Test Prep Video Series Quiz

1. Which of the following types of listing agreements must be in writing to be enforceable?

2. Written listing agreements that do not provide for automatic expiration within a definite period of time are considered to be:

3. Concerning all exclusive right-to-sell listing agreements and all exclusive agency listing agreements, which of the following, in Illinois, is most correct?

4. The “equalization factor” used in Illinois in computing real estate taxes is designed primarily to:

5. In Illinois, a branch real estate office may be managed by:

6. A real estate broker may lawfully collect a commission from both the buyer and seller, provided the broker has:

7. Broker Roberts has received an exclusive right-to-sell listing from seller Thomas in which seller Thomas promises to pay the broker a 15% commission for selling the property.
Under these conditions, such a commission is considered to be:

8. In Illinois, probably the greatest single cause for license suspension or revocation is commingling of funds. Of the following, all are considered to be commingling except:

9. A “blind ad” placed by a real estate licensee is considered to be:

10. Concerning real estate mortgages, the lien theory applied in Illinois is considered to be:

11. A property manager could perform all of the following functions except:

12. A real estate broker would be required to have more than an ordinary knowledge of accounting procedures in which of the following businesses?

13. Mr. Smith hired his unlicensed son-in-law to complete some electrical work in his single-family home. Mr. Smith then listed his house with Broker Kent. Mr. Smith did not disclose that the electrical work was done by his son-in-law, an unlicensed electrician. After the completion of the sale, the new owner, Mr. Johnson, suffered a financial loss due to the faulty electrical wiring done by Smith’s son-in-law. Under these conditions, Broker Kent:

14. According to Illinois law, who must be licensed as a real estate broker?

15. Jane Mills is moving to Indiana. She needs to sell her home in Illinois. She hires Suzy Smith, a licensed real estate broker, to sell her home. After Suzy has been hired, Suzy finds out that the neighborhood where Jane Mills’ property is located is being rezoned commercial. Suzy decides to purchase an option on Jane’s home but fails to disclose to Jane that her neighborhood is being rezoned commercial. Suzy decides to exercise her option. Suzy then resells the property to an investor for twice the price she paid to Jane. According to Illinois law, such conduct would be permissible provided that:

16. The requirement to look out for the best interest of the client applies to which of the following?

17. An exclusive right-to-sell listing is best defined as:

18. Broker Able listed a home that he knew was situated on a landfill site and where area homes have been sinking due to the lack of a solid foundation. Broker Able did not reveal this information to a prospective buyer. Given this information, the licensee in this situation could be subjected to:

19. A violation of the License Act by a real estate licensee could result in:

20. Salesperson Tennison was hired by Broker Edwards as an independent contractor. The status of an independent contractor would permit salesperson Tennison to:

21. Broker Matthews expanded his operation and opened a branch office. Broker Matthews must now:

22. Broker West has an exclusive right-to-sell agreement on Beck’s property. Under which of the following conditions could broker West sign a valid sales contract for principal Beck?

23. In Illinois, real estate licenses may be issued by:

24. Ms. Smart was hired by Broker Kingston as an administrative support person for her downtown office. Broker Kingston agrees to pay Ms. Smart a regular salary for her duties as an employee. In addition to the regular office functions, MS. Smart may legally perform, on behalf of her employer, which of the following duties?

25. A contractor performed work on a piece of a property and has a signed contract. What is the length of time that he has to file a mechanic’s lien notice with the county clerk?

26. Who pays the sales associates their commission?

27. A real estate sales associate has a listing on a vacant farmhouse and barn. A sales associate from another company has a prospect that wants to rent only the house. The prospect does not want to buy the property nor the barn, just rent the house. The sales associate from another company who has the renter prospect goes directly to the owner of the property. Is this proper?

28. A landowner who is the sole owner of a piece of property dies without a will. His property will be disposed of:

29. A licensee sells a building. It is later discovered by the buyer that the building was poorly constructed, and had numerous flaws. If the buyer files a claim with the Illinois Real Estate Recovery Fund:

30. Real estate taxes are based on:

31. Regardless of interest or non-interest bearing accounts, earnest money deposits must be placed into:

32. Which of the following licensees would be required to complete 120 classroom hours at an approved real estate school?

33. Licensees must fully disclose any interest they may have in a property, which must be made:

34. The real estate commissions that are paid by the public to brokers are regulated by:

35. A licensed salesperson is successful in selling a piece of property, which was difficult to market, and the grateful seller not only pays the commission but also includes a $500 gift certificate for the salesperson. What should the sales associate do in this situation?

