ILLINOIS REAL ESTATE PRACTICE EXAM / ACTUAL EXAM NEWEST + QUESTIONS WITH DETAILED,
VERIFIED ANSWERS (100% CORRECT) A+ score.
FINAL EXAM
QUESTION: Remainder Interest Correct Ans- A fee simple holder of a 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
QUESTION: A property buyer obtains a term loan to finance a home purchase. Correct Ans- The entire
loan principal is due at the end of the loan period
QUESTION: Best evidence of marketable title Correct Ans- Title Insurance
QUESTION: Balloon Loan Correct Ans- A borrower has a mortgage loan that requires monthly payments
of $936.25 for 10 years and a final payment of $136,287. Type of loan?
QUESTION: Commingling Correct Ans- Brokers should deposit all earnest money checks they receive
into an escrow account or trust account to prevent being accused.
QUESTION: Conversion Correct Ans- Fancy name for theft
QUESTION: Puffing Correct Ans- Exaggeration of a fact it is legal as long as it doesn't come in as a fraud
QUESTION: In performing an appraisal of real estate, the appraiser: Correct Ans- Estimates the
property's market value
QUESTION: Local zoning ordinances are used to regulate Correct Ans- Allowable uses for buildings,
building heights, population density NOT rules for the conducting open spaces
QUESTION: After paying the brokers fee of 6%, a seller want to net $180,000 from the sale of his house. What
must the property sell for to satisfy both the eh broker and the seller? Correct Ans- 100%-6%=94%=.94
180,000 / .94 = 191489
QUESTION: A property owner constructed a commercial building on the property. Three years later an
ordinance was passed prohibiting commercial buildings in the owners area: Correct Ans- The building is
a nonconforming use
1|Page
,QUESTION: Servient Tenement Correct Ans- The owner of a parcel of land holds an easement right over
an adjoining parcel of land. The parcel of land on which the easement runs is referred to as the:
QUESTION: Dominant Tenement Correct Ans- Benefits from the servient tenement
QUESTION: What is the amount of real estate tax due on a property with 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 $100.00 of assessed value?
Correct Ans- 140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
QUESTION: Easements Correct Ans- Are rights of way on someone else's land
QUESTION: Easement By Necessity Correct Ans- A property owner subdivided 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
QUESTION: Easement In Gross Correct Ans- Utilities
QUESTION: Easement By Prescription Correct Ans- Trespassers rights due for a period of time you earn
20 years
QUESTION: Easement Appurtenant Correct Ans- For adjacent properties it's a right
QUESTION: Personal Easement In Gross Correct Ans- Individual access to property not transferable only
till alive
QUESTION: Adverse Possession Correct Ans- Squatter Rights 20 years to earn it
QUESTION: License Correct Ans- Personal privilege last for specific period of time
2|Page
, QUESTION: A property manager defaulted on a mortgage and the lender foreclosed on the property. The
property sold at the foreclosure sale for less than the loan balance. To recover the remainder of the money, the
lender may: Correct Ans- Obtain a deficiency judgement
QUESTION: On Wednesday, Sam offers to sell his house to Beau for $220,000. On Sunday, Beau makes a
counter offer of $210,000. On Friday, Beau withdraws the counter offer of $210,000 and accepts Sam's offer of
$220,000. In this situation, there is: Correct Ans- No valid agreement because Beau's counteroffer
ended Sam's offer
(Just change one aspect and you kill the contract)
QUESTION: Graduated Payment Loan Correct Ans- Amount goes up after period of time
QUESTION: Package Loan Correct Ans- A home buyer obtains a loan to finance the purchase of the
house as well as personal property
QUESTION: Blanket Loan Correct Ans- One loan secures multiple properties
QUESTION: Wraparound Loan Correct Ans- New loan pays off old loan
QUESTION: Granting Clause Correct Ans- Is a requirement for a valid deed
(Signature of grantor is needed in Illinois)
QUESTION: An investor purchase an apartment building for $360,000 by paying 10% down and financing the
rest of the purchase price. The lender charge two points as a loan origination fee. How much was the investor
charge for the fee? Correct Ans- 360,000 x .90 = 324,000
324,000 x .02 = 6480
(Discount points are figured on loan & points are 1% of loan amount)
QUESTION: A 55%/45% commission split is agreed to by a selling and listing brokerages. They then split their
share of the commission evenly wit their salespeople. If a house sells for $190,000 and the commission rate is
6%, how much commission will the selling agent receive? Correct Ans- 190,000 x .06 = 11400
11400 x .55 = 6270
6270 x .50 = 3135
3|Page
VERIFIED ANSWERS (100% CORRECT) A+ score.
