Illinois Only Real Estate Exam Practice Questions Flashcards

Illinois (Only) Real Estate Exam Practice Questions Flashcards Which of the following must an exclusive brokerage agreement include?An anti-discrimination clause.In which of the following circumstances is a person or business required to have a real estate license A professional negotiator assists clients in obtaining the best price for their properties.Escrow, transaction, and employment records must be kept for what duration of time?

• years.

How soon should the Division be notified about any change in licensee's name, address, or office location?14 Days Licensees with inactive licenses maynot engage in any real estate activity requiring a license.Becky, a new broker with the Brown Realty Company, places a standard company "for sale" sign ona remote piece of land that listing agent Allen with the Black Realty Company had just listed. HasBecky done anything wrong?Yes, if neither the principal nor the listing agent has granted her permission.A broker may maintain a deposit in an interest-bearing trust account, provided that the principals approve of the action and specify recipient of the interest in writing.Penalties for Practicing without a license Civil Penalty of $25,000 According to IL law, exclusive brokerage agreementsmust be in writing.Louis is an unlicensed, salaried assistant of a licensed broker. Which of the following activities isLouis not allowed to perform without a real estate license?Stipulate the amount of a buyer's deposit.A broker who places a listing in a newspaper advertisement must clearly identify the sponsoring broker's name.How soon should should the sponsoring broker submit roster of all managing brokers to the Department?Within 15 Days Broker Post-License Education45 Hours required for new licensees Which of the following statements is true regarding residential leasing agents?They may lease only residential property.Joyce, a buyer, walks in to a real estate office and meets Lenny, a broker. Lenny shows Joyce a house listed by Angela, another broker in the office. Who is considered to be Lenny's client in this situation?Joyce Real Estate License Administration FundDepository for Licensee Fees, administrative costs According to Illinois law, a material fact that must be disclosed to clients is one that affects value, is the subject of the transaction, and is not confidential.Apartment dweller Anthony loves his building and refers a friend to the owner, who leases the friend an apartment.Grateful, the owner pays Anthony a $100 referral, and invites him to continue referring friends for the same fee.Does Anthony need a real estate license for this?no, provided he limits the number of referrals and the amount of money he receives.Which of the following is not included in the group of licensed activities as defined by IL statutes?A regular employee in the regular course of business, selling property owned by the employer.

Which of the following is true regarding rental service companies?They must execute a written contract with the customer before taking any fees.Managing broker Christine receives a $2,000 earnest money deposit check from a buyer on one ofher listings.According to Illinois regulations, these funds must be deposited in her escrow account no later than the next business day.In which of the following circumstances is a person or business required to have a real estatelicense?A professional negotiator assists clients in obtaining the best price for their properties.If a general partnership applies for a real estate license,all general partners of the partnership must hold either a managing broker's or broker's license.Jill, a licensed broker for RELEP Realty, needs a break from brokerage but still needs a steady income. Her friend Tanya from another brokerage wants to hire Jill as an unlicensed assistant. Can she do this legitimately?No, as a licensee she cannot be an unlicensed assistant for another firm.Alicia, a broker at Hanks Realty, has earned a referral from broker Andrew at the Davidson Agency.How can she be paid for the referral?Andrew's sponsoring broker must pay Alicia's sponsoring broker.In web advertising, scraping is the prohibited practice oftransferring listing data from one site to another publicly-accessible site without authorization.When must business entities notify the Division about new business information?Within 24 Hours Ken tells a buyer that a lot has sufficient area for a large house, an outbuilding, and swimming pool area. The buyer purchases the property and later discovers that she cannot build everything she wanted on the property due to easements, restrictions, and setback requirements. Here, Ken would be subject to discipline for negligent misrepresentation Julia Reynolds is in the process of obtaining her new broker's license. Within 24 hours of establishing sponsorship, she must Submit to the Division proof of sponsorship and other documentation.The governing body overseeing real estate professionIllinois Department of Financial and Professional Regulation (IDFPR) A sponsoring broker in downtown Chicago has his firm name listed in the lobby's building directory. What else must the broker do to comply with signage regulations?Nothing.At what point must a consumer be informed of a designated agency relationship?Before beginning to act as their designated agent.At what point must a customer be informed that a particular licensee does not represent him or her?Before confidential information is exchanged.A residential leasing agent license allows its holders tolease residential real estate only.According to Illinois law, licensees must disclose facts to clients if they are material, known by the agent and impact the transaction.In Illinois, broker's licenses expireon April 30th of every even numbered year.By Illinois law, a customer is a person who receives services, but is not represented by, a licensee.

By legal definition, the term "escrow money," when deposited with an escrowee in Illinois, includes all of the following except rent paid to a property manager for transmittal to the owner.Which of the following represents a violation of Illinois license laws?Failure to deliver a copy of a signed purchase agreement to a seller within 24 hours.Which of the following are minimum requirements for obtaining an Illinois broker's license?Completed application; 18 years of age; and a high school degree Real Estate Recovery FundA fund established to cover claims of aggrieved parties who have suffered monetary damage through the actions of a real estate licensee.A buyer wants a certain repair made before closing and gives the managing broker a check for the repair, dated for the day the job is to be finished. Meanwhile, the managing broker uses funds from the buyer's trust account deposit to pay the repairman. When the work is complete, the managing broker promptly deposits the check into the trust fund. In this case, the broker has misapplied trust funds in violation of state regulations.Licensed Managing Broker Operating as a sole proprietorship Self-Sponsor Business Entity Licensing- If a corporation or partnership, every officer or partner engaging in real estate must hold managing broker or broker license- Sole proprietors must have a managing broker license (self-sponsor) When do Residential Leasing Agents need to renew their licenses?July 31 of every even-numbered year Tony is the sponsoring broker for his company, Andretti Realty. As of today, Tony decided to hang. up his hat and retire. What effect do es this have on the five brokers and two residential leasing agents working for him?Their licenses are immediately inactive until they associate with another sponsoring broker.When do managing brokers licenses expire? April 30 of every odd-numbered year Sponsoring broker Charles had his licensed suspended on July 1st. What is the subsequent status of the firm's listings?They expire as of July 1.Which of the following may not maintain escrow accounts?A sponsored licensee.Broker William refers buyers Thomas and Wanda to a mortgage company in which he owns a 25% interest.William, however, will not receive a fee and therefore does not mention his ownership.Can he legally do this?No, he must disclose his ownership interest.Which of the following is the most accurate definition of real estate broker?A person who conducts licensed activities on behalf of others for compensation.Licensee Tyler, for whatever reason, wants to sell his property "by owner." He and his wife own the property outright. Can he sell by owner as a licensee?He can provided he discloses his license status.Yvonne, an unlicensed hostess at a resort, makes an

arrangement with her brother, Stan, a licensed broker: if

she refers one of the hotel guests to him, and the guest subsequently buys a property, that she would get a $500 referral fee. Stan agrees. Has he done anything wrong?Yes, he cannot pay unlicensed parties a referral fee.