Illinois Real Estate Broker Exam Questions
1. Karissa is financing her home through a lender and is d) VA loan
offering no money as a down payment. What type of
loan is she most likely using?
a) Assumable loan
b) Conventional loan
c) FHA loan
d) VA loan
2. Which agency duties survive termination of an agree- b) Confidentiality
ment? and accounting
a) Accounting and loyalty
b) Confidentiality and accounting
c) Confidentiality, loyalty, and accounting
d) Reasonable skill and care, confidentiality, and loy-
alty
3. What's an encumbrance? a) A claim on
a) A claim on property that limits the owner's use or property that lim-
rights, or decreases the property value its the owner's use
b) A defect on the property found during inspection or rights, or de-
c) An unauthorized claim to property creases the prop-
d) Anything that affects the marketability of a property erty value
4. Which of the following is a difference between mort- c) Mortgage bro-
gage brokers and mortgage bankers? kers work with
a) Mortgage bankers work with multiple lenders, multiple lenders,
whereas mortgage brokers work with a single lender. whereas mort-
b) Mortgage bankers work with residential clients, gage bankers
whereas mortgage brokers work with commercial work with a single
clients. lender.
c) Mortgage brokers work with multiple lenders,
whereas mortgage bankers work with a single lender.
dMortgage brokers work with residential clients,
whereas mortgage bankers work with commercial
clients.
5. After signing a purchase contract, buyer Pam and sell- b) Pam or Waylon
er Waylon both realize that the address for Pam's new- can void this con-
ly-purchased home reads "344 Beverly Way" instead tract and present a
, Illinois Real Estate Broker Exam Questions
of the correct address: "334 Beverly Way." Which of new one with the
the following is true about this situation? correct address.
a) Pam has clear evidence that Waylon tried to trick
her.
b) Pam or Waylon can void this contract and present
a new one with the correct address.
c) The contract is invalid because there is no offer and
acceptance.
d) This is definitely a case of fraud.
6. Which formula calculates net to seller? d) Sales price x
a) (Net amount + mortgage or other expenses) / (100% (100% - commis-
commission rate) sion rate)
b) Sales price ÷ (100% - commission rate)
c) Sales price - (100% - commission rate)
d) Sales price x (100% - commission rate)
7. A borrower has a 30-year, $500,000 loan with an inter- d) 360
est rate of 6.25%. His monthly principal and interest
payment is $3,078.59. How many payments will he
make over the course of the loan?
a) 180
b) 240
c) 30
d) 360
8. In Illinois, if a listing agreement doesn't contain d) Specific ser-
_________, it's no longer an exclusive agreement. vices the listing
a) A description of the ideal buyer agent must pro-
b) A Dual Agency Disclosure and Consent section vide, at a minimum
c) Permission to publish the listing in the MLS
d) Specific services the listing agent must provide, at
a minimum
9. At what point in a residential transaction must a sell- c) Prior to the par-
er's agent deliver a completed Residential Real Prop- ties signing a pur-
erty Disclosure Report to a buyer? chase agreement
a) At least five days prior to closing
b) Prior to showing the property to the prospective
buyer
1. Karissa is financing her home through a lender and is d) VA loan
offering no money as a down payment. What type of
loan is she most likely using?
a) Assumable loan
b) Conventional loan
c) FHA loan
d) VA loan
2. Which agency duties survive termination of an agree- b) Confidentiality
ment? and accounting
a) Accounting and loyalty
b) Confidentiality and accounting
c) Confidentiality, loyalty, and accounting
d) Reasonable skill and care, confidentiality, and loy-
alty
3. What's an encumbrance? a) A claim on
a) A claim on property that limits the owner's use or property that lim-
rights, or decreases the property value its the owner's use
b) A defect on the property found during inspection or rights, or de-
c) An unauthorized claim to property creases the prop-
d) Anything that affects the marketability of a property erty value
4. Which of the following is a difference between mort- c) Mortgage bro-
gage brokers and mortgage bankers? kers work with
a) Mortgage bankers work with multiple lenders, multiple lenders,
whereas mortgage brokers work with a single lender. whereas mort-
b) Mortgage bankers work with residential clients, gage bankers
whereas mortgage brokers work with commercial work with a single
clients. lender.
c) Mortgage brokers work with multiple lenders,
whereas mortgage bankers work with a single lender.
dMortgage brokers work with residential clients,
whereas mortgage bankers work with commercial
clients.
5. After signing a purchase contract, buyer Pam and sell- b) Pam or Waylon
er Waylon both realize that the address for Pam's new- can void this con-
ly-purchased home reads "344 Beverly Way" instead tract and present a
, Illinois Real Estate Broker Exam Questions
of the correct address: "334 Beverly Way." Which of new one with the
the following is true about this situation? correct address.
a) Pam has clear evidence that Waylon tried to trick
her.
b) Pam or Waylon can void this contract and present
a new one with the correct address.
c) The contract is invalid because there is no offer and
acceptance.
d) This is definitely a case of fraud.
6. Which formula calculates net to seller? d) Sales price x
a) (Net amount + mortgage or other expenses) / (100% (100% - commis-
commission rate) sion rate)
b) Sales price ÷ (100% - commission rate)
c) Sales price - (100% - commission rate)
d) Sales price x (100% - commission rate)
7. A borrower has a 30-year, $500,000 loan with an inter- d) 360
est rate of 6.25%. His monthly principal and interest
payment is $3,078.59. How many payments will he
make over the course of the loan?
a) 180
b) 240
c) 30
d) 360
8. In Illinois, if a listing agreement doesn't contain d) Specific ser-
_________, it's no longer an exclusive agreement. vices the listing
a) A description of the ideal buyer agent must pro-
b) A Dual Agency Disclosure and Consent section vide, at a minimum
c) Permission to publish the listing in the MLS
d) Specific services the listing agent must provide, at
a minimum
9. At what point in a residential transaction must a sell- c) Prior to the par-
er's agent deliver a completed Residential Real Prop- ties signing a pur-
erty Disclosure Report to a buyer? chase agreement
a) At least five days prior to closing
b) Prior to showing the property to the prospective
buyer
