Illinois Real Estate Exam Version 3

Practice exam for Salesperson and Broker License Exam under Real Estate Exams (Licensing Exams). 5 sample questions.

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Sample Questions

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Exam Questions

Question 1
In order to collect a commission, which of the following is a requirement for a broker with an open listing
A. The broker must put the listing in the MLS
B. The listing must have a protection clause
C. The broker or one of the broker’s licensees must be the procuring cause for the sale
D. The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer
Correct Answer: C
Rationale: Open listings pay only the broker who is the procuring cause of the sale. MLS, protection clauses, and notification are not required.
Question 2
Which of the following has most likely been created when a prospective buyer of real estate authorizes a licensee to find a property
A. a trustee
B. an agency
C. a partnership
D. joint tenancy
Correct Answer: B
Rationale: Authorization to act on behalf of the buyer creates an agency relationship. Not a trust, partnership, or ownership form.
Question 3
In city zoning ordinances, a planned unit development creates
A. parks and community recreation areas
B. standards of minimum setbacks for property lines
C. rules and regulations regarding municipal utilities and services
D. neighborhoods of cluster housing and business establishments
Correct Answer: D
Rationale: PUD zoning allows flexible, clustered mixed-use developments. The other items are secondary or not defining features.
Question 4
A brokerage firm holds an open listing on a seller's house, along with three other firms. A licensee learns that zoning changes will allow a shopping center to be built nearby. Does the licensee have a responsibility to pass the information to the seller
A. Yes, because the licensee would have to do so to be considered a procuring cause of any sale
B. Yes, because the licensee should keep any principal informed of changes in market conditions
C. No, because the licensee does not have a fiduciary responsibility to the seller
D. No, because the licensee owes such vital information only to those principals who have signed exclusive listing agreements with the firm
Correct Answer: C
Rationale: Open listings create no fiduciary duty. The licensee has no obligation to disclose market changes to the seller.
Question 5
A home purchased 2 years ago for $300,000 was resold for $260,000. The new buyer finances the purchase with a loan. If the loan-to-value ratio is 70%, what is the amount of the new buyer’s equity in the home
A. $78,000
B. $90,000
C. $182,000
D. $210,000
Correct Answer: A
Rationale: Loan = 70% × $260,000 = $182,000. Equity = $260,000 – $182,000 = $78,000. Prior purchase price is irrelevant.

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