Sales Associate / Broker Prelicense Applied RE Principles Interactive Class – Questions Only
(Answers to these questions will be given with proper SUBSCRIPTION)
1) Under what circumstances can the broker share confidential information of his/her client after the listing expires?
A. With the client’s written permission.
B. When representing another party
C. When a customer asks
D. Under any circumstances, once the listing expire
2) Disclosures to potential buyers that are required by the listing broker include which of the following?
A. Stigmatized property
B. Seller’s reason for moving
C. Agency status
D. Seller’s minimum price
3) A listing which allows the owner to sell the property himself without being liable for a commission, but which appoints only one broker to act as his sole agent is what kind of listing?
A. Net listing
B. Open listing
C. Exclusive agency listing
D. Exclusive right to sell listing
4) Which type of listing provides the most incentive for a broker to market a property?
A. Exclusive agency listing
B. Open listing
C. Net listing
D. Exclusive right to sell listing
5) If the sponsoring broker wishes to disclose sex offenders in the area, ghosts, murders, suicides, etc., he or she should consult with _______________ for advice on how to do so.
A. An accountant
B. A psychic
C. A member of law enforcement
D. An attorney
6) The Illinois Carbon Monoxide Alarm Detector Act
A. recommends that all residences of one to four units have alarms.
B. requires residences to have an alarm.
C. requires residences to have an alarm within 15 feet of every sleeping room.
D. requires sellers to test for carbon monoxide.
7) All exclusive listings must be ________________ to be enforceable in court.
A. In writing
B. Notarized
C. Reviewed by an attorney
D. Confirmed verbally
8) Listings must have a specific termination date (no automatic extension clause) or provide the client with a right to terminate annually by giving no more than ________ days prior written notice.
A. 10
B. 30
C. 20
D. 40
9) A _________________ is one of the documents that should be included in the seller packet.
A. Insurance application
B. Prequalification statement
C. Seller’s net sheet
D. Preapproval letter
10) What type of listing gives the broker the greatest assurance that he or she will receive compensation for his or her marketing efforts?
A. Net
B. Exclusive right to sell
C. Open
D. Exclusive right to buy
11) Licensees should know what information cannot be disclosed?
A. Closing details
B. Material facts
C. Information regarding the health of the occupants
D. Marketing strategy
12) Who should complete the Real Property Disclosure Report?
A. A home inspector
B. The seller
C. The seller’s agent
D. The buyer’s agent
13) What should you bring with you to a listing appointment to ensure that you have the necessary documents for use when working with the seller?
A. Briefcase
B. Hot spot
C. Broker in charge
D. Seller packet
14) What rights does a buyer have, if a seller fails to provide a property disclosure document prior to the transfer of the property?
A. Buyer has the right to file a case in the Court of Appeals
B. Buyer has the right to reduce the contract sale price.
C. Buyer has the right to terminate the contract
D. Buyer has the right to sue the seller.
15) All listings must contain a _________________ prohibiting the seller or the broker from showing any bias against the protected classes.
A. Non-discrimination clause
B. Unity clause
C. Equality clause
D. Sustainability clause
16) A property that is accurately priced is likely to
A. have an appraisal problem.
B. help to sell the competition.
C. lose some of the seller’s equity.
D. sell in a reasonable amount of time with no appraisal problem.
17) The listing agent should prepare the seller for
A. low offers.
B. last-minute showings.
C. the office tour.
D. All answers are correct
18) What are the two most common changes to an original listing agreement?
A. Closing date and financing
B. Inspections and repairs
C. Price changes and listing period extensions
D. Value and amendments
19) The broker protection clause is no longer effective
A. if the list price was too high.
B. if there were multiple offers.
C. if the listing agent has other properties listed.
D. if the property is relisted.
20) Which of the following is a feature of an open listing?
A. If the seller sells the property without the aid of a broker, no commission is due.
B. If the seller sells the property without the aid of a broker, the commission is still due.
C. If the seller sells the property without the aid of a broker, the commission is half the amount if sold by the broker.
D. If the seller sells the property without the aid of a broker, the commission is put in escrow.
21) When must a seller client first become aware of the possibility of dual agency?
A. At the time the listing agreement is signed
B. When the seller receives the first offer
C. Within 24 hours of accepting the listing agreement.
D. Prior to closing.
22) An open listing is a ______________ contract, authorizing a broker to serve as the agent for the sale of property.
A. A non-reductive
B. An exclusive
C. A reductive
D. A non-exclusive
23) What action can a licensee take if a client refuses to consent to a dual agency relationship?
A. A licensee may with liability withdraw from representing a client.
B. A licensee may without liability withdraw from representing a client who has not consented to a disclosed dual agency
C. A licensee might sue the seller for actual damages.
D. A licensee may without liability withdraw from representing a client who has not consented to a disclosed dual agency, but the client must pay a referral fee.
24) What should a seller do if potential buyers show up at the door wanting to see the property?
A. Tell them they can view the property only if they are prepared to make an offer
B. Invite them in and show them around
C. Take their name and call the listing agent
D. Ask them to wait an hour for the listing agent to get there
25) Although a property can be listed at any price, deliberately misleading a client as to the market value of the property to guarantee a listing is an ethical violation. This practice is commonly referred to as
A. over listing.
B. buying a listing
C. excessive listing
D. price fixing.
26) If a general home inspection showed a possible crack in a foundation, what should the seller do?
A. Request the general inspector to provide an opinion as to risk.
B. Contact a foundation repair company to repair the crack.
C. Ask a structural engineer to inspect and give an opinion.
D. Contact an attorney.
27) When meeting with a seller, what is one of the first questions the agent should ask?
A. What is the price you want for your property?
B. How much commission are you expecting to pay?
C. Do you currently have an exclusive listing with another broker?
D. How long do you want to list your property?
28) Where should the sellers be advised to be during showings?
A. They should stay in the home
B. They should wait in their car
C. They should greet people at the front door
D. They should leave the property
29) Which is a factor that can affect the value of a property?
A. What the seller is paying for their next home
B. What the seller paid for improvements
C. Physical features and condition of property
D. What the seller paid for the property
30) A copy of the CMA should not be given to the seller until
A. the home has been appraised.
B. there is an offer.
C. the property is listed.
D. the property closes.
31) The seller lists his home for $400,000 and the listing agent tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $39,000 and the seller accepts. In this situation,
A. any broker is authorized to encourage bidders.
B. the broker’s action was proper in obtaining a quick offer.
C. the broker violated the agency relationship.
D. the broker was unethical, but did not do anything illegal.
32) Which of the following would be a good option for the seller if a potential buyer door knocks asking the seller about the property?
A. Answer their questions and show them the property
B. Call the office and schedule an appointment
C. Take their name/s and call the listing agent
D. Ask the door knocker to call the listing agent
33) The listing agents should be prepared to _______________ at the listing presentation.
