Illinois Real Estate Practice Exam with Correct Answers 2024

Illinois Real Estate Practice Exam with Correct Answers 2024 Objectives of Federal Reserve System - Answer -To counteract inflationary and deflationary trends, to create a favorable economic climate, to maintain sound credit conditions but NOT to control the secondary mortgage market Remainder Interest - Answer -A fee simple holder of a parcel of real estate grants a life estate to her daughter and stipulates that upon the daughters death, the property will pass to her grandson. The second estate is called A property buyer obtains a term loan to finance a home purchase. - Answer -The entire loan principal is due at the end of the loan period Best evidence of marketable title - Answer -Title Insurance Balloon Loan - Answer -A borrower has a mortgage loan that requires monthly payments of $936.25 for 10 years and a final payment of $136,287. Type of loan? Commingling - Answer -Brokers should deposit all earnest money checks they receive into an escrow account or trust account to prevent being accused. Conversion - Answer -Fancy name for theft Puffing - Answer -Exaggeration of a fact it is legal as long as it doesn't come in as a fraud In performing an appraisal of real estate, the appraiser: - Answer -Estimates the property's market value Local zoning ordinances are used to regulate - Answer -Allowable uses for buildings, building heights, population density NOT rules for the conducting open spaces After paying the brokers fee of 6%, a seller want to net $180,000 from the sale of his house. What must the property sell for to satisfy both the eh broker and the seller? - Answer -100%-6%=94%=.94 180,000 / .94 = 191489 A property owner constructed a commercial building on the property. Three years later an ordinance was passed prohibiting commercial buildings in the owners area: - Answer -The building is a nonconforming use Servient Tenement - Answer -The owner of a parcel of land holds an easement right over an adjoining parcel of land. The parcel of land on which the easement runs is referred to as the: Dominant Tenement - Answer -Benefits from the servient tenement