Illinois Brokerage Exam and Practice Exam 200
Questions with Detailed Answers and Rationales
(2026/2027 Edition)
Table of Contents
Part I: Illinois License Law and IDFPR Regulations (Questions 1-25)
● Real Estate License Act of 2000
● IDFPR Structure and Authority
● License Types and Requirements
● Licensing by Endorsement (Post-Reciprocity)
● Sponsorship Requirements
Part II: Agency Relationships and Disclosure (Questions 26-50)
● Designated Agency (Illinois Default)
● Dual Agency and Consent
● Fiduciary Duties (OLDCAR)
● Agency Disclosure Requirements
● Unrepresented Parties
Part III: Brokerage Agreements and Contracts (Questions 51-75)
● Written Brokerage Agreement Requirements
● Listing Agreements
● Buyer Representation Agreements
● Contract Formation and Elements
● Contingencies and Disclosures
Part IV: Property Ownership, Estates, and Land Use (Questions 76-100)
, ● Estates in Land
● Co-Ownership
● Easements and Encumbrances
● Land Use Controls and Zoning
● Illinois-Specific Property Laws
Part V: Property Disclosures (Questions 101-125)
● Illinois Residential Real Property Disclosure Act
● Lead-Based Paint Disclosure
● Radon Disclosure
● Heating Cost Disclosure
● Material Defects
Part VI: Escrow, Recovery Fund, and Trust Accounts (Questions 126-150)
● Escrow Requirements
● Real Estate Recovery Fund
● Trust Account Management
● Record Retention
● Advertising and Promotion Rules
Part VII: Fair Housing and Anti-Discrimination (Questions 151-175)
● Illinois Human Rights Act
● Federal Fair Housing Act
● Protected Classes (State vs. Federal)
● HUD 2026 Guidance
● Advertising and Compliance
Part VIII: Renewal, Continuing Education, and Discipline (Questions
176-200)
● License Renewal (April 30, 2026)
● Post-License Education (45 Hours)
● Continuing Education (12 Hours)
, ● Grounds for Discipline
● Recent Regulatory Changes
Part I: Illinois License Law and IDFPR Regulations
1. Question: The primary statute governing real estate brokerage in Illinois
is:
A) The Real Estate License Act of 2000
B) The Illinois Public Health Code
C) The Consumer Fraud Act
D) The Mortgage Licensing Act
Answer: A) The Real Estate License Act of 2000
Rationale: The Real Estate License Act of 2000 (225 ILCS 454) is the
primary statute governing real estate brokerage in Illinois. It establishes
licensing requirements, agency relationships, disclosure obligations, and
disciplinary provisions. The Act is administered by the Illinois Department
of Financial and Professional Regulation (IDFPR), Division of Real Estate.
2. Question: The agency responsible for issuing real estate broker licenses
in Illinois is:
A) The Illinois Department of Public Health
B) The Illinois Department of Financial and Professional Regulation (IDFPR)
C) The Illinois Attorney General's Office
D) The Illinois Housing Development Authority
Answer: B) The Illinois Department of Financial and Professional
Regulation (IDFPR)
Rationale: IDFPR's Division of Real Estate (DRE) is responsible for issuing
real estate broker licenses, managing broker licenses, and residential
leasing agent licenses in Illinois. IDFPR also investigates complaints and
enforces the Real Estate License Act.
, 3. Question: In Illinois, the entry-level real estate license is called a:
A) Salesperson license
B) Broker license
C) Agent license
D) Realtor license
Answer: B) Broker license
Rationale: Illinois eliminated the "salesperson" license in 2011. The
entry-level credential is now called a Broker license, and the supervisory tier
is the Managing Broker license. There is no "salesperson" or "agent" license
in Illinois. This is a critical distinction that frequently appears on the Illinois
exam.
4. Question: The supervisory license tier in Illinois is called a:
A) Supervising Broker
B) Managing Broker
C) Principal Broker
D) Designated Broker
Answer: B) Managing Broker
Rationale: The Managing Broker license is the supervisory tier in Illinois. A
Managing Broker is legally responsible for supervising sponsored
licensees, managing escrow accounts, and ensuring compliance with the
Real Estate License Act. Every Broker and Leasing Agent must be
sponsored by a Managing Broker to practice legally.
