All Flashcards
What is a Chattel
items of personal property, including such tangibles as chairs, tables, clothing, money, bonds, and bank accounts
What is a fixture?
personal property that has been so affixed to land or a building that, by law, it becomes part of the real property
what is a trade fixture?
an article owned by a tenant attached to a rental space or building or used in conducting a business
What is an apartment complex?
groups of apartment buildings with any number of units in each building
what is a condominium
a popular form of residential ownership, particularly for people who want the security of owning property without the care and maintenance a house demands.
what is a cooperative
similar to condos in that it also may offer units with shared common facilities, unlike condos, the “owners” do not actually own the units. They buy shares of stock in the corporation that holds title to the building.
what are planned unit developments
merge such diverse land uses as housing, recreating facilities, and commercial concerns in one self-contained development.
what are highrise developments
combine elements as office space, stores, theaters, and the apartment units into a single vertical community.
what are converted use properties
factories, warehouses, office buildings, hotels, schools, churches, and other structures that have been converted to residential use.
what is manufactured housing
mobile homes, considered more often permanent principal residences or stationary vacation homes.
what are modular homes
each room is a per-assembled piece in a factory and taken to the building site on a truck.
What is a time-share
allow multiple purchasers to share ownership of a single property, usually a vacation home. Each owner is entitled to use the property for a certain period fo time each year, usually a specific week.
What are the different types of leasehold estates?
Estate for years, Estate from Period to Period, Estate at Will, Estate at Sufferance.
What is an estate for Years
a leasehold estate that continues for a definite period of time.
what is an estate from period to period
created when the landlord and the tenant enter into an agreement for an indefinite time.
What is tenancy at will
gives the tenant the right to possess property with the landlrod’s consent for an unspecified or uncertain term.
what is tenacy at sufferance
when a tenant who lawfully possessed real property continues in possession of the premises without the landlord’s consent after the rights expire.
how to calculate annual taxes
(Assessed value * eq factor - exemptions)*tax rate
Who establishes guidelines for real estate licensees in properly advertising properties in compliance with fair housing law
HUD
What regulatory agency was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act?
Consumer Finance Protection Bureau
What regulation changed the disclosures required in a real estate transaction in which there is a mortgage loan and became effective October 3, 2015?
TRID
What state agency is responsible for providing the information on the hazards of radon gas pursuant to the Illinois Radon Awareness Act
Illinois Emergency Management Agency
Which law requires the disclosure of affiliated business relationships and prohibits kickbacks among service providers in a real estate transaction?
Real estate settlement procedures Act
Information which is gathered to determine air quality, noise, public health and safety, energy consumption, population density, wildlife and infrastructure is a/an:
environmental impact statement
Which of these is a lien on real estate? A) Recorded Easement B) Recorded Mortgage C) Encroachment D) Deed Restriction
Recorded easement (pg 171)
A sales contract was signed under duress. Which os these describes the contract? A) Voidable B) Breached C) Discharged D) void
voidable (page 192)
A sponsoring broker receives a check for earnest money from a buyer and deposits the money in the sponsoring broker’s personal interest-bearing checking account over the weekend. This action exposes the sponsoring broker to a charge of
commingling pg 37
a borrower takes out a mortgage loan that requires monthly payments of 875.7 for 20 years and a final payment of 24095. What type of loan is this?
balloon pg 305
When demand for a commodity decreases and supply increases:
price tends to fall pg 6
A broker signs a contract with a buyer. Under the contract, the broker agrees to help the buyer find a suitable property and to represent the buyer in negotiations with the seller. Although the buyer may not sign an agreement with any other broker, she may look for properties on her own. The broker is entitled to payment only if the broker locates the property that is purchased. What kind of agreement has this broker signed?
exclusive-agency buyer agency agreement pg 103
A man conveys property to a woman by delivering a deed. The deed contains five covenants. What type of deed is this most likely to be?
warranty deed pg 224-225
A real estate licensee does not show non-asian clients any properties in several traditionally asian neighborhoods. She bases this practice on the need to preserve the valuable cultural integrity of Asian immigrant communities. Which of these statements in TRUE?
A) The licensee’s policy is steering and violates the fair housing laws regardless of her motivation
B) Because the licensee is not attempting to restrict the rights of any single minority group, the practice does not constitute steering.
C) The licensee’s policy is steering, but it does not violate the fair housing laws because she is motivated by cultural preservation, not by exclusion or discrimination.
