Free Illinois Real Estate Salesperson Exam Practice Test

Sample Illinois Real Estate practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Commission Disputes and Procuring Cause

   A seller lists their property with Broker A. Two weeks later, the seller enters into a dual agency agreement with Broker B, who represents the buyer. The seller then decides to terminate the listing agreement with Broker A and list with Broker B. What is the most accurate legal and ethical consequence regarding Broker A's commission?

   • A.Broker A is entitled to a commission if they can prove they were the procuring cause of the sale, despite the dual agency arrangement.(Correct)
   • B.Broker A is entitled to the full commission as per the original listing agreement, as the termination was unilateral.
   • C.Broker A is entitled to no commission, as the seller's decision to list with Broker B supersedes the prior agreement.
   • D.Broker A is entitled to a pro-rata share of the commission based on the time the property was listed, plus expenses incurred.

   Explanation

   In Illinois, a broker is typically entitled to a commission if they are the procuring cause of the sale. Even though the seller terminated the listing with Broker A, if Broker A can demonstrate that their efforts directly led to the buyer's interest and the eventual sale, they may still be entitled to a commission, subject to the terms of the listing agreement and Illinois law regarding procuring cause. Dual agency itself does not automatically void Broker A's claim if they were the procuring cause.

2. Question 2Disclosure and Fiduciary Duties

   A buyer's agent in Illinois discovers a material defect in the property during a pre-closing inspection that was not disclosed by the seller. The seller refuses to make repairs or offer a credit. The buyer wants to proceed with the purchase but is concerned about future liability. What is the agent's primary ethical and legal obligation?

   • A.Inform the seller's agent and document the defect, then advise the buyer on their options, including renegotiation or legal counsel.(Correct)
   • B.Proceed with closing, as the buyer has already agreed to purchase the property 'as-is'.
   • C.Contact the Illinois Department of Financial and Professional Regulation (IDFPR) to mediate the dispute.
   • D.Advise the buyer to withdraw from the contract to avoid future issues.

   Explanation

   The agent's primary duty is to their client, the buyer. They must disclose all known material facts and advise the buyer on their options. This includes informing the seller's agent of the defect, documenting it, and counseling the buyer on potential actions like renegotiating the price, requesting a credit, or seeking legal advice.

3. Question 3Landlord-Tenant Law and Security Deposits

   An Illinois real estate broker is managing a rental property. The tenant pays a security deposit of $2,500. The lease term is 18 months. According to Illinois law, what is the maximum amount of interest the landlord (or broker on their behalf) must pay on this security deposit annually, and how must it be handled?

   • A.No interest is required, as the deposit is less than $5,000.
   • B.5% simple interest per annum, paid annually or at the end of the tenancy.
   • C.The rate determined by the Illinois Attorney General, paid annually.(Correct)
   • D.3% simple interest per annum, paid annually or at the end of the tenancy.

   Explanation

   Illinois law requires landlords to pay interest on security deposits held for more than six months. The interest rate is set annually by the Illinois Attorney General. For deposits of $5,000 or more, interest must be paid annually. For deposits less than $5,000, interest can be paid at the end of the tenancy. The rate is tied to the average interest paid on minimum reserve requirements for trusts by the largest commercial bank in Illinois.

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