ILLINOIS REAL ESTATE BROKER EXAM,
PRACTICE QUESTIONS WITH CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES
1. Which of the following is required for a valid real estate contract in
Illinois?
A. Oral agreement only
B. Written agreement only
C. Consideration, offer, acceptance, and legal purpose
D. Notarization
Answer: C
Rationale: A valid contract requires consideration, offer, acceptance,
and a legal purpose. Not all contracts need to be notarized.
2. In Illinois, the broker’s fiduciary duty to the client includes all of the
following EXCEPT:
A. Loyalty
B. Obedience
C. Honesty
D. Concealment of material facts
Answer: D
Rationale: Brokers must disclose material facts; concealing them
violates fiduciary duty.
3. The Illinois Real Estate License Act is enforced by:
A. Illinois Department of Commerce
B. Illinois Department of Financial and Professional Regulation (IDFPR)
C. Illinois Attorney General
,D. Illinois Supreme Court
Answer: B
Rationale: The IDFPR oversees licensing and enforcement of the Real
Estate License Act.
4. An Illinois broker must maintain transaction records for:
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B
Rationale: Brokers must keep records for 3 years from the date of
closing.
5. A real estate broker acting as a dual agent must:
A. Represent both parties without disclosure
B. Disclose dual agency and obtain informed consent
C. Represent only the seller
D. Represent only the buyer
Answer: B
Rationale: Dual agency requires full disclosure and consent from both
parties.
6. The Illinois property disclosure form must be provided by:
A. The buyer
B. The seller
C. The broker
D. The lender
Answer: B
Rationale: The seller provides the disclosure form to inform the buyer of
known property conditions.
, 7. Which of the following is considered a material fact in Illinois real
estate transactions?
A. Seller’s motivation
B. Neighborhood school ratings
C. Previous structural damage
D. Seller’s preferred closing date
Answer: C
Rationale: Material facts are physical or legal facts that affect the
property’s value or desirability.
8. In Illinois, earnest money must be:
A. Deposited immediately into the broker’s personal account
B. Deposited into a trust or escrow account
C. Held in cash at the broker’s office
D. Returned to the buyer immediately
Answer: B
Rationale: Illinois law requires earnest money to be kept in a trust
account separate from personal funds.
9. An exclusive right-to-sell listing in Illinois allows:
A. Only the broker to earn commission if the property sells
B. Any broker to earn commission
C. Seller to avoid paying commission if they sell themselves
D. No commission to be paid
Answer: A
Rationale: The broker earns a commission regardless of who sells the
property.
10. Illinois law requires agency disclosure:
A. Only for commercial transactions
B. Only if requested
C. At first substantial contact with the client
PRACTICE QUESTIONS WITH CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES
1. Which of the following is required for a valid real estate contract in
Illinois?
A. Oral agreement only
B. Written agreement only
C. Consideration, offer, acceptance, and legal purpose
D. Notarization
Answer: C
Rationale: A valid contract requires consideration, offer, acceptance,
and a legal purpose. Not all contracts need to be notarized.
2. In Illinois, the broker’s fiduciary duty to the client includes all of the
following EXCEPT:
A. Loyalty
B. Obedience
C. Honesty
D. Concealment of material facts
Answer: D
Rationale: Brokers must disclose material facts; concealing them
violates fiduciary duty.
3. The Illinois Real Estate License Act is enforced by:
A. Illinois Department of Commerce
B. Illinois Department of Financial and Professional Regulation (IDFPR)
C. Illinois Attorney General
,D. Illinois Supreme Court
Answer: B
Rationale: The IDFPR oversees licensing and enforcement of the Real
Estate License Act.
4. An Illinois broker must maintain transaction records for:
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B
Rationale: Brokers must keep records for 3 years from the date of
closing.
5. A real estate broker acting as a dual agent must:
A. Represent both parties without disclosure
B. Disclose dual agency and obtain informed consent
C. Represent only the seller
D. Represent only the buyer
Answer: B
Rationale: Dual agency requires full disclosure and consent from both
parties.
6. The Illinois property disclosure form must be provided by:
A. The buyer
B. The seller
C. The broker
D. The lender
Answer: B
Rationale: The seller provides the disclosure form to inform the buyer of
known property conditions.
, 7. Which of the following is considered a material fact in Illinois real
estate transactions?
A. Seller’s motivation
B. Neighborhood school ratings
C. Previous structural damage
D. Seller’s preferred closing date
Answer: C
Rationale: Material facts are physical or legal facts that affect the
property’s value or desirability.
8. In Illinois, earnest money must be:
A. Deposited immediately into the broker’s personal account
B. Deposited into a trust or escrow account
C. Held in cash at the broker’s office
D. Returned to the buyer immediately
Answer: B
Rationale: Illinois law requires earnest money to be kept in a trust
account separate from personal funds.
9. An exclusive right-to-sell listing in Illinois allows:
A. Only the broker to earn commission if the property sells
B. Any broker to earn commission
C. Seller to avoid paying commission if they sell themselves
D. No commission to be paid
Answer: A
Rationale: The broker earns a commission regardless of who sells the
property.
10. Illinois law requires agency disclosure:
A. Only for commercial transactions
B. Only if requested
C. At first substantial contact with the client