D) The licensee’s policy has the effect, but no the intent of steering
The licensee’s policy is steerring and violates the fair housing laws regardless of her motivation pg 402
a grandmother grants a life estate to her grandson and stipulates that on the grandson’s death, the title to the property will pass to her son-in-law. What kind of estate is the second estate?
the remainder pg 121
Which of these is TRUE concerning a property held in joint tenancy?
A) a maximum of two people can own the real estate
B) The fractional interests of the owners can be different.
C) additional owners may be added later
D) There is always the right of survivorship
there is always the right of surviviorship pg 136
a real estate licensee has a written contract with his sponsoring broker that specifies that he will not be trated as an employee. The licensee’s entire income is from sales commissions rather than an hourly wage. For federal income tax purposes, the licensee is considered what type of worker?
an independent contractor pg 64
The states in which the lender holds title to mortgaged real estate are called:
title-theory states pg 281
The form of tenancy that expires on a specific date is:
tenancy for years pg 320
A suburban home that lacks indoor plumbing suffers from
functional obsolescence pg 364
if a developer wants to build a commercial building closer to the street than is permitted by the local zoning ordinance because the shape of the lot makes a standard setback impossible, the developer should seek a:
variance pg 385
a licensee showed an owner-occupied property that had window screens, custom Venetian blinds, and a wall bed to a buyer. The owner accepted the buyer’s offer. What may the seller remove before closing?
none of these identified items pg 17
a real estate broker specializes in helping both buyers and sellers fill in the blanks and negotiate the terms of the contract. Because the broker is an agent of both parties, he may not disclose either party’s confidential information to the other. What kind of agent is the broker?
a dual agent pg 52-53
The portion of the value of an owner’s property that exceeds the amount of the owner’s mortgage debt is called:
equity pg 25
in a 28/36 ratio, the 36 means
recurring long-term debts and housing payment combined may not exceed 36% of gross monthly income pg 307-308
police powers include:
- Deed restrictions
- Zoning
- Restrictive covenants
- taxation
zoning pg 116
A seller wants to net 165,000 from the sale of her house after paying the sponsoring broker’s fee of 5%. What should the seller’s gross price be?
$173,684 pg 94
How many square feet are in three acres?b 10
130,680 pg 160
a purchaser obtains financing from a local savings association to purchase a condominium unit. In this situation, which of these best describes the purchaser?
- Vendor
- Mortgagor
- Grantor
- Lessor
mortgagor pg 281
the current value of a property is 240,000. The property is assessed at 40% of its current value for real estate tax purposes with an equalization factor of 1.5 applied to the assessed value. if the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property?
$5760 pg 175
A building was sold for $360000 with the purchaser putting 10% down and obtaining a loan for the balance. The lending institution charged a 1% loan origination fee. What was the total cash used for the purchase?
$39,240 pg 284
Several brokerage firms were accused of violating antitrust laws. Of the following, they were MOST likely accused of:
- not having an equal housing opportunity sign in an office windows
- undisclosed dual agencies
- price-fixing
- dealing in unlicensed exchange services
price-fixing page 78
a capitalization rate is the
rate of return a property will produce on the owner’s investment page 366
the national do not call registry provides that
consumers who have made an inquiry to a licensee may be contacted up to three months later page 79-80
if a house was sold for $140,000 and the buyer obtained an FHA-insured mortgage loan for $133,700 how much money would the buyer pay in discount point if the lender charged two points?
$2,647 pg284
the commission rate if 7.75% on a sale of $250,000. What is the dollar amount of the commission?
$19,375 pg78
The buyer makes an offer on a property and the seller accepts. Three weeks later, the buyer announces that “The deal’s off” and refuses to go through with the sale. if the seller is entitled to keep the buyer’s earnest money deposit, it is MOST likely because the sales contract contains what kind of clause?
a liquidated damages clause pg194
until the land contract is paid in full, what is the status of the purchaser’s interest in the property?
purchaser has equitable title in the property pg215
Three years ofter signing a five-year lease, business A outgrew its rental space. Business A would like business B to take on the responsibility of the lease for the remaining two years. B can do this through a(n)
an assignment pg327-328
An ownership interest that permits multiple purchasers to buy interests in the same piece of real estate is a
time-share pg148
For an offer to purchase real estate to become a sales contract, whos signature is necessary?
buyer’s and seller’s pg189-190
A borrower just made the final payment on a mortgage loan. Regardless of this fact, the records will still show a lien on the mortgaged property until what happens?
a satisfaction of the mortgage document is recorded pg287
if the annual net income from a commercial property $22,000 and the capitalization rate is 8%, what is the value of the property using the income approach?
$275,000 pg365-366
A sponsoring broker enters into a listing agreement with a seller in which the seller will receive $120,000 from the sale of a vacant lot and the sponsoring broker will receive any sale proceeds exceeding that amount. This is what type of listing?
Net pg89
an individual sold her house and moved into a cooperative apartment. Under the cooperative form of ownership, the individual will:
Become a shareholder in the corporation pg147
A defect or a cloud on title to property may be cured by
obtaining proof of satisfaction from all appropriate parties pg240
A buyer signed an exclusive-agency buyer agency agreement with a sponsoring broker. If the buyer finds a suitable property with no assistance from any licensee, the sponsoring broker is entitled to what kind of compensation
No compensation under the terms of this type of agreement pg103
Under the terms of a net lease, a commercial tenant usually would be responsible for paying:
real estate taxes pg329
the fair housing act of 1968 prohibits discrimination based on:
race pg397
If a borrower must pay $6,000 for points on a $150,000 loan, how many points is the lender charging for this loan?
4 pg284
What is the difference between a general lien and a specific lien?
a specific lien is alien against a certain parcel of real estate, while a general lien covers all of a debtor’s property pg171
in an option to purchase real estate, which of these statements is TRUE of the optionee?
- the optionee must purchase the property but may do so at any time within the option period.
- the optionee is limited to a refund of the option consideration if the option is exercised
- the optionee cannot obtain third-party financing on the property until after the option has expired.
- the optionee has no obligation to purchase the property during the option period
the optionee has no obligation to purchase the property during the option period pg214
In 2004, an owner constructed a building that was eight stories high. In 2014, The municipality changed the zoning ordinance a prohibited buildings taller than six stories. Which of these statements ins TRUE regarding the existing eight-story building?
- the building must be demolished
- the building is a conditional use
- the building is a nonconforming use
- The owner must obtain a variance
The building is a nonconforming use pg385
How many acres are there in the north 1/2 of the south west 1/4 and the north east 1/4 of the south east 1/4 section?
120 pg159
A home is the smallest in a neighborhood of large, expensive houses. The effect of the other houses on the value of this particular home is called
Progression pg360
What kind of lien is created as a result of a judgement, estate or inheritance taxes, the decedent’s debts, or unpaid federal income taxes?
General pg171
A broker received a deposit along with a written offer from a buyer. The offer stated: “The offeror will leave this offer open for the seller’s acceptance for a period of 10 days.” On the fifth day, and before acceptance by the seller, the offeror notified the broker that the offer was withdrawn and demanded the return of the deposit. Under these circumstances, the offeror
has the right to withdraw the offer and secure the return of the deposit any time before being notified of the seller’s acceptance. (pg 189 - 190)
A man and a woman own property as joint tenants. The woman sells her interest co another woman. What is the relationship between the man and the second woman regarding the
Property?
Tenants in common (pg 138)
A property owner and a tenant verbally enter into a six-month lease. If the tenant defaults, the property owner may:
- not bring a court action because six-month leases must be in writing under the parol evidence rule.
- not bring a court action because the statute of frauds governs six-month leases
- bring a court action because six-month leases need not be in writing to be enforceable
- bring a court action because the statute of limitations does not apply to oral leases, regardless of their term.
bring a court action because six-month leases need not be in writing to be enforceable (pg 320)
On monday, a woman offers to sell her vacant lot to a man for $35,000. On tuesday the man counteroffers to buy the lot for $25,500. On Friday, the man withdraws his counteroffer and accepts the Woman’s original price of $35,000. Under these circumstances,
- a valid agreement exists because the man accepted the woman’s offer exactly as it was made, regardless of the fact that it was not accepted immediately.
- a valid agreement exists because the man accepted before the woman advised him that the offer was withdrawn.
- no valid agreement exists because the woman’s offer was not accepted within 72 hours of its having been made.
- no valid agreement exists because the man’s counteroffer was not withdrawn within 24 hours.
no valid agreement exists because the man’s counteroffer was not withdrawn within 24 hours. (pg 189-190)
A property owner’s neighbors use her driveway to reach their garage, which is on their property. The property owner’s attorney explains that the neighbors have an easement appurtenant that gives them the right to use her driveway. The property owner’s property is what kind of tenement?
servient tenement (pg 125)
What action returns the parties to a contract to their original positions, before the contract, including the return of any deposits?
Rescission (Page 195)
A deed conveys ownership to the grantee “as long as the existing building is not torn down.” What type of estate does this deed create?
A (page 120)
Taxes levied on a property owner to pay for installation of sidewalks or sewers are called
ad valorem taxes (page 173)
What do local zoning ordinances regulate?
permitted land uses (pg 382)
a sponsoring broker took a listing and later discovered that a court had previously declared the client incompetent. At this point the status of the listing is
of no value to the sponsoring broker because the contract is void (page 191)
a borrower defaulted on his home mortgage loan payments, and the lender obtained a court order to foreclose on the property. At the foreclosure sale, The property sold for $164,000; the unpaid balance on the loan at the time of foreclosure was $178,000. What must the lender do to recover the $14,000 that the borrower still owes?
seek a deficiency judgment (page 293)
Which of these is except from the federal fair housing act of 1968?
- the sale of listed, owner-occupied single family home when the listing broker does not advertise the property
- the refusal to rent to an apartment to a physically disabled person
- an owner-occupied building with no more than four units
- The restriction of noncommercial housing where a certified statement has not been filed with the government
an owner-occupied building with no more than four units (page 400)
when compared with a 30 year payment period, taking out a loan with a 20 a year payment period, taking out a loan with a 20 year payment results in?
Higher monthly payments (page 304)
A licensee arrives to present a purchase offer to an older man, who is seriously ill, and finds the man’s son and daughter in law also present. The son and daughter in law urge the man to accept the offer, even though it is much less than the asking price for the property. If the man accepts the offer, the man may later claim that
- the licensee improperly presented an offer that was less than the asking price
- the licensee’s failure to protect the man from the son and daughter in law constituted a violation of the licensee’s fiduciary duties.
- The mans’ rights under the ADA have been violated by the son and daughter in law
- the man was under undue influence from the son and daughter in law, so the contract is voidable.
the licensee’s failure to protect the man from the son and daughter in law constituted a violation of the licensee’s fiduciary duties. (page 35)
a deed of conveyance contained only the following guarantee: “This property was not encumbered during the time the grantor owned it except as noted in this deed.” What type of deed did the grantor give to the grantee?
Special warranty (page 225)
An unmarried couple owns a parcel of real estate. Each owns an undivided interest, with the man owning one third and the woman owning two thirds. The form of ownership under which the couple owns their property is
tenancy in common (page 135)
A man agrees to purchase a house for $84,000. He pays $2,000 as earnest money and obtains a new mortgage loan for $67,000. The purchase contract provides for a march 15 settlement. He and the sellers prorate the present year’s real estate taxes of $1,880.96, which have been prepaid. The man has additional closing costs of $1,250, and the sellers have other closing costs of $850. Using the actual number of days method, how much cash must the man bring to the settlement?
$19,649 (Page 456)
A broker advertised a house he had listed for sale at the price of $247,900. An African American saw the house and was interested in it. When the prospect asked the broker the price of the house, the broker told the prospect $253,000. Under the federal fair housing act of 1968, such a statement is
Illegal because the terms of the potential sale were changed for the african american (page 399)
An owner placed her farm in a trust, naming herself as the beneficiary. When the owner died, her will directed the trustee to sell the farm and distribute the proceeds of the sale to her heirs. The trustee sold the farm in accordance with the will. What type of deed was delivered at settlement?
Trustee’s deed (Page 142)
An appraiser has been hired to prepare an appraisal report of a property for loan purpose. The property is an elegant old mansion that is now leased out as a restaurant. To which approach to value should the appraiser probably give the greatest weight when making this appraisal?
Income (page 365)
An applicant applies for a mortgage, and the loan officer suggests that she might consider a term mortgage loan. Which of these statements BEST explains what the loan officer means?
- All the interest is paid at the end of the term
- The debt is partially amortized over the life of the loan
- The length of the term is limited by state law
- The entire principal amount is due at the end of the term
The entire principal amount is due at the end of the term (page 303)
A condominium community offers a swimming pool, tennis courts, and biking trail. These facilities are most likely owned by who?
Unit owners in the form of percentage undivided interests (page 145)
On a closing statement in a typical real estate transaction, the buyer’s earnest money deposit is reflected as a:
- credit to the buyer and a debit to the seller.
- credit to the seller and a debit to a buyer.
- credit to both the buyer and the seller
- debit to the buyer only
credit to the buyer and a debit (page 454)
prepaid insurance and tax reserves, in which the buyer assumes the mortgage, will appear on a typical closing statement as a
- credit to the buyer and a debit to the seller
- credit to the seller only
- debit to the seller only
- debit to the buyer and a credit to the seller
debit to the buyer and a credit to the seller (page 454)
real property can become personal property by the process called
severance (page 17)
Property owners give a neighbor permission to park a camper in their yard for a few weeks. The property owners do not charge rent for the use of the yard. The property owners have given the neighbor
a license (page 127)
a tenant’s lease has expired, but the tenant has not vacated the premises or negotiated a renewal lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of
tenancy at sufferance (page 322)
A property owner signs a listing agreement with a sponsoring broker. A second broker obtains a buyer for the house, and the sponsoring broker does not receive a commission. The sponsoring broker does not sue the seller. The listing agreement between the seller and the sponsoring broker was most likely what kind of agreement?
an open agreement (page 89)
A sponsoring broker established the following office policy “All listings taken by any licensee associated with this real estate brokerage must include compensation based on a 5% commission. No lower commission rate is acceptable.” If the sponsoring broker attempts to impose this uniform commission requirement. which of these statements is true?
- a homeowner may sue the sponsoring broker for violating the antitrust law’s prohibition against price-fixing
- the licensee associated with the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.
- the sponsoring broker must present the uniform commission policy to the local professional association for approval
- the sponsoring broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
the sponsoring broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. (page 75)
Because the owner of an apartment building failed to perform routine maintenance, the apartment building’s central heating system broke down in the fall. The owner neglected to have the heating system repaired, and a tenant had no heat in her apartment for the first six weeks of winter. Although eight months remained on the tenant’s lease, she moved out of the apartment and refused to pay any rent. If the owner sues to recover the outstanding rent, What would be the tenants best defense?
The landlord’s actions constituted constructive eviection (Page 327)
A buyer purchased a parcel of land and immediately sold the mineral rights to an oil company. The buyer gave up which one of his rights?
Subsurface rights (Page 13)
A developer built a six story structure. Several years later, an ordinance was passed in that area banning any building six stories or higher. This building is a…
nonconforming use (Page 384 - 385)
What is the maximum capital gains tax exclusion allowable for a married couple, filing jointly, who have lived in their home for the past 3.5 years?
$250,000 (Page 26)
Statements by a real estate licensee that somewhat exaggerate the intangibles of a property without committing fraud are called
puffing (Page 42)
When planning a subdivision, a developer should determine the kinds of land uses to be involved and the amounts of land to be allocated to each use by considering
The comprehensive plan of the local government (Page 381-382)
Which of these is TRUE regarding condominiums?
- If a unit owner does not pay the monthly maintenance fee, the entire community will be foreclosed
- The covenants and restrictions define the responsibilities of the owners and declare how the homeowners association will operate the condo community
- If one unit owner defaults on property taxes, those taxes will be owed by the remaining owners
- A condominium unit may be mortgaged like any other parcel of real estate
A condominium unit may be mortgaged like any other parcel of real estate (Page 145)
Which of these is a legal practice?
- to refuse to sell, rent or negotiate with a person because of race
- as a property manager, to check the credit of females only
- to display the equal housing opportunity poster
- to refuse to let persons with a disability, at their expense, modify a dwelling
To display the equal housing opportunity poster (Page 145)
Which of these is a voidable contract?
- a contract with no contingencies
- A contract entered into on a legal holiday
- A contract that has not been recorded with the recorder of deeds
- a contract entered into by a minor
A contract entered into by a minor (Page 192)
An owner entered into a three- month listing agreement with a sponsoring broker. Last week, the owner also entered into the same three month listing agreement with two separate brokers. What kind of listing has the owner negotiated?
open listing (Page 89)
An appraiser was contracted to determine the value of a large apartment building for a potential investor client. Which appraisal method is the MOST useful for this type of property?
income approach (Page 365)
A large manufacturing company agrees to relocate to an economically depressed neighborhood of Chicago if the city can provide suitable property in a short period. The property needed is a large vacant lot owned by an investment partnership that refused to sell. if the City of Chicago wants to relieve unemployment in the neighborhood and improve commercial conditions in the city by bringing in the manufacturer immediately, what can the city legally do?
Obtain immediate rights of possession and use by depositing a sum of money that a court preliminarily considers to be just compensation with the county treasurer through a process called quick take (Page 117)
Illinois law requires that a reprinted offer to purchase that is intended to become a binding contract have which of these headings?
