Chapter 16-B Quiz Flashcards
A real estate transaction closed on January 31. On the closing statement, the buyer will be credited with:
13 months of tax payments
A broker who offers a guaranteed purchase plan must:
Provide the seller with a written proposal, including the broker’s financial resources;
John Jones, a Licensee with Fargo Realty, has a listing on a house. The Licensee finds a ready, willing and able buyer and submits an offer to purchase. Meanwhile, the seller decides not to sell the house and asks to be released from the listing agreement with the broker. The broker agrees to release the seller from the listing contract agreement. What recourse does the Licensee have?
Sue Fargo Realty
The Director of the Real Estate Division must meet which of the following requirements:
Be a licensed Illinois real estate broker
Be a resident of Illinois
Reside in Springfield
Both a and b
Both a and b
The commissions that a real estate broker may charge are regulated by:
The local board of realtors
Be a retired broker
The National Association of Realtors
None of the above
None of the above
If a managing broker of a branch office dies, the sponsoring broker must:
Within 15 days request a
temporary permit from IDFPR
Assume responsibility for the office
Do nothing
Both a and b above
Both a and b above
All of the following must be licensed by IDFPR, except:
A manager of an apartment building in which he resides
A dealer who handles options on behalf of real estate brokers
A person who sells or offers for sale a property owned by another and who receives
compensation for such efforts
A leasing agent who has no more than five commercial, buildings
A manager of an apartment building in which he resides
The sales price of a parcel of property is $150,000. The sales commission is 6% of the sales price. If the commission were split 50/50 between the broker and the Licensee, less a 10% commission to the listing broker in another office, what would be the amount of commission payable to the licensee?
$4,050
If a seller has an open listing contract with a broker, and the broker immediately erects a “for sale” sign on the seller’s property without the seller’s permission:
He is in violation of the Real Estate License Act of 2000
If a parcel of property is forfeited or sold because of unpaid taxes, that property could be acquired by submitting a bid under a (n):
Assessor’s sale
A broker put his own property on the market, and is advertising that property for sale by owner. On the yard sign he only includes the statement “agent owned”. He does not indicate who his sponsoring broker is. Is this proper?
Yes, because Illinois licensees are allowed to advertise their property “by owner” so long as they do not use the brokerage services of any broker and they disclose “agent owned property”
An exclusive right-to-sell listing contract contains which of the following?
Description of the property
Listing price
An automatic renewal clause
Both a and b above
Both a and b above
Broker “A” kept his escrow account in ABC Bank, but for various reasons decided to switch banks. The new bank is the XYZ Bank. How much notice must be given to IDFPR?
Immediately
Joe Bums dies Without a Will. After all debts are cleared, his estate amounts to $120,000. Bums is survived by his Wife and three daughters. How much money will each of the daughters receive?
$20,000
Which of the following statements is true about a branch office manager?
The branch office manager is responsible for all Licensees at that branch;
If the branch office manager is an officer of the corporation; he does not have any
responsibilities over the Licensees
If the branch office manager resigns, the most senior Licensee can manage the branch office on an interim basis
The branch manager may be an experienced Licensee
The branch office manager is responsible for all Licensees at that branch;
Mary Smith, who is the wife of John Smith, is the beneficiary of property held in trust by the Illinois Land Trust. If this property is conveyed to Helen and George Jones, which of the following must occur?
The trustee’s deed must be signed by Mary Smith
The trustee’s deed must be signed by the trustee
A warranty deed must be signed by Mary Smith
A warranty deed must be signed by Mary Smith and her husband John Smith
The trustee’s deed must be signed by the trustee
Broker Harry listed a piece of property for a friend. The property was difficult to market because of an unusually high sales price demanded by the seller. Therefore, the listing contract was written up with no expiration date. This listing contract is:
Void
A buyer and seller enter into a purchase contract, but the improvements burn down before the closing. Who is responsible for the loss?
The seller
Ms. Mars has two rooms in her home that she wishes to rent to women only. Under the Illinois Human Rights Act, may she do so?
Yes, if she owns the property and she is not a real estate broker
On a piece of property that was owned as of January 2010, counties that do not participate in the accelerated tax payment system would have the first payment due:
June 2011
In Illinois, according to law, mobile homes are taxed as:
Personal property
Who is not required to have a real estate license?
Real estate appraiser
Concerning government owned property, which of the following statements is most correct?
Only government property can be acquired by adverse possession
Any property may be acquired by adverse possession
Only privately owned real property can be acquired by adverse possession
None of the above
Only privately owned real property can be acquired by adverse possession
The Illinois (state) transfer tax on a real property sale of $250,000 with a $25,000 assumable loan is:
$225.00
Concerning Licensee licensing fees, all of the following are true:
$110 processing fee, $150 annual renewal fee, $10 Recovery Fund Fee
Concerning Licensee licensing fees, all of the following are true, except :
$40 processing fee
A builder or developer of a housing project who builds and sells units within his or her own project is required to:
File a zoning variance
Have a valid Illinois real estate license
Employ a real estate broker to sell the units
None of the above
None of the above
Any unlicensed person who performs a real estate act that requires a license may be prevented from doing so by IDFPR filing a(n):
An injunction called a “cease and desist order”
Brokers are allowed to operate their real estate offices out of their principal residence provided that:
The broker’s real estate license is prominently displayed at the residence
A co-owner can seek division of a property ownership through action by:
Partition
An example of an enforceable lease provision is the:
Prohibition of a tenant subleasing to a third party without the lessor’s consent
Who must provide written consent prior to a broker advertising a property for sale?