A. Have a potential buyer
B. Make a toast
C. Present gifts
D. Take measurements
34) Which disclosure is required on HUD properties?
A. Radon
B. Mold
C. Lead-based paint
D. Asbestos
35) Deliberately misleading a seller regarding the value of a property to obtain a listing is referred to as
A. buying a listing.
B. over listing.
C. net listing.
D. price fixing.
36) A home warranty can benefit
A. the buyer.
B. the seller.
C. the broker.
D. All answers are correct
37) How can a listing agent help the sellers have less anxiety when considering an offer?
A. By having them price the home significantly below the estimated value
B. By discussing contingencies that could be included in the offer
C. Telling them to accept the first offer they get
D. Reducing the commission
38) Once a property is listed, the property will be toured by licensees who have buyers that may be interested in the property, and that those licensees will not be spending a lot of time looking at the property during the tour. This is known as
A. a group viewing.
B. an office tour.
C. a bus showing.
D. an agent party.
39) Which of the following can a listing agent disclose?
A. The lowest price the seller will accept
B. The motivating factors of the seller
C. Material or latent defects
D. The terms of any previous offers or counter offers made or received by the seller
40) Which two disclosures are required for most residential properties of one to four units?
A. Mold and radon disclosures
B. Residential Real Property Disclosure and mold disclosure
C. Residential Real Property Disclosure and radon disclosure
D. Lead-based paint disclosure and radon disclosure
41) What is the listing agent’s goal?
A. To make sure the buyer’s pay the lowest price the seller is willing to accept
B. Sell the property for the best obtainable price, in the shortest time, with the least inconvenience to the seller
C. To get the most commission possible
D. To do as little work as possible while making the most money
42) If a buyer wants information regarding crime in the area, the agent should
A. provide that information.
B. refuse to provide information.
C. suggest the buyer refer to websites that provide that information.
D. recommend the buyer contact the local police or sheriff’s office for that information.
43) “Stigmatized” conditions are not material and
A. are not required to be disclosed.
B. must be disclosed.
C. must be disclosed by the licensee when asked.
D. are latent defects.
44) Since each home has an “insurance record” of its own, licensees should advise buyers to obtain a CLUE Report and
A. have the property assessed by a CLUE insurance investigator.
B. not assume the sellers’ insurance, but purchase new insurance to avoid the CLUE issue.
C. make their offer subject to receiving and approving a copy of the seller’s CLUE report.
D. purchase insurance only from a CLUE certified insurance agent.
45) Which of the following statements best describes a contemporaneous offer?
A. Two or more offers being written at the same time on the same property from the same designated agent
B. Two or more offers being written at different times on the same property from the same designated agent
C. Two or more offers being written at the same time for different properties.
D. Two or more offers being written at different times on different properties by the same designated agent.
46) Which type of buyer will most likely have the highest fear factor?
A. Relocation buyers
B. Investment buyers
C. First-time buyers
D. Down-sizing buyers
47) Is it permissible, as a buyer representative, to dispense advice to your purchaser client?
A. No. A buyer’s agent should provide assistance, not advice.
B. Yes. The buyer’s agent should dispense advice as needed on inspections and technical issues.
C. Yes. The buyer’s agent should advise the client on matters of which he/she has knowledge, and advise the client to obtain expert advice in areas in which the licensee is not an expert.
D. No. A buyer’s representative should remain neutral and simply service the transaction.
48) What technique helps you uncover what property features are most important to clients?
A. Encourage an offer
B. Invite comparisons
C. Downplay property features
D. Ask to list their present property
49) How long does a buyer have in which to initiate an action for a violation of the Residential Real Property Disclosure Act?
A. Six months
B. One year
C. Five years
D. Two years
50) In which of the following instances should a broker suggest that a buyer should consult an attorney?
A. If the buyer is requesting unusual provisions not covered in the standard contract.
B. If the buyer and seller cannot agree
C. If there is a dispute over price.
D. If the buyer wants personal property included in the sale.
51) During the walk-through, the buyer sees that the seller did not do a proper cleaning of the house. What is the best way of handling this?
A. At closing, the buyer could ask for a credit from the seller to cover the cost of cleaning.
B. The closing should be delayed until the cleaning is completed.
C. The broker should hire a cleaning crew and take it out of the commission.
D. The broker should prepare the agreement to amend the contract to cover the cost of cleaning.
52) What MUST be printed on or included with the Property Disclosure Report?
A. A copy of the Disclosure Act
B. A copy of the inspection report
C. An affidavit signed by the managing broker who has the listing
D. The seller’s contact information including phone number and email address
53) After the contract has been executed, the buyer needs to change the closing date. What should the broker do?
A. Use an amendment that has been approved by an attorney, or have the buyer ask his/her attorney to prepare an amendment requesting the change.
B. Rewrite the entire sales contract.
C. Prepare the addendum.
D. Have the buyer write an amendment.
54) When a broker is showing property that was the site of an act that had no effect on the physical condition of the property or its environment, the broker
A. is required to disclose the act.
B. is required to disclose only if asked.
C. is not required to disclose the act.
D. may not disclose the act under any circumstances.
55) How might a buyer’s agent hide the true identity of his or her client on an offer to purchase?
A. Insert the buyer’s initials on the buyer’s line.
B. Leave the buyer’s line blank.
C. Insert “TBA” on the buyer’s line.
D. Insert “and/or assigns” in the buyer’s line.
56) How will the buyer’s agent know if the letter regarding a buyer’s loan capacity is a prequalification letter or a preapproval letter?
A. The preapproval letter will state “preapproval” in bold type.
B. If the letter states that the loan approval is subject to “verification of buyer’s income and credit information,” it is a prequalifying letter.
C. If the letter states that the loan is subject to “verification of buyer’s income and credit information,” it is a preapproval letter.
D. Lenders no longer issue prequalifying letters.
57) A buyer took possession of a house on March 12. If he needs to file a suit based on a property disclosure violation, it must be filed
A. within 2 years of closing.
B. on or before December 31 of the year of closing.
C. prior to March 12 of the following year.
D. within 5 years of closing.
58) If a licensee is aware that a suicide occurred on the property within the past 12 months and fails to disclose the fact, what act has been violated?
A. Illinois Stigmatized Property Act
B. Illinois License Act
C. Illinois Real Property Disclosure Act
D. The licensee has not violated a law
59) Which of the following statements is true regarding the Residential Real Property Disclosure?
A. It is required for all new construction.
B. If the seller fails to provide the disclosure prior to the conveyance, the buyer has the right to terminate the contract.
C. The listing agent should assist the seller in completing the form.
D. If the report indicates a material defect and is received after the buyer’s acceptance of the contract, the buyer has five days in which to rescind the contract and have the earnest money returned.