FINAL EXAM
QUESTION: Remainder Interest Correct Ans- A fee simple holder of a 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
QUESTION: A property buyer obtains a term loan to finance a home purchase. Correct Ans- The entire
loan principal is due at the end of the loan period
QUESTION: Best evidence of marketable title Correct Ans- Title Insurance
QUESTION: Balloon Loan Correct Ans- A borrower has a mortgage loan that requires monthly payments
of $936.25 for 10 years and a final payment of $136,287. Type of loan?
QUESTION: Commingling Correct Ans- Brokers should deposit all earnest money checks they receive
into an escrow account or trust account to prevent being accused.
QUESTION: Conversion Correct Ans- Fancy name for theft
QUESTION: Puffing Correct Ans- Exaggeration of a fact it is legal as long as it doesn't come in as a fraud
QUESTION: In performing an appraisal of real estate, the appraiser: Correct Ans- Estimates the
property's market value
QUESTION: Local zoning ordinances are used to regulate Correct Ans- Allowable uses for buildings,
building heights, population density NOT rules for the conducting open spaces
QUESTION: After paying the brokers fee of 6%, a seller want to net $180,000 from the sale of his house. What
must the property sell for to satisfy both the eh broker and the seller? Correct Ans- 100%-6%=94%=.94
180,000 / .94 = 191489
QUESTION: A property owner constructed a commercial building on the property. Three years later an
ordinance was passed prohibiting commercial buildings in the owners area: Correct Ans- The building is
a nonconforming use
1|Page
,QUESTION: Servient Tenement Correct Ans- The owner of a parcel of land holds an easement right over
an adjoining parcel of land. The parcel of land on which the easement runs is referred to as the:
QUESTION: Dominant Tenement Correct Ans- Benefits from the servient tenement
QUESTION: What is the amount of real estate tax due on a property with 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 $100.00 of assessed value?
Correct Ans- 140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
QUESTION: Easements Correct Ans- Are rights of way on someone else's land
QUESTION: Easement By Necessity Correct Ans- A property owner subdivided 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
QUESTION: Easement In Gross Correct Ans- Utilities
QUESTION: Easement By Prescription Correct Ans- Trespassers rights due for a period of time you earn
20 years
QUESTION: Easement Appurtenant Correct Ans- For adjacent properties it's a right
QUESTION: Personal Easement In Gross Correct Ans- Individual access to property not transferable only
till alive
QUESTION: Adverse Possession Correct Ans- Squatter Rights 20 years to earn it
QUESTION: License Correct Ans- Personal privilege last for specific period of time
2|Page
, QUESTION: A property manager defaulted on a mortgage and the lender foreclosed on the property. The
property sold at the foreclosure sale for less than the loan balance. To recover the remainder of the money, the
lender may: Correct Ans- Obtain a deficiency judgement
QUESTION: On Wednesday, Sam offers to sell his house to Beau for $220,000. On Sunday, Beau makes a
counter offer of $210,000. On Friday, Beau withdraws the counter offer of $210,000 and accepts Sam's offer of
$220,000. In this situation, there is: Correct Ans- No valid agreement because Beau's counteroffer
ended Sam's offer
(Just change one aspect and you kill the contract)
QUESTION: Graduated Payment Loan Correct Ans- Amount goes up after period of time
QUESTION: Package Loan Correct Ans- A home buyer obtains a loan to finance the purchase of the
house as well as personal property
QUESTION: Blanket Loan Correct Ans- One loan secures multiple properties
QUESTION: Wraparound Loan Correct Ans- New loan pays off old loan
QUESTION: Granting Clause Correct Ans- Is a requirement for a valid deed
(Signature of grantor is needed in Illinois)
QUESTION: An investor purchase an apartment building for $360,000 by paying 10% down and financing the
rest of the purchase price. The lender charge two points as a loan origination fee. How much was the investor
charge for the fee? Correct Ans- 360,000 x .90 = 324,000
324,000 x .02 = 6480
(Discount points are figured on loan & points are 1% of loan amount)
QUESTION: A 55%/45% commission split is agreed to by a selling and listing brokerages. They then split their
share of the commission evenly wit their salespeople. If a house sells for $190,000 and the commission rate is
6%, how much commission will the selling agent receive? Correct Ans- 190,000 x .06 = 11400
11400 x .55 = 6270
6270 x .50 = 3135
3|Page