5. Question: The minimum age requirement for an Illinois Broker license is:
A) 16
B) 18
C) 21
D) 25
Answer: B) 18
Rationale: Applicants must be at least 18 years of age to obtain an Illinois
Questions with Detailed Answers and Rationales
(2026/2027 Edition)
Table of Contents
Part I: Illinois License Law and IDFPR Regulations (Questions 1-25)
● Real Estate License Act of 2000
● IDFPR Structure and Authority
● License Types and Requirements
● Licensing by Endorsement (Post-Reciprocity)
● Sponsorship Requirements
Part II: Agency Relationships and Disclosure (Questions 26-50)
● Designated Agency (Illinois Default)
● Dual Agency and Consent
● Fiduciary Duties (OLDCAR)
● Agency Disclosure Requirements
● Unrepresented Parties
Part III: Brokerage Agreements and Contracts (Questions 51-75)
● Written Brokerage Agreement Requirements
● Listing Agreements
● Buyer Representation Agreements
● Contract Formation and Elements
● Contingencies and Disclosures
Part IV: Property Ownership, Estates, and Land Use (Questions 76-100)
, ● Estates in Land
● Co-Ownership
● Easements and Encumbrances
● Land Use Controls and Zoning
● Illinois-Specific Property Laws
Part V: Property Disclosures (Questions 101-125)
● Illinois Residential Real Property Disclosure Act
● Lead-Based Paint Disclosure
● Radon Disclosure
● Heating Cost Disclosure
● Material Defects
Part VI: Escrow, Recovery Fund, and Trust Accounts (Questions 126-150)
● Escrow Requirements
● Real Estate Recovery Fund
● Trust Account Management
● Record Retention
● Advertising and Promotion Rules
Part VII: Fair Housing and Anti-Discrimination (Questions 151-175)
● Illinois Human Rights Act
● Federal Fair Housing Act
● Protected Classes (State vs. Federal)
● HUD 2026 Guidance
● Advertising and Compliance
Part VIII: Renewal, Continuing Education, and Discipline (Questions
176-200)
● License Renewal (April 30, 2026)
● Post-License Education (45 Hours)
● Continuing Education (12 Hours)
, ● Grounds for Discipline
● Recent Regulatory Changes
Part I: Illinois License Law and IDFPR Regulations
1. Question: The primary statute governing real estate brokerage in Illinois
is:
A) The Real Estate License Act of 2000
B) The Illinois Public Health Code
C) The Consumer Fraud Act
D) The Mortgage Licensing Act
Answer: A) The Real Estate License Act of 2000
Rationale: The Real Estate License Act of 2000 (225 ILCS 454) is the
primary statute governing real estate brokerage in Illinois. It establishes
licensing requirements, agency relationships, disclosure obligations, and
disciplinary provisions. The Act is administered by the Illinois Department
of Financial and Professional Regulation (IDFPR), Division of Real Estate.
2. Question: The agency responsible for issuing real estate broker licenses
in Illinois is:
A) The Illinois Department of Public Health
B) The Illinois Department of Financial and Professional Regulation (IDFPR)
C) The Illinois Attorney General's Office
D) The Illinois Housing Development Authority
Answer: B) The Illinois Department of Financial and Professional
Regulation (IDFPR)
Rationale: IDFPR's Division of Real Estate (DRE) is responsible for issuing
real estate broker licenses, managing broker licenses, and residential
leasing agent licenses in Illinois. IDFPR also investigates complaints and
enforces the Real Estate License Act.
, 3. Question: In Illinois, the entry-level real estate license is called a:
A) Salesperson license
B) Broker license
C) Agent license
D) Realtor license
Answer: B) Broker license
Rationale: Illinois eliminated the "salesperson" license in 2011. The
entry-level credential is now called a Broker license, and the supervisory tier
is the Managing Broker license. There is no "salesperson" or "agent" license
in Illinois. This is a critical distinction that frequently appears on the Illinois
exam.
4. Question: The supervisory license tier in Illinois is called a:
A) Supervising Broker
B) Managing Broker
C) Principal Broker
D) Designated Broker
Answer: B) Managing Broker
Rationale: The Managing Broker license is the supervisory tier in Illinois. A
Managing Broker is legally responsible for supervising sponsored
licensees, managing escrow accounts, and ensuring compliance with the
Real Estate License Act. Every Broker and Leasing Agent must be
sponsored by a Managing Broker to practice legally.
5. Question: The minimum age requirement for an Illinois Broker license is:
A) 16
B) 18
C) 21
D) 25
Answer: B) 18
Rationale: Applicants must be at least 18 years of age to obtain an Illinois