36. A broker takes money from the escrow account and pays his overdue personal real estate taxes because he is afraid his real estate license will be suspended. Later, the broker replaces this money prior to the closing. The broker is guilty of:

37. When a salesperson terminates his employment with his broker, his broker must:

38. The Illinois (state and county) transfer tax is based upon:

39. A broker writes an offer on a fellow broker’s listing on Monday and collects the earnest money. The listing broker submits the offer to the seller on Wednesday. The seller counters the offer. The earnest money amount remains the same and the counteroffer is accepted by the buyer on Thursday. The earnest money must be deposited In the listing broker’s escrow account;

40. When a buyer and a seller have a written agreement as to the disposition of earnest money in an interest-bearing account, who is entitled to the interest?

41. A sales associate has a listing on a 20-acre parcel. The sales associate is contacted by a buyer who is willing to pay a finder’s fee for the 20-acre parcel. The sales associate arranges a meeting between the buyer and the seller and explains to each that the sales associate is receiving compensation from both parties. The sales associate also asks each party to sign a written disclosure and give written permission before he begins to represent the buyer. This is proper because:

42. A farmer has 180 acres of land with three houses on it. The farmer is planning to retire and wants to give one house and 15 acres to his son John, and 4 acres and one house to his son Paul, and keep 161 acres and a house for himself. Which of the following would come under the jurisdiction of the Illinois Plat Act?

43. A broker who offers a guaranteed purchase plan must:

44. John Jones, a sales associate with Fargo Realty, has a listing on a house. The sales associate finds a ready, willing and able buyer and submits an offer to purchase. Meanwhile, the seller decides not to sell the house and asks to be released from the listing agreement with the broker. The broker agrees to release the seller from the listing contract agreement. What recourse does the sales associate have?

45. If a managing broker of a branch office dies, the sponsoring broker must:

46. All of the following must be licensed by IDFPR, except:

47. If a parcel of property is forfeited or sold because of unpaid taxes, that property could be acquired by submitting a bid under a (n):

48. A broker put his own property on the market, and is advertising that property For Sale by Owner. On the yard sign he only includes the statement “agent owned”. He does not indicate who his sponsoring broker is. Is this proper?

49. An exclusive right-to-sell listing contract contains which of the following?

50. Broker “A” kept his escrow account in ABC Bank, but for various reasons decided to switch banks. The new bank is the XYZ Bank. How much notice must be given to IDFPR?

51. Joe Burns dies without a will. After all debts are cleared, his estate amounts to $120,000. Burns is survived by his wife and three daughters. How much money will each of the daughters receive?

52. Which of the following statements is true about a branch office manager?

53. Broker Harry listed a piece of property for a friend. The property was difficult to market because of an unusually high sales price demanded by the seller. Therefore, the listing contract was written up with no expiration date. This listing contract is:

54. A buyer and seller enter into a purchase contract, but the improvements burn down before the closing. Who is responsible for the loss?

55. Who is not required to have a real estate license?

56. The Illinois (state) transfer tax on a real property sale of $250,000 with a $25,000
assumable loan is:

57. A builder or developer of a housing project who builds and sells units within his or her own project is required to:

58. Any unlicensed person who performs a real estate act that requires a license may be prevented from doing so by IDFPR filing a(n):

59. Brokers are allowed to operate their real estate offices out of their principal residence provided that:

60. Who must provide written consent prior to a broker advertising a property for sale?

61. No later than entering into a brokerage agreement with a client, a broker shall advise the client as to the broker’s compensation and whether the broker will share that compensation with brokers who represent other parties in a transaction.

62. Under the Agency – Brokerage Relationships Law, a “client” may be defined as:

63. The agency law defines a “customer” as a person who is:

64. The responsibility for the activities of an employed “unlicensed assistant” rests with the:

65. Real estate licensees, including salespersons, are permitted to employ:

66. Setting an appointment to view property, describing a property or the property’s condition in response to a consumer’s inquiry, and showing a client through a property being sold by an owner on behalf of the owner are considered to be:

67. What is the difference between a sponsor card and a pocket card?

68. Illinois law requires a licensee to promote the best interest of the client. This would include all of the following except;

69. A licensee’s “unlicensed assistant” may not:

70. All of the following are activities an employed “unlicensed assistant” may perform, except:

71. A licensee must disclose in writing to a customer when the licensee is not acting as the customer’s agent.

72. Once a broker has terminated a salesperson’s license,

73. All of the following are what a licensee can do for clients when acting as a dual agent, except: