2026 EXAM | SMART PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS (PROFESSOR VERIFIED) |
ALREADY GRADED A+
Private land uses are normally dictated by:
A » title insurance
B » appraisers
C » private deed covenants
D » judges - CORRECT ANSWER -C. Private deed covenant
A judgment against a seller has been recorded on the public record. A buyer is interested in
purchasing the seller's property but does not know about the judgment. The buyer is said to have:
A » actual notice
B » preventive notice
C » corrective notice
D » constructive notice - CORRECT ANSWER -D. Constructive notice
The main difference between a cooperative and condominium is that:
A » a cooperative owner obtains fee simple title to the unit
B » a cooperative owner pays their own taxes and mortgage on the unit
C » a condominium owner owns and finances their own unit
D » a condominium owner receives a proprietary lease - CORRECT ANSWER -C. a
condominium owner owns and finances their own unit
An industrial building sold for $535,000. The listing broker charged a 4.5% commission
agreeing to cooperate with other brokers and split the commission 50/50. If a cooperating broker
sold the property, how much would each of the brokers receive?
A » $10,535.50
,B » $12,037.50
C » $24,075.00
D » $28,975.00 - CORRECT ANSWER -B. $12,037.50
A violation of the federal fair housing laws:
A » may be a criminal act
B » must involve actual damages
C » is permissible under certain circumstances
D » must be filed with HUD within three years of the act - CORRECT ANSWER -a. may be a
criminal act
What is the main difference between a freehold estate and a non-freehold estate?
A » A freehold estate always involves ownership
B » A freehold estate ends when a life estate terminates
C » A freehold estate is always inheritable
D » A freehold estate is for a fixed period of time - CORRECT ANSWER -A. A freehold estate
always involves ownership
An agency agreement between a seller and broker is normally created with an:
A » implied agreement
B » offer and acceptance agreement
C » expressed agreement
D » option agreement - CORRECT ANSWER -C » expressed agreement
A buyer's agent presents an offer to a seller. The buyer's agent is not acting as a dual agent. In
relation to the buyer's agent, the seller would be a(n):
A » client
B » customer
,C » principal
D » prospect - CORRECT ANSWER -B. Customer
With the exception of real estate taxes, liens generally are repaid at a foreclosure sale based on
the:
A » dollar amount of the lien
B » actual need of the creditors involved
C » recording date of the lien
D » original date of the agreement that led to the lien being filed - CORRECT ANSWER -c.
recording date of the lien
Which of the following would NOT be a protected class under the federal fair housing laws?
A » A person with children under 18
B » A person with a mental handicap
C » A person with a different national origin
D » A person currently using illegal substances - CORRECT ANSWER -D. A person currently
using illegal substances
A deed restriction would apply to the:
A » current owner only
B » present and future owners
C » original developer
D » homes association - CORRECT ANSWER -b. present and future owners
Regarding office policies in Illinois:
A » each office must have a written office policy manual
B » offices must have written OR oral policies
C » office policy manuals are standard and dictated by state law
, D » no office policy manuals are required - CORRECT ANSWER -a. each office must have a
written office policy manual
In a land contract or contract for deed, the seller who retains the fee simple title is referred to as
the:
A » optionor
B » optionee
C » vendee
D » vendor - CORRECT ANSWER -d. Vendor
seller is always called a vendor!!!!
An item in a house that is usually easy and inexpensive to remedy is:
A » a structural foundation issue
B » a roof replacement
C » major water leaks in a basement
D » radon gas - CORRECT ANSWER -d. radon gas
A land contract is also referred to as a(n):
A » right of first refusal
B » installment contract
C » option contract
D » listing contract - CORRECT ANSWER -B. Installment contract or contract for deed
A property that contains asbestos insulation wrapped around pipes would be best remedied by:
A » removing the insulation
B » encapsulation
C » replacing the pipes
CORRECT ANSWERS (PROFESSOR VERIFIED) |
ALREADY GRADED A+
Private land uses are normally dictated by:
A » title insurance
B » appraisers
C » private deed covenants
D » judges - CORRECT ANSWER -C. Private deed covenant
A judgment against a seller has been recorded on the public record. A buyer is interested in
purchasing the seller's property but does not know about the judgment. The buyer is said to have:
A » actual notice
B » preventive notice
C » corrective notice
D » constructive notice - CORRECT ANSWER -D. Constructive notice
The main difference between a cooperative and condominium is that:
A » a cooperative owner obtains fee simple title to the unit
B » a cooperative owner pays their own taxes and mortgage on the unit
C » a condominium owner owns and finances their own unit
D » a condominium owner receives a proprietary lease - CORRECT ANSWER -C. a
condominium owner owns and finances their own unit
An industrial building sold for $535,000. The listing broker charged a 4.5% commission
agreeing to cooperate with other brokers and split the commission 50/50. If a cooperating broker
sold the property, how much would each of the brokers receive?
A » $10,535.50
,B » $12,037.50
C » $24,075.00
D » $28,975.00 - CORRECT ANSWER -B. $12,037.50
A violation of the federal fair housing laws:
A » may be a criminal act
B » must involve actual damages
C » is permissible under certain circumstances
D » must be filed with HUD within three years of the act - CORRECT ANSWER -a. may be a
criminal act
What is the main difference between a freehold estate and a non-freehold estate?
A » A freehold estate always involves ownership
B » A freehold estate ends when a life estate terminates
C » A freehold estate is always inheritable
D » A freehold estate is for a fixed period of time - CORRECT ANSWER -A. A freehold estate
always involves ownership
An agency agreement between a seller and broker is normally created with an:
A » implied agreement
B » offer and acceptance agreement
C » expressed agreement
D » option agreement - CORRECT ANSWER -C » expressed agreement
A buyer's agent presents an offer to a seller. The buyer's agent is not acting as a dual agent. In
relation to the buyer's agent, the seller would be a(n):
A » client
B » customer
,C » principal
D » prospect - CORRECT ANSWER -B. Customer
With the exception of real estate taxes, liens generally are repaid at a foreclosure sale based on
the:
A » dollar amount of the lien
B » actual need of the creditors involved
C » recording date of the lien
D » original date of the agreement that led to the lien being filed - CORRECT ANSWER -c.
recording date of the lien
Which of the following would NOT be a protected class under the federal fair housing laws?
A » A person with children under 18
B » A person with a mental handicap
C » A person with a different national origin
D » A person currently using illegal substances - CORRECT ANSWER -D. A person currently
using illegal substances
A deed restriction would apply to the:
A » current owner only
B » present and future owners
C » original developer
D » homes association - CORRECT ANSWER -b. present and future owners
Regarding office policies in Illinois:
A » each office must have a written office policy manual
B » offices must have written OR oral policies
C » office policy manuals are standard and dictated by state law
, D » no office policy manuals are required - CORRECT ANSWER -a. each office must have a
written office policy manual
In a land contract or contract for deed, the seller who retains the fee simple title is referred to as
the:
A » optionor
B » optionee
C » vendee
D » vendor - CORRECT ANSWER -d. Vendor
seller is always called a vendor!!!!
An item in a house that is usually easy and inexpensive to remedy is:
A » a structural foundation issue
B » a roof replacement
C » major water leaks in a basement
D » radon gas - CORRECT ANSWER -d. radon gas
A land contract is also referred to as a(n):
A » right of first refusal
B » installment contract
C » option contract
D » listing contract - CORRECT ANSWER -B. Installment contract or contract for deed
A property that contains asbestos insulation wrapped around pipes would be best remedied by:
A » removing the insulation
B » encapsulation
C » replacing the pipes
