ILLINOIS REAL ESTATE BROKER PSI FINAL EXAM
SCRIPT 2026 COMPLETE QUESTIONS AND
ANSWERS
◉Factors Affecting Supply . Answer: Labor Force (for construction)
Costs of Construction and Materials
Government Controls (Rates, VA/FHA, etc)
Local Controls (ordinances, zoning laws, etc.)
◉Factors Affecting Demand . Answer: Population
Demographics
Employment & Wage Levels
◉Bundle of Legal Rights . Answer: Possession (own it)
Control Property (do as you wish with it)
Enjoyment (legally)
Exclusion (keep others out)
Disposition (sell, transfer, will, etc)
◉Personal Property . Answer: Movable
,Removable
Used in course of business
Able to be detached without damage
Intended to be used by tenant, not owner
Trade fixtures (chattels)
Emblements (crops)
◉Chatel Fixture (Trade Fixture) . Answer: Annexation: personal
becomes real property
Accession: personal becomes realty if not removed at lease end;
Attachment:Personal becomes real property
Severance: Real becomes personal property
◉Economic Properties of RE (4) . Answer: Location
Scarcity
Improvements
Permanence of Investment
◉Physical Properties of RE (3) . Answer: Immobility
Indestructibility
Uniqueness
,◉Sources of RE Laws (7) . Answer: Constitution
Laws passed by Congress
Rules of regulatory agencies
State statutes
State Constitutions
Local Ordinances
Common Law
◉Housing Types . Answer: Apartments
Condo (common areas = tenancy in common)
Co-Op (corporation, tenants own stock, no common area ownership, all
financially liable to others)
Planned Unit Dev = Planned Community, Retirement Comm's, no
common area ownership.
MUD = highrise
Converted Use
, Manufactured Housing
◉Deductible Expenses . Answer: Mortgage Interest
RE Taxes
Loan Origination Fees
Loan Discount Points
LoanPrepayment Penalties
Regular maintenance & repairs
Captial Gains - 250K/500K (10-15% tax bracket)
◉Basic Form Homeowners Insurance . Answer: Fire
Lighting
Glass damage
wind/hail
Explosion
Riot
Aircraft/Vehicle
Smoke
Vandalism/Theft
Loss due to fire
◉Broad Form Homeownder's Insurance . Answer: Falling objects
SCRIPT 2026 COMPLETE QUESTIONS AND
ANSWERS
◉Factors Affecting Supply . Answer: Labor Force (for construction)
Costs of Construction and Materials
Government Controls (Rates, VA/FHA, etc)
Local Controls (ordinances, zoning laws, etc.)
◉Factors Affecting Demand . Answer: Population
Demographics
Employment & Wage Levels
◉Bundle of Legal Rights . Answer: Possession (own it)
Control Property (do as you wish with it)
Enjoyment (legally)
Exclusion (keep others out)
Disposition (sell, transfer, will, etc)
◉Personal Property . Answer: Movable
,Removable
Used in course of business
Able to be detached without damage
Intended to be used by tenant, not owner
Trade fixtures (chattels)
Emblements (crops)
◉Chatel Fixture (Trade Fixture) . Answer: Annexation: personal
becomes real property
Accession: personal becomes realty if not removed at lease end;
Attachment:Personal becomes real property
Severance: Real becomes personal property
◉Economic Properties of RE (4) . Answer: Location
Scarcity
Improvements
Permanence of Investment
◉Physical Properties of RE (3) . Answer: Immobility
Indestructibility
Uniqueness
,◉Sources of RE Laws (7) . Answer: Constitution
Laws passed by Congress
Rules of regulatory agencies
State statutes
State Constitutions
Local Ordinances
Common Law
◉Housing Types . Answer: Apartments
Condo (common areas = tenancy in common)
Co-Op (corporation, tenants own stock, no common area ownership, all
financially liable to others)
Planned Unit Dev = Planned Community, Retirement Comm's, no
common area ownership.
MUD = highrise
Converted Use
, Manufactured Housing
◉Deductible Expenses . Answer: Mortgage Interest
RE Taxes
Loan Origination Fees
Loan Discount Points
LoanPrepayment Penalties
Regular maintenance & repairs
Captial Gains - 250K/500K (10-15% tax bracket)
◉Basic Form Homeowners Insurance . Answer: Fire
Lighting
Glass damage
wind/hail
Explosion
Riot
Aircraft/Vehicle
Smoke
Vandalism/Theft
Loss due to fire
◉Broad Form Homeownder's Insurance . Answer: Falling objects
