CHAPTER 16 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 his son-in-law, an unlicensed electrician, did the electrical work. 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. Sponsoring Broker Edwards hired Licensee Tennison as an independent contractor. The status of an independent contractor would permit Licensee Tennison to:

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

22. Sponsoring Broker West has an exclusive right-to-sell listing 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 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 Licensee their commission?

27. A real estate Licensee has a listing on a vacant farmhouse and barn. A Licensee 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 Licensee 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. The Illinois Licensing Act of 2000 protects:

33. Mr. Rogers is planning to move to New Mexico. His neighbor, Ms. Young, has had some real estate experience but has not renewed her real estate license. Mr. Rogers tells Ms. Young that he will give $5,000 to anyone who sells his house for him. Ms. Young finds a buyer and the deal is consummated. Mr. Rogers then decides that he is not going to pay the commission, so Ms. Young decides to sue for her commission. Can she do this?

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

35. A closing statement is for the purpose of:

36. Jane Doe has a Licensee’s license, but a broker has not sponsored her for six (6) years. She is thinking about renewing her license and going to work for John Jones Realty. She:

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

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

39. A real estate licensee 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 Licensee. What should the Licensee do in this situation?

40. 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:

41. When a Licensee terminates his employment with his broker, his broker must:

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

43. A valid deed contains all of the following, except:

44. 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 buyer accepts the counteroffer on Thursday. The earnest money must be deposited in the listing broker’s escrow account:

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

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

47. 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?

48. A real estate Licensee is convicted of discrimination and a suit is filed. The plaintiff is awarded so much money that the licensee has to declare bankruptcy. The plaintiff then goes to the Real Estate Recovery Fund and files a claim and collects whatever money they have corning. In order to be reinstated as a real estate licensee, the licensee must:

49. The Illinois Department of Financial and Professional Regulations (IDFPR) have the power to hold hearings, to impose penalties, and to revoke and suspend licenses for which of the following circumstances?

50. In Illinois, the broker’s escrow account must be reconciled within how many days after receipt of the bank statement?

51. A real estate transaction closed on January 31. On the closing statement, the buyer will be credited with:

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

53. John Jones, a Licensee with Fargo Realty, has a listing on a house. The Licensee 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 Licensee have?

54. The Director of the Real Estate Division must meet which of the following requirements:

55. The commissions that a real estate broker may charge are regulated by:

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

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

58. The sales price of a parcel of property is $150,000. The sales commission is 6% of the sales price. If the commission were split 50/50 between the broker and the Licensee, less a 10% commission to the listing broker in another office, what would be the amount of commission payable to the licensee?

59. If a seller has an open listing contract with a broker, and the broker immediately erects a “for sale” sign on the seller’s property without the seller’s permission:

60. 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):

61. 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?

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

63. 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?

64. Joe Bums dies Without a Will. After all debts are cleared, his estate amounts to $120,000. Bums is survived by his Wife and three daughters. How much money will each of the daughters receive?

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

66. Mary Smith, who is the wife of John Smith, is the beneficiary of property held in trust by the Illinois Land Trust. If this property is conveyed to Helen and George Jones, which of the following must occur?

67. 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:

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

69. Ms. Mars has two rooms in her home that she wishes to rent to women only. Under the Illinois Human Rights Act, may she do so?

70. On a piece of property that was owned as of January 2010, counties that do not participate in the accelerated tax payment system would have the first payment due:

71. In Illinois, according to law, mobile homes are taxed as:

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

73. Concerning government owned property, which of the following statements is most correct?

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

75. Concerning Licensee licensing fees, all of the following are true, except :

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

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

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

79. A co-owner can seek division of a property ownership through action by:

80. An example of an enforceable lease provision is the:

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

82. Who is eligible for company benefits and medical insurance coverage?

83. 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.

84. A broker may be disciplined for which of the following activities?

85. Which of the following items is not necessarily part of the independent contractor’s agreement?

86. A licensee may not accept finder’s fees, commissions, discounts, or any other compensation from financial institutions, or title companies, unless the licensee:

87. The Legislative General Assembly found that the application of the common law of agency to real estate brokers, Licensees and consumers of brokerage services had resulted in misunderstandings. This resulted in consequences contrary to the best interests of the public. Concerning the “Law of Agency” all of the following are true, except:

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

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

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

91. The term “ministerial acts” includes all of the following, except:

92. Real estate licensees are permitted to employ:

93. 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:

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

95. Illinois law requires a licensee to promote the best interests of the client. This would include all of the following except:

96. A licensee’s ‘unlicensed assistant’ may not:

97. All of the following are activities an employed ‘unlicensed assistant’ may perform, except:

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

99. Once a broker has terminated a Licensee’s license:

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