- Real Estate Sales Contract
- Offer to Purchase
- Standard Purchase Offer and Contract
- Purchase offer form
Real Estate Sales Contract (Page 196)
In 1971 a developer conveyed a motel and restaurant to an investor “on condition that no liquor is ever served on the property.” The conveyance provided that if liquor were served on this property, ownership would revert to the developer. In 2014, the investor sold the motel and restaurant to his son Based on these facts, which statement is TRUE:
- The sale of the motel and restaurant in 2014 extinguished the developer’s right of reverter
- Both the developer’s right of reverter and the condition expired by operation of illinois statute in 2000; the investor is free to sell the motel and restaurant without condition
- While the condition continues forever, the developer’s right of reverter expires after 40 years.
- Both the condition and the developer’s right of reverter automatically expired in 2005
While the condition continues forever, the developer’s right of reverter expires after 40 years. (Page 119-120)
A couple is married, and both are illinois residents. If their co-owned home is sold to satisfy their unpaid credit card debts, what is the maximum the creditors will receive if the property sells for $165,000?
$135,000 (Page 123)
Which of these statements in a deed would establish a valid tenancy by the entirety in illinois?
- “To A and B, a lawfully married couple, as tenants by the entirety”
- “To A and B, husband and wife, not as joint tenants or tenants in common but as tenants by the entirety”
- “To A and B jointly, as married tenants by the entirety”
- “To A and B as tenants by the entirety in accordance with illinois law”
“To A and B, husband and wife, not as joint tenants or tenants in common but as tenants by the entirety” (Page 139)
An ownership arrangement in which the purchaser receives a fee simple ownership in real property for longer than three years but the right to actually use the property for a specific period of less than one year (on a recurring basis) is a…
time-share estate (Page 148-149)
Which of these would be required to be surveyed and have a plat recorded under the illinois plat act?
- An owner divides a 30-acre parcel into five equal lots
- An owner divides a 20-acre parcel into five equal lots.
- An owner conveys a single 20-acre parcel
- An owner divides a single 20-acre parcel into two 6-acre lots and an 8-acre lot
An owner divides a 20-acre parcel into five equal lots. (Page 164)
The general datum plane referred to by surveyors throughout illinois is the
North American Vertical Datum (Page 165)
While the identity is of the beneficiary of a land trust is not usually disclosed without the beneficiary’s written permission, under what conditions may the trustee be compelled to do so?
*When applying to a state agency for a license or permit affecting the property (Page 142)
An owner paid the first installment of her illinois general real estate tax on july 1. The amount due was $2,380. If the county assessor issued the owner’s bill 30 days before the penalty date of June 1, does the owner owe any penalty?
Yes; the owner will have to pay $71.40 as a penalty in addition to the real estate tax owed
A judgment issued by an illinois court is what kind of lien?
General, involuntary, equitable lien on both real and personal property owned by the debtor. (Page 180)
A man owned property in Peoria before his marriage. The wife has no ownership interest in the property. The owner and his wife live in Chicago, and a tenant occupies the house in Peoria. If the owner wants to sell the property, who is required by law to sign the listing agreement?
The owner only because he and his wife do not live in the house (Page 122-123)
A common item appearing in an illinois listing agreement is
The time duration of the listing (Page 102)
In illinoi, which agency is responsible for licensing leasing agents?
Illinois department of financial and professional regulation (Page 248)
In illinois, when a sponsoring broker is taking a listing and asks the seller to complete a disclosure of property conditions,
- The disclosures are optional, and the seller may avoid liability by refusing to make any disclosure about the condition of the property.
- The standard disclosures cover a narrow range of structural conditions only
- The sponsoring broker should give the seller advice regarding which property conditions to disclose and which to ignore
- seller disclosure of known property conditions is requires by illinois statue
seller disclosure of known property conditions is requires by illinois statue (Page 37)
How long must a claimant hold adverse, exclusive, continuous, and uninterrupted use of a property under claim of right in illinois in order to obtain a prescriptive easement in illinois?
20 years (page 126)
An illinois real estate licensee is the listing agent for a home. After one month of the three month listing passes without any offers on the property, the licensee becomes concerned. At the time the listing agreement was signed, the licensee and the sellers orally agreed that if no offers were received after one month, the price of the property would be reduced by 10% because the sellers are out of town, the licensee crosses out the old listing price, writes in the new one, and then updates the information on the multiple listing service. Three days later a prospective buyer comes into the listing licensee’s office to make an offer on the property. Based on these facts, which of these statements is true?
