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Illinois Real Estate > Exam > Flashcards

Exam Flashcards

1
Q

Broker & Managing Broker CE Requirements

A

Broker: 12 hours every two years
Managing Broker: 24 hours, 12 of which must be broker management

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2
Q

Are cultivated crops fixtures or personal property?

A

Personal Property

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3
Q

Bundle of Rights

A

DEEP C
Disposition
Exclusion
Enjoyment
Possession
Control

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4
Q

Fee Simple Determinable

A

Inheritable freehold estate - title remains with new owner as long as the conditions of ownership are met. Returned automatically.

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5
Q

Fee on Condition

A

Similar to Fee Simple Determinable and is recognizable when the words “but if” appear in the deed.

Estate continues unless a specific event occurs. Returned through a court order.

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6
Q

Use Variance Definition

A

Allows owner to use the land for a purpose that would otherwise be prohibited by the zoning in place.

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7
Q

Four Criteria to get a Use Variance

A
  1. The property’s economic benefit is eliminated due to current zoning. Provide financial evidence.
  2. Hardship must be unique to this property and not endemic to the neighborhood
  3. Requested variance can’t alter the essential character of the neighborhood.
  4. The hardship can’t be self-inflicted.
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8
Q

Area Variance Definition

A

Allows the owner to use the land in a way that’s not normally allowed by the physical or dimensional requirements of current zoning.

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9
Q

Fiduciary Duties

A

OLD CAR

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable Skill and Care

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10
Q

FHA 203(k) Rehabilitation Loan (aka Renovation Loan)

A

Allows the buyer to finance both the purchase of the property and the renovation in a single loan

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11
Q

How long are escrow records held in the office?

A

Two years

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12
Q

How long must all real estate records be held?

A

Five years

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13
Q

3 Types of Depreciation

A
  1. Physical depreciation
  2. Functional obsolescence - loss in value caused by defects in design (poor floor plan, inconvenient room sizes, level without a bathroom)
  3. External depreciation (aka economic obsolescence) - loss of value caused by undesirable or hazardous influence offsite (traffic, odors, airport)
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14
Q

GRM Formula

A

GRM = price / monthly gross rent

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15
Q

Chicago Transfer Tax

A

$3.75 per $500

Chicago Transit Authority (CTA) imposes additional $1.50 per $500

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16
Q

Truth in Lending Act (TILA)

A

Purpose is to better educate the public about the costs of credit and financing through disclosures that are requirement of lenders and credit providers

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17
Q

Illinois State of Limitation

A

Personal Injuries - 2 years

Property Damage - 7 years

Contract Breach (verbal) - 5 years

Contract Breach (writing) - 10 years

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18
Q

Constructive Notice

A

Existing Knowledge

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19
Q

CAN-SPAM Act

A

Requires commercial emails to follow rules that limit junk emails

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19
Q

Actual Notice

A

Being directly informed of something or having witnessed something

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20
Q

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) Title XI

A

real estate appraisals must be:
-in writing
-in accordance with uniform standards
-by individuals whose competency has been demonstrated

21
Q

Housing and Economic Recovery Act & Dodd-Frank Wall Street Reform & Consumer Protection Act

A

Changed the way mortgage loans are handled, including increasing requirements for qualifying property. Included appraisal clauses

22
Q

Federally Related Transaction

A

Any transaction of real property which a federal financial agency is involved. DOES NOT INCLUDE FHA OR VA LOANS.

Rules:
1. Require a state-license or appraiser
2. Properties valued at $400k or less are exempt

23
Q

Cap Rate Formula

A

Rate = NOI / Value

24
Q

Cap Rate Risk Levels

A

High Cap Rate
Risk = High
Value = Low

Low Cap Rate
Risk=Low
Value = High

25
Q

Regulation Z

A

Contains the laws and statutes for implementing Truth in Lending Act (TILA)

Requires lenders to disclose:
-APR
-Loan Terms
-Total borrower costs

26
Q

Real Estate Settlement Procedures Act (RESPA)

A

Requires lenders to provide various loan disclosures to borrowers.

Requires lender to disclose:
-The loan type
-All loan fees
-Projected payment table
-Estimated closing costs

27
Q

TILA - RESPA Integrated Disclosures (TRID)

A

Requires lenders to use the TRID disclosure forms:
-Loan Estimate
-Closing Disclosure

28
Q

Home Mortgage Disclosure Act (HMDA) of 1975

A

Purpose is to provide public and elected officials with info on whether financial institutions are fulfilling their obligations to serve the housing needs or their communities.

29
Q

Land Contract aka Contract for Deed

A

Seller retains title. Contract has to be paid in full before deed if turned over to buyer.

30
Q

Purchase Money Mortgage

A

Buyer retains title but places security interest in the property on seller’s behalf.

Interest rate is high to compensate seller for not receiving full payment up front.

31
Q

Who is exempt from transfer taxes?

A

Properties conveyed by or from any government body.

32
Q

After switching brokerages, how long do you have to notify the Division of Real Estate?

A

15 Days

33
Q

Homestead Exemption for One Person

A

$15,000

34
Q

How quickly must escrow checks be deposited?

A

1 business day

35
Q

Guaranteed Sales Plan

A

Licensee either sells the property in listing term or has to buy it

36
Q

Illinois Transfer Rate Tax

A

$0.50 for each $500 of the transfer price

37
Q

Broker CE Requirements

A

12 Hours

38
Q

Security deposits must be returned in

A

45 days

39
Q

Illinois License Renewal Periods

A

Brokers: April 30th on even-numbered years

Residential Leasing Agents: July 31st on even-numbered
years

Firm: October 31st on even-numbered years

Managing Brokers: April 30th on odd-numbered years

40
Q

Timeshare Lien and Security Interest Act

A

Allows timeshare managers to assess liens against timeshare ownership interests when there are unpaid fees, etc.

41
Q

Boundaries of Townships

A

Township lines and range lines

42
Q

Sub-Agency

A

a licensee from one firm who brings an unrepresented buyer for a property listed by another firm

43
Q

Are commercial loans covered in RESPA?

A

No

44
Q

Escalator Offer

A

A clause that buyer will beat out all competing offers up to a certain amount

45
Q

Bulk Zoning

A

limits on building heights and lot widths

46
Q

Sales Approach Order

A
  1. Financing terms and cash equivalency
  2. Conditions of sale, market conditions at the time of contract and closing
  3. Location
  4. Physical characteristics
47
Q

Loft Lease

A

Large open space with few amenities

48
Q

Gross Lease

A

Tenant pays a fixed rent and landlord pays all operating expenses

49
Q

Net Lease

A

Tenant pays on top of the rent one or more of the following expenses:

-property taxes
-property insurance premiums
-maintenance costs

50
Q

Percentage Lease

A

tenant pays a base rent + an additional charge based on a percentage of tenant’s gross sales or income

51
Q

Triple Net Lease

A

tenant pays rent plus taxes, insurance, and maintenance costs

Illinois Real Estate (1 decks)

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