Seller
. Who is eligible for company benefits and medical insurance coverage?
Employees
No later than entering into a brokerage agreement with a client, a broker shall advise the client as to the broker’s compensation and whether the broker will share that compensation with brokers who represent other parties in a transaction.
True
A broker may be disciplined for which of the following activities?
Failing to review and sign a closing statement
Treating clients differently
Continuing to manage a
property with full knowledge of code violations that threaten the public interest
All of the above
All of the above
Which of the following items is not necessarily part of the independent contractor’s agreement?
Compensation
Supervision
Duties
Sales quotas
Sales quotas
A licensee may not accept finder’s fees, commissions, discounts, or any other compensation from financial institutions, or title companies, unless the licensee:
Makes prior written disclosure to all parties in the transaction
The Legislative General Assembly found that the application of the common law of agency to real estate brokers, Licensees and consumers of brokerage services had resulted in misunderstandings. This resulted in consequences contrary to the best interests of the public. Concerning the “Law of Agency” all of the following are true, except:
The Illinois Real Estate Act was therefore amended to limit the number of individuals who could obtain a real estate license
The intent of the agency law is to promote and provide stability in the real estate market
The Legislature found that it was in the best interests of the public to provide codification of the relationships between real estate brokers and Licensees and consumers of real estate brokerage services
The law was enacted to prevent detrimental misunderstandings and misinterpretations of the relationships by consumers, real estate brokers, and Licensees
The Illinois Real Estate Act was therefore amended to limit the number of individuals who could obtain a real estate license
Under the Agency – Brokerage Relationships Law, a “client may be defined as:
A person who is represented by a licensee
The agency law defines a “customer” as a person who is:
Not being represented by a licensee but for whom the licensee is performing ministerial acts
The responsibility for the activities of an employed “unlicensed assistant” rests with the:
The employing Licensee
The term “ministerial acts” includes all of the following, except:
Attending an open house and responding to questions about the property from a consumer
Responding to questions from consumers walking into a licensee’s office concerning brokerage services offered for particular properties
Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property
Entering into a relationship in which the licensee is representing both the buyer and the seller in one transaction
Entering into a relationship in which the licensee is representing both the buyer and the seller in one transaction
Real estate licensees are permitted to employ:
An “unlicensed assistant” to-perform certain limited activities relating to a real estate transaction
Setting an appointment to view property; describing a property or the property’s condition in response to a consumer’s inquiry, and showing a client through a property being sold by an owner on behalf of the owner are considered to be:
Ministerial acts which do not create an agency relationship
What is the difference between a sponsor card and a pocket card?
A sponsor card is issued once a licensee is newly sponsored by a broker and the pocket card is issued once the license has been received
Illinois law requires a licensee to promote the best interests of the client. This would include all of the following except:
Timely presentation of all offers to and from the client, unless the client has waived this duty
Obeying specific directions of the .client even if they are contrary to applicable statutes, ordinances, or rules
Timely accounting for all money and property received in which the client has, may have, or should have had an interest
Disclosing to the client material facts concerning the transaction of which the licensee has actual knowledge, unless that information is confidential information
Obeying specific directions of the .client even if they are contrary to applicable statutes, ordinances, or rules
A licensee’s ‘unlicensed assistant’ may not:
Interpret information on listings, titles, financing, contracts, closings, or other information relating to a transaction
Negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee
Explain or interpret a contract, listing, lease agreement, or other real estate document with anyone outside the licensee’s firm
Perform any of the above acts
Perform any of the above acts
All of the following are activities an employed ‘unlicensed assistant’ may perform, except:
Host open houses, kiosks, home show booths or home fairs
Place signs on property
Order items of routine repair as directed by a licensee
Act as a courier to deliver documents, pick up keys, etc.
Host open houses, kiosks, home show booths or home fairs
A licensee must disclose in writing to a customer when the Licensee is not acting as the customer’s agent
This must be done in time to prevent the customer from disclosing confidential information to the licensee
Once a broker has terminated a Licensee’s license:
The broker must send a copy the Licensee’s license to the Illinois Department of Financial and Professional Regulations within 2 days after termination
All of the following are what a licensee can do for clients when acting as a dual agent. except:
Disclose confidential information the licensee may know about the clients with the client’s permission
Disclose all latent material defects in the property that are known to the licensee
Help the buyer or tenant to arrange for property inspections
Provide information about comparable properties that have sold to the buyer so they do not submit a high offer
Disclose confidential information the licensee may know about the clients with the client’s permission
