Free Illinois Real Estate Practice Exam

Q1.Under the federal Fair Housing Act, which of the following is NOT a protected class?

• A.Race
• B.Occupation
• C.National origin
• D.Familial status

Q2.Under CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act), which of the following parties could potentially be held liable for the cleanup of hazardous substances on a property?

• A.Only the party who originally deposited the hazardous substances on the property
• B.Only the current owner of the property if they caused the contamination
• C.Current owners, past owners at the time of disposal, generators of hazardous waste, and transporters who selected the disposal site
• D.Only the federal government, since CERCLA is a federal statute

Q3.What is the primary purpose of the Equal Credit Opportunity Act (ECOA) in real estate financing?

• A.To regulate interest rates on mortgage loans
• B.To establish minimum down payment requirements
• C.To require mortgage insurance on all loans
• D.To prohibit discrimination in lending based on protected characteristics

Q4.Under the Illinois Real Estate License Act of 2000, the Illinois Department of Financial and Professional Regulation (IDFPR) has the authority to take which of the following disciplinary actions against a licensed real estate salesperson?

• A.Impose fines up to $25,000 per violation
• B.Revoke or suspend a license and impose fines up to $10,000 per violation
• C.Only issue written warnings for first-time violations
• D.Require mandatory imprisonment for license violations

Q5.An appraiser is valuing a unique property with no comparable sales and limited income potential. The property has a replacement cost of $800,000, with accrued depreciation estimated at $150,000, and the land value is $200,000. What is the indicated value using the cost approach?

• A.$650,000
• B.$750,000
• C.$850,000
• D.$950,000

Q6.A buyer is purchasing a home for $250,000 and makes a 10% down payment. The lender charges 2 discount points at closing. Under the Truth-in-Lending Act (TILA), discount points paid by the borrower are considered prepaid interest and must be disclosed in the Annual Percentage Rate (APR). How much will the buyer pay in discount points at closing?

• A.$5,000
• B.$2,500
• C.$4,500
• D.$25,000

Q7.A salesperson tells an African American couple that a home they are interested in is 'already under contract,' when in fact it is still available. The salesperson then shows them only homes in predominantly minority neighborhoods. This conduct constitutes which TWO illegal practices under the Fair Housing Act?

• A.Redlining and blockbusting
• B.Misrepresentation and panic selling
• C.Steering and making a false representation about availability
• D.Commingling and conversion

Q8.Which type of deed provides the LEAST protection to the grantee?

• A.General warranty deed
• B.Special warranty deed
• C.Bargain and sale deed
• D.Quitclaim deed

Q9.Under RESPA (12 U.S.C. § 2607), a referring broker receives a $500 'marketing fee' from a title company for every buyer the broker sends to that company. The title company provides no services to the broker in exchange for this fee. Which of the following statements BEST describes the legal consequence of this arrangement?

• A.The arrangement constitutes a per se violation of RESPA's anti-kickback provision, exposing the broker to criminal penalties of up to $10,000 and one year imprisonment per violation.
• B.The arrangement is permissible as long as it is disclosed to the buyer in the Loan Estimate within three business days of loan application.
• C.The arrangement is permissible under RESPA's affiliated business arrangement exemption, provided a disclosure is made and the buyer retains freedom of choice.
• D.The arrangement is only prohibited if the title company is also the settlement agent on the same transaction.

Q10.A property is held in joint tenancy with right of survivorship. One owner dies. How does title pass?

• A.Through the probate court based on the deceased owner's will
• B.Automatically to the surviving joint tenant(s) without probate
• C.To the deceased owner's heirs equally regardless of survivorship language
• D.By court order after creditor claims are resolved

Q11.In Illinois, when must a seller provide the Residential Real Property Disclosure Report to a prospective buyer?

• A.At closing
• B.Within 10 days after contract acceptance
• C.Before the buyer signs a contract to purchase
• D.Only if the buyer requests it

Q12.A lender denies a mortgage application from a married couple, citing that the wife's part-time income cannot be considered because she is of childbearing age and may leave the workforce. Which federal law is most directly violated, and what is the specific prohibited basis?

• A.Equal Credit Opportunity Act (ECOA) — sex and marital status
• B.Fair Housing Act — familial status
• C.Equal Credit Opportunity Act (ECOA) — familial status
• D.Truth-in-Lending Act — discriminatory disclosure

Q13.Under the Equal Credit Opportunity Act (ECOA), a lender is prohibited from:

• A.Asking about plans for having children
• B.Considering an applicant's employment history
• C.Asking about an applicant's marital status for a joint application
• D.Requiring documentation of income sources

Q14.In a title insurance policy, what does the 'effective date' represent?

• A.The date coverage begins, typically at closing
• B.The date the policy was purchased
• C.The date the title search was completed
• D.The date the premium was paid in full

Q15.A property recently sold for $285,000. The listing indicated the home has 1,900 square feet of gross living area. What is the price per square foot, rounded to the nearest cent?

• A.$150.00
• B.$154.32
• C.$150.26
• D.$158.00