ILLINOIS REAL ESTATE PRACTICE EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+

QUESTIONS AND 100% CORRECT


Objectives of Federal Reserve System -
B B B B B



ANSWER
B To counteract inflationary and deflationary trends, to create a favorable econ
B B B B B B B B B B



omic climate, to maintain sound credit conditions but NOT to control the secondary mortgage
B B B B B B B B B B B B B B



market



Remainder Interest - B B



BANSWER A fee simple holder of a parcel of real estate grants a life estate to her daughte
B B B B B B B B B B B B B B B B



r and stipulates that upon the daughters death, the property will pass to her grandson. The se
B B B B B B B B B B B B B B B B



cond estate is called
B B B




A property buyer obtains a term loan to finance a home purchase. -
B B B B B B B B B B B B



B ANSWER The entire loan principal is due at the end of the loan period
B B B B B B B B B B B B




Best evidence of marketable title - ANSWER
B B B B B B Title Insurance B




Balloon Loan - B B



ANSWER
B A borrower has a mortgage loan that requires monthly payments of $936.25 f
B B B B B B B B B B B B



or 10 years and a final payment of $136,287. Type of loan?
B B B B B B B B B B B




Commingling - B



ANSWER
B Brokers should deposit all earnest money checks they receive into an escrow
B B B B B B B B B B B B



account or trust account to prevent being accused.
B B B B B B B




Conversion - ANSWER B B Fancy name for theft B B B




Puffing - ANSWER B B Exaggeration of a fact it is legal as long as it doesn't come in as a fraud
B B B B B B B B B B B B B B B B




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Wicky

,In performing an appraisal of real estate, the appraiser: -
B B B B B B B B B



B ANSWER Estimates the property's market value B B B B




Local zoning ordinances are used to regulate -
B B B B B B B



ANSWER
B Allowable uses for buildings, building heights, population density NOT rules f B B B B B B B B B B



or the conducting open spaces
B B B B




After paying the brokers fee of 6%, a seller want to net $180,000 from the sale of his house. W
B B B B B B B B B B B B B B B B B B B



hat must the property sell for to satisfy both the eh broker and the seller? -
B B B B B B B B B B B B B B B



B ANSWER 100%-6%=94%=.94

180,000 / .94 = 191489 B B B B




A property owner constructed a commercial building on the property. Three years later an ord
B B B B B B B B B B B B B B



inance was passed prohibiting commercial buildings in the owners area: -
B B B B B B B B B B



B ANSWER The building is a nonconforming use
B B B B B




Servient Tenement - B B



BANSWER The owner of a parcel of land holds an easement right over an adjoining parce B B B B B B B B B B B B B B



l of land. The parcel of land on which the easement runs is referred to as the:
B B B B B B B B B B B B B B B B




Dominant Tenement - ANSWER B B B Benefits from the servient tenement B B B B




What is the amount of real estate tax due on a property with a market value of $140,000 if it is
B B B B B B B B B B B B B B B B B B B B B



assessed at 30% of market value, has an equalizer of 1.5, and a tax rate of $5.00 per $100.00 of
B B B B B B B B B B B B B B B B B B B



B assessed value? - ANSWER B B B 140,000 x .30 = 42,000 B B B B




42,000 x 1.5 = 63,000 B B B B




63,000 x .05 = 3150 B B B B




Easements - ANSWER B B Are rights of way on someone else's land
B B B B B B B




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Wicky

, Easement By Necessity - B B B



BANSWER A property owner subdivided a piece of property, selling the front half and ret
B B B B B B B B B B B B B



aining the back half. The back half of the property retained by the owner does not have access
B B B B B B B B B B B B B B B B B B



to any roads. The type of easement the courts might grant in this situation is
B B B B B B B B B B B B B B




Easement In Gross - ANSWER B B B B Utilities



Easement By Prescription - B B B



B ANSWER Trespassers rights due for a period of time you earn 20 years
B B B B B B B B B B B




Easement Appurtenant - ANSWER B B B For adjacent properties it's a right
B B B B B




Personal Easement In Gross - B B B B



B ANSWER Individual access to property not transferable only till alive
B B B B B B B B




Adverse Possession - ANSWER B B B Squatter Rights 20 years to earn it B B B B B B




License - ANSWER B B Personal privilege last for specific period of time
B B B B B B B




A property manager defaulted on a mortgage and the lender foreclosed on the property. The
B B B B B B B B B B B B B B B



property sold at the foreclosure sale for less than the loan balance. To recover the remainder
B B B B B B B B B B B B B B B B



of the money, the lender may: - ANSWER
B B B B B B B Obtain a deficiency judgement B B B




On Wednesday, Sam offers to sell his house to Beau for $220,000. On Sunday, Beau makes a co
B B B B B B B B B B B B B B B B B



unter offer of $210,000. On Friday, Beau withdraws the counter offer of $210,000 and accepts
B B B B B B B B B B B B B B B



Sam's offer of $220,000. In this situation, there is: -
B B B B B B B B B



B ANSWER No valid agreement because Beau's counteroffer ended Sam's offer
B B B B B B B B B




(Just change one aspect and you kill the contract)
B B B B B B B B




Graduated Payment Loan - ANSWER B B B B Amount goes up after period of time B B B B B B




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Wicky