ILLINOIS LEASING AGENT PRACTICE
EXAM QUESTIONS ND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+
Question 1: A signed lease agreement dictates that the incoming tenants must
submit their security deposit within five business days. It is now the sixth day and
the funds have not been received. Legally, this failure to perform as agreed is
termed a:
A) Rescission of contract
B) Breach of contract ✔✔
C) Novation
D) Constructive eviction
Question 2: When acting as a professional real estate licensee and dealing directly
with the public, which of the following actions is legally and ethically permissible?
A) Intentionally concealing a known material latent defect from a buyer
B) Negotiating entirely different commission rates with different property
owners ✔✔
C) Altering agreed-upon contract dates without the consent of all parties
D) Disclosing a buyer's maximum budget to a seller without authorization
Question 3: Under standard real estate licensing regulations, what types of funds
can legally be classified and handled as escrow monies?
A) Exclusively cash payments made for monthly maintenance fees
B) Security deposits as well as real estate buyer earnest money deposits ✔✔
C) Only personal loans taken out by a real estate broker for office overhead
, D) Direct rental income payments after they have been processed by the
owner
Question 4: In contract law, through which of the following combinations of
events can an active real estate offer be legally terminated?
A) Only if the offer expires automatically according to its own terms
B) If the offer is explicitly rejected, if any of its terms are changed (counter-
offer), or if it is revoked by the offeror prior to formal acceptance ✔✔
C) Only if a local zoning board reviews the underlying property deed
D) If a third party submits a verbal inquiry about the same parcel
Question 5: A property management firm oversees a large multi-building
residential complex on a single parcel of land. At the explicit request of the
property owner, the manager restricts families with children to units located within
only two designated buildings. This practice is a violation of fair housing laws
known as:
A) Redlining
B) Blockbusting
C) Steering ✔✔
D) Intermediary placement
Question 6: During the active term of a lease, the landlord retains a future interest
in the real estate that allows them to regain full physical possession of the property
once the lease expires. This interest is known as a:
A) Remainder interest
B) Reversionary interest ✔✔
C) Right of first refusal
D) Leasehold estate
EXAM QUESTIONS ND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+
Question 1: A signed lease agreement dictates that the incoming tenants must
submit their security deposit within five business days. It is now the sixth day and
the funds have not been received. Legally, this failure to perform as agreed is
termed a:
A) Rescission of contract
B) Breach of contract ✔✔
C) Novation
D) Constructive eviction
Question 2: When acting as a professional real estate licensee and dealing directly
with the public, which of the following actions is legally and ethically permissible?
A) Intentionally concealing a known material latent defect from a buyer
B) Negotiating entirely different commission rates with different property
owners ✔✔
C) Altering agreed-upon contract dates without the consent of all parties
D) Disclosing a buyer's maximum budget to a seller without authorization
Question 3: Under standard real estate licensing regulations, what types of funds
can legally be classified and handled as escrow monies?
A) Exclusively cash payments made for monthly maintenance fees
B) Security deposits as well as real estate buyer earnest money deposits ✔✔
C) Only personal loans taken out by a real estate broker for office overhead
, D) Direct rental income payments after they have been processed by the
owner
Question 4: In contract law, through which of the following combinations of
events can an active real estate offer be legally terminated?
A) Only if the offer expires automatically according to its own terms
B) If the offer is explicitly rejected, if any of its terms are changed (counter-
offer), or if it is revoked by the offeror prior to formal acceptance ✔✔
C) Only if a local zoning board reviews the underlying property deed
D) If a third party submits a verbal inquiry about the same parcel
Question 5: A property management firm oversees a large multi-building
residential complex on a single parcel of land. At the explicit request of the
property owner, the manager restricts families with children to units located within
only two designated buildings. This practice is a violation of fair housing laws
known as:
A) Redlining
B) Blockbusting
C) Steering ✔✔
D) Intermediary placement
Question 6: During the active term of a lease, the landlord retains a future interest
in the real estate that allows them to regain full physical possession of the property
once the lease expires. This interest is known as a:
A) Remainder interest
B) Reversionary interest ✔✔
C) Right of first refusal
D) Leasehold estate
