Illinois Real Estate Exam Flashcards

Illinois Real Estate Exam Flashcards Licensees who allow their licenses to expire have how long to reinstate their licenses?Up to two years; then licensees must start over 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.

All of the following agreements must be in writing EXCEPT:An open listing.

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.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.Services performed for a buyer that do NOT create an

agency relationship are referred to as:

Ministerial Acts Which of the following actions is legal and NOT a violation of Illinois 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.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.In Illinois, agents are required to disclose what kind of defects to a prospective buyer, regardless of who they represent?All defects Who would be eligible after completing education for an appraiser's license?A mom who will work part-time (no corporation, only people) All of the following are statutory duties an agent owes a

client in Illinois EXCEPT:

Following all instructions of the client.State law requires sales contracts in Illinois to be titled:Real Estate Sales Contract (in bold) Can buyers refuse to have an agent represent them?Yes.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.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.A leasing agent license requires how many hours of classroom time?15 hours 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?A middle-class neighborhood.

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.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 A broker decides to sweeten an MLS listing for a property by making a blanket offer of subagency. Is the broker's action acceptable?No, subagency relationships in Illinois may be created only by a specific agreement between parties.Who is responsible for drafting a company's listing agreement?An attorney working with a broker.All compensation earned by a licensee must be paid:Through the licensee's sponsoring broker Performing which of the following activities requires a real estate license?Negotiating Lease Terms Which of the following, if any, brokerage agreements must be in writing?Any exclusive brokerage agreement What is required in an exclusive buyer brokerage agreement?Anti-discrimination clause.After April 30, 2012, as an alternative to passing the proficiency exam given by AMP, what are the requirements for converting a salesperson's license to a broker license?30 hours of post-licensure education, as defined by administrative rule.A licensee represents 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 offer. How should the licensee proceed?The licensee must notify the competing buyers that the licensee is preparing several offers to purchase.A seller is required to give a buyer a real property disclosure report in all of the following transactions

EXCEPT:

For a sale of a commercial property.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.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 Three weeks before N begins his real estate pre-license 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 exam and receives his salesperson license. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment?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.

If a minor enters into a contract in Illinois, what is the statutory period within which she may legally void the contract after reaching the age of majority?There is no statutory period.The sale of which of the following properties requires a property disclosure?Not less than one and not more than four residential dwelling units.An agent has had a listing for a year. An agent from another office has shown it several times to a prospective buyer, but the prospect cannot make an offer until her house sells. The first agent's listing expires, and the second agent gets the listing. If the prospective buyer purchases it during the first agent's protection period, is the first agent entitled to any commission?No, the first agent will get nothing (No protection period on 1-4 unit facilities).In order to practice real estate, Illinois requires new licensees to have which of the following in their possession?A 45-day sponsor card, then a pocket card later 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.To comply with the Residential Real Property Disclosure Act, sellers must provide the disclosure statement to the

buyers:

Before the buyers make an offer.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.Five years ago, Unit 5B in a condominium 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 died in the unit last year. As the agent for the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B?You are specifically relieved of liability for nondisclosure of either event by Illinois license law.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 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 seller's counteroffer.Largely because of the assistant's efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission "because the assistant has really earned it". Under Illinois law, the broker

may:

Not pay a commission to the assistant under the facts presented here.

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.When terminating a sponsorship, the sponsoring broker must return the signed license to the DPR within Two business days by signature restricted mail delivery.Proof of continuing education is required every Two years 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 property sells." Such an

agreement:

Is illegal in Illinois.To renew a license in Illinois, brokers must..? Have completed 12 hours of continuing education in the last two years and pay the current fee.When do real estate brokers' licenses expire in Illinois?April 30 of every odd-numbered year 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 preprinted form contracts customarily used in their community.In Illinois, a personal assistant must be licensed toExplain simple contract documents to prospective buyers.What types of agency are permitted in Illinois? Seller, buyer, disclosed dual What is required in an exclusive listing agreement?Defined date of termination with no condition for automatic extension.What is usually considered proof in Illinois courts that the broker has earned a commission?The closing of a sale A real estate broker made an agreement with the seller to keep any amount received over the listed price as

compensation. In Illinois, this is viewed as:

A net listing, which is legal in Illinois but not recommended.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 seller's property when it was listed with him.

Buyer brokerage contracts in Illinois:Must be in writing to be enforceable.

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.

After May 1, 2011, the new license categories are:Managing Broker and Broker

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 (i.e., quid pro quo) A sponsored licensee has decided to hire a licensed personal assistant. How is compensation paid to this licensed personal assistant?Through the sponsoring broker.In Illinois, the real estate license law is administered by the...?IDFPR (Bureau of Real Estate Professions)