60) In which of these situations is a licensee acting as a dual agent?
A. The licensee brings a buyer to see a friend’s house that is for sale.
B. The licensee’s client purchases a house the licensee listed for sale.
C. The licensee gives a flyer to a potential buyer at an open house for the licensee’s listing.
D. The licensee’s client purchases the house of a licensee’s friend.
61) When should agency disclosure take place?
A. No later than entering into an agency agreement.
B. Upon the first face-to-face meeting.
C. Before writing an offer
D. After the offer is written but before closing
62) When is undisclosed dual agency acceptable?
A. When the buyer client agrees
B. When two or more contemporaneous offers are made
C. When the buyer’s offer is greater than the listing price
D. Never. Undisclosed dual agency is a license law violation.
63) The primary advantage of using designated agency is that
A. it does not require any disclosures.
B. there are less regulations to follow so there is a smaller chance of violations.
C. the agent will earn a higher commission.
D. both buyer and seller will receive fuller, more personal representation by their designated agent.
64) A buyer is unaware of a leaking basement and proceeds to make an offer. Should the seller’s agent have told the buyer about the defect?
A. No. Caveat emptor would apply in this case.
B. No. The broker is the agent of the seller and should not mention the problem unless asked.
C. Yes. Any known defects should have been disclosed to the buyer.
D. Yes. The listing broker owes the buyer a fiduciary relationship.
65) The situation that allows the broker to appoint one or more agents for the client within the same firm, is called
A. designated agency.
B. dual agency.
C. appointed agency.
D. brokerage agency.
66) What type of agency is the assumed representation in the state of Illinois?
A. Net agency
B. Designated agency
C. Excess agency
D. Open agency
67) Obedience of the agent to the principal means what?
A. The agent may disobey those instructions in good faith if the agent feels it is necessary.
B. The agent must follow all instructions of the seller.
C. The agent must follow instructions of the seller regardless of personal feelings about them, as long as they do not violate laws.
D. The agent must follow directions in the listing agreement.
68) _________________ means a contractual relationship between a sponsoring broker and a client under Section 15-50 of this Act in which one or more licensees associated with or employed by the broker are designated as agent of the client.
A. Aggregate agency
B. Deliberate agency
C. Contractual agency
D. Designated agency
69) A designated agent is a person who is authorized by the ________________ to act as the agent of a specific principal in a transaction.
A. Firm’s attorney
B. Real estate commission
C. Managing broker
D. MLS
70) The three duties of action are
A. negotiation, selling, and marketing.
B. care, obedience, and disclosure.
C. accounting, filing, and reasoning.
D. protection, care, and strategy.
71) Broker Dan is representing Mandy as a buyer’s agent. He wants to show Mandy one of his listed properties. Which statement is true?
A. There is no reason why Dan should not show Mandy the property.
B. Dan must disclose to the seller that he also representing the buyer.
C. Dan must get the informed, written consent of both Mandy and the seller.
D. Dan cannot show Mandy his own listing.
72) When must the licensee give the seller an agency disclosure?
A. When the licensee sets up the listing appointment
B. Before the seller shares confidential information or signs the listing agreement
C. After the listing agreement is signed.
D. Before an offer is made on the seller’s property.
73) Which of the following can a dual agent disclose?
A. Lowest price the seller will accept
B. Motivating factors of either party
C. Material or latent defects
D. The terms of any prior offers or counter-offers made by either party
74) Philip is acting as an exclusive agent of David. He
A. can agree to a change in price without David’s approval.
B. may share his commission with a licensed attorney.
C. must inform David of all offers.
D. Can make a profit in addition to his commission.
75) Which of these duties is NOT owed to clients?
A. Loyalty
B. Confidentially
C. Courtesy
D. Care
76) Broker Carol ‘s buyer wants to submit a low offer. Carol should
A. suggest the buyer think about it and contact the buyer later for a decision.
B. leave the decision to the buyer.
C. show the buyer a CMA with comparable properties.
D. tell the buyer she’s wasting her time by making a low offer.
77) Which of the following is a true statement regarding property that is sold “as is”?
A. The buyer cannot request any inspections.
B. The buyer can have no contingencies in the offer.
C. The buyer is not required to be preapproved.
D. The buyer can include a request for inspections.
78) A buyer’s agent who has an exclusive buyer agency agreement must do all the following EXCEPT
A. assist the buyer in negotiating offers and counter-offers.
B. share the buyer’s maximum buying power.
C. answer the client’s questions relating to the offers, counteroffers, notices, and contingencies.
D. accept delivery of and present to the buyer offers and counteroffers.
79) Is a dual agent permitted to prepare a CMA for the buyer to assist him/her in deciding on an offer?
A. Yes. The agent should help the buyer determine an offer price.
B. No.
C. Only with permission of the seller.
D. Yes, if the agent does not include a suggested offer price.
80) A buyer made a $247,500 offer on a house. The seller changed the price to $249,000 and initialed the change. Upon delivering the contract back to the buyer, the original offer is
A. a bilateral contract.
B. an implied contract.
C. terminated.
D. a unilateral contact.
81) When presenting an offer, the buyer’s agent should
A. display the earnest money check.
B. disclose that he/she represents the buyer.
C. remain in control.
D. All answers are correct
82) The buyer wants to submit an offer that her broker feels is too low and may cause the buyer to lose the property. What should the broker do?
A. Show the buyer comparables that have a list or sale price similar to the seller’s.
B. Back off and let the buyer make the decision.
C. Suggest that the buyer think it over and make an appointment to write the offer later.
D. Tell the buyer another offer is coming in and he/she had better act quickly.
83) When negotiating, the listing agent should
A. be defensive on behalf of the seller.
B. make sure the buyer makes all the concessions.
C. stay in control and keep a cooperative attitude.
D. ask if the buyer has been prequalified.
84) Why do brokers need to provide written acceptance of offers and counter-offers as soon as possible?
A. The buyers could get buyer’s remorse.
B. The seller could receive another offer and withdraw a counter-offer.
C. License law requires it.
D. All answers are correct
85) What portion of the sales contract can be negotiated?
A. Only the sale price
B. Only the closing date
C. Any part
D. None
86) What may a dual agent do during negotiations?
A. Advise the buyer as to whether to accept a counter-offer.
B. Advise the seller as to whether to accept an offer.
C. Negotiate on behalf of the seller.
D. Remain neutral. A dual agent cannot negotiate on behalf of either party.
87) A broker has a buyer client who wants to buy a property but is concerned because the kitchen is out of date. What should the broker do?
