Free Illinois Real Estate Broker Examination State Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Illinois Real Estate Broker Examination State Portion practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Illinois owner asks an unrelated person to find a buyer for the owner's home in exchange for a success fee. Which fact makes the activity require real estate licensure?

   1. A. The person will procure a buyer for compensation
   2. B. The home is owner-occupied
   3. C. The fee will be paid after closing
   4. D. The owner will sign the deed

   Answer: A

   Explanation: Official text states: “for another and for compensation”. The Act defines licensed brokerage activity to include selling or offering real estate for another for compensation. The controlling rule states that a person acting as a broker must hold a valid license. The success-fee arrangement is therefore licensed activity.

   Reference: ADMINISTRATIVE CODE — Sec. 5-5.

2. 2A buyer asks whether a listed Illinois home was previously occupied by a person with HIV. What is the broker's duty under the License Act?

   1. A. Disclose it in every transaction
   2. B. Disclose it only with written seller consent
   3. C. Disclose it only after a pre-offer inquiry
   4. D. No disclosure is required on that basis

   Answer: D

   Explanation: Official text states: “No cause of action shall arise against a licensee for the failure to disclose”. Illinois does not treat the fact that an occupant had HIV or another medical condition as a material fact requiring disclosure in a real estate transaction.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 15-20.

3. 3In a typical Illinois land trust, who holds title to the real estate?

   1. A. The beneficiary personally
   2. B. The trustee
   3. C. The county assessor
   4. D. The sponsoring broker

   Answer: B

   Explanation: Official text states: “the title to real property, both legal and equitable, is held by a trustee”. Under the Illinois land-trust structure, title is held by the trustee while the beneficiary retains the beneficial interest and powers reserved by the trust agreement.

   Reference: 765 ILCS 405/1 — Sec. 1.

4. 4An Illinois sponsoring broker enters a written listing relationship with a seller. What must the agreement do regarding agency?

   1. A. The named sponsored licensees acting for the seller
   2. B. Every sponsored licensee in the brokerage
   3. C. Only the designated managing broker
   4. D. Only the sponsoring brokerage entity

   Answer: A

   Explanation: Official text says the agreement “shall specifically designate those licensees”. A written brokerage agreement must specifically designate the sponsored licensee or licensees acting as legal agents for the client, excluding other affiliated licensees.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 15-50.

5. 5A homeowner personally markets and sells her own Illinois property without acting for anyone else. Which licensing result applies?

   1. A. She needs a residential leasing agent license
   2. B. She falls within the owner exemption
   3. C. She needs a broker license only if she advertises
   4. D. She must hire a managing broker to sign the contract

   Answer: B

   Explanation: Official text states: “The requirement for holding a license under this Article 5 shall not apply to”. Section 5-20 exempts an owner or lessor dealing with the owner's own real property when the statutory conditions are met. Personal sale of the owner's property is therefore exempt from the broker-license requirement.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 5-20.

6. 6A prospective buyer asks a broker whether a murder occurred years ago in the listed house. The seller has not authorized disclosure. Under Illinois law, what is the best response?

   1. A. Disclose the occurrence without seller authorization
   2. B. Treat the occurrence as a nondisclosable stigma
   3. C. Disclose it only after a written buyer inquiry
   4. D. Include it in the physical-condition report

   Answer: B

   Explanation: Official text states: “No cause of action shall arise against a licensee for the failure to disclose”. The Act identifies that a property was the site of an act or occurrence having no effect on physical condition as a circumstance that does not create a disclosure duty.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 15-20.

7. 7An Illinois land-trust beneficiary wants the trustee to convey the property. What document primarily governs the beneficiary's power to direct the trustee?

   1. A. The trust agreement
   2. B. The broker's CMA
   3. C. The property-tax bill
   4. D. The MLS rules

   Answer: A

   Explanation: Official text states: “the title to real property, both legal and equitable, is held by a trustee”. The land-trust agreement defines the beneficiary's power of direction and the trustee's authority concerning title.

   Reference: 765 ILCS 405/1 — Sec. 1.

8. 8Broker A is designated for an Illinois seller, while another affiliated broker represents a buyer. Is every licensee in the firm automatically a dual agent?

   1. A. Yes, firm affiliation alone creates dual agency
   2. B. No, properly designated agents represent their respective clients
   3. C. Yes, whenever compensation is shared
   4. D. No, because buyer agency is prohibited

   Answer: B

   Explanation: Official text says the agreement “shall specifically designate those licensees”. Illinois designated agency limits the legal agency role to the licensees named for each client; the sponsoring broker is not deemed to act for multiple parties solely because separate agents are designated.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 15-50.

9. 9An Illinois attorney performs real estate activities solely while practicing law for a client. Which rule is most relevant to whether a separate broker license is required?

   1. A. The auctioneer exemption
   2. B. The owner exemption
   3. C. The attorney-in-practice exemption
   4. D. The resident-manager exemption

   Answer: C

   Explanation: Official text states: “The requirement for holding a license under this Article 5 shall not apply to”. The Act's exemptions include an attorney-in-fact acting without compensation and an attorney-at-law acting in the performance of legal duties. The legal-practice facts control, not the transaction's value.

   Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 5-20.

10. 10Which fact is most likely a nondisclosable stigma rather than a physical condition under Illinois brokerage law?

    1. A. A leaking foundation
    2. B. An unpermitted room addition
    3. C. A former occupant's medical condition
    4. D. A failed septic system

    Answer: C

    Explanation: Official text states: “No cause of action shall arise against a licensee for the failure to disclose”. A former occupant's medical condition is within Illinois statutory stigma protections; physical defects such as leaks or failed systems are different matters.

    Reference: Illinois General Assembly - Illinois Compiled Statutes - Full Text — Sec. 15-20.