Illinois Real Estate Practice EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is an example of metes and bounds description?
a. 123 Roanoke Street Any Town, ST 98765
b. "Beginning at the iron pin 30 paces from the center of the bank that runs across the road
Southwesterly from the dwelling..."
c. Lot 6 of Block 3 of the Meridian subdivision
d. S 1/2 SE 1/4 NW 1/4 Section 2 - ANS b. "Beginning at the iron pin 30 paces from the center
of the bank that runs across the road Southwesterly from the dwelling..."
An investor receives title to a property, but she never makes mortgage payments and rents out
the home until foreclosure occurs. What type of mortgage fraud does this describe?
a. Equity skimming
b. False identity
c. Property flipping
d. Straw buyers - ANS a. Equity skimming
What's the name for a process that converts income to value?
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a. Capitalization
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b. Conversion
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, c. Discounting
d. Projection - ANS a. Capitalization
When must the Residential Real Property Disclosure Act in Illinois be delivered to a prospective
buyer?
a. Before the buyer signs a purchase agreement
b. Before the property closes escrow.
c. Never. The disclosure is delivered to the seller.
d. When a prospective buyer first views a property - ANS a. Before the buyer signs a
purchase agreement
When is a transfer tax payable?
a. During the title search
b. When passing property from parent to child or between siblings
c. When the deed is recorded
d. When there is an equitable distribution between divorced spouses - ANS c. When the
deed is recorded
In Illinois, when must licensees obtain consent for dual agency representation?
a. As the situation arises
b. Before entering into a dual agency transaction
c. In the first face-to-face meeting with a potential client
d. Prior to entering into a contract for a specific transaction - ANS b. Before entering into a
dual agency transaction
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, Misty asked her prospective buyer clients whether they were working with another agent,
whether they had a house to sell, and whether they had a pre-qualification letter from their
lender. This process is known as...
a. Interrogating
b. Pre-qualifying
c. Snooping
d. Vetting - ANS b. Pre-qualifying
The power of the state to claim property when the owner dies without a will and without heirs
or creditors
a. Eminent domain
b. Escheat
c. Life Estate
d. Taking - ANS b. Escheat
Sanjiv recently signed a brokerage agreement with a landlord client. To be considered a valid
contract in Illinois, the agreement must have either a provision for the client's right to
terminate annually with a 30-day written notice or...
a. A firm expiration date
b. An automatic renewal clause
c. An option to renew clause
d. A right to early termination waiver - ANS a. A firm expiration date
Which of the following is one of your duties as a listing agent?
a. Disclose material facts to the seller only
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b. Hold confidential all facts from the buyer, even material facts
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, c. Promote your client's interests throughout the entire transaction
d. Secure a profit for your client - ANS c. Promote your client's interests throughout the
entire transaction
Which type of events are generally on a title insurance policy's schedule of exceptions?
a. Claims from an owner with an unrecorded deed
b. Claims that were filed in the public record before a title insurance policy's effective date
c. Liens or encumbrances that aren't in the public record
d. Mechanic's liens filed prior to a title insurance policy's effective date - ANS c. Liens or
encumbrances that aren't in the public record
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?
a. After-tax income
b. Gross income
c. Net income
d. Operating income - ANS b. Gross income
In transfer of ownership in real property, who conveys the title?
a. Conveyee
b. Grantee
c. Grantor
d. Title clerk - ANS c. Grantor
When an offer is prepared by the licensee for a buyer to present to a seller, who determines
the amount of the earnest money offered?
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Page
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QUESTIONS AND ANSWERS
Which of the following is an example of metes and bounds description?
a. 123 Roanoke Street Any Town, ST 98765
b. "Beginning at the iron pin 30 paces from the center of the bank that runs across the road
Southwesterly from the dwelling..."
c. Lot 6 of Block 3 of the Meridian subdivision
d. S 1/2 SE 1/4 NW 1/4 Section 2 - ANS b. "Beginning at the iron pin 30 paces from the center
of the bank that runs across the road Southwesterly from the dwelling..."
An investor receives title to a property, but she never makes mortgage payments and rents out
the home until foreclosure occurs. What type of mortgage fraud does this describe?
a. Equity skimming
b. False identity
c. Property flipping
d. Straw buyers - ANS a. Equity skimming
What's the name for a process that converts income to value?
1
a. Capitalization
Page
b. Conversion
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, c. Discounting
d. Projection - ANS a. Capitalization
When must the Residential Real Property Disclosure Act in Illinois be delivered to a prospective
buyer?
a. Before the buyer signs a purchase agreement
b. Before the property closes escrow.
c. Never. The disclosure is delivered to the seller.
d. When a prospective buyer first views a property - ANS a. Before the buyer signs a
purchase agreement
When is a transfer tax payable?
a. During the title search
b. When passing property from parent to child or between siblings
c. When the deed is recorded
d. When there is an equitable distribution between divorced spouses - ANS c. When the
deed is recorded
In Illinois, when must licensees obtain consent for dual agency representation?
a. As the situation arises
b. Before entering into a dual agency transaction
c. In the first face-to-face meeting with a potential client
d. Prior to entering into a contract for a specific transaction - ANS b. Before entering into a
dual agency transaction
2
Page
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, Misty asked her prospective buyer clients whether they were working with another agent,
whether they had a house to sell, and whether they had a pre-qualification letter from their
lender. This process is known as...
a. Interrogating
b. Pre-qualifying
c. Snooping
d. Vetting - ANS b. Pre-qualifying
The power of the state to claim property when the owner dies without a will and without heirs
or creditors
a. Eminent domain
b. Escheat
c. Life Estate
d. Taking - ANS b. Escheat
Sanjiv recently signed a brokerage agreement with a landlord client. To be considered a valid
contract in Illinois, the agreement must have either a provision for the client's right to
terminate annually with a 30-day written notice or...
a. A firm expiration date
b. An automatic renewal clause
c. An option to renew clause
d. A right to early termination waiver - ANS a. A firm expiration date
Which of the following is one of your duties as a listing agent?
a. Disclose material facts to the seller only
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Page
b. Hold confidential all facts from the buyer, even material facts
@COPYRIGHT BRAINBARTER 2025/2026
, c. Promote your client's interests throughout the entire transaction
d. Secure a profit for your client - ANS c. Promote your client's interests throughout the
entire transaction
Which type of events are generally on a title insurance policy's schedule of exceptions?
a. Claims from an owner with an unrecorded deed
b. Claims that were filed in the public record before a title insurance policy's effective date
c. Liens or encumbrances that aren't in the public record
d. Mechanic's liens filed prior to a title insurance policy's effective date - ANS c. Liens or
encumbrances that aren't in the public record
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?
a. After-tax income
b. Gross income
c. Net income
d. Operating income - ANS b. Gross income
In transfer of ownership in real property, who conveys the title?
a. Conveyee
b. Grantee
c. Grantor
d. Title clerk - ANS c. Grantor
When an offer is prepared by the licensee for a buyer to present to a seller, who determines
the amount of the earnest money offered?
4
Page
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