A. Suggest that the buyer look at different houses.
B. Suggest the buyer make an offer taking into consideration the needed updates.
C. Offer to reduce the commission to help cover the cost of the update.
D. Not waste any more time on the property.
88) When the seller counters the buyer’s offer, the buyer’s offer is then
A. a bilateral offer.
B. terminated.
C. a unilateral offer.
D. an implied offer.
89) When a buyer’s agent presents the buyer’s offer, he/she should
A. disclose that he/she works for the buyer.
B. give other buyers a chance to write offers by delaying the presentation.
C. create an adversarial relationship to make sure the seller and seller’s agent know who is in control.
D. share the buyer’s motivation for moving.
90) When countering the closing date, which of the following is NOT a consideration?
A. Type of loan the buyer is obtaining
B. The broker’s vacation dates
C. Whether the property is distressed
D. Avoidance of weekends and holidays
91) A _____________ is a form of rejection that encourages the other party to keep negotiating.
A. Preapproval letter
B. Counter-offer
C. Prequalification letter
D. Contract
92) If the listing agent has been told there will be another offer coming but the buyer’s agent is not yet writing the offer, she or he may want to state,
A. “There are no other offers.”
B. “I know for a fact that there is another offer coming.”
C. “I have reason to believe another offer is forthcoming.”
D. “I cannot confirm nor deny the existence of any offers at this this time.”
93) If a buyer’s agent is aware of other offers, it is imperative that he/she
A. encourages the buyer to make their best offer.
B. writes and presents the buyer’s offer as soon as possible.
C. has the buyer preapproved prior to the offer presentation.
D. All answers are correct
94) Which of the following is a good risk management tool when the listing agent has an offer in a multiple offer situation?
A. Have the other buyers’ agents present as the seller makes a decision.
B. Have the sponsoring broker or a licensee appointed by the sponsoring broker to be present during the presentation.
C. Present the listing agent’s offer last.
D. Ensure that the seller accepts the highest offer.
95) __________________ offers shall be offers to purchase or lease on behalf of 2 or more clients represented by the same designated agent for the same real estate parcel or unit that the designated agent knows or has reason to know will be taken under consideration by the owners or owners’ representative at the same time.
A. Auspicious
B. Duplicitous
C. Illegitimate
D. Contemporaneous
96) The form for disclosing of contemporaneous offers gives the buyers the option of continuing to work with their buyer’s agent or
A. adding an escalator clause.
B. being referred to another agent.
C. terminating the listing.
D. rescinding their offer.
97) The purpose of the notice of contemporaneous offers is to
A. make buyers’ agents aware when more than one offer is being presented on a property.
B. permit the listing agent to advise buyers’ agents of multiple offers.
C. inform buyers if their agent is writing an offer for two or more buyers on the same property at the same time.
D. inform sellers that more than one offer will be presented.
98) If more than one offer was countered, the seller could end up
A. having to pay double the commission.
B. having to forfeit any proceeds.
C. selling his home to more than one buyer.
D. making twice as much money.
99) A buyer’s agent who is writing multiple offers on the same property at the same time must use
A. a carbon copy contract form.
B. a neutral arbitrator to work on the negotiation.
C. a disclosure of contemporaneous offers.
D. an attorney to present the offers.
100) The seller can accept or counter how many offers?
A. Three
B. Two
C. Unlimited
D. One
101) In a multiple offer situation, the seller’s options include
A. rejecting all offers.
B. countering no more than two offers.
C. countering all offers.
D. rejecting offers based on the seller’s nationality.
102) The listing broker should disclose the existence of multiple offers
A. any time multiple offers exist.
B. if asked by a buyer’s agent.
C. never.
D. with permission of the seller.
103) Who is responsible for an unlicensed assistant’s actions?
A. The designated managing broker
B. The office manager
C. The MLS
D. The brokerage’s attorney
104) The employment or independent contractor agreement between a broker and the sponsored licensees must include
A. meeting schedules, client lists, termination procedures, and leave policies.
B. sales thresholds, insurance requirements, and commission rates.
C. duties, supervision, compensation, duration, and termination.
D. hourly rate, vacation days, and benefits.
105) An unlicensed assistant may respond to questions by
A. providing an opinion.
B. sharing any available knowledge.
C. quoting directly from published information.
D. pleading the fourth.
106) An unlicensed assistant may
A. answer the telephone, take messages and forward calls to a licensee.
B. host open houses.
C. show property.
D. negotiate or agree to a commission.
107) IRS Form ___________ provides specific information regarding employees and independent contractors.
A. 1040
B. 1779
C. 1978
D. 8649
108) An unlicensed assistant should be
A. an independent contractor of the hiring broker.
B. a statutory non-employee.
C. an employee.
D. an independent contractor of the sponsoring broker.
109) Sponsoring brokers must have what type of employment or independent contractor agreement with all sponsored licensees?
A. Terminable
B. Notarized
C. Verbal
D. Written
110) Which of the following statements is true regarding personal assistants?
A. A licensee may pay his/her licensed assistant directly.
B. Unlicensed assistants are usually independent contractors.
C. “Personal Assistant” is a type of license issued by the Division.
D. Licensed personal assistants must have an employment or independent contractor agreement with the sponsoring broker.
111) An unlicensed assistant may
A. host an open house that is open to the public.
B. negotiate real estate contracts.
C. place “for sale” signs in a yard.
D. show property.
112) It is very difficult for an unlicensed assistant to be an independent contractor because of
A. healthcare requirements.
B. the needs of a brokerage.
C. the hours required.
D. IRS reporting requirements.
113) The License Act requires that personal assistants are trained
A. Only if they interact with members of the public
B. whether licensed or unlicensed.
C. Only if they are licensed
D. Only if they are unlicensed
114) An unlicensed assistant may NOT
A. interpret information on listings.
B. write ads for review by the licensee.
C. gather feedback on showings.
D. schedule appointments for the licensee to show listed properties.
115) If the licensee hires and pays an unlicensed assistant, who should pay the assistant’s expenses, taxes, workers’ compensation, and benefits?
A. The licensee’s clients
B. The assistant
C. The licensee
D. The sponsoring broker
116) Sponsoring brokers should have _________ addressing the use of personal assistants.
A. Prohibitions
B. No rules
C. An office policy
117) Broker bob is hiring an assistant. Which is true?
A. The assistant needs to be licensed.
B. Only unlicensed people can be assistants.
C. The assistant needs to be trained.
D. It is illegal for brokers to hire assistants.
118) An unlicensed assistant may perform what task?
A. Interpret information regarding listings
B. Host home show booths
C. Place signs on property
D. Interpret a contract
119) The designated managing broker is responsible for
A. training of licensees only.
B. training and supervision of licensees and unlicensed assistants.
C. supervision of licensees only.
D. training and supervision of licensees only.
120) ___________________ is a licensed or unlicensed person who has been hired for the purpose of aiding a sponsored licensee in the performance of the sponsored licensee’s job.
