Free Illinois Real Estate Practice Exam

Q1.An Illinois sponsoring broker operates a residential brokerage and has designated Broker Chen as a designated agent for the seller and Broker Rivera as a designated agent for the buyer in the same in-house transaction. Under Article 15 of the Illinois Real Estate License Act of 2000, which statement BEST describes the sponsoring broker's role and obligations in this designated agency situation?

• A.The sponsoring broker automatically becomes a dual agent and must obtain written consent from both the buyer and the seller to continue in the transaction.
• B.The sponsoring broker acts as a neutral party who supervises both designated agents but does not represent either the buyer or the seller, and must ensure proper written disclosure of the designated agency relationship is provided to both parties.
• C.The sponsoring broker must withdraw from the transaction entirely and refer both parties to outside brokerages to avoid any conflict of interest.
• D.The sponsoring broker must personally supervise all negotiations and may not delegate any client communication to the designated agents.

Q2.What is the maximum civil penalty stated in A.R.S. § 32-2160.01?

• A.Up to $100 per day
• B.Up to $1,000 per infraction
• C.Exactly $5,000 per file
• D.Unlimited automatic daily penalties

Q3.Which statement accurately describes the civil penalty in A.R.S. § 32-2160.01?

• A.Up to $1,000 per infraction
• B.Exactly $1,000 per day for every violation
• C.No monetary penalty is authorized
• D.Only a court may impose a penalty exceeding $50

Q4.A sponsoring broker in Illinois receives an earnest money deposit from a buyer on a residential transaction. Under the Illinois Real Estate License Act of 2000, when must the broker deposit those funds into the escrow account?

• A.Within 24 hours of receipt
• B.Within 3 business days of receipt
• C.By the close of the next business day after receipt
• D.At the time of the closing of the transaction

Q5.Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), a property management company that takes an active role in managing a contaminated commercial property may be held liable for cleanup costs as a:

• A.Secured creditor, exempt from all CERCLA liability
• B.Potentially responsible party (PRP) in the capacity of an operator
• C.Bona fide prospective purchaser, fully shielded from liability
• D.Innocent landowner, automatically exempt from cleanup costs

Q6.Under the Fair Housing Act, which of the following is protected under the category of 'familial status'?

• A.Families with children under 18, including pregnant women
• B.Married couples only
• C.Single-parent households only
• D.All household arrangements including single adults

Q7.The adjusted bank balance and check register are both $40,000, but individual client ledgers total $39,600. What condition requires investigation?

• A.A possible $400 overfunding or understated liability
• B.A completed reconciliation
• C.A required owner distribution of $40,000
• D.A harmless difference that should be ignored

Q8.Under the Illinois Real Estate License Act of 2000, an Illinois Broker who wishes to temporarily stop practicing real estate but keep her license valid without completing continuing education requirements may:

• A.Surrender her license to the IDFPR and reapply when ready to practice again
• B.Place her license on inactive status with the IDFPR
• C.Simply stop paying brokerage dues, which automatically suspends continuing education obligations
• D.Transfer her license to a family member to hold until she is ready to practice

Q9.Which Illinois state agency has regulatory oversight and disciplinary authority over real estate licensees?

• A.Illinois Department of Financial and Professional Regulation (IDFPR)
• B.Illinois Department of Revenue
• C.Illinois Secretary of State
• D.Illinois Attorney General's Office

Q10.A flyer displays a team name but obscures the employing broker's identity. Which Arizona advertising principle is implicated?

• A.Advertising should be accurate and the employing broker should be clearly identified
• B.Every flyer must state the trust-account balance
• C.Only print advertising is regulated
• D.A team name always replaces the broker's identity

Q11.Under the federal Fair Housing Act, which of the following actions by a property manager would be considered a LEGALLY PERMISSIBLE reason to deny a rental applicant?

• A.The applicant uses a Section 8 Housing Choice Voucher
• B.The applicant has a verifiable history of nonpayment of rent documented in prior landlord references
• C.The applicant is a single mother with two young children
• D.The applicant speaks English as a second language

Q12.Under the federal Fair Housing Act, which of the following actions by a property manager would be considered a reasonable accommodation for a tenant with a disability?

• A.Charging a higher security deposit to a tenant who uses a wheelchair to cover potential damage
• B.Refusing to allow a tenant to install a grab bar in the bathroom because it would alter the unit
• C.Allowing a tenant with a documented anxiety disorder to keep an emotional support animal in a no-pets building
• D.Requiring a disabled tenant to live only on the ground floor for safety reasons without the tenant's request

Q13.In Illinois, who is required to complete the Residential Real Property Disclosure Report?

• A.The listing agent
• B.The buyer's agent
• C.The seller
• D.The home inspector

Q14.A prospective tenant applies to rent an apartment in Springfield, Illinois. The landlord rejects the application solely because the applicant receives public assistance through a housing voucher program. Under the Illinois Human Rights Act (775 ILCS 5), is this rejection lawful?

• A.Yes, because source of income is not a protected class under either federal or Illinois law, and landlords may freely choose their tenants.
• B.No, because the Illinois Human Rights Act expressly prohibits discrimination in real estate transactions based on source of income, which includes public assistance and housing vouchers.
• C.No, but only if the landlord owns more than four rental units, since small landlords are fully exempt from the Illinois Human Rights Act.
• D.Yes, because the federal Fair Housing Act does not list source of income as a protected class, and Illinois must defer to federal standards.

Q15.Which function may a temporarily designated salesperson not perform under § 32-2127(D)?

• A.Receive office communications.
• B.Hire or sever licensees.
• C.Follow the PPM.
• D.Escalate a compliance issue.