Illinois Real Estate License Exam Prep 2025: 400 Practice Questions and Answers | IL Real Estate Exam

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Illinois Real Estate License Exam 2025 with
400 Practice Questions and Correct Answers
/ IL Real Estate License Latest Practice Test

An estimate of value is obtained by comparing the subject property
p p p p p p p p p p p



w/ recently sold comparable properties or comps -
p p p p p p p



..........ANSWER.......Sales comparison approach
p p p




The replacement cost of a structure is estimated based on the constr
p p p p p p p p p p p



uction cost per unit of measure of individual building components,
p p p p p p p p p p



including labor costs, labor, overhead, etc. -
p p p p p p



p..........ANSWER.......Unit in place method p p p




Cost per square foot of a recently built comparable stricter is multip
p p p p p p p p p p p



lied by the number of square feet in subject building -
p p p p p p p p p p



p..........ANSWER.......Square foot method p p




Based on principle of substitution -
p p p p p



..........ANSWER.......Cost approach
p p




The construction cost at current prices of an exact duplicate of the s
p p p p p p p p p p p p



ubject improvement, including both benefits & drawbacks of the pr
p p p p p p p p p



operty - ..........ANSWER.......Reproduction cost
p p p

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The cost to construct an improvement similar to the subject propert
p p p p p p p p p p



y using current construction methods and materials but not necess
p p p p p p p p p



arily an exact duplicate - ..........ANSWER.......Replacement cost
p p p p p p




The quantity and quality of all materials and the labor are estimate
p p p p p p p p p p p



d on a unit cost basis - ..........ANSWER.......Quantity survey method
p p p p p p p p p




A factor representing the percentage increase of construction costs
p p p p p p p p p



up to the present time is applied to the original cost of the subject pr
p p p p p p p p p p p p p p



operty - ..........ANSWER.......Index method
p p p




A loss in value due to any cause compared with today's cost of repla
p p p p p p p p p p p p p



cement - ..........ANSWER.......Depreciation
p p




A curable item is one in need of repairs, such as painting that is eco
p p p p p p p p p p p p p p



nomically feasible and would result in an increase in value equal or
p p p p p p p p p p p p



exceeding the cost - ..........ANSWER.......Physical depreciation
p p p p p




A loss in value from the markets response to the item -
p p p p p p p p p p p



..........ANSWER.......Functional obsolescence
p p




Caused by negative factors not in the subject property, such as zoni
p p p p p p p p p p p



ng, environmental, social or economic factors -
p p p p p p



..........ANSWER.......External obsolescence
p p

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Easiest but least precise way to determine depreciation -
p p p p p p p p



..........ANSWER.......Straight line method
p p p




The period during which it is expected to remain useful for its origi
p p p p p p p p p p p p



nal intended purpose - ..........ANSWER.......Economic life
p p p p p




Based on the present value of the rights to future income -
p p p p p p p p p p p



..........ANSWER.......Income approach
p p




The rate of return a property will produce on the owners investmen
p p p p p p p p p p p



t - ..........ANSWER.......Capitalization rate
p p p




When a buyer is interested in pursuing a one to four unit residential
p p p p p p p p p p p p



rental property, this would be used for appraisal value -
p p p p p p p p p p



..........ANSWER.......Gross rent multiplier (GRM)
p p p p




When a buyer is interested in purchasing five or more units, this is
p p p p p p p p p p p p p



used for appraisal value -
p p p p



..........ANSWER.......Gross income multiplier (GIM)
p p p p




The act of analyzing and effectively weighing the findings from the t
p p p p p p p p p p p



hree appraisal approaches - ..........ANSWER.......Recouncilation
p p p p




The right to use the land of another for a particular use -
p p p p p p p p p p p p



..........ANSWER.......Easement
p

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Land on which an easement exists in favor of an adjacent property (
p p p p p p p p p p p p



called a dominant tenement) -
p p p p



..........ANSWER.......Servient tenement
p p




A property that includes in its ownership the appurtenant right to u
p p p p p p p p p p p



se an easement over another persons property for a specific purpos
p p p p p p p p p p



e - ..........ANSWER.......Dominant tenement
p p p




An examination of all the public records to determine whether any
p p p p p p p p p p p



defects exist in the chain of title - ..........ANSWER.......Title search
p p p p p p p p p




The record of a property's ownership -
p p p p p p



..........ANSWER.......Chain of title
p p p




Refers to the order of rights in title - ..........ANSWER.......Priority
p p p p p p p p p




Means not only that the information is available but also that some
p p p p p p p p p p p



one has been given the information and actually knows it -
p p p p p p p p p p



..........ANSWER.......Actual notice (direct knowledge)
p p p p




The legal presumption that information may be obtained by an indi
p p p p p p p p p p



vidual through due diligence -
p p p p



..........ANSWER.......Constructive notice
p p