Chapter 16-A Quiz Flashcards
Which of the following types of listing agreements must be in writing to be enforceable?
Exclusive agency listing agreements only
Exclusive Right-to-Sell listing agreements only
All listing agreements
Both a and b
Both a and b
Written listing agreements that do not provide for automatic expiration within a definite period of time are considered to be:
Void
Concerning all exclusive right-to-sell listing agreements and all exclusive agency listing agreements, which of the following, in Illinois, is most correct?
No change in the amount of the commission or the time of payment shall be valid unless made in writing and signed by the involved parties
The agreed amount of basis of the commission must be included
The time of payment of the commission must be included
All of the above are correct
All of the above are correct
The “equalization factor” used in Illinois in computing real estate taxes is designed primarily to:
Counteract discrepancies in assessments in different localities
In Illinois, a branch real estate office may be managed by:
Both a and c
A real estate broker may lawfully collect a commission from both the buyer and seller, provided the broker has:
Obtained prior written disclosure and written consent from both buyer and seller,
Broker Roberts has received an exclusive right-to-sell listing from seller Thomas in which seller Thomas promises to pay the broker a 15% commission for selling the property. Under these conditions, such a commission is considered to be:
Valid
In Illinois, probably the greatest single cause for license suspension or revocation is commingling of funds. Of the following, all are considered to be commingling except:
Depositing earnest money received from the buyer in the broker’s personal checking account to be held there until requested by the seller
Placing cash received by the broker from the buyer in the broker’s safety deposit box and clearly identifying the money as the buyer’s deposit
Being authorized by the seller to hold an earnest money check in an uncashed form after the offer has been accepted
None of the above
Being authorized by the seller to hold an earnest money check in an uncashed form after the offer has been accepted
A “blind ad” placed by a real estate licensee is considered to be:
Illegal
Concerning real estate mortgages, the lien theory applied in Illinois is considered to be:
Intermediate theory
A property manager could perform all of the following functions:
Order property insurance, Set the rental rates, Sell residential rental properties
A property manager could perform all of the following functions except:
Complete the building owner’s personal income taxes
A real estate broker would be required to have more than an ordinary knowledge of accounting procedures in which of the following businesses?
Selling real property securities
Property management
The appraisal of real estate
Selling residential rental properties,
Property management
Mr. Smith hired his unlicensed son-in-law to complete some electrical work in his single-family home. Mr. Smith then listed his house with broker Kent. Mr. Smith did not disclose that his son-in-law, an unlicensed electrician, did the electrical work. After the completion of the sale, the new owner, Mr. Johnson, suffered a financial loss due to the faulty electrical wiring done by Smith’s son-in-law. Under these conditions, broker Kent:
Is innocent of any wrongful act
According to Illinois law, who must be licensed as a real estate broker?
A person seeking to make a commission in a real estate transaction
Jane Mills is moving to Indiana. She needs to sell her home in Illinois. She hires Suzy Smith, a licensed real estate broker, to sell her home. After Suzy has been hired, Suzy finds out that the neighborhood where Jane Mills’ property is located is being rezoned commercial. Suzy decides to purchase an option on Jane’s home but fails to disclose to Jane that her neighborhood is being rezoned commercial. Suzy decides to exercise her option. Suzy then resells the property to an investor for twice the price she paid to Jane. According to Illinois law, such conduct would be permissible provided that:
Suzy discloses to Jane that her area is being rezoned commercial and that Suzy would make a profit once she exercises her option
An exclusive right-to-sell listing is best defined as:
Broker Employment Contract
The requirement to look out for the best interest of the client applies to which of the following?
A property manager employed by an owner
A consumer asking questions at an open house
A buyer asking a listing agent how many bedrooms the house contains
All of the above
A property manager employed by an owner
Broker Able listed a home that he knew was situated on a landfill site and where area homes have been sinking due to the lack of a solid foundation. Broker Able did not reveal this information to a prospective buyer. Given this information, the licensee in this situation could be subjected to:
Criminal action. Civil action, Disciplinary action
A violation of the License Act by a real estate licensee could result in:
A maximum fine of $25,000
Sponsoring Broker Edwards hired Licensee Tennison as an independent contractor. The status of an independent contractor would permit Licensee Tennison to:
Perform services only through the sponsoring broker
Sponsoring Broker Matthews expanded his operation and opened a branch office. Broker Matthews must now:
Apply for a branch office license in the name of the main office and designate a managing broker
Sponsoring Broker West has an exclusive right-to-sell listing agreement on Beck’s property. Under which of the following conditions could Broker West sign a valid sales contract for principal Beck?
Provided the broker has a written power of attorney from principal Beck
In Illinois, real estate licenses may be issued by:
IDFPR
Ms. Smart was hired by Broker Kingston as an administrative support person for her downtown office. Broker Kingston agrees to pay Ms. Smart a regular salary for her duties as an employee. In addition to the regular office functions, Ms. Smart may legally perform, on behalf of her employer, which of the following duties?
Fill in the blanks of pre-printed sales contracts for salespeople in the employing broker’s office
Who pays the Licensee their commission?
The sponsoring broker
A contractor performed work on a piece of property and has a signed contract. What is the length of time that he has to file a mechanic’s lien notice with the county clerk?
