Real Estate Illinois Exam 2026 Questions
and Answers
What are the five categories of real property? - Correct answer-1. Residential
2. Commercial
3. Industrial
4. Agriculture
5. Special Purpose
Labor force, construction costs, government controls, government financial
policies affect ____. - Correct answer-Supply (is affected by...)
Population, demographics, employment and wage levels affect ____. - Correct
answer-Demand (is affected by...)
What is the difference between real estate and real property? - Correct answer-Real
estate is land plus improvements; real property is real estate with rights.
Scarcity, improvements, permanence of investment, and location are _____. -
Correct answer-Economic characteristics of real estate
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,Immobility, indestructibility, uniqueness are _____. - Correct answer-Physical
characteristics of real estate
The costs of owning a home include... (What does PITI stand for?) - Correct
answer-Principle (mortgage), interest, taxes, insurance
A client is... - Correct answer-The principal who recieves services, advice, and
counsel from an agency. A buyer is a client/principal of the buyer's agent.
A customer is... - Correct answer-Someone who receives information from an
agency. A buyer is a customer of the selling agent.
A consumer is... - Correct answer-Someone who seeks services from an agency.
What are the six fiduciary duties? - Correct answer-1. Care
2. Obedience
3. Loyalty
4. Disclosure
5. Accounting
6. Confidentiality
A general agent... - Correct answer-represents the principal (ex: an agent is a
general agent to the sponsoring broker)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,A special agent... - Correct answer-represents the principal in one specific
transaction (ex: sale of a property to buyer or for seller)
A universal agent... - Correct answer-is authorized to act for the principal entirely;
in Illinois, a written power of attorney is required
A designated agent... - Correct answer-is authorized by the sponsoring broker for a
specific principal (ex: an agent assigned to represent a principal in a sale to avoid
dual agency); is recognized in illinois
Price fixing is... - Correct answer-illegal agreements among companies to set
prices.
Group boycotting is... - Correct answer-illegal agreements between companies to
conspire or withhold business.
Allocation of customers is... - Correct answer-illegal agreements among companies
to divide territories based price range.
Allocation of markets is... - Correct answer-illegal agreements among companies
to divide territories based on geography.
Tie-in/tying agreements are... - Correct answer-illegal agreement to sell one
product only with the promise of purchasing another (less desirable) product.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Exclusive Right-to-Sell Listing - Correct answer-One broker receives the
commission regardless of who sells the property.
Exclusive-Agency Listing - Correct answer-One broker receives the commission if
they are the procuring cause of sale (or a cooperating broker finds a buyer); the
seller can sell the property and would not pay commission.
Open Listing - Correct answer-Multiple brokers are employed and commission is
paid to the broker that finds a ready, willing, and able buyer.
Net Listing - Correct answer-The seller receives a set amount of money and the
broker receives anything additional.
Option Listing - Correct answer-The broker may purchase the property; in a
guaranteed sale agreement the broker agrees to buy the property if it fails to sell by
the end of the listing agreement. The broker must make reasonable attempts to sell
the property.
The four government powers are... (What does PETE stand for?) - Correct answer-
1. Police power
2. Eminent domain
3. Taxation
4. Escheat
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers
What are the five categories of real property? - Correct answer-1. Residential
2. Commercial
3. Industrial
4. Agriculture
5. Special Purpose
Labor force, construction costs, government controls, government financial
policies affect ____. - Correct answer-Supply (is affected by...)
Population, demographics, employment and wage levels affect ____. - Correct
answer-Demand (is affected by...)
What is the difference between real estate and real property? - Correct answer-Real
estate is land plus improvements; real property is real estate with rights.
Scarcity, improvements, permanence of investment, and location are _____. -
Correct answer-Economic characteristics of real estate
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Immobility, indestructibility, uniqueness are _____. - Correct answer-Physical
characteristics of real estate
The costs of owning a home include... (What does PITI stand for?) - Correct
answer-Principle (mortgage), interest, taxes, insurance
A client is... - Correct answer-The principal who recieves services, advice, and
counsel from an agency. A buyer is a client/principal of the buyer's agent.
A customer is... - Correct answer-Someone who receives information from an
agency. A buyer is a customer of the selling agent.
A consumer is... - Correct answer-Someone who seeks services from an agency.
What are the six fiduciary duties? - Correct answer-1. Care
2. Obedience
3. Loyalty
4. Disclosure
5. Accounting
6. Confidentiality
A general agent... - Correct answer-represents the principal (ex: an agent is a
general agent to the sponsoring broker)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,A special agent... - Correct answer-represents the principal in one specific
transaction (ex: sale of a property to buyer or for seller)
A universal agent... - Correct answer-is authorized to act for the principal entirely;
in Illinois, a written power of attorney is required
A designated agent... - Correct answer-is authorized by the sponsoring broker for a
specific principal (ex: an agent assigned to represent a principal in a sale to avoid
dual agency); is recognized in illinois
Price fixing is... - Correct answer-illegal agreements among companies to set
prices.
Group boycotting is... - Correct answer-illegal agreements between companies to
conspire or withhold business.
Allocation of customers is... - Correct answer-illegal agreements among companies
to divide territories based price range.
Allocation of markets is... - Correct answer-illegal agreements among companies
to divide territories based on geography.
Tie-in/tying agreements are... - Correct answer-illegal agreement to sell one
product only with the promise of purchasing another (less desirable) product.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Exclusive Right-to-Sell Listing - Correct answer-One broker receives the
commission regardless of who sells the property.
Exclusive-Agency Listing - Correct answer-One broker receives the commission if
they are the procuring cause of sale (or a cooperating broker finds a buyer); the
seller can sell the property and would not pay commission.
Open Listing - Correct answer-Multiple brokers are employed and commission is
paid to the broker that finds a ready, willing, and able buyer.
Net Listing - Correct answer-The seller receives a set amount of money and the
broker receives anything additional.
Option Listing - Correct answer-The broker may purchase the property; in a
guaranteed sale agreement the broker agrees to buy the property if it fails to sell by
the end of the listing agreement. The broker must make reasonable attempts to sell
the property.
The four government powers are... (What does PETE stand for?) - Correct answer-
1. Police power
2. Eminent domain
3. Taxation
4. Escheat
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