A. A career coach
B. An office manager
C. A personal assistant
D. A real estate agent
121) An unlicensed assistant can host a broker tour of property
A. with written permission from the seller.
B. only with the permission of the sponsoring broker.
C. at any time.
D. if members of the public do not attend the tour.
122) The best description of a CMA is
A. an appraisal.
B. a comparative mortgage assessment.
C. an analysis of the sale prices of similar homes, so the seller can decide on a list price.
D. a cooperative marketing approach used by multiple listing services.
123) Ideally, comparable sales should be as recent as the past
A. 3 months.
B. 9 months.
C. one year.
D. 18 months.
124) The purpose of a comparative market analysis is to
A. determine what repairs the seller needs to make.
B. estimate a home’s fair market value.
C. convince the seller to list with the licensee.
D. determine why the property hasn’t sold.
125) The purpose of the _________ is to assist the seller in pricing the property accurately.
A. FHA
B. Marketing plan
C. CMA
D. Inspection
126) What is the first step in preparing a CMA?
A. Compare the seller’s property to the comparables
B. Collect and analyze information about the seller’s property.
C. Estimate a reasonable and realistic selling
D. Choose comparable properties in the area
127) Which is a fundamental function of a listing agent?
A. Home staging
B. Performing appraisals and inspections
C. Representing buyers
D. Helping a seller set a listing price based on an estimate of a probable selling price
128) When a licensee does a comparison of the prices of similar properties that have recently sold, similar properties currently on the market, and properties that have not sold in anticipation of getting a listing, she is
A. preparing a CMA.
B. preparing a CAM (comparative analysis module).
C. preparing an appraisal.
D. preparing an ESP (estimate of sale price).
129) The main limitation for using a pending sale for a comparable is
A. there is no date of sale.
B. the selling price is too close to the present to allow for adjustment.
C. the final sale price is not known.
D. a pending sale is not competitive with active listings.
130) The most common reason that properties do not sell is
A. a listing period that was too short.
B. an inflexible seller.
C. a listing price that was too high for the market.
D. a property that needed updating.
131) Deliberately misleading a client as to the market value of the property is considered
A. an occasional necessity.
B. appropriate only for unlicensed assistants.
C. unprofessional conduct.
D. part of an unbiased appraisal.
132) The comparative market analysis is based on a ________________ approach.
A. Value
B. Traditional appraisal
C. Cost
D. Income to sales
133) Because the sale prices of the comparables are known, and the value and price of the subject are not, adjustments
A. should always be exaggerated.
B. can be made only to the subject’s price, not to the comparables.
C. always reduce the subject’s value.
D. can be made only to the comparable’s prices, not to the subject’s.
134) If the property is priced too low,
A. licensee could be accused of trade violations.
B. some of the seller’s equity in the home is lost.
C. the prices of other houses in the neighborhood will go up.
D. there may not be any buyers.
135) One of the principal factors for adjustment in a CMA or appraisal is
A. time of the sale.
B. what the owner paid for the property.
C. what the owner paid for improvements.
D. financing options.
136) A charge that would most likely be prorated between the buyer and seller is
A. title insurance.
B. attorney’s fees.
C. real estate taxes.
D. broker’s commission.
137) Statutory month variation, which is sometimes used in Illinois, takes the annual charge divided by ________ months to obtain monthly amount.
A. 3
B. 6
C. 48
D. 12
138) The transfer tax is paid
A. within 30 days after filing the deed.
B. by certified check to the recorder’s office.
C. by cashier’s check at closing.
D. before recording the deed by purchasing tax stamps from the recorder.
139) If the buyer purchased personal property from the seller, how would this amount be treated at closing?
A. Due from the buyer and due to the seller
B. Due from the seller and due to the buyer
C. Due from the seller
D. Due to the buyer
140) What method uses the actual number of days are used in each month, and the year has 365 days?
A. Banker’s
B. Statutory
C. Actual days
D. Variable days
141) A closing on a 20-unit apartment complex took place on June 15th. The seller collected the rentals for the month from all the tenants. How would the rent proration be handled at settlement?
A. Paid to the seller
B. Due from the seller
C. Paid to the buyer and due from the seller
D. Due from the buyer and paid to the seller
142) Rent of $1,200 was collected for April and the closing is April 10. How is the rent handled at closing?
A. $400 is due to the seller from the buyer
B. $800 is due to the buyer from the seller
C. $400 is due to the buyer from the seller
D. $800 is due to the seller from the buyer
143) In computing the state transfer tax
A. the value of any conveyed personal property is added to the sales price.
B. the amount of an assumed loan is added to the sales price.
C. the sales price is not adjusted for the value of any personal property or assumed loan amount.
D. the amount of any conveyed personal property or assumed loan is subtracted from the sales price.
144) In Illinois, the day of closing belongs to __________.
A. The title company
B. The seller
C. The buyer
D. The lender
145) What tax is imposed when an owner conveys interest in property?
A. Excise tax
B. Render tax
C. Real estate transfer tax
D. Settlement tax
146) The buyer’s closing costs include the
A. existing mortgage payoff.
B. transfer taxes.
C. title insurance.
D. credit report.
147) What is NOT an expense associated with the buyer/borrower’s loan?
A. Appraisal
B. Credit report
C. Earnest money
D. Lender’s title insurance policy
148) The amount of the combined state and county transfer tax is
A. $.50 per $500 (or any part of $500) of taxable consideration.
B. $.75 per $500 (or any part of $500) of taxable consideration.
C. $1.00 per $500 (or any part of $500) of taxable consideration.
D. $1.50 per $500 (or any part of $500) of taxable consideration.
149) The seller’s closing costs include the
A. interest through day of closing.
B. appraisal.
C. credit report.
D. first year’s property insurance premium.
150) The sale price is entered to the net sheets as a credit to ____________.
A. Both parties
B. The lender
C. The buyer
D. The seller
151) ___________ items are items charged to one party and received by the other.
A. Personal property
B. Sold
C. Prorated
D. Shared
152) Who pays the state and county transfer tax?
A. Buyer
B. Seller
C. Evenly divided between the buyer and seller
D. Negotiated between the buyer and seller
153) In computing the net to seller estimate
A. the closing expenses are subtracted from the purchase price.
B. the closing expenses are reduced by the existing mortgage payoff.
C. the closing expenses are added to the purchase price.
D. the closing expenses are increased by the amount of the new loan.
154) When can tenants be denied the right to have a service dog?
A. If the dog is over 50 pounds
B. Never
C. When there is a “no pet” policy
D. When someone in the building is allergic to pets
155) _______________ is inducing owners to sell by indicating that a particular protected class is moving into the area.
