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The amount of commission to be paid to the broker by the client is determined by
A fee simple holder of a parcel of real estate grants a life estate to his son and stipulates that upon the son’s death the property will pass to his grandson. The grandson’s interest in the property is called
What environmental hazard is a product of the natural decay of radioactive substances found in the ground?
Which of these types of real estate descriptions defines property by outlining its boundaries using directions and distances from a specific point of beginning?
A seller has a listing agreement with a real estate company. A second real estate company brings a buyer for the house. If the seller owes a commission to the second real estate company who brought the buyer and not the first company, what type of listing agreement must the seller have had with the first company?
A property buyer obtains a term loan to finance the purchase of the property. Which of these is TRUE regarding the buyer’s loan?
One general rule of the federal do-not-call regulations is
If a tenant pays a fixed amount of rent plus all the property’s expenses, the tenant’s lease is known as a
Which of these situations would be considered a dual agency?
A borrower has a mortgage loan that requires monthly payments of $1,200 for 10 years and a final payment of $42,257. This type of loan is best described as a
A sister and brother bought a house, taking title as tenants in common. If the brother dies, which of these is TRUE about ownership of the house?
At the closing for the sale of a home, the lender requires the buyer to place a sum of money into an escrow account. The purpose of this money is most likely for
A rectangular parcel of land is 260 feet deep and 50 yards wide. How many square feet does it contain?
Brokers should deposit all earnest money checks they receive into an escrow account to prevent being accused of
Which of these is an encroachment?
A seller received an offer to purchase her house from a prospective buyer. The seller will still be able to accept the offer even if
A property sold for $320,000 and the salesperson was entitled to 60% of the total commission. If the commission was 6% of the selling price, how much did the salesperson earn?
Potholes in the driveway, peeling paint, and broken windows are examples of
What government power allows the state to acquire title to property that has been abandoned?
Which of these is TRUE regarding owners holding title to real estate by joint tenancy?
The act that establishes requirements for those who send commercial email is called the
In performing an appraisal of real estate, the appraiser
Both owners of cooperative apartments and owners of condominium units
A couple purchased a house for $350,000, making a down payment of $100,000. The buyers get a new mortgage of $230,000 from a lender and financed the remaining $20,000 through a mortgage given to them by the seller. The $20,000 mortgage is called a
Which of these would a licensee, who is an independent contractor, receive from the employing broker?
A grantor conveying title wishes to only guarantee that the property was not encumbered during the time the grantor held title, except for encumbrances noted in the deed. The type of deed used by the grantor is a
What BEST describes the agreement between an owner and a developer who leases the property from the owner with the intention of constructing an office building on the property?
Which of these is an essential element of a contract?
Local zoning ordinances are used to regulate all of these EXCEPT
In Illinois, before a real estate license can be suspended or revoked, the licensee is entitled to
The amount of the earnest money deposit in a real estate sales contract is determined by
Hostile, visible, exclusive, and continuous use of another person’s land for a prescribed period of time is called
The continued use of a property that was lawful at the time the use began but now is in violation of a zoning regulation is an example of
In determining a property’s value when using the income approach, an appraiser uses a capitalization rate. The rate represents the
Which of these best describes the primary purpose of the Real Estate License Act?
In return for $2,000, a seller gives a prospective buyer an option to purchase the seller’s property. In this situation, the
When a sponsoring broker’s real estate license is suspended or revoked, the licensees working for the broker
The owner of a parcel of land holds an easement right over an adjoining parcel of land. The parcel of land on which the easement runs is called the
An attorney reviewing the deed in a real estate transaction noted a number of limitations regarding its use. These limitations are commonly called
According to the Real Estate License Act of 2000, ministerial acts include
An appraiser estimating the value of a house with outmoded bathroom fixtures must take into consideration
Under the Real Estate License Act of 2000, a person who seeks or receives real estate brokerage services is a
A tenant negotiated a net lease with a property owner. Under the terms of the lease, the tenant would probably be responsible for paying which of these expenses?
A real estate buyer also wishes to purchase the seller’s lawn mower. Which of these documents would be prepared to accomplish this?
What is the amount of real estate tax due on a condominium with a market value of $280,000 if it is assessed at 30% of market value, has an equalizer of 1.5, and a tax rate of $5 per $100 of assessed value?
Residential property in all Illinois counties except Cook County is assessed at what percent of fair market value?
