1 | Page
ILLINOIS REAL ESTATE BROKER
PRACTICE EXAM — QUESTIONS WITH
VERIFIED ANSWERS AND COMPLETE
RATIONALES
## SECTION 1: ILLINOIS LICENSE LAW & AGENCY
**1. Marquis Realty moved to a larger office in a busier part of
town. What is one of the first things the firm is required by
Illinois licensing laws to do?**
A. Change the bank that holds their trust funds to one closer to
the new office
B. Change the office location address for all the firm's
sponsored licensees within 24 hours
C. Notify all the firm's past and current clients of the new
location within five days
D. Notify the Division of Real Estate immediately
**Correct answer:** D
**Rationale:** Marquis must **immediately notify the Division of
Real Estate** about the change in location. This is a specific
Illinois requirement for brokerage firms.
,2 | Page
**2. Renda, an Illinois licensee, meets with Julie, who wants to
buy a house. Julie has bought and sold many properties, and
she wants Renda to help her just with contract forms and
negotiations with the seller. What does Renda need to do?**
A. Provide Julie with a Disclosure and Consent to Dual Agency
form
B. Provide Julie with a Non-Agency Disclosure and Consent
form
C. Refuse to work with Julie unless she signs a representation
agreement
D. Require that Julie sign an Indemnity and Disclosure form
**Correct answer:** B
**Rationale:** Any time a consumer requests assistance from
an Illinois licensee but chooses **not to sign a representation
agreement**, the licensee must provide a **Non-Agency
Disclosure and Consent form** for signatures.
**3. In Illinois, in order to engage in dual agency, a licensee
must have written informed consent from both the buyer and
the seller. When must it be obtained?**
A. At any time, as long as there is an agency agreement in
place with each party
, 3 | Page
B. Once the purchase contract has been accepted and signed
C. Prior to entering into the purchase contract for the
transaction
D. When entering into a listing/buyer agreement with the client
**Correct answer:** D
**Rationale:** Informed consent must be obtained **at the time
a listing/buyer agreement is signed**, to provide the client an
opportunity to make an informed choice whether or not to
accept dual agency. Clients can revoke their permission at any
time.
**4. In Illinois, a real estate license is required for which of the
following activities?**
A. A property owner selling their own single-family home
B. An attorney conducting a real estate closing as part of their
legal practice
C. A person who, for compensation, lists and markets a
neighbor's property for sale
D. A salaried employee of a property management company
who shows apartments to prospective tenants
**Correct answer:** C
ILLINOIS REAL ESTATE BROKER
PRACTICE EXAM — QUESTIONS WITH
VERIFIED ANSWERS AND COMPLETE
RATIONALES
## SECTION 1: ILLINOIS LICENSE LAW & AGENCY
**1. Marquis Realty moved to a larger office in a busier part of
town. What is one of the first things the firm is required by
Illinois licensing laws to do?**
A. Change the bank that holds their trust funds to one closer to
the new office
B. Change the office location address for all the firm's
sponsored licensees within 24 hours
C. Notify all the firm's past and current clients of the new
location within five days
D. Notify the Division of Real Estate immediately
**Correct answer:** D
**Rationale:** Marquis must **immediately notify the Division of
Real Estate** about the change in location. This is a specific
Illinois requirement for brokerage firms.
,2 | Page
**2. Renda, an Illinois licensee, meets with Julie, who wants to
buy a house. Julie has bought and sold many properties, and
she wants Renda to help her just with contract forms and
negotiations with the seller. What does Renda need to do?**
A. Provide Julie with a Disclosure and Consent to Dual Agency
form
B. Provide Julie with a Non-Agency Disclosure and Consent
form
C. Refuse to work with Julie unless she signs a representation
agreement
D. Require that Julie sign an Indemnity and Disclosure form
**Correct answer:** B
**Rationale:** Any time a consumer requests assistance from
an Illinois licensee but chooses **not to sign a representation
agreement**, the licensee must provide a **Non-Agency
Disclosure and Consent form** for signatures.
**3. In Illinois, in order to engage in dual agency, a licensee
must have written informed consent from both the buyer and
the seller. When must it be obtained?**
A. At any time, as long as there is an agency agreement in
place with each party
, 3 | Page
B. Once the purchase contract has been accepted and signed
C. Prior to entering into the purchase contract for the
transaction
D. When entering into a listing/buyer agreement with the client
**Correct answer:** D
**Rationale:** Informed consent must be obtained **at the time
a listing/buyer agreement is signed**, to provide the client an
opportunity to make an informed choice whether or not to
accept dual agency. Clients can revoke their permission at any
time.
**4. In Illinois, a real estate license is required for which of the
following activities?**
A. A property owner selling their own single-family home
B. An attorney conducting a real estate closing as part of their
legal practice
C. A person who, for compensation, lists and markets a
neighbor's property for sale
D. A salaried employee of a property management company
who shows apartments to prospective tenants
**Correct answer:** C