A. Pushing
B. Redlining
C. Blockbusting
D. Steering
156) Licensees must remember that there are three situations in which there are no exemptions to fair housing law: 1) based on race; 2) in advertising; and 3)
A. if finances are involved.
B. if the housing is considered section 8
C. if a broker is involved.
D. if an unlicensed assistant is involved.
157) A broker attempts to induce a seller to sell by telling him that Hispanics are moving into the neighborhood. The broker is guilty of
A. steering.
B. redlining.
C. blockbusting.
D. fraud.
158) Real estate offices must comply with what requirements?
A. FMLA
B. OLA
C. ADA
D. RSPL
159) As _________________ licensees have ethical as well as legal obligations to ensure that the only limit for buyers is their financial ability to purchase a property.
A. “Masters of realty”
B. “Protectors of property”
C. “Keepers of the land”
D. “Agents of appreciation”
160) Where can you obtain informational brochures regarding the ADA?
A. The Civil Rights Division of the U.S. Department of Justice
B. The Housing Division of the U.S. Treasury Department
C. The Humanity Division of the U.S. Housing Department
D. The Equality Division of the U.S. State Department
161) If a broker shows properties in neighborhoods based on matching buyers with existing owners, he/she is guilty of
A. blockbusting.
B. redlining.
C. steering.
D. channeling.
162) “Great builder’s model home, maintenance free exterior and in-ground sprinkler system. Located on Oak Grove Avenue, one block west of Immaculate Conception Church.” Which terms are considered violations in this ad?
A. Maintenance-free exterior
B. In-ground sprinkler system
C. Immaculate Conception Church
D. None
163) Under Title III of this Act, discrimination in commercial properties is prohibited. To which Act does this apply?
A. Fair Housing Act
B. American with Disabilities Act
C. Illinois Human Rights Act
D. Civil Rights Act
164) _______________ is guiding homebuyers to a particular area or away from a particular area. It does not matter whether the reason is to maintain a neighborhood as is, or to accomplish integration in an area.
A. Pushing
B. Redlining
C. Blockbusting
D. Steering
165) “Lovely home with finished basement and beautiful view of the river. Established neighborhood. New roof, furnace, and air conditioner.” Which terms are considered violations in this ad?
A. Established neighborhood
B. Beautiful view
C. Lovely home
D. None
166) Disabled tenants must be permitted to make certain alterations to rental properties, at whose expense?
A. The property manager’s
B. The owner’s
C. The ADA’s
D. The tenant’s
167) What type advertising is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin?
A. Allowable
B. Discriminatory
C. Acceptable
D. Questionable
168) The first priority of the ADA is the ________________ standard that includes installing ramps, widening entrances and providing accessible parking spaces.
A. Get to the door
B. Order of appropriation
C. Get going
D. Moving on
169) The Illinois Human Rights Act, added which protected classes?
A. Financial qualification, personality, military status, health, ancestry, sexual orientation or preference, arrest record, and age
B. Marital status, order of protection, military status, military discharge, ancestry, sex or sexual orientation, arrest record, and age
C. Relationship status, order of appearance, military status, military awards, ancestry, sex or sexual orientation, and age
D. Marital status, secondary education, military status, age of children, disease status, sexual orientation or preference, and age
170) When must a model home comply with ADA guidelines?
A. When the subdivision is larger than 25 homes
B. If the home is not a condo or cooperative
C. If the subdivision is larger than 50 homes.
D. If the model also has a sales office area.
171) Which act is a federal law designed to eliminate discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, government services, public transportation, and telecommunications?
A. FHA
B. TRID
C. ADA
D. RESPA
172) The seven federally protected classes are
A. familial status, employment, gender, age, color, religion, and national origin.
B. familial status, race, education, disability, financial means, religion, and size.
C. familial status, race, gender, class, color, tax bracket, and scientific beliefs.
D. familial status, race, gender, disability, color, religion, and national origin.
173) When can a licensee provide legal advice?
A. If they are working with a client
B. In the presence of their sponsoring broker
C. Never
D. If they are working with a customer
174) When a contract is failing, who should be contacted?
A. The president of the local real estate association
B. The sponsoring broker
C. The office administrator
D. A representative from the real estate commission
175) ______________ is critical when there is a breach of contract.
A. Accounting
B. Confidentiality
C. Patience
D. Documentation
176) Upon termination of the contract and obtaining a release signed by all the parties pertaining to the release of the earnest money, when must the sponsoring broker disburse the funds?
A. No later than 3 business days after termination
B. No later than 48 hours after termination
C. No later than 30 days of termination
D. No later than the next business day after termination
177) A breach of contract gives ______________ the right to take legal action.
A. The sponsoring broker
B. The damaged party
C. All parties
D. The MLS
178) What issues are beyond the control of the licensees?
A. Financing issues
B. Title issues
C. Inspection issues
D. Appraisal issues
179) If failure of the buyer to obtain financing is the issue, the buyer’s agent
A. tell the buyer to hire a new agent.
B. require that the listing agent reduce the commission fee.
C. will want to determine if the buyer has an option of financing with a different type of loan and different lender.
D. sue the buyer for breach of contract.
180) Breach of contract refers to
A. completion of the contract.
B. failure to perform according to the terms of the contract.
C. a contingency in the contract.
D. a title deficiency.
181) If one of the parties is refusing to close, the parties should be advised to consult their attorney. The party that is refusing to close is most likely placing himself or herself in a position of _____________.
A. Negotiation
B. Objectivity
C. Fraud
D. Liability
182) When earnest money is returned, it must be returned to
A. the Commission.
B. the listing agent.
C. the party in the transaction.
D. the person who wrote the check.
183) If a contract fails due to a problem that arises as the result of an inspection, the buyer’s agent
A. must ensure that appropriate paperwork is delivered to the seller.
B. should tell the buyer to terminate the deal.
C. has an obligation to personally correct the issue.
D. must provide all parties with three estimates for correcting the issue.
184) If there is a minor cloud on the title, such as a name change that needs clarification, it can be cleared up easily with ______________.
A. A quit claim deed
B. A quiet title action
C. A title sanitation
D. A title review
185) If one of the parties to an accepted sales contract refuses to close, the licensees should
A. advise the party that he/she must close as contracted.
B. create an addendum for both parties to sign
C. advise the parties that they may want to contact an attorney to protect their interests.
D. advise the party of the legal consequences of breaching the contract.
186) The buyer and seller could not come to an agreement regarding necessary repairs that were discovered during the inspection. They decided to terminate the contract. What does Broker Joe need before he can release the earnest money funds?
A. A signed affidavit from all parties
B. Approval from the institution where the funds are held
C. A release signed by all the parties
D. A verbal commitment from all parties
187) Buyer Jim put down a deposit in the form of a boat title worth $5,000. The boat is owned by Jim’s parents. The transaction was not completed. To whom should the boat title be returned?
