ILLINOIS REAL ESTATE EXAM 2024/2025 WITH 100% ACCURATE
SOLUTIONS
Objectives of Federal Reserve System - Precise 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 - Precise 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. -
Precise Answer ✔✔The entire loan principal is due at the end of the
loan period
Best evidence of marketable title - Precise Answer ✔✔Title Insurance
Balloon Loan - Precise 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 - Precise Answer ✔✔Brokers should deposit all earnest
money checks they receive into an escrow account or trust account to
prevent being accused.
,Conversion - Precise Answer ✔✔Fancy name for theft
Puffing - Precise 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: - Precise Answer
✔✔Estimates the property's market value
Local zoning ordinances are used to regulate - Precise 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? - Precise 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: - Precise Answer ✔✔The building is a
nonconforming use
Servient Tenement - Precise 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 - Precise Answer ✔✔Benefits from the servient
tenement
What is the amount of real estate tax due on a property with a market
value of $140,000 if it is assessed at 30% of market value, has an
equalizer of 1.5, and a tax rate of $5.00 per $100.00 of assessed value? -
Precise Answer ✔✔140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
Easements - Precise Answer ✔✔Are rights of way on someone else's
land
Easement By Necessity - Precise Answer ✔✔A property owner
subdivided a piece of property, selling the front half and retaining the
back half. The back half of the property retained by the owner does not
have access to any roads. The type of easement the courts might grant in
this situation is
Easement In Gross - Precise Answer ✔✔Utilities
Easement By Prescription - Precise Answer ✔✔Trespassers rights due
for a period of time you earn 20 years
, Easement Appurtenant - Precise Answer ✔✔For adjacent properties it's
a right
Personal Easement In Gross - Precise Answer ✔✔Individual access to
property not transferable only till alive
Adverse Possession - Precise Answer ✔✔Squatter Rights 20 years to
earn it
License - Precise Answer ✔✔Personal privilege last for specific period
of time
A property manager defaulted on a mortgage and the lender foreclosed
on the property. The property sold at the foreclosure sale for less than
the loan balance. To recover the remainder of the money, the lender
may: - Precise Answer ✔✔Obtain a deficiency judgement
On Wednesday, Sam offers to sell his house to Beau for $220,000. On
Sunday, Beau makes a counter offer of $210,000. On Friday, Beau
withdraws the counter offer of $210,000 and accepts Sam's offer of
$220,000. In this situation, there is: - Precise Answer ✔✔No valid
agreement because Beau's counteroffer ended Sam's offer
(Just change one aspect and you kill the contract)
Graduated Payment Loan - Precise Answer ✔✔Amount goes up after
period of time
SOLUTIONS
Objectives of Federal Reserve System - Precise 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 - Precise 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. -
Precise Answer ✔✔The entire loan principal is due at the end of the
loan period
Best evidence of marketable title - Precise Answer ✔✔Title Insurance
Balloon Loan - Precise 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 - Precise Answer ✔✔Brokers should deposit all earnest
money checks they receive into an escrow account or trust account to
prevent being accused.
,Conversion - Precise Answer ✔✔Fancy name for theft
Puffing - Precise 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: - Precise Answer
✔✔Estimates the property's market value
Local zoning ordinances are used to regulate - Precise 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? - Precise 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: - Precise Answer ✔✔The building is a
nonconforming use
Servient Tenement - Precise 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 - Precise Answer ✔✔Benefits from the servient
tenement
What is the amount of real estate tax due on a property with a market
value of $140,000 if it is assessed at 30% of market value, has an
equalizer of 1.5, and a tax rate of $5.00 per $100.00 of assessed value? -
Precise Answer ✔✔140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
Easements - Precise Answer ✔✔Are rights of way on someone else's
land
Easement By Necessity - Precise Answer ✔✔A property owner
subdivided a piece of property, selling the front half and retaining the
back half. The back half of the property retained by the owner does not
have access to any roads. The type of easement the courts might grant in
this situation is
Easement In Gross - Precise Answer ✔✔Utilities
Easement By Prescription - Precise Answer ✔✔Trespassers rights due
for a period of time you earn 20 years
, Easement Appurtenant - Precise Answer ✔✔For adjacent properties it's
a right
Personal Easement In Gross - Precise Answer ✔✔Individual access to
property not transferable only till alive
Adverse Possession - Precise Answer ✔✔Squatter Rights 20 years to
earn it
License - Precise Answer ✔✔Personal privilege last for specific period
of time
A property manager defaulted on a mortgage and the lender foreclosed
on the property. The property sold at the foreclosure sale for less than
the loan balance. To recover the remainder of the money, the lender
may: - Precise Answer ✔✔Obtain a deficiency judgement
On Wednesday, Sam offers to sell his house to Beau for $220,000. On
Sunday, Beau makes a counter offer of $210,000. On Friday, Beau
withdraws the counter offer of $210,000 and accepts Sam's offer of
$220,000. In this situation, there is: - Precise Answer ✔✔No valid
agreement because Beau's counteroffer ended Sam's offer
(Just change one aspect and you kill the contract)
Graduated Payment Loan - Precise Answer ✔✔Amount goes up after
period of time
