practice exam 1

Which of the following is required to obtain a broker’s license in Illinois?

• Be at least 18 years old

• Complete 90 hours of approved education

• Pass the state exam

• All of the above

Answer explanation

To obtain a broker’s license in Illinois, you must be at least 18 years old, complete 90 hours of approved education, and pass the state exam. Therefore, the correct answer is 'All of the above'.

How often must a managing broker renew their license in Illinois?

• Annually

• Every 2 years

• Every 3 years

• Every 4 years

Answer explanation

In Illinois, managing brokers must renew their licenses every 3 years. This ensures that they stay updated with the latest regulations and practices in the real estate industry.

Which disclosure is mandatory in residential Illinois transactions?

• Radon Disclosure

• Lead-Based Paint Disclosure

• Residential Real Property Disclosure

• All of the above

Answer explanation

In residential Illinois transactions, disclosures for Radon, Lead-Based Paint, and Residential Real Property are all mandatory. Therefore, the correct answer is 'All of the above'.

A sponsoring broker must retain escrow records for how long?

• 1 year

• 3 years

• 5 years

• 7 years

Answer explanation

A sponsoring broker must retain escrow records for 3 years to comply with regulatory requirements, ensuring proper documentation and accountability in real estate transactions.

What must be included in all Illinois real estate advertising?

• Broker’s name

• License number

• Agent’s cell phone number

• Office hours

Answer explanation

In Illinois real estate advertising, the broker's name must be included to ensure compliance with state regulations. This helps identify the responsible party in the transaction, making it essential for transparency.

Which of the following is considered a ministerial act under Illinois law?

• Negotiating a contract

• Hosting an open house

• Presenting offers

• Explaining contract terms

Answer explanation

Under Illinois law, a ministerial act is a routine task that does not involve discretion. Hosting an open house fits this definition, as it is a standard procedure in real estate, unlike negotiating contracts or explaining terms.

A licensee must disclose agency relationships to a client:

• After a written offer is received

• At first substantive contact

• At closing

• Only if asked

Answer explanation

A licensee must disclose agency relationships at first substantive contact to ensure clients are informed about their representation. This is crucial for transparency and trust in the client-licensee relationship.

In Illinois, dual agency is legal only if:

• Both parties verbally agree

• Broker receives extra compensation

• Written informed consent is given

• The agent is also the seller

Answer explanation

In Illinois, dual agency is legal only when written informed consent is given by both parties. This ensures that all parties are aware of the agent's dual role and agree to it, protecting their interests.

What is the penalty for practicing real estate without a license in Illinois?

• Suspension

• $25,000 fine

• Class A misdemeanor

• Imprisonment

Answer explanation

In Illinois, practicing real estate without a license is classified as a Class A misdemeanor, which can result in legal penalties including fines and potential jail time.

How long does a licensee have to notify IDFPR of a change in managing broker?

• Immediately

• Within 24 hours

• Within 72 hours

• Within 7 days

Answer explanation

A licensee must notify the IDFPR of a change in managing broker within 72 hours. This timeframe ensures timely updates to maintain compliance with regulatory requirements.