A. Jim
B. Jim’s Parents
C. The Title Company
D. The agency that holds the escrow account.
188) The sponsoring broker’s master escrow account log is a list of escrow account numbers and __________________.
A. License numbers
B. Client names
C. The bank routing numbers
D. The bank locations
189) Upon receipt of the monthly reconciliation statement from the bank holding the escrow account, the sponsoring broker has ______ days in which to reconcile the statement with the journal and ledgers.
A. 3
B. 10
C. 7
D. 5
190) Earnest money is provided
A. only when there are contingencies in the contract.
B. if a buyer attends an open house
C. when there is a negotiation.
D. when the offer to purchase real estate is made.
191) The sponsoring broker who accepts earnest money and maintains the bookkeeping system must reconcile each escrow account that he maintains within
A. ten days after he receives the monthly bank statement.
B. ten days after he receives the transactions closing statement.
C. thirty days after he receives the monthly bank statement.
D. thirty days after he receives the brokerage portion of the total commission.
192) A broker’s trust account can be interest bearing
A. at any time.
B. only if required by law or if the parties direct it to be, in writing, and determine which of the parties is to receive the interest.
C. if it is stated in the office policy manual.
D. if the interest is shared with all of the sponsored licensees.
193) The broker’s ______________ indicates receipts and disbursement for each transaction.
A. Hard drive
B. Ledger
C. File system
D. Diary
194) Part of ________________ is knowing where the earnest money check is at all times and knowing when it should be deposited.
A. Loyalty
B. Obedience
C. Accounting
D. Confidentiality
195) If any dispute between the parties arises regarding the deposited escrow money, the sponsoring broker should
A. always refund the money to the first party who formally requests the return of the funds.
B. split the monies into thirds, one third to the buyers, one third to the sellers, and one third to the sponsoring broker.
C. place the monies in an escrow account titled “Contested Escrow Funds Fiduciary Account” (CEFFA) which must be non-interest bearing.
D. not release the money without a written release from both parties or both parties’ duly authorized agents (power of attorney or attorney at law).
196) Licensees must immediately give earnest money checks to their sponsoring broker who must deposit it
A. within 72 hours of contract acceptance.
B. the next business day after contract acceptance.
C. within 3 business days after contract acceptance.
D. within 3 calendar days after contract acceptance.
197) The duty to protect the client is known as _____________.
A. Ethics
B. Accounting
C. Redundancy
D. Concern
198) Records of escrow account transactions must be kept on file for _________ years.
A. 2
B. 3
C. 5
D. 7
199) Physical or virtual offices have __________________ to deliver funds to the principal office if the office does not have an escrow account.
A. 24 hours
B. One month
C. Three days before the transaction
D. Until the end of the next business day following the transaction
200) The broker’s trust account and its records are subject to inspection at any time by ________________.
A. A bank manager
B. The Department
C. Mystery shoppers
D. NAR
201) The Rules define _______________ as “all moneys, promissory notes or any other type or manner of legal tender or financial consideration deposited with any person for the mutual benefit of the parties to the transaction.”
A. Earnest money
B. Trust funds
C. Interest
D. Revenue
202) Each sponsoring broker who maintains an escrow account must keep records of all earnest money transactions and notify the ____________ of the name of the federally insured institution where the money is deposited.
A. IDFPR
B. FTC
C. FAA
D. USTD
203) The amount of the earnest money deposit is usually based on
A. the broker’s set policy.
B. the requirements of the seller.
C. the value of the property.
D. the buyer’s finances.
204) Who must provide a receipt to the payor of any cash constituting escrow funds and must retain a physical or electronic copy of the receipt?
A. The attorney
B. The title company
C. The sponsoring broker
D. The bank
205) An effective example of the sellers’ changed financial circumstances would be
A. a voluntary change from full to part-time employment.
B. unexpected or unusual medical bills.
C. over-extended credit card use.
D. having a job that has seasonal layoffs.
206) Before advertising a property as “distressed,” an agent should
A. increase the listing price to allow for the lower price that will be paid for the distressed property.
B. obtain the seller’s permission.
C. make every effort to remedy the circumstances that have financial pressure on the property owner.
D. examine the foreclosure documents for conditions that might allow the property to be sold within the “distressed” designation.
207) One characteristic of a short sale transaction is that
A. the sellers do not have to claim hardship to have a justifiable basis for a short sale transaction.
B. lenders are not permitted to consider the seller’s non-real estate assets.
C. lenders may not allow a short sale if they discover other assets the seller has concealed.
D. lenders will not consider a short sale if the loan payments are current.
208) Short sales are not intended to allow property owners to walk away from their financial obligation based on arbitrary reasons. Lenders require sellers to show proof of hardship, which include all of the following, except
A. loss of second income.
B. job loss or unexpected medical bills
C. a chronic history of seeking and exceeding higher credit limits.
D. divorce.
209) Which statement about the “cash for keys” program is TRUE?
A. Lenders pay borrowers to vacate a property without damaging it.
B. This program applies to homes in danger of foreclosure.
C. A homeowner can re-negotiate the cash payment after the offer from the lender has been accepted.
D. Cash payments vary, but are never more than $3,000.
210) Foreclosures are
A. not property.
B. legal proceedings.
C. illegal in some states.
D. a way for banks to increase their profits.
211) A _____________ is the sale of a secured real property that produces less money than what is owed to the lender.
A. Short sale
B. Fire sale
C. Foreclosure
D. FSBO sale
212) Listing at a high price initially
A. is a good strategy.
B. will allow the seller to negotiate.
C. is something that a short sales seller cannot afford to do.
D. should always be done.
213) _______________ is a legal process by which a defaulting borrower is deprived of his or her interest in the property.
A. Lien selling
B. Foreclosure
C. Short selling
D. Deed transfer
214) The bank instituted the foreclosure process on Bill’s home and informed him that they would pay a set amount of cash in exchange for the keys to the property. This is an example of what?
A. Bankruptcy
B. Short sale
C. Foreclosure
D. Cash for keys
215) An advantage to the lender with the cash for keys program is that it
A. means the bank makes more money on the sale.
B. generates more interest in the property
C. can prevent damage to the house.
D. gives the owner time to find a new place to live.
216) In a short sale the licensee represents
A. the lender.
B. the seller.
C. both the lender and the seller.
D. neither the lender nor the seller.
217) When the foreclosure process is complete and a property is sold, who keeps the proceeds?
A. The lender
B. The owner
C. The listing agent
D. The state
218) In a short sale, the lender releases the mortgage so that the property can be
A. sold at auction.
B. sold free and clear.
C. transferred to REO status.
D. claimed as a tax deduction.
219) When competition survives, who benefits?
A. The government
B. Corporations
C. No one
D. Consumers
220) Broker A and Broker B decide that Broker A will take all the listings on the west side of town and broker B will take all the listings on the east side of town. Is this acceptable?