- Illinois licensee are prohibited by law from making any addition to, deletion from, or other alteration of a written listing agreement without the written consent of the principal
- although illinois law usually prohibits altering a written listing agreement, the listing licensee acted properly in this situation because the sellers were out of town
- changing the listing price of a property is a matter of professional discretion, and illinois licensees are permitted to make alterations to only that aspect of a listing agreement without the written consent of the principal
- Although illinois law usually prohibits altering a written listing agreement, the listing licensee acted properly in this situation because of the prior oral agreement with the sellers.
Illinois licensee are prohibited by law from making any addition to, deletion from, or other alteration of a written listing agreement without the written consent of the principal (Page 196)
A sponsoring broker signs a listing agreement with a seller. The agreement contains the following clause: “If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold.” Based on these facts, which statement is TRUE?
- The agreement is legal under illinois law because it contains a reference to a specific time limit
- This agreement is illegal in illinois
- illinois law will automatically apply a statutory six-month lasting period to this open listing
- This agreement is legal under illinois law because the time periods are for less than six months each
This agreement is illegal in illinois (Page 102)
Under land contract in in illinois, what type of title does the purchaser have until the final closing when the obligation to the seller is paid in full?
Equitably title (Page 215)
How are the members of the illinois real estate administration and disciplinary board selected
Appointed by the governor (Page 249)
What is the advantage of seeking an injunction against a licensee who is violating the real estate license act of 2000?
It stops the violation from continuing (Page 273)
An illinois licensee’s license may be suspended or revoked for which of the following actions?
- Giving earnest money to his or her sponsoring broker rather than depositing it directly
- being declared mentally incompetent
- disclosing agency
- Displaying a for sale sign on a property with the owner’s consent
Being declared mentally incompetent (Page 269)
In illinois, which of these is a required element of a valid deed?
- Specifically identified grantee
- Notarization of grantees’ signature
- Hold harmless clause
- Name of the lender
Specifically identified grantee (Page 221)
An approximately straight line (Except for corrections) connecting rockford and Cairo is the
Third principal meridian (Page 157)
A sponsoring broker received an earnest money deposit along with a sales contract from a buyer. Under Illinois law, what must the sponsoring broker do with the money?
Deposit the money in an existing special non-interest bearing escrow account in which all earnest money received from buyer may be held at the same time (Page 37)
Chicago bar association, el al v. quinlan and tyson, inc., established what principal in illinois real estate law?
Real estate licensees may only fill in blanks and make appropriate deletions on preprinted standard form contracts (Page 196)
Under illinois law, what is the statutory usury ceiling on loans secured by real estate?
No limit (Page 283)
A real estate licensee is aware that certain areas of the city are particulary unfriendly to members of certain minority groups. For these groups’ own protection, the licensee shows members of such groups homes for sale only in “Friendly” neighborhoods into which members of their minority group have moved int eh past. Based on these facts, which of these statements is true?
- The real estate license act of 2000 does not prohibit the licensee’s actions because the licensee is being protective rather than discriminatory
- The critical element in this type of activity is profit motive; if the licensee’s actions are not driven by increased profits, the licensee will not be subject to discipline under the Real Estate License Act of 2000
- While the licensee’s actions are clearly prohibited by Illinois statute, the Real Estate License Act of 2000 does not address blockbusting or steering
- The licensee’s actions are expressly prohibited by the Real Estate License Act of 2000.
The licensee’s actions are expressly prohibited by the Real Estate License Act of 2000. (Page 270)
The sale price of the property is $250,000. What is the Illinois state transfer tax on this transaction?
$250 (Page 226 - 227)
IDFPR may NOT
- Conduct license examinations
- Issue and renew licenses
- impose jail time on persons who violate license law
- collect fees from applicants and licensees
impose jail time on persons who violate license law (page 272-273)
In illinois, how must the real property transfer tax be paid?
By purchasing transfer tax stamps from the county recorder or appropriate local authority (Page 228)
In illinois, which property is totally exempt from paying general real estate taxes?
Private Schools (Page 173)
A landlord has a “no pets” policy in his apartment building. If a visually impaired person wants to rent an apartment from the landlord, but owns a guide dog, which of these statements is TRUE?
- If the landlord’s “no pets” policty is applied uniformly, in a nondiscriminatory manner, it may be legally applied to the guide dog as well.
- The illinois human rights at specifically specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the landlord’s “no pets” policy
- Under the illinois Human Rights Act, the landlord may not discriminate against the visually impaired person on the basis of a “no pets” policy, but the landlord may require the tenant to pay an additional damage fee.