A real estate broker earned a sales commission of $6,720, which was a rate of 6%. What was the selling price of the property?
A legal action started by one of the parties to a contract to force the other party to carry out the terms of the contract is called
In a real estate closing, the buyer would most likely pay for the
When a real estate owner in Illinois dies and leaves no will or heirs, the property escheats to the
Which expense is usually NOT prorated between the buyer and seller?
Of these real estate documents, which would be LEAST likely to be recorded in the public records?
A listing agreement provides for the payment of a commission to the broker even if the owner sells the property without the broker’s help. This type of listing agreement is called
A property owner subdivided a piece of property, selling the front half and retaining the back half. The back half of the property retained by the owner does not have access to any roads. The type of easement the courts might grant in this situation is an
The sale of a single-family home by the owner is exempt from the Illinois Human Rights Act if the owner
Which government agency is involved in regulating the country’s money supply?
The final decision on the listing price for a property is made by the
Which of these deeds should the grantor use to transfer title without providing any warranties to the grantee?
A property management agreement typically includes a
A lender foreclosed on a property and it sold at the foreclosure sale for less than the loan balance. To recover the remainder of the money, the lender may
In Illinois, earnest money funds received by a broker must be deposited in a special escrow account
A broker who has a listing contract to sell an owner’s house is what type of agent?
On Wednesday, a property seller offers to sell his house to a potential buyer for $320,000. On Sunday, the buyer makes a counteroffer of $310,000. On Friday, the buyer withdraws the counteroffer of $310,000 and accepts the seller’s offer of $320,000. In this situation there is
The Illinois Land Sales Registration Act regulates the offering, sale, lease, or assignment of any improved or unimproved land that is divided into
The owners of a shopping center negotiating a lease with a department store wish to base the rent on payments based on the store’s sales. What type of lease should the owners use?
Which of these activities would a real estate company be allowed to perform under the antitrust laws?
In Illinois, sponsored licensees may receive a commission
A homebuyer obtains a loan to finance the purchase of the house as well as personal property. This type of loan is called a
The Real Estate License Act of 2000 is administered by the
Under the Truth in Lending Act (Regulation Z), a lender is required to provide an applicant for a real estate loan with a copy of
Advertising by a sponsored licensee in Illinois must
A property manager’s compensation is typically based on
Which of these is a requirement for a valid deed in Illinois?
The buyer in a real estate transaction records the documents affecting his or her title and interest in the real estate to legally provide
Which of these can typically be determined by inspection of the property?
In Illinois, an unlicensed personal assistant may
Repairing a faulty air conditioning unit is considered
An investor purchased a building for $360,000 by paying 10% down and financing the rest of the purchase price. The lender charged two points as a loan origination fee. How much was the investor charged for the fee?
In Illinois, managing broker licenses are renewed every two years by
One of the provisions of the Truth in Lending Act allows for a cooling-off period in which the loan can be rescinded. The rescission provision would apply to which of these loans?
How many square feet are in three acres?
When an appraiser estimates the value of a property using the cost approach, the appraiser should
A borrower has an amortized loan for $160,000 with an interest rate of 5%. If the monthly payment is $860 what is the loan balance after the first payment?
A property owner in Illinois is entitled to a homestead estate up to a value of
Title to property is transferred by a deed when the deed is
In Illinois, if real estate taxes are not paid by the due dates,
A business person owns and operates a barbershop in an area that was recently annexed by a neighboring suburb. The area annexed was zoned as a single-family residence by the suburb, but the barbershop is allowed to continue operating. The allowance for the barbershop’s continued operation is known as
What would the appropriate entries be on the closing statement if real estate taxes are paid in arrears?
Which of these is exempt from licensing under the Real Estate License Act of 2000?
A brother and sister own a parcel of real estate as joint tenants. The brother sells his interest in the property to a cousin. What is the relationship between the sister and the cousin?
Complaints pertaining to the Illinois Human Rights Act may be filed with the
A requirement for obtaining title to property under the concept of adverse possession is that
If the sole owner of a property with a fee simple absolute ownership interest dies and leaves no will, the owner’s title passes in accordance with the
According to the Real Estate License Act of 2000, a real estate license is required for
Economic (external) obsolescence would best be described by which of these?
In Illinois, what law governs how property will be distributed when a person dies without a will?
