ILLINOIS REAL ESTATE PRACTICE EXAM | QUESTIONS AND
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | EXAM
ALREADY GRADED A+ | LATEST EXAM UPDATE
Objectives of Federal Reserve System - CORRECT 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 - CORRECT 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. - CORRECT
ANSWER -The entire loan principal is due at the end of the loan period
Best evidence of marketable title - CORRECT ANSWER -Title Insurance
Balloon Loan - CORRECT 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 - CORRECT ANSWER -Brokers should deposit all earnest
money checks they receive into an escrow account or trust account to prevent
being accused.
Conversion - CORRECT ANSWER -Fancy name for theft
,Puffing - CORRECT 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: - CORRECT
ANSWER -Estimates the property's market value
Local zoning ordinances are used to regulate - CORRECT 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? - CORRECT 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: - CORRECT ANSWER -The building is a nonconforming use
Servient Tenement - CORRECT 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 - CORRECT 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? - CORRECT ANSWER -
140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
, 63,000 x .05 = 3150
Easements - CORRECT ANSWER -Are rights of way on someone else's land
Easement By Necessity - CORRECT 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 - CORRECT ANSWER -Utilities
Easement By Prescription - CORRECT ANSWER -Trespassers rights due for
a period of time you earn 20 years
Easement Appurtenant - CORRECT ANSWER -For adjacent properties it's a
right
Personal Easement In Gross - CORRECT ANSWER -Individual access to
property not transferable only till alive
Adverse Possession - CORRECT ANSWER -Squatter Rights 20 years to earn
it
License - CORRECT 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: - CORRECT
ANSWER -Obtain a deficiency judgement
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | EXAM
ALREADY GRADED A+ | LATEST EXAM UPDATE
Objectives of Federal Reserve System - CORRECT 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 - CORRECT 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. - CORRECT
ANSWER -The entire loan principal is due at the end of the loan period
Best evidence of marketable title - CORRECT ANSWER -Title Insurance
Balloon Loan - CORRECT 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 - CORRECT ANSWER -Brokers should deposit all earnest
money checks they receive into an escrow account or trust account to prevent
being accused.
Conversion - CORRECT ANSWER -Fancy name for theft
,Puffing - CORRECT 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: - CORRECT
ANSWER -Estimates the property's market value
Local zoning ordinances are used to regulate - CORRECT 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? - CORRECT 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: - CORRECT ANSWER -The building is a nonconforming use
Servient Tenement - CORRECT 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 - CORRECT 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? - CORRECT ANSWER -
140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
, 63,000 x .05 = 3150
Easements - CORRECT ANSWER -Are rights of way on someone else's land
Easement By Necessity - CORRECT 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 - CORRECT ANSWER -Utilities
Easement By Prescription - CORRECT ANSWER -Trespassers rights due for
a period of time you earn 20 years
Easement Appurtenant - CORRECT ANSWER -For adjacent properties it's a
right
Personal Easement In Gross - CORRECT ANSWER -Individual access to
property not transferable only till alive
Adverse Possession - CORRECT ANSWER -Squatter Rights 20 years to earn
it
License - CORRECT 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: - CORRECT
ANSWER -Obtain a deficiency judgement
