsten didn't violate any laws.C) Kirsten and her broker violated federal (and perhaps state) laws prohibiting referral fees to third-party vendors.D) Kirsten should have sent the referral fee directly to Monica to avoid violating RESPA.

• Kirsten and her broker violated federal (and perhaps

state) laws prohibiting referral fees to third-party vendors.While Kirsten was correct in thinking that all compensation paid or received has to go through her broker, both Kirsten and broker broke the law by providing a referral fee to a mortgage broker. They violated RESPA and likely state licensing laws.How will the buyer or seller know where and when the closing is being held?A) Their agents will inform them of the date once it's set.B) The lender will inform them according to MDIA rules and regulations.C) The seller will set the time and date and is responsible for notifying all parties.D) The title insurance company will inform them of a date once the title search is complete.

• Their agents will inform them of the date once it's

set.Agents are responsible for ensuring their clients know where and when the closing's being held.In Illinois, in order to engage in dual agency, a licensee must have written informed consent from both the buyer and the seller. When must it be obtained?A) At any time, as long as there is an agency agreement in place with each partyB) Once the purchase contract has been accepted and signedC) Prior to entering into the purchase contract for the transactionD) When entering into a listing/buyer agreement with the client

• When entering into a listing/buyer agreement with the

clientInformed consent must be obtained at the time a listing/buyer agreement is signed, to provide the client an opportunity to make an informed choice whether or not to accept dual agency. And clients can revoke their permission at any time.Marsha and Todd have discovered that the homestead status doesn't protect them from an action that's just occurred. Which of these is the likely culprit?A) Marsha and Todd aren't married, and homestead status applies only to married couples.B) The action is based on a judgment lien.C) The action is related to their mortgage loan.D) The action occurred after they filed for homestead status.

• The action is related to their mortgage loan.Any kind of

lien for which the property was pledged as collateral is exempt from the protection of the homestead law.

Which one of these statements best describes Illinois license reciprocity?A) Licensees from another state are required to cooperate with Illinois licensees when working on opposite sides of the same transaction.B) Licensees from another state don't have to be licensed in Illinois to practice real estate there, as long as they affiliate with an Illinois sponsoring broker.C) Licensees in another may practice real estate to a limited extent in Illinois as long as they're licensed in a state that has a reciprocity agreement with Illinois.D) Licensees in another state that has a reciprocity agreement with Illinois may skip some or all of the Illinois pre-licensing requirements.

• Licensees in another state that has a reciprocity

agreement with Illinois may skip some or all of the Illinois pre-licensing requirements.Reciprocity agreements allow licensees from another state to skip some or all of the Illinois pre-licensing requirements when applying for Illinois licensure.Kelsey is a Georgia licensee. She's moving to Illinois. What must she do to get her Illinois broker's license?A) Apply for reciprocal licensing and take the state portion of the Illinois licensing exam.B) Apply for reciprocal licensure and complete the national portion of the Illinois licensing exam.C) Provide proof of three years of broker activity within the past five years.D) Take the prelicensing coursework and pass the Illinois broker's license exam.

• Apply for reciprocal licensing and take the state portion

of the Illinois licensing exam.A broker's reciprocal license requires application to the state and successful completion of the state licensing exam.Broker Betty will be representing both the buyer and the seller in a transaction. The Disclosure and Consent to Dual Agency is included in her brokerage agreements. How will the seller indicate consent to dual agency?A) By initialing the section of the brokerage agreement that indicates consent to dual agencyB) By shaking hands with the buyer in Betty's presenceC) By signing a new brokerage agreement specific to dual agency situationsD) Through an oral agreement with Betty and the buyer

• By initialing the section of the brokerage agreement that

indicates consent to dual agencyWhen the Disclosure and Consent to Dual Agency is included in the brokerage agreement, the client agrees to dual agency by initialing the section of the contract indicating consent to dual agency.Which of these licensee's actions is most likely to warrant an immediate emergency license suspension in Illinois?A) Crispin failed to pay his property taxes.B) Gene hosted an open house while intoxicated and became belligerent toward the guests.C) Margo accepted compensation from someone other than her broker.D) Nikki failed to pay her state income taxes.

• Gene hosted an open house while intoxicated and

became belligerent toward the guests.Illinois law aims to protect the public's interest and welfare above all else, so if that's in danger, a license may be suspended temporarily as an emergency action.The State of Illinois placed a lien on Margo's property that must be resolved upon Margo's death or when Margo's property no longer meets certain criteria. What type of lien is this?A) A homestead lienB) A mortgage lienC) A property tax extension lienD) A senior citizens tax deferral program lien

• A senior citizens tax deferral program lienMargo used

the Illinois Senior Citizens Tax Deferral Program. Deferrals become payable on the homeowner's death or when the property no longer qualifies.Analise received earnest money from her clients after executing a contract between all parties. When must her managing broker deposit the earnest money?A) By the