- The illinois Human rights act does not address the issue of guide, hearing, or support dogs
The illinois human rights at specifically specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the landlord’s “no pets” policy (Page 400)
Real property was conveyed for $185,000. What amount will have to be paid in county transfer tax?
$92.50 (Page 226 - 227)
Which of these statements is TRUE of all illinois county having fewer than 60,000 residents?
- The recorder of deeds must be elected.
- deeds are recorded by the elected recorder of deeds in the nearest county having a population over 60,000.
- The city clerk of the largest population center acts as recorder of deeds
- The county clerk of the largest population center acts as recorder of deeds
- The county clerk also serves as recorder of deeds
The county clerk also serves as recorder of deeds (Page 238)
Which is a requirment for a deed to be recorded in illinois
- The name of the grantee typed or printed below the grantee’s signature
- Payment of required tax stamps
- A blank page for use by the recorder
- The name, address, and age of the grantee
Payment of required tax stamps (page 239)
What is the purpose of the Real Estate Recover Fund?
Compensate individuals who suffer losses due to the wrongful acts of a licensee (Page 274)
Which activity requires a real estate license?
- An MLS providing listing information to members
- A resident manager who collects rent on behalf of a building owner
- A service that, for a fee, matches individuals who want to buy a sell properties
- An executor selling a decendent’s building
A service that, for a fee, matches individuals who want to buy a sell properties (Page 250 - 251)
In illinois, if the buyer of a property is a licensed broker,
- the buyer does not need to disclose this fact
- This must be disclosed after closing
- the buyer must only disclose if asked
- This must be disclosed in writing to the parties to the transaction
This must be disclosed in writing to the parties to the transaction (Page 267)
What is the name of the act that requires that illinois developer file statements of record with HUD before they offer unimproved lots for sale in interstate commerce via telephone?
Interstate land sales full disclosure act (Page 389)
in illinois, if an owner defaults on a mortgage loan and the property is ordered sold at a foreclosure sale, the owner may redeem the property..
- before the sale, under the statutory right of redemption.
- before the sale, under the equitable right of redemption
- after the sale, under the equitable right of redemption
- after the sale, under the statutory right of redemption.
- after the sale, under the equitable right of redemption
before the sale, under the equitable right of redemption (Page 292)
For three days, a man watched from his kitchen window as a small construction crew built an attractive gazebo in his backyard. The man had not contracted with anyone to build a gazebo and in fact had never given much thought to having one. but the man liked what he saw. When the contractor presented the man with a bill for the work, the man refused to pay, pointing out that he’d never signed a contract to have the work done. Can the contractor impose a mechanic’s lien on the man’s property under illinois law?
yes; if a landowner knows of work being done on the property and does not object or disclaim responsibility, and mechanic’s lien may be created (Page 179)
A woman’s property in Peoria has an assessed value of $175,000. The local tax rate is 3%, and no equalization factor is used. If the tax was levied in april 2011, the woman had to pay how much?
$2,625 on June 1, 2012 (page 176)
In illinois, real estate licensees may:
- Complete a bill of sale after a sales contract has been signed
- fill in blanks on preprinted form contracts customarily used in the their own community
- Suggest additional language to be added to a preprinted sales contract by a buyer or a seller.
- explain the legal significance of specific preprinted contract clauses to a buyer or seller
fill in blanks on preprinted form contracts customarily used in the their own community (page 196)
For which of the following acts is IDFPR required to suspend or revoke a licensee’s license?
- failing to perform as promised in a guaranteed sales plan
- having been found liable in a civil trial for illegal discrimination
- commingling others’ money or property with the licensee’s own
- failing to provide information requested by IDFPR within 30 days of the request as part of a complaint or audit procedure
having been found liable in a civil trial for illegal discrimination (Page 271)
Three weeks before a man begins his illinois real estate prelicense class, he offers to help his neighbor sell her house. The neighbor agrees to pay him 5% commission. An offer is accepted while the man is taking the class and closes the day before the man passes the examination adn receives his real estate license. The neighbor refuses to pay the man the agreed commission. Can the man sue to recover payment?
no; illinois law prohibits lawsuits to collect commissions unless the injured party is a real estate licensee, and the license was in effect before the agreement was reached. (Page 76)
A woman has a mortgage loan secured by real property. Under recent law, the woman may terminate the loan’s escrow account when the remaining balance is equal to or less than what percentage of the original amount
65% (Page 307)
