ILLINOIS REAL ESTATE BROKER PRACTICE
EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
1. What is the primary purpose of the Real Estate License Act of 2000 in
Illinois?
A. To establish property tax rates
B. To protect the public through regulation of real estate
professionals
C. To regulate mortgage lending
D. To govern landlord-tenant laws
The Act’s main objective is consumer protection by licensing and
regulating real estate brokers and managing brokers.
2. How long must Illinois licensees retain transactional records?
A. 1 year
B. 5 years
, C. 7 years
D. Until the transaction closes
Illinois law requires all licensees to keep transaction records for at
least five years.
3. Which of the following requires a real estate license in Illinois?
A. Property owners selling their own property
B. Leasing property on behalf of another for compensation
C. An attorney acting within the scope of legal duties
D. A public official acting under court order
Anyone engaging in brokerage activities for others and for
compensation must be licensed.
4. A sponsoring broker must review and initial a new broker’s contracts
within how many days?
A. 24 hours
B. 10 days
C. 30 days
D. 60 days
The sponsoring broker has 10 days to review and initial all contracts
prepared by a sponsored licensee.
5. What is the statutory minimum continuing education (CE) requirement
for Illinois brokers every renewal cycle?
A. 3 hours
B. 9 hours
, C. 12 hours
D. 15 hours
Brokers in Illinois must complete 12 hours of CE every two-year
renewal cycle.
6. What is the maximum amount the Real Estate Recovery Fund can pay
out for judgments against one licensee?
A. $10,000
B. $100,000
C. $50,000
D. Unlimited
The Real Estate Recovery Fund has a $100,000 cap per licensee
regardless of the number of claims.
7. Which of the following is considered a ministerial act under Illinois
law?
A. Showing a property to a buyer
B. Negotiating price and terms
C. Giving advice on offers
D. Drafting contract provisions
Ministerial acts include simple tasks like showing property or
answering basic questions, not negotiating.
8. When must earnest money be deposited into the escrow account in
Illinois?
A. Within 24 hours
, B. No later than the next business day after contract acceptance
C. Upon receipt of offer
D. Upon contract execution
Illinois law mandates that earnest money must be deposited by the
next business day following contract acceptance.
9. What is the primary responsibility of a sponsoring broker in Illinois?
A. Appraise property
B. Arrange mortgage financing
C. Supervise licensees and maintain records
D. Review real estate ads
A sponsoring broker is responsible for the supervision of affiliated
licensees and compliance with recordkeeping.
10. An Illinois licensee who has been convicted of a felony must
notify IDFPR within:
A. 90 days
B. At license renewal
C. 30 days
D. 1 year
Felony convictions must be reported to the Illinois Department of
Financial and Professional Regulation within 30 days.
11. Which of the following statements about dual agency in Illinois is
TRUE?
EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
1. What is the primary purpose of the Real Estate License Act of 2000 in
Illinois?
A. To establish property tax rates
B. To protect the public through regulation of real estate
professionals
C. To regulate mortgage lending
D. To govern landlord-tenant laws
The Act’s main objective is consumer protection by licensing and
regulating real estate brokers and managing brokers.
2. How long must Illinois licensees retain transactional records?
A. 1 year
B. 5 years
, C. 7 years
D. Until the transaction closes
Illinois law requires all licensees to keep transaction records for at
least five years.
3. Which of the following requires a real estate license in Illinois?
A. Property owners selling their own property
B. Leasing property on behalf of another for compensation
C. An attorney acting within the scope of legal duties
D. A public official acting under court order
Anyone engaging in brokerage activities for others and for
compensation must be licensed.
4. A sponsoring broker must review and initial a new broker’s contracts
within how many days?
A. 24 hours
B. 10 days
C. 30 days
D. 60 days
The sponsoring broker has 10 days to review and initial all contracts
prepared by a sponsored licensee.
5. What is the statutory minimum continuing education (CE) requirement
for Illinois brokers every renewal cycle?
A. 3 hours
B. 9 hours
, C. 12 hours
D. 15 hours
Brokers in Illinois must complete 12 hours of CE every two-year
renewal cycle.
6. What is the maximum amount the Real Estate Recovery Fund can pay
out for judgments against one licensee?
A. $10,000
B. $100,000
C. $50,000
D. Unlimited
The Real Estate Recovery Fund has a $100,000 cap per licensee
regardless of the number of claims.
7. Which of the following is considered a ministerial act under Illinois
law?
A. Showing a property to a buyer
B. Negotiating price and terms
C. Giving advice on offers
D. Drafting contract provisions
Ministerial acts include simple tasks like showing property or
answering basic questions, not negotiating.
8. When must earnest money be deposited into the escrow account in
Illinois?
A. Within 24 hours
, B. No later than the next business day after contract acceptance
C. Upon receipt of offer
D. Upon contract execution
Illinois law mandates that earnest money must be deposited by the
next business day following contract acceptance.
9. What is the primary responsibility of a sponsoring broker in Illinois?
A. Appraise property
B. Arrange mortgage financing
C. Supervise licensees and maintain records
D. Review real estate ads
A sponsoring broker is responsible for the supervision of affiliated
licensees and compliance with recordkeeping.
10. An Illinois licensee who has been convicted of a felony must
notify IDFPR within:
A. 90 days
B. At license renewal
C. 30 days
D. 1 year
Felony convictions must be reported to the Illinois Department of
Financial and Professional Regulation within 30 days.
11. Which of the following statements about dual agency in Illinois is
TRUE?
