ILLINOIS REAL ESTATE PRACTICE EXAM / ACTUAL EXAM
NEWEST + QUESTIONS WITH DETAILED, VERIFIED
ANSWERS (100% CORRECT)
Terms in this set (225)
To counteract inflationary Objectives of Federal Reserve System
and deflationary trends, to
create a favorable economic
climate, to maintain sound
credit conditions but NOT to
control the secondary
mortgage market
A fee simple holder of a Remainder Interest
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
The entire loan principal is A property buyer obtains a term loan to finance a home
due at the end of the loan purchase.
period
Title Insurance Best evidence of marketable title
,A borrower has a mortgage Balloon Loan
loan that requires monthly
payments of $936.25 for 10
years and a final payment of
$136,287. Type of loan?
Brokers should deposit all Commingling
earnest money checks they
receive into an escrow
account or trust account to
prevent being accused.
Fancy name for theft Conversion
Exaggeration of a fact it is Puffing
legal as long as it doesn't
come in as a fraud
Estimates the property's In performing an appraisal of real estate, the appraiser:
market value
Allowable uses for buildings, Local zoning ordinances are used to regulate
building heights, population
density NOT rules for the
conducting open spaces
100%-6%=94%=.94 180,000 After paying the brokers fee of 6%, a seller want to net
/ .94 = 191489 $180,000 from the sale of his house. What must the
property sell for to satisfy both the eh broker and the seller?
A property owner constructed a commercial building on
The building is a
the property. Three years later an ordinance was passed
nonconforming use
prohibiting commercial buildings in the owners area:
, The owner of a parcel of land Servient Tenement
holds an easement right over
an adjoining parcel of land.
The parcel of land on which
the easement runs is referred
to as the:
Benefits from the servient Dominant Tenement
tenement
140,000 x .30 = 42,000 What is the amount of real estate tax due on a property with
42,000 x 1.5 = 63,000 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
63,000 x .05 = 3150
$100.00 of assessed value?
Are rights of way on Easements
someone else's land
A property owner subdivided Easement By Necessity
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
Utilities Easement In Gross
Trespassers rights due for a Easement By Prescription
period of time you earn
20 years
For adjacent properties it's a Easement Appurtenant
right
NEWEST + QUESTIONS WITH DETAILED, VERIFIED
ANSWERS (100% CORRECT)
Terms in this set (225)
To counteract inflationary Objectives of Federal Reserve System
and deflationary trends, to
create a favorable economic
climate, to maintain sound
credit conditions but NOT to
control the secondary
mortgage market
A fee simple holder of a Remainder Interest
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
The entire loan principal is A property buyer obtains a term loan to finance a home
due at the end of the loan purchase.
period
Title Insurance Best evidence of marketable title
,A borrower has a mortgage Balloon Loan
loan that requires monthly
payments of $936.25 for 10
years and a final payment of
$136,287. Type of loan?
Brokers should deposit all Commingling
earnest money checks they
receive into an escrow
account or trust account to
prevent being accused.
Fancy name for theft Conversion
Exaggeration of a fact it is Puffing
legal as long as it doesn't
come in as a fraud
Estimates the property's In performing an appraisal of real estate, the appraiser:
market value
Allowable uses for buildings, Local zoning ordinances are used to regulate
building heights, population
density NOT rules for the
conducting open spaces
100%-6%=94%=.94 180,000 After paying the brokers fee of 6%, a seller want to net
/ .94 = 191489 $180,000 from the sale of his house. What must the
property sell for to satisfy both the eh broker and the seller?
A property owner constructed a commercial building on
The building is a
the property. Three years later an ordinance was passed
nonconforming use
prohibiting commercial buildings in the owners area:
, The owner of a parcel of land Servient Tenement
holds an easement right over
an adjoining parcel of land.
The parcel of land on which
the easement runs is referred
to as the:
Benefits from the servient Dominant Tenement
tenement
140,000 x .30 = 42,000 What is the amount of real estate tax due on a property with
42,000 x 1.5 = 63,000 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
63,000 x .05 = 3150
$100.00 of assessed value?
Are rights of way on Easements
someone else's land
A property owner subdivided Easement By Necessity
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
Utilities Easement In Gross
Trespassers rights due for a Easement By Prescription
period of time you earn
20 years
For adjacent properties it's a Easement Appurtenant
right