Four months from the date the work was completed
A real estate Licensee has a listing on a vacant farmhouse and barn. A Licensee from another company has a prospect that wants to rent only the house. The prospect does not want to buy the property nor the barn, just rent the house. The Licensee from another company who has the renter prospect goes directly to the owner of the property is this proper?
No, because the property is listed with a broker and the Licensee from another company cannot negotiate anything with the seller who is being represented by a broker without the presence and/or permission of the listing broker
A landowner who is the sole owner of a piece of property dies without a will. His property will be disposed of:
According to the laws of descent and distribution
A licensee sells a building. It is later discovered by the buyer that the building was poorly constructed, and had numerous flaws. If the buyer files a claim with the Illinois Real Estate Recovery Fund:
The buyer can only use the Recovery Fund if the buyer has exhausted all other avenues for recovering the money
Real estate taxes are based on:
A percentage of the market value of the property as established by the assessor
Regardless of interest or non-interest bearing accounts, earnest money deposits must be placed into:
Banks or federally insured deposits
The Illinois Licensing Act of 2000 protects:
The public
Mr. Rogers is planning to move to New Mexico. His neighbor, Ms. Young, has had some real estate experience but has not renewed her real estate license. Mr. Rogers tells Ms. Young that he will give $5,000 to anyone who sells his house for him. Ms. Young finds a buyer and the deal is consummated. Mr. Rogers then decides that he is not going to pay the commission, so Ms. Young decides to sue for her commission. Can she do this?
No, because she is not licensed under the Illinois Real Estate Licensing Act of 2000
Which of the following licensees would be required to complete 120 classroom hours at an approved real estate school?
A high school graduate with 90 hours of college course work wanting to become a licensed Licensee
A licensee that renewed their real estate license one year past their expiration date
A broker who has an expired real estate license in excess of two years
An attorney who is licensed or approved by the Illinois State Supreme Court to practice in the State of Illinois
A broker who has an expired real estate license in excess of two years
A closing statement is for the purpose of:
Making a full accounting of all the moneys involved in the transaction
Jane Doe has a Licensee’s license, but a broker has not sponsored her for six (6) years. She is thinking about renewing her license and going to work for John Jones Realty. She:
Cannot renew her license
Licensees must fully disclose any interest they may have in a property, which must be made:
In writing
A real estate licensee is successful in selling a piece of property, which was difficult to market, and the grateful seller not only pays the commission but also includes a $500 gift certificate for the Licensee. What should the Licensee do in this situation?
Accept both the commission and the gift certificate on behalf of the broker because it was earned
A broker takes money from the escrow account and pays his overdue personal real estate taxes because he is afraid his real estate license will be suspended. Later, the broker replaces this money prior to the closing. The broker is guilty of:
Conversion
When a Licensee terminates his employment with his broker, his broker must:
Remove the Licensee’s license from the wall, endorse it and give it to the Licensee
The Illinois (state and county) transfer tax is based upon:
$.75 per $500 of purchase price;
A valid deed contains all of the following:
The name and signature of the grantor, The name of the grantee and the grantee’s present address, The property’s legal description
A valid deed contains all of the following, except:
An acknowledgment of the grantor before a notary public
A broker writes an offer on a fellow broker’s listing on Monday and collects the earnest money. The listing broker submits the offer to the seller on Wednesday. The seller counters the offer. The earnest money amount remains the same and the buyer accepts the counteroffer on Thursday. The earnest money must be deposited in the listing broker’s escrow account:
On Friday
When a buyer and a seller have a written agreement as to the disposition of earnest money in an interest-bearing account, which is entitled to the interest?
It is disbursed according to the written contract
A Licensee has a listing on a 20-acre parcel. A buyer who is willing to pay a finder’s fee for the 20-acre parcel contacts the Licensee. The Licensee arranges a meeting between the buyer and the seller and explains to each that the Licensee is receiving compensation from both parties. The Licensee also asks each party to sign a written disclosure and give written permission before he begins to represent the buyer. This is proper because:
The Licensee is disclosing to both parties of the transaction that he is acting as a dual agent and receiving compensation from both
A farmer has 180 acres of land with three houses on it. The farmer is planning to retire and wants to give one house and 15 acres to his son John, and 4 acres and one house to his son Paul, and keep 161 acres and a house for himself. Which of the following would come under the jurisdiction of the Illinois Plat Act?
Son Paul’s house and the 4 acres
A real estate Licensee is convicted of discrimination and a suit is filed. The plaintiff is awarded so much money that the licensee has to declare bankruptcy. The plaintiff then goes to the Real Estate Recovery Fund and files a claim and collects whatever money they have corning. In order to be reinstated as a real estate licensee, the licensee must:
Repay the Real Estate Recovery Fund with interest
The Illinois Department of Financial and Professional Regulations (IDFPR) have the power to hold hearings, to impose penalties, and to revoke and suspend licenses for which of the following circumstances?
Advertising a piece of property using a blind ad, Commingling funds, Acting as an attorney while at the same time acting as a broker for both buyer and seller without written consent
In Illinois, the broker’s escrow account must be reconciled within how many days after receipt of the bank statement?
10 days
