Illinois Real Estate Final Exam Flashcards

Illinois Real Estate Final Exam Flashcards A property is valued at $375,000 and the assessed value is 33%. The tax rate is 23 mills of assessed value. What are the monthly taxes?A. $284.25B. $2,846.25C. $237.19D.

$711.65

C. $237.19

In Illinois a broker who is not a lawyer, filling out a sales contract mayA. advise their clients of the legal aspects of the contract.B. write their own riders to attach to the contract, which alters the preprinted contract.C. sign an offer to purchase for a client.D. fill in the blanks on a customarily used contract .

• fill in the blanks on a customarily used contract .

A property held as tenancy by the entirety requires which of the following?A. The co-tenants must be husband and wife.B. The property in question must be Torrens property.C. Upon the death of a co-tenant, the decedent's interest passes to his or her heirs.D. In the event of a dispute the property must be partitioned.

• The co-tenants must be husband and wife.

Sam is a tenant in one of Carol's apartments. After two months into the lease Sam is transferred. Carol allows Sam to sublease his apartment to Jack. Which of the following is CORRECT based on the information given?A. Sam is still responsible for the rent to Carol.B. Sam has assigned his entire interest in the leasehold estate to Jack.C. Sam is the sublesseeD. Jack is now responsible to pay the rent to Carol.

• Sam is still responsible for the rent to Carol.

A judgment was issued in Cook County against a Cook County property owner, who also owns property in other states. Which of the following is TRUE?A. A judgment becomes a lien on ALL the owner's real and personal property.B. The judgment becomes a lien on only the real estate the owner owns in Cook County.C. The judgment becomes a lien on the real estate and personal property owned in Cook County.D. The judgment becomes a lien on all property owned by the individual.

• The judgment becomes a lien on the real estate and

personal property owned in Cook County.The tenant leases a heated apartment, the landlord fails to provide heat because of a defective central heating plant.The tenant vacates the premises and refuses to pay any rent after serving sufficient notice to the landlord. This is an example ofA. abandonment.B. actual eviction.C.constructive eviction.D. lessor negligence.

• constructive eviction.

When owners of real property hold title as tenants in commonA. upon the death of one co-owner the remaining

co-owners hold title as joint tenants.B. all co-owners must own an equal interest in the property.C. each of the co-owners interest may be conveyed seperately.D.co-owners must be husband and wife.

• each of the co-owners interest may be conveyed

seperately.

In Illinois, any transfer taxes that are due the state or county are usually the responsibility of theA. buyer and the seller.B. seller and help fund Affordable Housing.C. buyer and are paid on the mortgage amount.D. seller and help fund the recovery fund.

• seller and help fund Affordable Housing.

Regarding ownership of one's home, which of the following would be income tax deductible?A. points paid to obtain the loanB. down payment on the propertyC. major home improvementsD. maintenance on the property

• points paid to obtain the loan

What type of easement would an owner seek from the court to gain access to property that is landlocked?A.easement by prescriptionB. easment in grossC. easement by lawD. easement by necessity.

• easement by necessity.

After a seller accepted a buyer's offer, the buyer learned that the broker the buyer had hired to represent her was also an undisclosed agent for the seller. The buyer canA.be forced to complete the purchase of the property.B.withdraw the offer but be liable for damages to the broker.C. withdraw the offer and not be subject to damages.D. withdraw the offer but only with the consent of the seller.

• withdraw the offer and not be subject to damages.

A home with small closets and small bedrooms would be

considered to be:A. physically obsolete.B. functionally

obsolete.C. economically obsolete.D. diminished.

• functionally obsolete.

If an apartment building has 12 vacancies among its 300 units, the building's vacancy rate isA. 2%.B. 6%.C. 4%.D.15%.

C. 4%.

A woman bought a house in a subdivision zoned residential and wanted to open a day care center in her home. To legally do this she would need to obtain aA. bulk zoning permit.B. variance.C. nonconforming use permit.D.conditional use permit.

• conditional use permit.

An owner's property is being foreclosed on. The owner has a first mortgage of $64,000 and a second mortgage of $85,000. What would allow the second mortgage holder to be paid first?A. alienation clauseB. subrogation clauseC.subordination clauseD. foreclosure clause

• subordination clause

Which statement is TRUE regarding an Illinois Licensee?A.To obtain a real estate license they are required to have a college degree.B. It is their responsibility to notify the IDFPR within 24 hours in regards to any change of information sush as address, name, etc.C. They can collect referral fees from lenders without any disclosures.D. They should fill out the seller's disclosure for their client.

• It is their responsibility to notify the IDFPR within 24

hours in regards to any change of information sush as address, name, etc.

The Brown's apartment lease has expired, but their landlord has indicated to them that they may remain on the premises until a sale of the building is closed. The Brown's will be charged their normal monthly rental during this period. The tenancy held by the Browns is called a(n)A.year to year holdover.B. estate for term.C. estate at sufferance.D. estate at will.

• estate at will.

In Illinois, a broker is permitted to represent both the seller and the buyer in the same transaction whenA. the principals are not aware of such action.B. the principals verbally agree.C. both parties have been informed and agree to the dual representation in writing after a contract is accepted.D. both parties have been informed and agree to the dual representation in writing prior to it occuring.

• both parties have been informed and agree to the dual

representation in writing prior to it occuring.A buyer is told by their broker that "this home is the best home in the neighborhood" and there are many home that

appear better. This is an example of:A.

misrepresentation.B. fraud.C. puffing.D. breach of agency.

• puffing.

According to a broker's competitive market analysis (CMA), a property is worth $125,000. The homeowner bought the property for $90,000 and added $50,000 in improvements, for a total of$140,000. The property sold for $122,500.Which amount represents the property's market price?A.

$90,000B. $140,000C. $125,000D. $122,500

C. $125,000

Which test would be used to determine the absorption rate of the soil around a septic tank?A. absorption testB. radon testC. phase 1 reportD. percolation test

• percolation test
• Which of the following is required for a deed to be

valid?A. grantor and grantees' signaturesB. grantees signature.C. legal description of the property.D. the phrase "to have and to hold".

• legal description of the property.

Phil has been using the vacant lot next to his property as a garden every year for the past 12 years, without the permission of the owner. Given this information, which of the following concepts would most likely apply?A. eminent domainB. easement by prescriptionC. escheatD. adverse possession

• easement by prescription

A couple is purchasing a new home, their current home is under contract. The husband was laid off his job and the couple are unable to obtain the mortgage loan. The sellers want to keep the buyers' earnest money. What should the buyer's broker do?A. Discuss the situation with their sponsoring broker and inform the listing broker that earnest money can only be release with written direction of all parties.B. Inform the listing broker that their sellers must