IL Real Estate Broker PSI Practice
Exam and All Correct Answers 2026
Updated.
A licensee was showing property in an eight-unit complex to a prospective tenant using a
motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom, and
lower all the door handles. The landlord... - Answer Must allow the tenant to make the
modifications at the tenant’s expense, but can require, by the terms of the lease, restoration of
the property
Which of the following is the best description of a fee simple estate? - Answer The most
complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-SPAM Act, the
licensee must - Answer Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm. Has
an agency been formed? - Answer Yes, because an agency is formed whenever one party
delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - Answer control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The broker
has a financial interest in this particular mortgage lender. Which of the following should the
licensee recommend to buyers? - Answer Consider this lender, disclosing the broker's
interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and continued
through July 31, 2010. The couple had - Answer An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers which
of the following pieces of information to a prospective buyer? - Answer You should make an
offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in value
and she wants money for an investment. The new mortgage rate is 1% lower than the old rate.
What is this process called? - Answer refinancing
, An enforceable purchase agreement is formed when - Answer the buyer knows of the
seller's written acceptance of the offer
Which of the following is generally income tax deductible in home ownership? - Answer
points paid to obtain the loan
Which of the following is true concerning eminent domain? - Answer The property is taken
through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of
- Answer demanding immediate payment of the entire loan balance.
An owner has been asked to grand a 60-day option to purchase a property. When should the
purchase price be decided? - Answer Upon creation and signing of the option to purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for single-family
dwellings? - Answer Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - Answer obtaining
information from prospective tenants to determine if they are financially able to afford the rent.
Which of the following is a characteristic of a limited partner's role in a limited partnership? -
Answer reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - Answer consideration
A home equity line of credit is - Answer a secured loan
Which of the following factors tends to increase the price of residential real estate in a given
area? - Answer a large manufacturing plant opening in the city. If a large plant opens in a
city, the employment opportunities increase and more employees would be buying houses,
increasing demand
Four people bought an investment property together, each having an equal ownership interest.
They took title in such a manner that if one died he could leave his one-fourth interest to his
heirs. How did they take title to the real estate? - Answer tenants in common. Each owner
can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans for an
amount equal to twice the annual income. Disregarding minimum percentage down payment
Exam and All Correct Answers 2026
Updated.
A licensee was showing property in an eight-unit complex to a prospective tenant using a
motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom, and
lower all the door handles. The landlord... - Answer Must allow the tenant to make the
modifications at the tenant’s expense, but can require, by the terms of the lease, restoration of
the property
Which of the following is the best description of a fee simple estate? - Answer The most
complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-SPAM Act, the
licensee must - Answer Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm. Has
an agency been formed? - Answer Yes, because an agency is formed whenever one party
delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - Answer control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The broker
has a financial interest in this particular mortgage lender. Which of the following should the
licensee recommend to buyers? - Answer Consider this lender, disclosing the broker's
interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and continued
through July 31, 2010. The couple had - Answer An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers which
of the following pieces of information to a prospective buyer? - Answer You should make an
offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in value
and she wants money for an investment. The new mortgage rate is 1% lower than the old rate.
What is this process called? - Answer refinancing
, An enforceable purchase agreement is formed when - Answer the buyer knows of the
seller's written acceptance of the offer
Which of the following is generally income tax deductible in home ownership? - Answer
points paid to obtain the loan
Which of the following is true concerning eminent domain? - Answer The property is taken
through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of
- Answer demanding immediate payment of the entire loan balance.
An owner has been asked to grand a 60-day option to purchase a property. When should the
purchase price be decided? - Answer Upon creation and signing of the option to purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for single-family
dwellings? - Answer Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - Answer obtaining
information from prospective tenants to determine if they are financially able to afford the rent.
Which of the following is a characteristic of a limited partner's role in a limited partnership? -
Answer reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - Answer consideration
A home equity line of credit is - Answer a secured loan
Which of the following factors tends to increase the price of residential real estate in a given
area? - Answer a large manufacturing plant opening in the city. If a large plant opens in a
city, the employment opportunities increase and more employees would be buying houses,
increasing demand
Four people bought an investment property together, each having an equal ownership interest.
They took title in such a manner that if one died he could leave his one-fourth interest to his
heirs. How did they take title to the real estate? - Answer tenants in common. Each owner
can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans for an
amount equal to twice the annual income. Disregarding minimum percentage down payment
