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ILLINOIS REAL ESTATE PRACTICE EXAM 2025|NEW
ACTUAL EXAM WITH 100% VERIFIED QUESTIONS
AND CORRECT DETAILLED ANSWERS|GUARANTEED
SUCCESS
Objectives of Federal Reserve System - correct-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 - correct-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. - correct-
answer-The entire loan principal is due at the end of the loan period
Best evidence of marketable title - correct-answer-Title Insurance
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Balloon Loan - correct-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 - correct-answer-Brokers should deposit all earnest money checks
they receive into an escrow account or trust account to prevent being accused.
Conversion - correct-answer-Fancy name for theft
Puffing - correct-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: - correct-answer-
Estimates the property's market value
Local zoning ordinances are used to regulate - correct-answer-Allowable uses for
buildings, building heights, population density NOT rules for the conducting open
spaces
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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-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: - correct-answer-The building is a nonconforming use
Servient Tenement - correct-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 - correct-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? - correct-answer-140,000 x .30 =
42,000
42,000 x 1.5 = 63,000
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63,000 x .05 = 3150
The following legal description: The S 1/2 of the SE 1/4 of the NW 1/4 of the NE
1/4 of Section 7 contains how many acres? - correct-answer-640 /2 /4 /4 /4 = 5
5 Acres
Metes And Bounds - correct-answer-Commence and finish at the same
identifiable point (legal description)
Metes - correct-answer-Distance
Bounds - correct-answer-Direction
Statute Of Frauds - correct-answer-The law that requires real estate contracts to
be in writing to be enforceable
The following would terminate a lease - correct-answer-The expiration of the
term of the lease
ILLINOIS REAL ESTATE PRACTICE EXAM 2025|NEW
ACTUAL EXAM WITH 100% VERIFIED QUESTIONS
AND CORRECT DETAILLED ANSWERS|GUARANTEED
SUCCESS
Objectives of Federal Reserve System - correct-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 - correct-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. - correct-
answer-The entire loan principal is due at the end of the loan period
Best evidence of marketable title - correct-answer-Title Insurance
, Page |2
Balloon Loan - correct-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 - correct-answer-Brokers should deposit all earnest money checks
they receive into an escrow account or trust account to prevent being accused.
Conversion - correct-answer-Fancy name for theft
Puffing - correct-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: - correct-answer-
Estimates the property's market value
Local zoning ordinances are used to regulate - correct-answer-Allowable uses for
buildings, building heights, population density NOT rules for the conducting open
spaces
, Page |3
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-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: - correct-answer-The building is a nonconforming use
Servient Tenement - correct-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 - correct-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? - correct-answer-140,000 x .30 =
42,000
42,000 x 1.5 = 63,000
, Page |4
63,000 x .05 = 3150
The following legal description: The S 1/2 of the SE 1/4 of the NW 1/4 of the NE
1/4 of Section 7 contains how many acres? - correct-answer-640 /2 /4 /4 /4 = 5
5 Acres
Metes And Bounds - correct-answer-Commence and finish at the same
identifiable point (legal description)
Metes - correct-answer-Distance
Bounds - correct-answer-Direction
Statute Of Frauds - correct-answer-The law that requires real estate contracts to
be in writing to be enforceable
The following would terminate a lease - correct-answer-The expiration of the
term of the lease
