IREB - Illinois Real Estate Broker Examination

Question 1: An Illinois seller of a Naperville single-family residence prepares to complete the disclosure report required by state law. The seller wonders which categories of property fall within the scope of the Illinois Residential Real Property Disclosure Act. Which of the following BEST identifies the Act's coverage?

Residential property of one to four dwelling units including condos

Commercial buildings of any size or age

Vacant agricultural land and farmland

Stock cooperatives in metropolitan areas only

Question 2: A seller in Bridgeport completes the Illinois Residential Real Property Disclosure Report. The seller indicates no knowledge of basement flooding. After closing, the buyer discovers documented evidence the seller knew of recurring flooding for years. Which of the following BEST describes the buyer's remedies?

Automatic rescission with full refund of purchase price

Punitive damages of three times the purchase price

Five hundred dollar statutory penalty plus actual damages and attorney fees

Criminal prosecution by IDFPR for false statements

Question 3: A buyer signs a purchase contract in Lincoln Park for a residential property. The seller has not yet delivered the Illinois Residential Real Property Disclosure Report at the time of signing. The seller later delivers the disclosure after contract execution. Which of the following BEST describes the buyer's options?

Six months to terminate without cause

Thirty days to file complaint with IDFPR

No remedy because contract is binding

Three business days to terminate by written notice

Question 4: A lender-owned (REO) property in Aurora is being sold by the lender following foreclosure. The lender never occupied the property and has limited knowledge of its condition. Which of the following BEST describes the application of the Illinois Residential Real Property Disclosure Act to this sale?

Lender must complete the full disclosure report

Lender is exempt from the Disclosure Act

Lender must submit additional disclosure forms

Lender must pay for buyer's home inspection

Question 5: A seller in Rogers Park transfers a residential property to her adult daughter as a gift. The transfer occurs without consideration and within the family. Which of the following BEST describes the application of the Illinois Residential Real Property Disclosure Act to this transfer?

Family transfer exempt from the Disclosure Act

Disclosure report required because property is residential

Reduced disclosure form required for family transfers

Disclosure required only if disclosure is requested

Question 6: Under 225 ILCS 454/1-10, Illinois defines a material defect using a three-prong test for what constitutes a condition requiring disclosure. Which of the following BEST identifies a recognized prong in the material defect definition?

Aesthetic preference of the future buyer

Substantial adverse effect on the property's value

Personal sentimental value of the seller

Marketing photographs taken by the listing agent

Question 7: A licensee shows a Wicker Park residential property and notices visible water staining on the basement ceiling and cracks in the foundation visible to anyone walking through the space. Which of the following BEST characterizes this type of defect?

Trade fixture removable by the seller

Latent defect hidden from ordinary observation

Stigmatized property condition disclosed by statute

Patent defect observable on reasonable inspection

Question 8: A licensee representing a seller in Pilsen learns from the seller that the roof leaks during heavy rain but has not been repaired. The seller instructs the licensee not to mention the leak to potential buyers. Which of the following BEST describes the licensee's duty?

Follow seller's instruction as fiduciary obedience

Disclose only if a buyer directly asks

Independent duty to disclose under 225 ILCS 454/15-35

Refer the question to the listing manager

Question 9: A purchase contract in Chicago includes "as-is" language stating the buyer accepts the property in its present condition without warranties from the seller. The seller knows of a serious foundation problem but does not disclose it. Which of the following BEST describes the legal effect of the "as-is" clause?

Bars all claims including those based on fraud

Does not waive statutory disclosure obligations

Eliminates buyer's right to home inspection

Permits seller to conceal any property condition

Question 10: A licensee in Naperville observes minor cosmetic wear on a property such as scuffed paint and worn carpet. The wear is purely cosmetic and would not affect value, safety, or the property's structural life. Which of the following BEST describes the licensee's disclosure obligation?

Detailed disclosure required for all cosmetic items

Licensee must hire contractor before any showing

Disclosure required only if buyer asks specifically

Cosmetic items typically not material defects requiring disclosure

Question 11: A buyer asks a licensee in Hyde Park whether anyone has died in the property. The licensee knows that the previous owner died of natural causes inside the home. Which of the following BEST describes the licensee's appropriate response under Illinois law?

