ILLINOIS REAL ESTATE BROKER EXAM
2024/2025
Truth in lending laws apply to which of the following loans? - Precise
Answer ✔✔A loan to a first-time home buyer
To qualify as tax-deferred exchange, the property must be - Precise
Answer ✔✔held for productive use in trade or business
A buyer wants a guarantee that there are no unknown encumbrances
against the property he is buying. The buyer should require - Precise
Answer ✔✔Title Insurance
John Jones has owned and operated a gas station for 15 years. The city
has decided to rezone the area from commercial to residential use.
Which of the following is true regarding this situation? - Precise Answer
✔✔John has non conforming use and can continue to operate the gas
station
Regarding ownership of one's home, which of the following would be
income tax deductible? - Precise Answer ✔✔Points paid to obtain the
loan
A broker, acting as a buyer's agent, is helping a married couple find a
home that meets their needs. The wife's mother is going to live with
them. They want to take title in such a way that if anything happens to
,either one of them, the remaining spouse would have a % interest in the
property and the mother a 1% interest. The broker should advise them
to: - Precise Answer ✔✔Consult with an attorney
Which of the following factors would tend to increase the price of
residential real estate in a given area? - Precise Answer ✔✔A large
manufacturing plant opening in the city
Which of the following is considered a tax benefit of owning investment
property? - Precise Answer ✔✔Sheltering other income
Which of the following improvements would have the most positive
effect on the value of a property? - Precise Answer ✔✔Installing a
second bathroom in a four bedroom house
A broker was hired by a property manager to lease and manage
properties. Each lease was different based on negotiations of the parties.
Which of the following is true in these circumstances? - Precise Answer
✔✔Legal counsel should be sought to write or review the lease
A buyer gives a broker a deposit with an offer to purchase. The deposit
is known as - Precise Answer ✔✔Earnest money
A property has suffered a loss in value due to lack of maintenance and
upkeep. This would classify as - Precise Answer ✔✔physical
depreciation
, The most important element for a property manager to consider in
selecting rental rates would be - Precise Answer ✔✔the rental rates for
similar units in the area
Which of the following is considered the most important factor affecting
value? - Precise Answer ✔✔Location
Which of the following is a requirement of an independent contractor
relationship between a broker and a licensee. - Precise Answer ✔✔The
licensee must enter into a written agreement with the broker
A comparative market analysis is based on the principle that - Precise
Answer ✔✔the anticipated selling price may be estimated by recent
sales of similar properties
A broker is listing a rural property. The property was owned by a
deceased woman who has 6 children. 2 of the children put up the house
for sale. Before completing the listing agreement, the broker should: -
Precise Answer ✔✔Check the ownership of record
Which of the following would most directly affect the supply of real
estate int he market place? - Precise Answer ✔✔Labor force
Which of the following is considered a primary lender in the mortgage
market? - Precise Answer ✔✔Commercial Banks
2024/2025
Truth in lending laws apply to which of the following loans? - Precise
Answer ✔✔A loan to a first-time home buyer
To qualify as tax-deferred exchange, the property must be - Precise
Answer ✔✔held for productive use in trade or business
A buyer wants a guarantee that there are no unknown encumbrances
against the property he is buying. The buyer should require - Precise
Answer ✔✔Title Insurance
John Jones has owned and operated a gas station for 15 years. The city
has decided to rezone the area from commercial to residential use.
Which of the following is true regarding this situation? - Precise Answer
✔✔John has non conforming use and can continue to operate the gas
station
Regarding ownership of one's home, which of the following would be
income tax deductible? - Precise Answer ✔✔Points paid to obtain the
loan
A broker, acting as a buyer's agent, is helping a married couple find a
home that meets their needs. The wife's mother is going to live with
them. They want to take title in such a way that if anything happens to
,either one of them, the remaining spouse would have a % interest in the
property and the mother a 1% interest. The broker should advise them
to: - Precise Answer ✔✔Consult with an attorney
Which of the following factors would tend to increase the price of
residential real estate in a given area? - Precise Answer ✔✔A large
manufacturing plant opening in the city
Which of the following is considered a tax benefit of owning investment
property? - Precise Answer ✔✔Sheltering other income
Which of the following improvements would have the most positive
effect on the value of a property? - Precise Answer ✔✔Installing a
second bathroom in a four bedroom house
A broker was hired by a property manager to lease and manage
properties. Each lease was different based on negotiations of the parties.
Which of the following is true in these circumstances? - Precise Answer
✔✔Legal counsel should be sought to write or review the lease
A buyer gives a broker a deposit with an offer to purchase. The deposit
is known as - Precise Answer ✔✔Earnest money
A property has suffered a loss in value due to lack of maintenance and
upkeep. This would classify as - Precise Answer ✔✔physical
depreciation
, The most important element for a property manager to consider in
selecting rental rates would be - Precise Answer ✔✔the rental rates for
similar units in the area
Which of the following is considered the most important factor affecting
value? - Precise Answer ✔✔Location
Which of the following is a requirement of an independent contractor
relationship between a broker and a licensee. - Precise Answer ✔✔The
licensee must enter into a written agreement with the broker
A comparative market analysis is based on the principle that - Precise
Answer ✔✔the anticipated selling price may be estimated by recent
sales of similar properties
A broker is listing a rural property. The property was owned by a
deceased woman who has 6 children. 2 of the children put up the house
for sale. Before completing the listing agreement, the broker should: -
Precise Answer ✔✔Check the ownership of record
Which of the following would most directly affect the supply of real
estate int he market place? - Precise Answer ✔✔Labor force
Which of the following is considered a primary lender in the mortgage
market? - Precise Answer ✔✔Commercial Banks
