ILLINOIS REAL ESTATE BROKER EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF
Core Domains
- Property Ownership and Estates
- Land Use Controls and Zoning
- Valuation and Market Analysis
- Real Estate Financing
- General Principles of Agency and Fiduciary Duties
- Contracts and Listing Agreements
- Property Disclosures and Material Facts
- Transfer of Title and Closing
- Fair Housing and Civil Rights Laws
- Illinois Licensing Law and Regulatory Compliance
This assessment is designed to evaluate a candidate’s comprehensive knowledge and professional competency
required to serve as a licensed real estate broker in Illinois. The exam tests both foundational theory and
applied decision-making skills across critical domains including agency relationships, contract law, property
ownership, financing, valuation, fair housing, and state-specific regulatory requirements. All questions are
multiple-choice, many presented as realistic scenarios that mirror actual practice situations. The emphasis is
on real-world application, ethical judgment, legal compliance, and the ability to analyze complex situations to
make sound professional decisions. Success on this exam demonstrates readiness to operate independently,
manage brokerage operations, and uphold the highest standards of professionalism in Illinois real estate
practice.
——————————————————————————————————————————
,SECTION ONE: QUESTIONS 1–100
Question 1
A broker lists a property for sale. The seller later dies before the property is sold. What happens to the listing
agreement?
A. It automatically transfers to the seller’s heirs
B. It remains enforceable by the broker against the estate
C. It is terminated by operation of law
D. It continues until the expiration date unless the heirs revoke it
🟢 Correct answer: C
🔴 RATIONALE: A listing agreement is a personal service contract that terminates upon the death of either
party (the principal or the agent) by operation of law. The estate cannot be bound to continue the agency
relationship.
Question 2
Which of the following best describes a fee simple absolute estate?
A. Ownership that lasts only for the life of the owner
B. Ownership with conditions that may cause forfeiture
C. The highest form of ownership with unconditional infinite duration
D. Ownership shared with right of survivorship
🟢 Correct answer: C
,🔴 RATIONALE: Fee simple absolute is the most complete form of ownership, providing unconditional rights
to use, possess, and dispose of property with infinite duration and no limitations.
Question 3
Under Illinois law, how many hours of post-licensing education must a new broker complete within the first two
years of licensure?
A. 12 hours
B. 24 hours
C. 30 hours
D. 45 hours
🟢 Correct answer: B
🔴 RATIONALE: Illinois requires new brokers to complete 24 hours of post-licensing education within the first
two-year licensing cycle to maintain active status.
Question 4
A buyer and seller sign a purchase agreement. The buyer deposits earnest money with the broker. Later, the
buyer defaults. Who decides how the earnest money is disbursed?
A. The broker automatically keeps it as commission
B. The seller automatically receives it
C. The court or a mutually signed release agreement between buyer and seller
D. The Illinois Real Estate Commission decides immediately
, 🟢 Correct answer: C
🔴 RATIONALE: Earn earnest money disputed due to default requires either a court order or a mutually signed
release from both parties before the broker may disburse funds. The broker cannot unilaterally decide.
Question 5
Which fair housing protection was added by the Fair Housing Amendments Act of 1988?
A. Race
B. Religion
C. Familial status and disability
D. National origin
🟢 Correct answer: C
🔴 RATIONALE: The 1988 amendments added familial status (presence of children under 18) and disability
(handicap) as protected classes under federal fair housing law.
Question 6
A property has an annual net operating income of $48,000 and sells for $600,000. What is the capitalization
rate?
A. 6%
B. 8%
C. 10%
D. 12%
ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF
Core Domains
- Property Ownership and Estates
- Land Use Controls and Zoning
- Valuation and Market Analysis
- Real Estate Financing
- General Principles of Agency and Fiduciary Duties
- Contracts and Listing Agreements
- Property Disclosures and Material Facts
- Transfer of Title and Closing
- Fair Housing and Civil Rights Laws
- Illinois Licensing Law and Regulatory Compliance
This assessment is designed to evaluate a candidate’s comprehensive knowledge and professional competency
required to serve as a licensed real estate broker in Illinois. The exam tests both foundational theory and
applied decision-making skills across critical domains including agency relationships, contract law, property
ownership, financing, valuation, fair housing, and state-specific regulatory requirements. All questions are
multiple-choice, many presented as realistic scenarios that mirror actual practice situations. The emphasis is
on real-world application, ethical judgment, legal compliance, and the ability to analyze complex situations to
make sound professional decisions. Success on this exam demonstrates readiness to operate independently,
manage brokerage operations, and uphold the highest standards of professionalism in Illinois real estate
practice.
——————————————————————————————————————————
,SECTION ONE: QUESTIONS 1–100
Question 1
A broker lists a property for sale. The seller later dies before the property is sold. What happens to the listing
agreement?
A. It automatically transfers to the seller’s heirs
B. It remains enforceable by the broker against the estate
C. It is terminated by operation of law
D. It continues until the expiration date unless the heirs revoke it
🟢 Correct answer: C
🔴 RATIONALE: A listing agreement is a personal service contract that terminates upon the death of either
party (the principal or the agent) by operation of law. The estate cannot be bound to continue the agency
relationship.
Question 2
Which of the following best describes a fee simple absolute estate?
A. Ownership that lasts only for the life of the owner
B. Ownership with conditions that may cause forfeiture
C. The highest form of ownership with unconditional infinite duration
D. Ownership shared with right of survivorship
🟢 Correct answer: C
,🔴 RATIONALE: Fee simple absolute is the most complete form of ownership, providing unconditional rights
to use, possess, and dispose of property with infinite duration and no limitations.
Question 3
Under Illinois law, how many hours of post-licensing education must a new broker complete within the first two
years of licensure?
A. 12 hours
B. 24 hours
C. 30 hours
D. 45 hours
🟢 Correct answer: B
🔴 RATIONALE: Illinois requires new brokers to complete 24 hours of post-licensing education within the first
two-year licensing cycle to maintain active status.
Question 4
A buyer and seller sign a purchase agreement. The buyer deposits earnest money with the broker. Later, the
buyer defaults. Who decides how the earnest money is disbursed?
A. The broker automatically keeps it as commission
B. The seller automatically receives it
C. The court or a mutually signed release agreement between buyer and seller
D. The Illinois Real Estate Commission decides immediately
, 🟢 Correct answer: C
🔴 RATIONALE: Earn earnest money disputed due to default requires either a court order or a mutually signed
release from both parties before the broker may disburse funds. The broker cannot unilaterally decide.
Question 5
Which fair housing protection was added by the Fair Housing Amendments Act of 1988?
A. Race
B. Religion
C. Familial status and disability
D. National origin
🟢 Correct answer: C
🔴 RATIONALE: The 1988 amendments added familial status (presence of children under 18) and disability
(handicap) as protected classes under federal fair housing law.
Question 6
A property has an annual net operating income of $48,000 and sells for $600,000. What is the capitalization
rate?
A. 6%
B. 8%
C. 10%
D. 12%
