ILLINOIS 2025/2026 REAL ESTATE EXAM – CURRENTLY TESTING QUESTIONS WITH
VERIFIED ANSWERS
abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a
summary of the original grant and all subsequent conveyances and encumbrances
affecting the property and a certification by the abstractor that the history is complete and
accurate.
acceleration clause
The clause in a mortgage or deed of trust that can be enforced to make the entire debt due
immediately if the borrower defaults on an installment payment or other covenant.
accession
Acquiring title to additions or improvements to real property as a result of the annexation of
fixtures or the accretion of alluvial deposits along the banks of streams.
accretion
the increase or addition of land by the deposit of sand or soil washed up naturally from a
river, lake, or sea
accrued item
On a closing statement, items of expense that are incurred but not yet payable, such as
interest on a mortgage loan or taxes on real property.
,acknowledgement
A formal declaration made before a duly authorized officer, usually a notary public, by a
person who has signed a document.
act
the Real Estate License Act of 2000
actual eviction
The legal process that results in the tenant's being physically removed from the leased
premises.
actual notice
Express information or fact; that which is known; direct knowledge.
Automatic extension
A clause in a listing agreement that states that the agreement will continue automatically
for a certain period of time after its expiration date. In many states, use of this clause is
discouraged or prohibited.
Avulsion
,The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden
change in the course of a stream.
Balance
The appraisal principle stating that the greatest value in a property will occur when the type
and size of the improvements are proportional to each other as well as to the land
Balloon payment
A final payment of a mortgage loan that is considerably larger than the required periodic
payments because the loan amount was not fully amortized.
Bargain and sale deed
A deed that carries with it no warranties against liens or other encumbrances but that does
imply that the grantor has the right to convey title. The grantor may add warranties to the
deed at his or her discretion
Base line
The main imaginary line running east and west and crossing a principal meridian at a
definite point; used by surveyors for reference in locating and describing land under the
rectangular (government) survey system of legal description.
Basis
, The financial interest that the Internal Revenue Service attributes to an owner of an
investment property for the purpose of determining annual depreciation and gain or loss on
the sale of the asset. If a property was acquired by purchase, the owner's basis is the cost
of the property plus the value of any capital expenditures for improvements to the property,
minus any depreciation allowable or actually taken. This new basis is called the adjusted
basis.
Benchmark
A permanent reference mark or point established for use by surveyors in measuring
differences in elevation.
Beneficiary
1. The person for whom a trust operates or on whose behalf the income from a trust estate
is drawn 2. A lender in a deed of trust loan transaction. Also called a legatee
Bequest
A gift of personal property by will (see legacy)
Bilateral Contract
A contract by which all parties to the instrument are legally bound to act as prescribed.
Bill of sale
A legal document that transfers personal property.
VERIFIED ANSWERS
abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a
summary of the original grant and all subsequent conveyances and encumbrances
affecting the property and a certification by the abstractor that the history is complete and
accurate.
acceleration clause
The clause in a mortgage or deed of trust that can be enforced to make the entire debt due
immediately if the borrower defaults on an installment payment or other covenant.
accession
Acquiring title to additions or improvements to real property as a result of the annexation of
fixtures or the accretion of alluvial deposits along the banks of streams.
accretion
the increase or addition of land by the deposit of sand or soil washed up naturally from a
river, lake, or sea
accrued item
On a closing statement, items of expense that are incurred but not yet payable, such as
interest on a mortgage loan or taxes on real property.
,acknowledgement
A formal declaration made before a duly authorized officer, usually a notary public, by a
person who has signed a document.
act
the Real Estate License Act of 2000
actual eviction
The legal process that results in the tenant's being physically removed from the leased
premises.
actual notice
Express information or fact; that which is known; direct knowledge.
Automatic extension
A clause in a listing agreement that states that the agreement will continue automatically
for a certain period of time after its expiration date. In many states, use of this clause is
discouraged or prohibited.
Avulsion
,The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden
change in the course of a stream.
Balance
The appraisal principle stating that the greatest value in a property will occur when the type
and size of the improvements are proportional to each other as well as to the land
Balloon payment
A final payment of a mortgage loan that is considerably larger than the required periodic
payments because the loan amount was not fully amortized.
Bargain and sale deed
A deed that carries with it no warranties against liens or other encumbrances but that does
imply that the grantor has the right to convey title. The grantor may add warranties to the
deed at his or her discretion
Base line
The main imaginary line running east and west and crossing a principal meridian at a
definite point; used by surveyors for reference in locating and describing land under the
rectangular (government) survey system of legal description.
Basis
, The financial interest that the Internal Revenue Service attributes to an owner of an
investment property for the purpose of determining annual depreciation and gain or loss on
the sale of the asset. If a property was acquired by purchase, the owner's basis is the cost
of the property plus the value of any capital expenditures for improvements to the property,
minus any depreciation allowable or actually taken. This new basis is called the adjusted
basis.
Benchmark
A permanent reference mark or point established for use by surveyors in measuring
differences in elevation.
Beneficiary
1. The person for whom a trust operates or on whose behalf the income from a trust estate
is drawn 2. A lender in a deed of trust loan transaction. Also called a legatee
Bequest
A gift of personal property by will (see legacy)
Bilateral Contract
A contract by which all parties to the instrument are legally bound to act as prescribed.
Bill of sale
A legal document that transfers personal property.