Confirm the death and provide all details

State definitively that no one has ever died there

Decline to disclose; refer the question to the seller

Disclose only if buyer signs a waiver first

Question 12: A buyer asks the listing licensee whether the previous occupant had HIV. The licensee knows the prior tenant lived with HIV but did not die in the property. Which of the following BEST describes the disclosure rule under federal and Illinois law?

Prohibited because HIV is a federally protected disability

Permitted to disclose at the licensee's discretion

Required to disclose to protect the buyer's health

Required only for transactions involving children

Question 13: A buyer asks a licensee in Schaumburg whether any registered sex offenders live in the immediate neighborhood. The licensee has not investigated this question. Which of the following BEST describes the licensee's proper response under Illinois law?

Research and disclose all registered offenders in the area

Affirmatively state no sex offenders live nearby

Refuse to discuss any neighborhood topic

Refer the buyer to the Illinois State Police public registry

Question 14: A residential property in Pilsen was the site of a non-violent crime ten years ago, with no physical impact on the structure. The current seller has owned the property for five years. Which of the following BEST describes the licensee's disclosure obligation regarding the crime?

Required disclosure because crimes are always material

Required disclosure only if buyer asks directly

Not material under 225 ILCS 454/15-25(c)

Required disclosure only for violent crimes

Question 15: A property in Lincoln Park is rumored to be haunted by ghosts of former occupants. Local lore generates significant attention. The licensee is asked whether the property has any paranormal history. Which of the following BEST describes the licensee's disclosure obligation?

Not material because paranormal events do not affect physical structure

Required disclosure only with documentary evidence

Required disclosure because paranormal claims affect value

Required disclosure under federal stigma statutes

Question 16: An Illinois seller of a single-family residence prepares to sign a purchase contract with a buyer. Before the buyer becomes obligated, the seller must comply with the Illinois Radon Awareness Act. Which of the following BEST identifies what the Act requires the seller to deliver?

Certified radon test results below action level

An installed radon mitigation system before closing

EPA-certified contractor verification of testing

Illinois disclosure form and IEMA pamphlet on radon hazards

Question 17: A seller markets a single-family residence in Chicago that was built in 1965. The buyer is a young family with two small children. Which of the following BEST describes the federal lead-based paint disclosure requirements that apply?

Federal lead testing certification by EPA-certified laboratory

EPA pamphlet, known LBP disclosure, and ten-day inspection opportunity

Mandatory mitigation of all lead-based paint before closing

Disclosure only if visible peeling or chipping paint exists

Question 18: Under the Illinois Methamphetamine Contaminated Property Cleanup Act, certain properties contaminated by methamphetamine production must be addressed. Which of the following BEST describes the disclosure obligation regarding methamphetamine contamination on the Residential Real Property Disclosure Report?

Disclosure is voluntary at the seller's discretion

Disclosure required only after EPA certification of contamination

Specific question on the Disclosure Report addresses meth

Disclosure required only in counties with active testing

Question 19: Under the Illinois Smoke Detector Act as amended effective January 1, 2023, certain residential dwellings require smoke detector technology meeting specific standards. Which of the following BEST identifies the technology standard for new installations in one-to-two-unit dwellings?

Ten-year sealed batteries or hardwired

Standard replaceable nine-volt batteries

Battery-only with annual replacement reminder

Optional carbon monoxide combined units only

Question 20: Asbestos was commonly used in residential construction before 1980 and may be present in older homes. A seller of a Chicago bungalow built in 1955 knows that some pipe insulation contains asbestos. Which of the following BEST describes the seller's disclosure obligation regarding the asbestos?

No disclosure obligation for pre-1980 housing

Voluntary disclosure based on seller's discretion

Disclosure only after professional asbestos testing

Required disclosure on the Disclosure Report

IREB Illinois Real Estate Broker Examination - Set 4 - Part 1