STATE PORTION

Question 1

A partition suit is used for which of the following?

A) To Force a division of property w/out all the owners consents.
B) To change tenancy by entirety to some other form of ownership.
C) Determination of party fences.
D) To allow construction of additional bedrooms or bathrooms in a house.

Answer 1

A) To force a division of property without all owners consents.

Question 2

Which of the following would be used to clear a defect from the title records?

A) An estoppel certificate
B) A lis pendens
C) A suit to quite title
D) A write of attachment

Answer 2

c) A suit to quite title

Question 3

The title to real estate passed when a valid deed is:

A) executed and mailed
B) delivered and accepted
C) filed and uploaded to the cloud
D) signed and recorded

Answer 3

B) Delivered and accepted

Question 4

What type of listing agreement allows the owner to appoint an exclusive agent to sell his property, but retain the right to sell the property himself?

A) Multiple Listing
B) Open
C)Exclusive Agency
D)Exclusive right to sell

Answer 4

C) Exclusive Agency

Exclusive agency allows the seller to appoint an exclusive agent, but retain the right to sell the property himself.

Question 5

If a home appraised for $93,000, and Mr. Nickel, the borrower, puts 20% down, what would his loan amount be?

A) $91,500
B) $91,400
C) $74,500
D) $74,400

Answer 5

D) $74,400

To arrive at the loan amount, take the $93,000 appraised amount and multiply that by 80%(Loan needed) for a total loan amount of $71,400

Question 6

To create a joint tenancy relationship in the ownership of real estate, there must be unities of:

A) Possession, Time, Interest, and Title
B) Desires, Ownership, Claim of right, and Possession
C) Title, Interest, Liens, and Survivorship
D) Ownership, Possession, Heirs, and Title

Answer 6

A) Possession, time, Interest, and Title

This essentially means that all parties to the agreement share equally in all aspects of the property including the length of time it’s been held.

Question 7

Due to the procedure in which mortgage foreclosures occur under state laws, Illinois is characterized as a

A) strict foreclosure
B) lawsuit theory state
C) judicial foreclosure state
D) mortgage theory state

Answer 7

C) Judicial foreclosure state

Question 8

Which phrase is not acceptable to use when advertising?

A) “Quiet streets”
B)” Desirable neighborhood”
C)”Christian home”
D) “Non-smoking”

Answer 8

C) “Christian home:

Question 9

The illegal process of a banker refusing to approve loans for a neighborhood based on the racial composition of the area is

A) panic peddling
B) blockbusting
C) redlining
D) steering

Answer 9

C) Redlining

Question 10

A house sale is closed on July 15th. The taxes of $648 for the Calendar year have been paid. Assuming the seller owns the day of the closing, what is the total prepaid portion that the buyer will owe the seller? (Round to the dollar)

A) $427
B) $190
C) $638
D) $300

Answer 10

D) $300

Question 11

The buyer of an apartment complex is told that the refrigerator in one of the apartments goes with the sale. After taking title, he discovered that the refrigerator belonged to the tenants. Which is true about this situation?

A)The tenant will have to get permission from the new owner to remove the refrigerator
B) The refrigerator is the personal property of the tenant. The seller has no right to offer it to the buyer.
C) The refrigerator was plugged to the wall and makes it real property.
D Since the refrigerator was in the apartment , it automatically belongs to the new owner

Answer 11

B) The refrigerator is the personal property of the tenant. The seller had no right to offer it to the buyer.

Question 12

Which of the following liens does not have to be recorded to be valid?

A) Real estate tax lien
B) Mechanics lien
C) Judgement lien
D) Materialsman lien

Answer 12

A) Real estate tax lien

Question 13

If the capitalization rate of a building that produces a $20,000 annual income is 10%, what is the estimated value of the building?

A) $200,00
B) $22,000
C) $220,000
D) $222,200

Answer 13

A) $200,000

Remember, the interest rate into the income equals the investment, so you can use this here in a slightly different equation.

$20,000 / .10 (10%) = $200,000

Question 14

If a seller has a change of heart AFTER accepting an offer and decides not to sell, which of the following applies to the seller’s broker?

A) The broker IS entitled to collect a commission.
B) The broker has no right to a commission because the transaction was never complete
C) The broker is entitles to only HALF the commission
D) The broker may retain the earnest money deposit as a commission

Answer 14

A) The broker IS entitled to collect a commission

The seller had accepted the offer, thus the broker had earned a commission. However, the broker may not take his commission from the deposit, which must be returned to the buyer

Question 15

Owner Stan has been defaulting on mortgage payments and owes more than his property is worth. Stans lender is allowing him to sell the property for less money than necessary to satisfy the loan. The bank has permitted Stan to do what?

A) Flip the property
B) Short sell the property
C) Deed the property to HUD
D) Commit tax fraud

Answer 15

B) Short sell the property

Short sales avoid the delay and expense of a foreclosure sale. The lender usually forgives the mortgage balance owed after the sale.

Question 16

When a prospective buyer makes a written purchase offer that the seller accepts, then the

A) seller grants the buyer ownership rights.
B) buyer receives equitable title to the property
C) buyer receives legal title to the property
D) buyer may take the possession of the real estate

Answer 16

B) buyer receives equitable title to the property

“Equitable title” means that the prospective buyer has obtained the rights to acquire ownership of a property currently owned and occupied by another.

Question 17

Licensee Evan is more than 30 days delinquent in his child support payments. What action can IDFPR take?

A) IDFPR can suspend Evan’s License.
B) IDFPR has the authority to do any of the above.
C) IDFPR can revoke Evan’s License.
D) IDFPR can refuse renewal or issuance of a license.

Answer 17

B) IDFPR has the authority to do any of the above.

A licensee must ALWAYS pay child support payments, Illinois Taxes and student loans to retain his license. If delinquent, IDFPR has the authority to take any of the above actions.

Question 18

If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, what happens?

A) The properties retain their former status
B) The easement becomes dormant
C) The easement. is terminated
D) The easement is unaffected

Answer 18

C) The easement is terminated

“Dominant” and “Servient” tenements involve two adjacent properties in which an easement is involved. When they are owned by the same person, the easement is terminated.

Question 19

Carl, the owner of an apartment complex lives in one unit of a triplex and routinely refuses to rent either of the other two units to a female. Can he do this?

A) No, Carl can never discriminate on sex.
B) Yes, He may do this if he does not use a broker or discriminate in advertising.
C) No, Carl must live in a single family home to discriminate.
D) Yes, He may do this if he doesn’t ask the tenants age.

Answer 19

B) Yes, He may do this if he does not use a broker or discriminate in advertising.

Question 20

The _______ is the culmination of the real estate transaction.

A) Default of the mortgage
B) Signing of the sales contract
C) Inspection
D) Title Closing

Answer 20

D) Title closing

All the closing, the buyer completes his or her financing arrangements (referred to as closing, the loan), the seller transfer the title, and both the buyer and seller pay the necessary taxes, fess and other charges.