Illinois Real Estate Practice Exam / Expert
Strategies, Review of Key Quizzes, and Practice
Questions for Guaranteed Success / Newest
2025/2026.
Terms in this set (225)
Objectives of Federal To counteract inflationary and deflationary trends, to create
Reserve System a favorable economic climate, to maintain sound credit
conditions but NOT to control the secondary mortgage
market
Remainder Interest 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 The entire loan principal is due at the end of the loan period
term loan to finance a
home purchase.
Best evidence of Title Insurance
marketable title
Balloon Loan 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 Brokers should deposit all earnest money checks they
receive into an escrow account or trust account to prevent
being accused.
Conversion Fancy name for theft
Exaggeration of a fact it is legal as long as it doesn't come in as a
Puffing
fraud
,In performing an appraisal of Estimates the property's market value
real estate, the appraiser:
Local zoning ordinances are Allowable uses for buildings, building heights, population
used to regulate density NOT rules for the conducting open spaces
After paying the brokers fee 100%-6%=94%=.94 180,000
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 The building is a nonconforming use
constructed a commercial
building on the property.
Three years later an
ordinance was passed
prohibiting commercial
buildings in the owners area:
Servient Tenement 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 Benefits from the servient tenement
140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
What is the amount of real
estate tax due on a property 63,000 x .05 = 3150
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?
,Easements Are rights of way on someone else's land
Easement By Necessity 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 Utilities
Easement By Prescription Trespassers rights due for a period of time you earn
20 years
Easement Appurtenant For adjacent properties it's a right
Personal Easement In Individual access to property not transferable only till alive
Gross
Adverse Possession Squatter Rights 20 years to earn it
License Personal privilege last for specific period of time
Obtain a deficiency judgement
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:
, On Wednesday, Sam No valid agreement because Beau's counteroffer ended Sam's
offers to sell his house to offer
Beau for $220,000. On (Just change one aspect and you kill the contract)
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:
Graduated Payment Loan Amount goes up after period of time
Package Loan A home buyer obtains a loan to finance the purchase of the
house as well as personal property
Blanket Loan One loan secures multiple properties
Wraparound Loan New loan pays off old loan
Granting Clause Is a requirement for a valid deed
(Signature of grantor is needed in Illinois)
360,000 x .90 = 324,000
324,000 x .02 = 6480
An investor purchase an
apartment building for (Discount points are figured on loan & points are 1% of loan
$360,000 by paying 10% amount)
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?
Strategies, Review of Key Quizzes, and Practice
Questions for Guaranteed Success / Newest
2025/2026.
Terms in this set (225)
Objectives of Federal To counteract inflationary and deflationary trends, to create
Reserve System a favorable economic climate, to maintain sound credit
conditions but NOT to control the secondary mortgage
market
Remainder Interest 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 The entire loan principal is due at the end of the loan period
term loan to finance a
home purchase.
Best evidence of Title Insurance
marketable title
Balloon Loan 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 Brokers should deposit all earnest money checks they
receive into an escrow account or trust account to prevent
being accused.
Conversion Fancy name for theft
Exaggeration of a fact it is legal as long as it doesn't come in as a
Puffing
fraud
,In performing an appraisal of Estimates the property's market value
real estate, the appraiser:
Local zoning ordinances are Allowable uses for buildings, building heights, population
used to regulate density NOT rules for the conducting open spaces
After paying the brokers fee 100%-6%=94%=.94 180,000
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 The building is a nonconforming use
constructed a commercial
building on the property.
Three years later an
ordinance was passed
prohibiting commercial
buildings in the owners area:
Servient Tenement 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 Benefits from the servient tenement
140,000 x .30 = 42,000
42,000 x 1.5 = 63,000
What is the amount of real
estate tax due on a property 63,000 x .05 = 3150
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?
,Easements Are rights of way on someone else's land
Easement By Necessity 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 Utilities
Easement By Prescription Trespassers rights due for a period of time you earn
20 years
Easement Appurtenant For adjacent properties it's a right
Personal Easement In Individual access to property not transferable only till alive
Gross
Adverse Possession Squatter Rights 20 years to earn it
License Personal privilege last for specific period of time
Obtain a deficiency judgement
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:
, On Wednesday, Sam No valid agreement because Beau's counteroffer ended Sam's
offers to sell his house to offer
Beau for $220,000. On (Just change one aspect and you kill the contract)
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:
Graduated Payment Loan Amount goes up after period of time
Package Loan A home buyer obtains a loan to finance the purchase of the
house as well as personal property
Blanket Loan One loan secures multiple properties
Wraparound Loan New loan pays off old loan
Granting Clause Is a requirement for a valid deed
(Signature of grantor is needed in Illinois)
360,000 x .90 = 324,000
324,000 x .02 = 6480
An investor purchase an
apartment building for (Discount points are figured on loan & points are 1% of loan
$360,000 by paying 10% amount)
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?