If an apartment building has 12 vacancies among its 300 units, the building’s vacancy rate is
An unmarried couple wants to buy a house and take title so that when one of them dies the deceased’s share will go to the deceased’s heirs. The form of ownership they should use when they purchase the house is
Which of these documents would include an acceleration clause?
If a property is valued at $450,000 and has annual net income of $36,000, what is the capitalization rate?
In Illinois, a person wishing to obtain an easement by prescription must use the property continuously for
A property sold for $120,000 and the broker earned a 5½% commission on the sale. What was the amount of the commission?
In Illinois, subcontractors whose bills have not been paid and who wish to enforce their lien rights must file their lien notices with the county recorder within four months
The purpose of the title commitment in a real estate sale is to
A property manager works in the best interests of the
In Illinois, how much time does a lender have to deliver a release or satisfaction document to the borrower after full payment of the loan?
The law that requires finance charges to be stated as an annual percentage rate is called
The essential characteristic of condominium ownership is best described as
Which of these statements regarding the Illinois Lead Poisoning Prevention Act is FALSE?
What government agency insures deposits in banks and savings institutions?
Which activity requires a real estate license?
A property has a monthly net income of $3,600 and an expected cap rate of 9%. What is the value of the property using the income approach?
A lease agreement contains a clause that gives the tenant the right to purchase the property at a specified price. This type of agreement is called a
What type of lease requires the lessee to pay for the insurance, taxes, and maintenance on the property in addition to a rental payment?
Which of these statements applies to a corporation that wants to receive a broker’s license?
If a property is valued at $160,000 and the lender is willing to make a loan of 80% of the loan-to-value ratio, what is the loan amount?
A person dies intestate with no will or heirs. The government may take possession of the property through its right of
A buyer purchases a home under an installment sales contract. Until the buyer has completed making payments to the seller, the buyer
Which of these statements regarding mortgage foreclosure redemption rights in Illinois is FALSE?
A broker and seller enter into a listing agreement. Under the terms of the listing, the seller will receive $195,000 from the sale with any sales proceeds over that amount going to the broker. This type of listing is called
In Illinois, which of these must have a real estate license?
An individual has an ownership interest in a property that involves occupancy for a specified period of time and use of the property’s common areas such as the swimming pool, tennis courts, and grounds. This type of ownership is called a
The clause in a mortgage that gives the lender the right to consider the entire balance due if there is a default in any payment is called
An Illinois real estate licensee who is engaged as an independent contractor
A homeowner wishes to make an improvement to the property that does not comply with the local zoning ordinances. The property owner should request
Which are exempt from radon disclosure under the Illinois Radon Awareness Act?
To be a valid deed in Illinois, the deed must be signed by
For a will to be valid, it must be
An appraiser would use accrued depreciation in which of the approaches to estimating value?
In Illinois, when must escrow monies held by the broker be released from the escrow account?
What is the cost of installing a fence around a rectangular shaped lot if the cost of the fence is $3.25 per linear foot and the lot is 80 ft. wide and 120 ft. deep?
Compensation disclosure rules in Illinois include
The clause in a mortgage requiring the loan to be paid in full if the property is sold is called
What kind of a lien is created as a result of a judgment, estate or inheritance taxes, the decedent’s debts, or unpaid federal income taxes?
If a storage facility charges $1 per cubic yard and the storage space is 32 ft. by 160 ft. by 10 ft. high, how much is the storage charge?
Which activity requires a real estate license?
A couple that purchases a cooperative apartment unit will
What would probably occur if a tenant’s lease is breached because the landlord has allowed the unit in an apartment building to become uninhabitable?
Which of these is a licensing requirement for an Illinois broker’s license?
The amount at which a willing and informed seller would sell and a willing and informed buyer would buy is called a property’s
The deed that contains the most covenants or guarantees to the grantee is a
A broker representing the seller would be violating the license act regarding property disclosure if the broker
The number of discount points charged by the lender to the buyer in a real estate transaction is set by
According to Article 15 of the Real Estate License Act of 2000, a real estate agent’s duties does NOT include
Which of these statements BEST describes the income approach to value?
According to Article 15 of the Real Estate License Act of 2000, a person who is not being represented by a licensee, but for whom the licensee is performing ministerial acts, is called a
What is the difference between a specific lien and general lien?
When acting as a dual agent, what information can a licensee provide without the permission of the client?
Steering is best described as
A homeowner has made the final mortgage loan payment to the bank. To ensure the bank’s mortgage lien has been released, the homeowner should get a