ILLINOIS REAL ESTATE PRACTICE EXAM / ACTUAL
EXAM NEWEST 2025 / 220+ QUESTIONS WITH
DETAILED, VERIFIED ANSWERS (100% CORRECT)
Objectives of Federal Reserve System - Answer--To counteract inflationary and deflationary trends, to
create a favorable economic climate, to maintain sound credit conditions but NOT to control the
secondary mortgage market
Remainder Interest - Answer--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
A property buyer obtains a term loan to finance a home purchase. - Answer--The entire loan principal is
due at the end of the loan period
Best evidence of marketable title - Answer--Title Insurance
Balloon Loan - Answer--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?
Commingling - Answer--Brokers should deposit all earnest money checks they receive into an escrow
account or trust account to prevent being accused.
Conversion - Answer--Fancy name for theft
Puffing - Answer--Exaggeration of a fact it is legal as long as it doesn't come in as a fraud
,In performing an appraisal of real estate, the appraiser: - Answer--Estimates the property's market value
Local zoning ordinances are used to regulate - Answer--Allowable uses for buildings, building heights,
population density NOT rules for the conducting open spaces
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? - Answer--100%-6%=94%=.94
180,000 / .94 = 191489
A property owner constructed a commercial building on the property. Three years later an ordinance
was passed prohibiting commercial buildings in the owners area: - Answer--The building is a
nonconforming use
Servient Tenement - Answer--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:
Dominant Tenement - Answer--Benefits from the servient tenement
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? -
Answer--140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
Easements - Answer--Are rights of way on someone else's land
, Easement By Necessity - Answer--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
Easement In Gross - Answer--Utilities
Easement By Prescription - Answer--Trespassers rights due for a period of time you earn 20 years
Easement Appurtenant - Answer--For adjacent properties it's a right
Personal Easement In Gross - Answer--Individual access to property not transferable only till alive
Adverse Possession - Answer--Squatter Rights 20 years to earn it
License - Answer--Personal privilege last for specific period of time
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: - Answer--Obtain a deficiency judgement
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: - Answer--No valid agreement because Beau's counteroffer ended
Sam's offer
(Just change one aspect and you kill the contract)
Graduated Payment Loan - Answer--Amount goes up after period of time
EXAM NEWEST 2025 / 220+ QUESTIONS WITH
DETAILED, VERIFIED ANSWERS (100% CORRECT)
Objectives of Federal Reserve System - Answer--To counteract inflationary and deflationary trends, to
create a favorable economic climate, to maintain sound credit conditions but NOT to control the
secondary mortgage market
Remainder Interest - Answer--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
A property buyer obtains a term loan to finance a home purchase. - Answer--The entire loan principal is
due at the end of the loan period
Best evidence of marketable title - Answer--Title Insurance
Balloon Loan - Answer--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?
Commingling - Answer--Brokers should deposit all earnest money checks they receive into an escrow
account or trust account to prevent being accused.
Conversion - Answer--Fancy name for theft
Puffing - Answer--Exaggeration of a fact it is legal as long as it doesn't come in as a fraud
,In performing an appraisal of real estate, the appraiser: - Answer--Estimates the property's market value
Local zoning ordinances are used to regulate - Answer--Allowable uses for buildings, building heights,
population density NOT rules for the conducting open spaces
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? - Answer--100%-6%=94%=.94
180,000 / .94 = 191489
A property owner constructed a commercial building on the property. Three years later an ordinance
was passed prohibiting commercial buildings in the owners area: - Answer--The building is a
nonconforming use
Servient Tenement - Answer--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:
Dominant Tenement - Answer--Benefits from the servient tenement
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? -
Answer--140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
63,000 x .05 = 3150
Easements - Answer--Are rights of way on someone else's land
, Easement By Necessity - Answer--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
Easement In Gross - Answer--Utilities
Easement By Prescription - Answer--Trespassers rights due for a period of time you earn 20 years
Easement Appurtenant - Answer--For adjacent properties it's a right
Personal Easement In Gross - Answer--Individual access to property not transferable only till alive
Adverse Possession - Answer--Squatter Rights 20 years to earn it
License - Answer--Personal privilege last for specific period of time
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: - Answer--Obtain a deficiency judgement
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: - Answer--No valid agreement because Beau's counteroffer ended
Sam's offer
(Just change one aspect and you kill the contract)
Graduated Payment Loan - Answer--Amount goes up after period of time