A. Yes. This is a smart business decision for both brokers.
B. Yes. This permits both brokers to be more efficient.
C. Yes, if the arrangement is disclosed to consumers.
D. No. This is an anti-trust violation referred to as market or customer allocation.
221) _______________ is a division of markets by location or price by competing brokerage companies.
A. Steering
B. Redlining
C. Customer allocation
D. Market collusion
222) Which is an agreement to sell one product or service only if the purchaser agrees to purchase another product or service?
A. A tying agreement
B. A pact
C. A bipartisan agreement
D. A collaborative agreement
223) What drives businesses to provide better services or products and to cut prices?
A. Embargos
B. Trade laws
C. Competition
D. Ethics
224) If a licensee is present when a discussion is commenced that is a violation of anti-trust laws, which statement should the licensee make?
A. “I’m sorry, but I have to leave.”
B. “I want everyone here to know that I am leaving and will not participate in this conversation.”
C. “For personal reasons, I can no longer be present.”
D. The licensee should leave without saying anything.
225) __________________ occurs when two or more brokerage companies decide together to refrain from doing business with a competitor or service provider, or agree together to treat that entity less favorably.
A. Group boycotting
B. Market allocation
C. Price fixing
D. Competition
226) Anti-trust laws are designed to protect ___________________.
A. Real estate agents
B. Investors
C. Competition
D. Financial institutions
227) “If both our companies refuse to advertise in the Dispatch, the paper will have to reduce its rates.” This is an example of
A. a legally acceptable statement.
B. blockbusting or panic pedaling.
C. steering.
D. market or customer allocation.
228) Which of the following statements violates antitrust laws?
A. “I think you’ll find that we offer excellent service for the fee we charge.”
B. “Our company charges 6%.”
C. “Commission rates are negotiable between the broker and seller.”
D. “The standard commission rate in our area is 5%.”
229) “If you list your home with our company, you are required to purchase a home warranty through ABC Home Warranty Company.” This is an example of
A. redlining.
B. a rider.
C. a tying arrangement.
D. a statement that does not violate anti-trust laws.
230) “Let’s not do business with ABC Realty because their commission rates are too low” is an example of
A. price-fixing.
B. a tying arrangement.
C. boycotting.
D. steering.
231) Violations of the Sherman Anti-Trust Act can include prison terms of up to _______ years and maximum fines of $100 million for corporations and $1 million for individuals.
A. 5
B. 10
C. 25
D. 50
232) What can a broker do to make sure sponsored licensees are familiar with anti-trade laws?
A. Require that licensees take annual continuing education course on anti-trade regulations
B. Mandate weekly tests on anti-trade laws
C. Nothing, it is not the broker’s responsibility to educate licensees
D. Review them at sales meetings
233) A developer agrees to sell a builder a lot, but conditions the sale by insisting that the builder list the property with him after the home is built. What is this called?
A. Market allocation
B. Price fixing
C. Coercion
D. Tie-in arrangement.
234) _____________ violations require no further inquiry into the actual effect of the practice or the intention of those who engaged in the practice.
A. Banner
B. Redaction
C. Faux pas
D. Per se
235) If all the members of a Board of REALTORS agree that they will not show properties of the members of another Board of REALTORS, this would be an example of
A. group boycotting.
B. price fixing.
C. coercion.
D. market allocation.
236) _______________ occurs when two or more brokerages set commission rates, commission splits with other companies, or commission splits with affiliated licensees.
A. Market allocation
B. Price fixing
C. Tie-ins
D. Boycotting
237) The commission rate a firm charges should be based
A. deals with builders.
B. agreements with other brokerage companies.
C. on the cost of the services provided and value of those services to the consumer.
D. suggestions from other brokerage companies.
238) The Illinois Radon Awareness Act requires sellers to provide buyers with a pamphlet entitled _____________________________.
A. Radon – the Invisible Killer
B. Radon Testing Guidelines for Real Estate Transactions
C. Radon and Your Family – What You Need to Know
D. The Dangers of Radon
239) Who provides guidelines for the removal of mold?
A. EPA
B. FHA
C. HUD
D. FCC
240) In Illinois, mold disclosure forms are available through __________________.
A. Local EPA offices
B. REALTOR associations
C. Homeowners associations
D. Local hardware stores
241) When was lead first banned in the manufacture of paint used in residential properties?
A. 1978
B. 1986
C. 1992
D. 1996
242) The use of lead in paint was banned in what year?
A. 1928
B. 1978
C. 2001
D. 1999
243) Which would be exempt from the radon disclosure requirement?
A. Units that are on the third floor
B. Units at ground level
C. Homes built prior to 1996
D. New construction
244) The sale of all HUD properties must
A. include a clean air disclosure.
B. have a perc certification
C. be tested for radon.
D. include a mold disclosure.
245) Mold growth can occur because of _____________ in a basement.
A. Low humidity
B. High temperatures
C. Water
D. Low temperatures
246) The seller is not required to test for lead but must allow the buyer ________ for lead inspection.
A. 1 week
B. 1 month
C. 24 hours
D. 10 days
247) Additional information on mold is provided in the __________________.
A. Illinois REALTOR association
B. Illinois Department of Public Health
C. US Department of Justice
D. US Secretary of State
248) A property is exempt from lead disclosure requirements if
A. it has been certified by an inspector.
B. it is a rental property.
C. it has no separate bedrooms.
D. it is occupied by fewer than five people
249) Inspections are included in sales contracts as _______________.
Options
Contingencies
Amendments
Addenda
250) If a home was built before 1978, the licensee must give lessees a copy of the EPA-HUD-US Consumer Product Safety Commission booklet titled _____________________.
A. The Lead Abatement Plan for Housing
B. Building Guidelines for Homes with Lead Paint
C. How Lead Can Harm Your Family
D. Protect Your Family from Lead in Your Home
251) Which of the following is an exemption to the radon disclosure requirement?
A. For sale by owner property
B. Units on the third floor or higher above ground level
C. New construction
D. Condominiums
252) When can a home inspector advise a client as to whether the client should or should not engage in a transaction?
A. If the issue is electrical
B. If the issue could cost over $1,000 for repair
C. Never
D. If there is an issue with the roof
253) Once the contingency is met, removal of the contingency should be accomplished ______________.
A. In a notarized document
B. Over the phone
C. In writing
D. In person
254) A buyer who is purchasing land on which to build that is not on a city or county sewer system would need to have a ______________.
A. Radon test
B. Lead test
C. Perc test
D. Mold test
255) A perc test is for the purpose of
A. determining the air flow in the home.
B. determining the moisture level in the home.
C. determining if high levels of radon exist.
D. determining the absorption rate of soil.
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