Illinois state law

Question 1

Regarding office policies in Illinois:
A » each office must have a written office policy manual
B » offices must have written OR oral policies
C » office policy manuals are standard and dictated by state law
D » no office policy manuals are required

Answer 1

All real estate companies in Illinois are required to have a written office policy manual, unless they are a sole-proprietorship with no additional sponsored agents.

Question 2

Brokers who receive others’ monies are required by the License Act to:
A » maintain a non-interest bearing escrow account
B » deposit the monies upon receipt of any offer
C » disburse funds at the direction of the seller
D » send in a yearly accounting to DFPR

Answer 2

Escrow accounts are non-interesting bearing by default. A company may have an interest bearing account as well. Buyers and sellers must agree to it going into an interest bearing account and must agree as to where the interest will go.

Question 3

Which of the following activities could cause an Illinois licensee to be disciplined?
A » Failure to pay county property taxes
B » Failure to pay federal income taxes
C » Failure to pay state income taxes
D » Failure to pay alimony

Answer 3

Failure to pay state taxes, along with failure to pay court-ordered child support or repay student loans, can result in license suspension or revocation.

Question 4

An Illinois home seller has AIDS. The listing agent is aware of this fact, but does not disclose it to potential buyers or to other agents. Is this a violation of license law?
A » Yes, this is a required disclosure as AIDS is a latent defect
B » Yes, this is a required disclosure as it could affect future owners
C » No, this is not a required disclosure - AIDS would fall under “handicap,” a protected class, and should not be disclosed
D » No, this is not a required disclosure - it is the listing agent’s decision whether to disclose this information

Answer 4

AIDS or other medical conditions need not be disclosed. These conditions would fall under “handicap” from a fair housing standpoint.

Question 5

Victor wants to place his name in the service directory of his church. Must he include his company name?
A » Yes, the company name must be in all ads
B » Yes, as well as the company name being larger in size than the agent’s name
C » No, religious organization ads are exempt
D » No, a directory is not considered advertising

Answer 5

Illinois License Law dictates that the company name be included in all advertising. There is no longer a size requirement.

Question 6

An Illinois rental finding service is employed by Helena to find her a suitable apartment. What can Helena expect?
A » To receive lead-based paint and mold information before looking at any units
B » To pay an upfront commission, not to exceed 5% of the first month’s rent
C » To only look at units in newer buildings
D » To sign a contract which specifies obligations of the service and fees to be paid

Answer 6

Prior to accepting any fee, a rental finding service must enter into a written agreement with the person for whom the services are to be provided. That agreement must include several items, including any fee to be paid.

Question 7

Sam is an investor and owns a portion of a limited partnership that owns many pieces of real estate. Wishing to sell his interest, he contacts Broker Bob. In Illinois, what will Broker Bob need to do this?
   A  »  A securities license
   B  »  An appraiser’s license
   C  »  A real estate license
   D  »  A partnership license

Answer 7

A securities license is required to buy and sell portions of a partnership, shares of stock in a corporation, real estate investment trusts and most syndications. The investment is in a security, not technically real estate.

Question 8

Antwon has an oral six month lease on his Chicago area apartment. He wishes to move out before the lease is up. The lease:
A » is fully enforceable by the lessor
B » is not enforceable under the Statute of Frauds
C » is enforceable if it has been recorded
D » would be enforceable if it had been for 18 months

Answer 8

Oral leases for less than one year are enforceable in Illinois.
A

Question 9

When posting listings on the company web page, one of the requirements that a broker must comply with is that each listing must have the:
A » price
B » address of the property
C » number of bedrooms
D » city or geographic area of the property

Answer 9

D